Cost of goods sold budget for the month of april 20xx

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Cost of Goods Sold Budget For the Month of April, 20xx Beginning finished goods inventory, April, 1 ($1,500 + $5,580) $ 7,080 Direct materials used (requirement 3) $16,745 Direct manufacturing labor (requirement 4) 29,850 Manufacturing overhead (requirement 5) 59,265 Cost of goods manufactured 105,860 Cost of goods available for sale 112,940 Deduct: Ending finished goods inventory, April 30 (reqmt. 6) 6,379 Cost of goods sold $106,561 8. Nonmanufacturing Costs Budget For the Month of April, 20xx Salaries ($36,000 ÷ 2 1.05) $18,900 Other fixed costs ($36,000 ÷ 2) 18,000 Sales commissions ($155,000 1%) 1,550 Total nonmanufacturing costs $38,450 9. Budgeted Income Statement For the Month of April, 20xx Revenues $155,000 Cost of goods sold 106,561 Gross margin 48,439 Operating (nonmanufacturing) costs 38,450 Operating income $ 9,989 6-24
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6.34 (25 min.) (Continuation of 6-33) Cash budget (Appendix) Cash Budget April 30, 20xx Cash balance, April 1, 20xx $ 5,360 Add receipts Cash sales ($155,000 × 10%) 15,500 Credit card sales ($155,000 × 90% × 97%) 135,315 Total cash available for needs ( x ) $156,175 Deduct cash disbursements Direct materials ($8,500 + $17,300 × 50%) $ 17,150 Direct manufacturing labor 29,850 Manufacturing overhead ($59,265 ─ $20,000 depreciation) 39,265 Nonmanufacturing salaries 18,900 Sales commissions 1,550 Other nonmanufacturing fixed costs ($18,000 ─ $10,000 deprn) 8,000 Machinery purchase 13,700 Income taxes 5,000 Total disbursements ( y ) $133,415 Financing Repayment of loan $ 2,000 Interest at 12% ($2,000 12% 1 12 ) 20 Total effects of financing ( z ) $ 2,020 Ending cash balance, April 30 ( x ) ─ ( y ) ─ ( z ) $ 20,740 6-25
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6-35 (60 min.) Comprehensive operating budget, budgeted balance sheet. 1. Schedule 1: Revenues Budget for the Year Ended December 31, 2010 Units Selling Price Total Revenues Snowboards 1,000 $450 $450,000 2. Schedule 2: Production Budget (in Units) for the Year Ended December 31, 2010 Snowboards Budgeted unit sales (Schedule 1) 1,000 Add target ending finished goods inventory 200 Total requirements 1,200 Deduct beginning finished goods inventory 100 Units to be produced 1,100 3. Schedule 3A: Direct Materials Usage Budget for the Year Ended December 31, 2010 Wood Fiberglass Total Physical Units Budget Wood: 1,100 × 5.00 b.f. 5,500 Fiberglass: 1,100 × 6.00 yards 6,600 To be used in production 5,500 6,600 Cost Budget Available from beginning inventory Wood: 2,000 b.f. × $28.00 $ 56,000 Fiberglass: 1,000 b.f. × $4.80 $ 4,800 To be used from purchases this period Wood: (5,500 – 2,000) × $30.00 105,000 Fiberglass: (6,600 – 1,000) × $5.00 28,000 Total cost of direct materials to be used $161,000 $32,800 $193,800 Schedule 3B: Direct Materials Purchases Budget for the Year Ended December 31, 2010 Wood Fiberglass Total Physical Units Budget Production usage (from Schedule 3A) 5,500 6,600 Add target ending inventory 1,500 2,000 Total requirements 7,000 8,600 Deduct beginning inventory 2,000 1,000 Purchases 5,000 7,600 Cost Budget Wood: 5,000 × $30.00 $150,000 Fiberglass: 7,600 × $5.00) $38,000 Purchases $150,000 $38,000 $188,000 6-26
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4. Schedule 4: Direct Manufacturing Labor Budget for the Year Ended December 31, 2010 Labor Category Cost Driver Units DML Hours per Driver Unit Total Hours Wage Rate Total Manufacturing labor 1,100 5.00 5,500 $25.00 $137,500 5. Schedule 5: Manufacturing Overhead Budget for the Year Ended December 31, 2010 At Budgeted Level of 5,500 Direct Manufacturing Labor-Hours Variable manufacturing overhead costs ($7.00 × 5,500) $ 38,500 Fixed manufacturing overhead costs 66,000 Total manufacturing overhead costs $104,500 6. Budgeted manufacturing overhead rate: 5,500 $104,500 = $19.00 per hour 7.
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