Based on the information is given, show the calculation step by step;a) PREPARE the following budgets:i. Sales Budget, ii. Production Budget, iii. Direct Material Usage Budget, iv. Direct Material Purchase Budget and v. Direct Labour Budge Foodsburry is a business that specializes in selling and supplying chocolate cakes. ThisBusiness is well known by all residents of Shah Alam. In 2020, Foodsburry decided toIntroduce their two latest products, namely, Chocolate Milk and Choco Bites in mid-2020.The following is a sales analysis of the two products;,Unit soldChocolate MilkChoco HitesJune400500July30% less than the previous450monthAugust20% more than the previous50% more than JunemonthSeptember20% less than the previous25% more than the previousmonthmonthOctober20% less than the previous420monthNovember50% more than the previous25% more than JunemonthDecember20% less than the previous550monthAdditional information:• Selling price for Chocolate Milk is RM 8.50• Selling price for Choco Bites is RM 5.20• Closing inventory for Chocolate Milk is 400 units and Choco Bites is 325 units.• Opening inventory for Chocolate Milk and Choco Bites is 40% of units sold.• Closing inventory for Material A and Material B is 20% of the units requiredOpening inventory for Material A and Material B are 50% more than the closing• Inventory.Estimated materials required for production:ProductMaterial AMaterial B(RM 0.8 per kg)(RM 0.5 per kg)Chocolate MilChoco Bites2 kgHalf of material A1.5 kgEstimated labour hours:ProductChocolate MilHour per unitRate per hour4RM 1.50Choco Bites2RM 0.80

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Based on the information is given, show the calculation step by step; a) PREPARE the following budgets: i. Sales Budget, ii. Production Budget, iii. Direct Material Usage Budget, iv. Direct Material Purchase Budget and v. Direct Labour Budge

Based on the information is given, show the calculation step by step; a) PREPARE the following budgets: i. Sales Budget, ii. Production Budget, iii. Direct Material Usage Budget, iv. Direct Material Purchase Budget and v. Direct Labour Budge

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter12: Capital Investment Decisions

Section: Chapter Questions

Problem 2MTC: NoFat manufactures one product, olestra, and sells it to large potato chip manufacturers as the key...

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ABC began marketing a new milk tea called “ Accountantea”. Each bottle of accountantea sells for P 70. To help promote the product, the management of ABC is offering a special Accountanteareusable cup to each customer for every 10 specially marked bottles of Accountantea plus P 10. ABC estimates that out of the 700,000 bottles of Accountantea sold during 2020, only 45% of the bottle caps will be redeemed. For the year 2020, 35,000 Accountantea reusable cups were purchased by the company at a total cost of P 1,050,000. These 35,000 Accountantea reusable cups have a total sales value of P 1,750,000. A total of 30,000 Accountantea reusable cups were distributed to customers during the year 2020. In accordance with IFRS 15, how much additional sales should ABC recognize upon distribution of the 30,000 cups? A. P 1,453,287.20 B. P 47,474,048.44 C. P 300,000 D. P 1,753,287.20
ABC began marketing a new milk tea called “ Accountantea”. Each bottle of accountantea sells for P 70. To help promote the product, the management of ABC is offering a special Accountanteareusable cup to each customer for every 10 specially marked bottles of Accountantea plus P 10. ABC estimates that out of the 700,000 bottles of Accountantea sold during 2020, only 45% of the bottle caps will be redeemed. For the year 2020, 35,000 Accountantea reusable cups were purchased by the company at a total cost of P 1,050,000. These 35,000 Accountantea reusable cups have a total sales value of P 1,750,000. A total of 30,000 Accountantea reusable cups were distributed to customers during the year 2020. In accordance with IFRS 15, how much additional sales should ABC recognize upon distribution of the 30,000 cups? 1,453,287.20 47,474,048.44 300,000 1,753,287.20
Bliss Bar is a company that sells deluxe chocolate and candy bars based in Illinois. The company is considering launching a new product line featuring protein bars coated with their deluxe chocolate flavors. Bliss Bar has spent $75,000 developing a new protein bar line as a part of the company’s product diversification plan. It also spent another $40,000 for market research on flavors to produce. Based on market research, Bliss Bar expects first year sales of 1,200,000 protein bars at a price of $2.45 per unit with an expected annual growth of 3% in sales volume each year of the six-year project. The variable costs per unit are $0.80, and the annual fixed costs are $30,000. Bliss Bar estimates that the net working capital will be 8% of next year’s sales. The launch of this new product line is expected to cannibalize the sales of an existing candy bar, Choco-O! by 10,000 units per year. Choco-O! is sold at a price of $2 per unit and has variable costs of $0.50 per unit. To expand…
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