Coronado Company is preparing its budgeted income statement for 2022. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales. Sales for the year are expected to total 920,000 units. Quarterly sales are 21%, 23 %, 23%, and 33%, respectively. The unit selling price is expected to be $38 for the first three quarters and $46 beginning in the fourth quarter. Sales in the first quarter of 2023 are expected to be 15% higher than the budgeted sales for the first quarter of 2022. Production Management desires to maintain the ending finished goods inventories at 25% of the next quarter's budgeted sales volume. Direct materials. Each unit requires 2 pounds of raw materials at a cost of $12 per pound. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for first quarter of 2023 are 414,000 pounds. Coronado budgets 0.2 hours of direct labor per unit, labor costs at $12 per hour, and manufacturing overhead at $17 per direct labor hour. Its budgeted selling and administrative expenses for 2022 are $5,520,000. (a) Calculate the budgeted total unit cost. (Round answer to 2 decimal places, e.g. 12.25.) Total unit cost
Coronado Company is preparing its budgeted income statement for 2022. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales. Sales for the year are expected to total 920,000 units. Quarterly sales are 21%, 23 %, 23%, and 33%, respectively. The unit selling price is expected to be $38 for the first three quarters and $46 beginning in the fourth quarter. Sales in the first quarter of 2023 are expected to be 15% higher than the budgeted sales for the first quarter of 2022. Production Management desires to maintain the ending finished goods inventories at 25% of the next quarter's budgeted sales volume. Direct materials. Each unit requires 2 pounds of raw materials at a cost of $12 per pound. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for first quarter of 2023 are 414,000 pounds. Coronado budgets 0.2 hours of direct labor per unit, labor costs at $12 per hour, and manufacturing overhead at $17 per direct labor hour. Its budgeted selling and administrative expenses for 2022 are $5,520,000. (a) Calculate the budgeted total unit cost. (Round answer to 2 decimal places, e.g. 12.25.) Total unit cost
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 11CE: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted...
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Coronado Company is preparing its budgeted income statement for 2022. Relevant data pertaining to its sales, production, and direct
materials budgets are as follows.
Sales. Sales for the year are expected to total 920,000 units. Quarterly sales are 21%, 23%, 23%, and 33%, respectively. The unit
selling price is expected to be $38 for the first three quarters and $46 beginning in the fourth quarter. Sales in the first quarter of 2023
are expected to be 15% higher than the budgeted sales for the first quarter of 2022.
Production Management desires to maintain the ending finished goods inventories at 25% of the next quarter's budgeted sales
volume.
Direct materials. Each unit requires 2 pounds of raw materials at a cost of $12 per pound. Management desires to maintain raw
materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for first quarter of
2023 are 414,000 pounds.
Coronado budgets 0.2 hours of direct labor per unit, labor costs at $12 per hour, and manufacturing overhead at $17 per direct labor
hour. Its budgeted selling and administrative expenses for 2022 are $5,520,000.
(a)
Calculate the budgeted total unit cost. (Round answer to 2 decimal places, e.g. 12.25.)
Total unit cost $
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