FINC 577 Chapter 9 Notes Outline

Chapter 9 44 example example 2 sales budget data for

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Unformatted text preview: le 2 Sales budget data for Mussatto Company are given in Example 1. Management desires to have an ending finished goods inventory equal to 20% of the next quarter’s expected unit sales. Prepare a production budget by quarters for the first 6 months of 2011. Chapter 9-45 Example 3 Hannon Company has 1,600 pounds of raw materials in its December 31, 2011, ending materials inventory. Required production for January and February of 2012 are 4,000 and 5,500 units, respectively. Two pounds of raw materials are needed for each unit, and the estimated cost per pound is $6. Management desires an ending inventory equal to 20% of next month’s material requ requirements. Prepare the direct materials di budget budget for January. Chapter 9-46 Example Example 3 Chapter 9-47 Example 4 For Cobb Company, units to be produced are 5,000 in quarter 1 and 6,000 in quarter 2. It takes 1.5 hours to make a finished unit, and the expected hourly Prepare hourly wage rate is $14 per hour. Prepare a direct labor labor budget by quarters for the 6 months ending June 30, 2011. Chapter 9-48 Example Example 5 For Eckert Inc., variable manufacturing overhead costs are expected to be $20,000 in the first quarter of 2011, with $4,000 increments in each of the remaining th s Fix sts stim three quarters. Fixed overhead costs are estimated to be $35,000 $35,000 in each quarter. Prepare the manufacturing over...
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This document was uploaded on 01/19/2014.

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