Ceder Company has compiled the following data for the upcoming year: • Sales are expected to be 13,000 units at $55.00 each. • Each unit requires 4 pounds of direct materials at $3.30 per pound. Each unit requires 1.5 hours of direct labor at $16.00 per hour. Manufacturing overhead is $4.30 per unit. Beginning direct materials inventory is $4,800.00. Ending direct materials inventory is $6,050.0O. • Selling and administrative costs totaled $137,820. Required: 1. Determine Ceder's budgeted cost of goods sold. 2. Complete Ceder's budgeted income statement. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete Ceder's budgeted income statement. (Do not round the intermediate values.) CEDER CORP. Budgeted Income Statement Budgeted Contribution Margin Budgeted Cost of Goods Sold Budgeted Interest Expense Budgeted Sales Returns and Allowances Budgeted Gross Margin 175,500 Budgeted Sales Revenue Budgeted Selling and Administrative Expenses Budgeted Net Operating Income $ 37,680

Ceder Company has compiled the following data for the upcoming year: • Sales are expected to be 13,000 units at $55.00 each. • Each unit requires 4 pounds of direct materials at $3.30 per pound. Each unit requires 1.5 hours of direct labor at $16.00 per hour. Manufacturing overhead is $4.30 per unit. Beginning direct materials inventory is $4,800.00. Ending direct materials inventory is $6,050.0O. • Selling and administrative costs totaled $137,820. Required: 1. Determine Ceder's budgeted cost of goods sold. 2. Complete Ceder's budgeted income statement. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete Ceder's budgeted income statement. (Do not round the intermediate values.) CEDER CORP. Budgeted Income Statement Budgeted Contribution Margin Budgeted Cost of Goods Sold Budgeted Interest Expense Budgeted Sales Returns and Allowances Budgeted Gross Margin 175,500 Budgeted Sales Revenue Budgeted Selling and Administrative Expenses Budgeted Net Operating Income $ 37,680

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14PA: Total Pops data show the following information: New machinery will be added in April. This machine...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
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Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the annual ordering cost. 2. Compute the annual carrying cost. 3. Compute the cost of Ottiss current inventory policy. Is this the minimum cost? Why or why not?