Budgeted manufacturing overhead cost per output unit

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Budgeted manufacturing overhead cost per output unit: 1,100 $104,500 = $95.00 per output unit 8. Schedule 6A: Computation of Unit Costs of Manufacturing Finished Goods in 2010 Cost per Unit of Input a Inputs b Total Direct materials Wood $30.00 5.00 $150.00 Fiberglass 5.00 6.00 30.00 Direct manufacturing labor 25.00 5.00 125.00 Total manufacturing overhead 95.00 $400.00 a cost is per board foot, yard or per hour b inputs is the amount of each input per board 9. Schedule 6B: Ending Inventories Budget, December 31, 2010 Cost per Units Unit Total Direct materials Wood 1,500 $ 30.00 $ 45,000 Fiberglass 2,000 5.00 10,000 Finished goods Snowboards 200 400.00 80,000 Total Ending Inventory $135,000 6-27
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10. Schedule 7: Cost of Goods Sold Budget for the Year Ended December 31, 2010 From Schedule Total Beginning finished goods inventory January 1, 2010, $374.80 × 100 Given $ 37,480 Direct materials used 3A $193,800 Direct manufacturing labor 4 137,500 Manufacturing overhead 5 104,500 Cost of goods manufactured 435,800 Cost of goods available for sale 473,280 Deduct ending finished goods inventory, December 31, 2010 6B 80,000 Cost of goods sold $393,280 11. Budgeted Income Statement for Slopes for the Year Ended December 31, 2010 Revenues Schedule 1 $450,000 Cost of goods sold Schedule 7 393,280 Gross margin 56,720 Operating costs Variable marketing costs ($250 × 30) $ 7,500 Fixed nonmanufacturing costs 30,000 37,500 Operating income $ 19,220 12. Budgeted Balance Sheet for Slopes as of December 31, 2010 Cash $ 10,000 Inventory Schedule 6B 135,000 Property, plant, and equipment (net) 850,000 Total assets $995,000 Current liabilities $ 17,000 Long-term liabilities 178,000 Stockholders’ equity 800,000 Total liabilities and stockholders’ equity $995,000 6-28
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6-36 (30 min.) Cash budgeting, chapter appendix. 1. Projected Sales May June July August September October Sales in units 80 120 200 100 60 40 Revenues (Sales in units × $450) $36,000 $54,000 $90,000 $45,000 $27,000 Collections of Receivables May June July August September October From sales in: May (30% $36,000) $10,800 June (50%; 30% $54,000) 27,000 $16,200 July (20%; 50%; 30% $90,000) 18,000 45,000 $ 27,000 August (20%; 50% $45,000) 9,000 22,500 September (20% $27,000) 5,400 Total $55,800 $70,200 $54,900 Calculation of Payables May June July August September October Material and Labor Use, Units Budgeted production 200 100 60 40 Direct materials Wood (board feet) 1,000 500 300 200 Fiberglass (yards) 1,200 600 360 240 Direct manuf. labor (hours) 1,000 500 300 200 Disbursement of Payments Direct materials Wood (1,000; 500; 300 $30) $30,000 $15,000 $9,000 Fiberglass (1,200; 600; 360 $5) 6,000 3,000 1,800 Direct manuf. labor (500; 300; 200 $25) 12,500 7,500 5,000 Interest payment (6% $30,000 ÷12) 150 150 150 Variable Overhead Calculation Variable overhead rate $ 7 $ 7 $ 7 Overhead driver (direct manuf. labor-hours) 500 300 200 Variable overhead expense $ 3,500 $ 2,100 $1,400 6-29
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Cash Budget for the months of July, August, September 2007 July August September Beginning cash balance $10,000 $ 5,650 $40,100 Add receipts: Collection of receivables 55,800 70,200 54,900 Total cash available $65,800 $75,850 $95,000 Deduct disbursements: Material purchases $36,000 $18,000 $10,800 Direct manufacturing labor 12,500 7,500 5,000 Variable costs 3,500 2,100 1,400 Fixed costs 8,000 8,000 8,000 Interest payments 150 150 150 Total disbursements 60,150 35,750 25,350 Ending cash balance $ 5,650 $40,100 $69,650 2. Yes. Slopes has a budgeted cash balance of $69,650 on 10/1/2010 and so it will be in a position to pay off the $30,000 1-year note on October 1, 2010.
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