Cost of Goods Sold BudgetMagnolia Candle Inc. budgeted production of 74,200 candles in 20Y4. Wax is required to produce a candle. Assume that eight ounces (one-half of apound) of wax is required for each candle. The estimated January 1, 20Y4, wax inventory is 2,500 pounds. The desired December 31, 20Y4, waxinventory is 2,100 pounds. Candle wax costs $4.10 per pound.Each candle requires molding. Assume that 12 minutes are required to mold each candle. Molding labor costs $14.00 per hour.Prepare a cost of goods sold budget for Magnolia Candle Inc., using the information above. Assume that the estimated inventories on January 1, 20Y4,for finished goods and work in process were $9,800 and $3,600, respectively. Also assume that the desired inventories on December 31, 20Y4, forfinished goods and work in process were $12,900 and $3,500, respectively. Factory overhead was budgeted at $109,600. Round your interimcalculations to nearest cent, if required.MAGNOLIA CANDLE INC.Cost of Goods Sold BudgetFor the Year Ending December 31, 20Y4Direct materials:Cost of direct materials placed in production $Check My Work 3 more Check My Work uses remaining.PreviousNextogress: 5/6 items,12:50

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Cost of Goods Sold Budget Magnolia Candle Inc. budgeted production of 74,200 candles in 2 pound) of wax is required for each candle. The estimated January inventory is 2,100 pounds. Candle wax costs $4.10 per pound. Each candle requires molding. Assume that 12 minutes are requir Prepare a cost of goods sold budget for Magnolia Candle Inc., usi for finished goods and work in process were $9,800 and $3,600, finished goods and work in process were $12,900 and $3,500, re calculations to nearest cent, if required. MAGNOLIA CANDLE INC. Cost of Goods Sold Budget For the Year Ending December 31, 20Y4 Direct materials: Cost of direct materials placed in production $ Check My Work 3 more Check My Work uses remaining.

Cost of Goods Sold Budget Magnolia Candle Inc. budgeted production of 74,200 candles in 2 pound) of wax is required for each candle. The estimated January inventory is 2,100 pounds. Candle wax costs $4.10 per pound. Each candle requires molding. Assume that 12 minutes are requir Prepare a cost of goods sold budget for Magnolia Candle Inc., usi for finished goods and work in process were $9,800 and $3,600, finished goods and work in process were $12,900 and $3,500, re calculations to nearest cent, if required. MAGNOLIA CANDLE INC. Cost of Goods Sold Budget For the Year Ending December 31, 20Y4 Direct materials: Cost of direct materials placed in production $ Check My Work 3 more Check My Work uses remaining.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 3BE: Pasadena Candle Inc. budgeted production of 785,000 candles for January. Wax is required to produce...

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Pasadena Candle Inc. budgeted production of 785,000 candles for January. Each candle requires molding. Assume that six minutes are required to mold each candle. If molding labor costs 18 per hour, determine the direct labor cost budget for January.
Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc., budgeted sales of the following. At the end of the year, actual sales revenue for Product R and Product S was 3,075,000 and 3,254,000, respectively. The actual price charged for Product R was 25 and for Product S was 20. Only 10 was charged for Product T to encourage more consumers to buy it, and actual sales revenue equaled 540,000 for this product. Required: 1. Calculate the sales price and sales volume variances for each of the three products based on the original budget. 2. Suppose that Product T is a new product just introduced during the year. What pricing strategy is Eastman, Inc., following for this product?
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Cash budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent 50,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of September 1 include cash of 40,000, marketable securities of 75,000, and accounts receivable of 300,000 (60,000 from July sales and 240,000 from August sales). Sales on account for July and August were 200,000 and 240,000, respectively. Current liabilities as of September 1 include 40,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of 55,000 will be made in October. Bridgeports regular quarterly dividend of 25,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of 50,000. Instructions Prepare a monthly cash budget and supporting schedules for September, October, and November. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?