Fill in the missing information from the following schedules: Sales Budget For the Year Ended December 31, 2018 Quarter 1 Quarter 2 Quarter 3 7,500 8,250 8,750 Expected sales (units) Sales price per unit $ 45 $ 50 $ 50 $437,500 Total sales revenue $337,500 $412,500 Production Budget For the Year Ended December 31, 2018 Quarter 1 Quarter 2 Quarter 3 Expected sales 7,500 8,250 8,750 1,650 1,750 1,800 Desired ending inventory Total required units 9,150 10,000 10,550 1,500 1,650 1,750 - beginning inventory Required production Total 7,650 8,350 8,800 Direct Materials Budget For the Year Ended December 31, 2018 Quarter 1 Quarter 2 Quarter 3 7,650 8,800 Units to be produced Direct material per unit 8,350 2 2 2 Total pounds needed for production 15,300 16,700 17,600 4,175 4,400 4,400 19,475 21,100 22,000 + desired ending inventory Total material required - beginning inventory Pounds of direct material 0 4,175 4,400 19,475 16,925 17,600 $ 1.50 $ 1.50 $ 1.50 purchase requirements Cost per pound Total cost of direct material purchase $29,213 $25,388 $26,400 Total Direct Labor Budget For the Year Ended December 31, 2018 Quarter 1 Quarter 2 Quarter 3 Units to be produced 7,650 8,350 8,800 Direct labor hours per unit 0.75 0.75 0.75 Total required direct labor hours 5,738 6,600 6,263 25 Labor cost per hour $ 25 $ $ 25 $165,000 Total direct labor cost $143,438 $156,563 Quarter 4 9,000 $ 55 ? Total ? ? Quarter 4 Q1, Year 2 9,000 8,000 ? 900 10,600 8,900 1,800 1,600 ? 7,300 Quarter 4 Total 8,800 33,600 2 2 17,600 67,200 3,650 3,650 21,250 70,850 4,400 0 16,850 70,850 $ 1.50 $ 1.50 $25,275 $106,275 $106,275 ? Quarter 4 Total ? 0.75 6,600 $ 25 ? ? 0.75 ? $ 25 $630,000
Fill in the missing information from the following schedules: Sales Budget For the Year Ended December 31, 2018 Quarter 1 Quarter 2 Quarter 3 7,500 8,250 8,750 Expected sales (units) Sales price per unit $ 45 $ 50 $ 50 $437,500 Total sales revenue $337,500 $412,500 Production Budget For the Year Ended December 31, 2018 Quarter 1 Quarter 2 Quarter 3 Expected sales 7,500 8,250 8,750 1,650 1,750 1,800 Desired ending inventory Total required units 9,150 10,000 10,550 1,500 1,650 1,750 - beginning inventory Required production Total 7,650 8,350 8,800 Direct Materials Budget For the Year Ended December 31, 2018 Quarter 1 Quarter 2 Quarter 3 7,650 8,800 Units to be produced Direct material per unit 8,350 2 2 2 Total pounds needed for production 15,300 16,700 17,600 4,175 4,400 4,400 19,475 21,100 22,000 + desired ending inventory Total material required - beginning inventory Pounds of direct material 0 4,175 4,400 19,475 16,925 17,600 $ 1.50 $ 1.50 $ 1.50 purchase requirements Cost per pound Total cost of direct material purchase $29,213 $25,388 $26,400 Total Direct Labor Budget For the Year Ended December 31, 2018 Quarter 1 Quarter 2 Quarter 3 Units to be produced 7,650 8,350 8,800 Direct labor hours per unit 0.75 0.75 0.75 Total required direct labor hours 5,738 6,600 6,263 25 Labor cost per hour $ 25 $ $ 25 $165,000 Total direct labor cost $143,438 $156,563 Quarter 4 9,000 $ 55 ? Total ? ? Quarter 4 Q1, Year 2 9,000 8,000 ? 900 10,600 8,900 1,800 1,600 ? 7,300 Quarter 4 Total 8,800 33,600 2 2 17,600 67,200 3,650 3,650 21,250 70,850 4,400 0 16,850 70,850 $ 1.50 $ 1.50 $25,275 $106,275 $106,275 ? Quarter 4 Total ? 0.75 6,600 $ 25 ? ? 0.75 ? $ 25 $630,000
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 4E: Prepare a cost of goods sold budget for the Crest Hills Manufacturing Co. for the year ended...
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Concept explainers
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.
Question
Transcribed Image Text:Fill in the missing information from the following schedules:
Sales Budget
For the Year Ended December 31, 2018
Quarter 1
Quarter 2
Quarter 3
7,500
8,250
Expected sales (units)
Sales price per unit
$
45
$ 50
$
8,750
50
$437,500
Total sales revenue
$337,500
$412,500
Production Budget
For the Year Ended December 31, 2018
Quarter 1 Quarter 2
Quarter 3
Expected sales
7,500
8,250
8,750
1,650
1,750
1,800
Desired ending inventory
Total required units
9,150
10,000
10,550
1,500
1,650
1,750
- beginning inventory
Required production
Total
7,650
8,350
8,800
Direct Materials Budget
For the Year Ended December 31, 2018
Quarter 1
Quarter 2 Quarter 3
7,650
8,800
8,350
2
2
2
Units to be produced
Direct material per unit
Total pounds needed for
production
15,300
16,700
17,600
4,175
4,400
4,400
19,475
21,100
22,000
+ desired ending inventory
Total material required
- beginning inventory
Pounds of direct material
0
4,175
4,400
19,475
16,925
17,600
$ 1.50
$ 1.50
$ 1.50
purchase requirements
Cost per pound
Total cost of direct material
purchase
$29,213
$25,388
$26,400
Total
Direct Labor Budget
For the Year Ended December 31, 2018
Quarter 1 Quarter 2 Quarter 3
Units to be produced
7,650
8,350
8,800
Direct labor hours per unit
0.75
0.75
0.75
Total required direct labor hours
5,738
6,263
6,600
Labor cost per hour
$
25
$
25
$
25
Total direct labor cost
$143,438
$156,563
$165,000
Quarter 4
9,000
$ 55
?
Quarter 4
9,000
?
10,600
1,800
?
Quarter 4
8,800
2
17,600
3,650
21,250
4,400
16,850
$ 1.50
$25,275
?
Quarter 4
?
0.75
6,600
$ 25
?
Total
?
?
Q1, Year 2
8,000
900
8,900
1,600
7,300
Total
33,600
2
67,200
3,650
70,850
0
70,850
1.50
$
$106,275
$106,275
Total
?
0.75
?
$ 25
$630,000
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