70.2K

Verified Solution

Link Copied!

Prepare the direct materials budget for the year. Bonita Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants have provided the following data:

	Product LN 35			Product LN 40
Sales budget
Expected volume in units		399,000		239,000
Unit selling price		$30		$34
Production budget
Desired ending finished good units		27,000		21,000
Beginning finished goods units		21,000		14,000
Direct materials budget:
Direct materials per unit (kilograms)		2		3
Desired kilograms of ending direct materials		52,000		17,000
Beginning kilograms of direct materials		38,000		11,000
Cost per kilogram		$2		$3
Direct labour budget
Direct labour time per unit (hours)		0.50		0.70
Direct labour rate per hour		$12		$12
Budgeted income statement
Total unit cost		$11		$20

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expenses budget. The latter shows selling expenses of $852,000 for product LN 35 and $392,000 for product LN 40, and administrative expenses of $520,000 for product LN 35 and $181,000 for product LN 40. Income taxes are expected to be 30%.

BONITA INC. Direct Materials Budget For the Year Ending December 31, 2022
		LN 35		LN 40		Total
select an opening direct materials budget item Beginning inventoryDesired ending inventoryTotal required for productionTotal cost of materials purchasesTotal materials requiredDirect materials purchasesUnits to be producedCost per kilogramDirect materials per unit		enter a number of units		enter a number of units
select an item Desired ending inventoryCost per kilogramTotal required for productionTotal cost of materials purchasesTotal materials requiredUnits to be producedDirect materials purchasesDirect materials per unitBeginning inventory		enter a number of kilograms		enter a number of kilograms
select a summarizing line for the first part Direct materials purchasesUnits to be producedDesired ending inventoryCost per kilogramTotal materials requiredTotal required for productionDirect materials per unitBeginning inventoryTotal cost of materials purchases		enter a total number of kilograms for the first part		enter a total number of kilograms for the first part
select between addition and deduction AddLess: select an item Direct materials per unitTotal materials requiredBeginning inventoryTotal cost of materials purchasesTotal required for productionDesired ending inventoryCost per kilogramUnits to be producedDirect materials purchases		enter a number of kilograms		enter a number of kilograms
select a summarizing line for the second part Units to be producedTotal required for productionDirect materials per unitDesired ending inventoryDirect materials purchasesBeginning inventoryCost per kilogramTotal materials requiredTotal cost of materials purchases		enter a total number of kilograms for the second part		enter a total number of kilograms for the second part
select between addition and deduction AddLess: select an item Total materials requiredBeginning inventoryCost per kilogramTotal cost of materials purchasesUnits to be producedDesired ending inventoryDirect materials purchasesTotal required for productionDirect materials per unit		enter a number of kilograms		enter a number of kilograms
select a summarizing line for the third part Total materials requiredUnits to be producedDirect materials per unitTotal cost of materials purchasesCost per kilogramDirect materials purchasesDesired ending inventoryTotal required for productionBeginning inventory		enter a total number of kilograms for the third part		enter a total number of kilograms for the third part
select an item Cost per kilogramTotal required for productionTotal materials requiredDirect materials per unitDesired ending inventoryBeginning inventoryUnits to be producedDirect materials purchasesTotal cost of materials purchases		$enter a dollar amount		$enter a dollar amount
select a closing direct materials budget item Units to be producedTotal required for productionDirect materials purchasesDirect materials per unitTotal materials requiredBeginning inventoryTotal cost of materials purchasesDesired ending inventoryCost per kilogram		$enter a total dollar amount		$enter a total dollar amount		$enter a total dollar amount

Answer & Explanation Solved by verified expert

See Answer