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Problem 40 mangerial accounting ? (finished 39 for 40)

Clipboard Font Alignment Number : X 12000 27 A B C | G H I J K L M N ( P | 4 PROBLEMS (continued) 39. Budgeting for Sales, Production, Direct Materials, Direct Labor, and Manufacturing Overhead a. Sales budget Sports Bars, Inc. Sales Budget Year Ending December 31 Quarter 1 2 Projected sales in units 80,000 84.000 88.000 Sales price per unit $25 x 25 x $25 Sales revenue $2,000,000 $2,100,000 $2,100,000 Year 349.000 97,000 x $25 $2,425,000 $8,725,000 b. Production budget Sports Bars, Inc. Production Budget Year Ending December 31 Quarter 97,000 Sales in units (from sales budget) Add desired ending finished goods inventory Total finished goods inventory needed Deduct beginning finished goods inventory Units to be produced 80,000 12.600 92.600 84.000 13,200 97,200 13.000 88.000 14.550 102.550 13,200 Year 349,000 13,000 362,000 12.000 350,000 12.000 110.000 14,550 95.450 12.600 80.600 84.600 99 350 : x fe 026 E F G H I J K L N o. M 2 PROBLEMS (continued) 4 39. Budgeting for Sales, Production, Direct Materials, Direct Labor, and Manufacturing Overhead (continued) c. Direct materials purchases budget Sports Bars, Inc. Direct Materials Purchases Budget Year Ending December 31 Quarter 2 Year 350,000 80,600 84,600 89 350 95,450 5 43 000 446.750 44.675 47.725 Units to be produced (from production budget) Materials required per unit (pounds) Materials needed in production Add desired ending inventory Materials needed in inventory Deduct beginning inventory Direct materials to be purchased (pounds) Cost of materials per pound Cost of materials to be purchased Direct materials cost per unit 403,000 42 300 445.300 40.300 405,000 494 475 477,250 43,000 520,250 47,725 472525 44.675 1,750,000 43,000 1,793,000 40,300 1,752,700 $3 $5,258,100 440.800 33 $1.215.000 $1.276,125 $1.149.400 $1.417 575 Paste - BIU- - Merge & Center - $ - % Format Painter Clipboard 808 Conditional Format as Check Formatting - Table Font Alignment Number : x x 621 A B C E F G H I J K L M N O P. 4 2 PROBLEMS (continued) 39. Budgeting for Sales, Production, Direct Materials, Direct Labor, and Manufacturing Overhead (continued) d. Direct labor budget Sports Bars, Inc. Direct Labor Budget Year Ending December 31 Quarter 30,600 X Year 350.000 0.1 Units to be produced (from production budget) Direct labor hours per unit Total direct labor hours needed in production Labor rate per hour Total direct labor cost Direct labor cost per unit 8,060 89,350 0.1 8,935 14 84.600 X 1 8,460 $141 $118.440 35.000 $14 $490.000 $112.8.10 $125.090 $133.650 $140 T26 z x for 2 D C A E B F G H J K L M N O P R Q S T 4 Year 350,000 2 PROBLEMS (continued) 39. Budgeting for Sales, Production, Direct Materials, Direct Labor, and Manufacturing Overhead (continued) e. Manufacturing overhead budget Sports Bars, Inc. Manufacturing Overhead Budget Year Ending December 31 Quarter 2 Units to be produced (from production budget) 80,600 8 4,600 8 9,350 95,450 Variable overhead costs: Indirect materials ( $0.20 per unit) $ 16.120 $ 16.020 $ 17.870 $ 9,090 Indirect labor ($0.15 per unit) 12,090 12.690 13.403 14,318 Other ($0.10 per unit) 18,060 8,460 8,935 9.545 Total variable overhead costs $ 36,970 $ 38,070 40.208 $ 42,953 Foed overhead costs: Salaries $ 80,000 $ 80.000 $ 80.000 $ 80,000 Other 70.000 70,000 70,000 Depreciation 55,265 55,625 Total faxed overhead costs $205,625 $205,625 Total overhead costs $245 833 $248,578 Deduct depreciation 55.625 55,625 Cash payments for overhead $186.270 $188,070 $190,208 $192,953 Manufacturing overhead per unit $70,000 $2,500 35,000 $157,500 $320,000 280.000 222,500 $822,500 $980.000 1995 55.625 55,625 $924,374 C D A B ! F G H I J K L M N O 1 2 PROBLEMS (continued) 4 40. Selling and Administrative Budget and Budgeted Income Statement 6 a. Selling and administrative budget Sports Bars, Inc. Selling and Administrative Budget Year Ending December 31 Quarter Salaries Rent Advertising Depreciation Other Total selling and administrative costs Deduct depreciation Cash payments for selling and administrative $191,000 Alignment Number Clipboard Font 41 * : D F G J H K L M A B N C O Q 1 2 PROBLEMS (continued) 4 40. Selling and Administrative Budget and Budgeted Income Statement continued) 5 . Budgeted income statement Sports Bars, Inc. Budgeted Income Statement Year Ending December 31 Quarter Sales (from sales budget) Deduct cost of goods sold Gross margin Deduct selling and administrative costs Net income oss) $2.024.200 Per unit cost of goods sold calculation: Direct materials (from direct materials purchases budget) Direct labor (from direct labor budget) Manufacturing overhead (from manufacturing overhead budget) Total cost of goods sold per unit c. Prepare a direct materials purchases budget using the format shown in Figure 9.5. d. Prepare a direct labor budget using the format shown in Figure 9.6. e. Prepare a manufacturing overhead budget using the format shown in Figure 9.7. Round to the nearest dollar. f. As the production manager, what concerns, if any, do you have about production requirements for each of the four quarters? 40. Selling and Administrative Budget and Budgeted Income Statement. (The previous problem must be completed before working this problem.) Sports Bars, Inc., produces energy bars. Management estimates all selling and administrative costs are fixed. Quarterly selling and administrative cost estimates for the coming year follow Salaries $170,000 Rent $ 65,000 Advertising $120,000 Depreciation $ 75,000 Other $ 36,000 Required: a. Use the information presented previously to prepare a selling and administrative budget. Refer to the format shown in Figure 9.8. b. Use the information from the previous problem and from requirement a of this problem to prepare a budgeted income statement. Refer to the format shown in Figure 9.9. c. How will management use the information presented in the budgeted income statement? Rudeatina forach Collections and Cash Payments Snare Rare Inenradus enerov bars. The treasurer at

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