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Hansell Company's management wants to prepare budgets for one of its products, Duraflex, for July 2022. The firm sells the product for $82 per unit and has the following expected sales (in units) for these months in 2022: a. b. April 4,800 C d. May 5,600 e. June 5,700 1. Self-Study Problem 10-1 (Algo) Master Budget July 6,400 a. Sales budget for July (in dollars). b. Production budget for July (in units). c. Production budget for August (in units). d. Direct materials purchases budget for July (in pounds). Required: On the basis of the preceding data and projections, prepare the following budgets: e. Direct materials purchases budget for July (in dollars) f. Direct manufacturing labor budget for July (in dollars). The production process requires 4 pounds of Dura-1000 and 2 pounds of Flexplas. The firm's policy is to maintain an ending inventory each month equal to 10% of the following month's budgeted sales, but in no case less than 500 units. All materials inventories are to be maintained at 5% of the production needs for the next month, but not to exceed 1,000 pounds. The firm expects all inventories at the end of June to be within the guidelines. The purchases department expects the materials to cost $1.25 per pound and $5.00 per pound for Dura-1000 and Flexplas, respectively. The production process requires direct labor at two skill levels. The rate for labor at the K102 level is $50 per hour and $20 per hour for the K175 level. The K102 level can process one batch of duraflex per hour, each batch consists of 100 units. The manufacturing of Duraflex also requires one-tenth of an hour of K175 workers' time for each unit manufactured. August 7,400 Sales budget for July (in dollars) Production budget for July (in units) Production budget for August (in units) Answer is complete but not entirely correct. Direct materials purchases budget for July (in pounds) Direct materials purchases budget for July (in dollars) Direct manufacturing labor budget for July (in dollars) September 7,608 $ 524,800 6,570 7,420 39,420 98,550 32,850 $ $

Hansell Company's management wants to prepare budgets for one of its products, Duraflex, for July 2022. The firm sells the product for $82 per unit and has the following expected sales (in units) for these months in 2022: a. b. April 4,800 C d. May 5,600 e. June 5,700 1. Self-Study Problem 10-1 (Algo) Master Budget July 6,400 a. Sales budget for July (in dollars). b. Production budget for July (in units). c. Production budget for August (in units). d. Direct materials purchases budget for July (in pounds). Required: On the basis of the preceding data and projections, prepare the following budgets: e. Direct materials purchases budget for July (in dollars) f. Direct manufacturing labor budget for July (in dollars). The production process requires 4 pounds of Dura-1000 and 2 pounds of Flexplas. The firm's policy is to maintain an ending inventory each month equal to 10% of the following month's budgeted sales, but in no case less than 500 units. All materials inventories are to be maintained at 5% of the production needs for the next month, but not to exceed 1,000 pounds. The firm expects all inventories at the end of June to be within the guidelines. The purchases department expects the materials to cost $1.25 per pound and $5.00 per pound for Dura-1000 and Flexplas, respectively. The production process requires direct labor at two skill levels. The rate for labor at the K102 level is $50 per hour and $20 per hour for the K175 level. The K102 level can process one batch of duraflex per hour, each batch consists of 100 units. The manufacturing of Duraflex also requires one-tenth of an hour of K175 workers' time for each unit manufactured. August 7,400 Sales budget for July (in dollars) Production budget for July (in units) Production budget for August (in units) Answer is complete but not entirely correct. Direct materials purchases budget for July (in pounds) Direct materials purchases budget for July (in dollars) Direct manufacturing labor budget for July (in dollars) September 7,608 $ 524,800 6,570 7,420 39,420 98,550 32,850 $ $

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 20E: Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc.,...
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a. Hansell Company's management wants to prepare budgets for one of its products, Duraflex, for July 2022. The firm sells the product for $82 per unit and has the following expected sales (in units) for these months in 2022: b. April 4,800 C₁ d. May 5,600 e. 1. June July 5,700 6,400 Self-Study Problem 10-1 (Algo) Master Budget a. Sales budget for July (in dollars). b. Production budget for July (in units). c. Production budget for August (in units). d. Direct materials purchases budget for July (in pounds). e. Direct materials purchases budget for July (in dollars). f. Direct manufacturing labor budget for July (in dollars). Required: On the basis of the preceding data and projections, prepare the following budgets: The production process requires 4 pounds of Dura-1000 and 2 pounds of Flexplas. The firm's policy is to maintain an ending inventory each month equal to 10% of the following month's budgeted sales, but in no case less than 500 units. All materials inventories are to be maintained at 5% of the production needs for the next month, but not to exceed 1,000 pounds. The firm expects all inventories at the end of June to be within the guidelines. The purchases department expects the materials to cost $1.25 per pound and $5.00 per pound for Dura-1000 and Flexplas, respectively. August 7,400 The production process requires direct labor at two skill levels. The rate for labor at the K102 level is $50 per hour and $20 per hour for the K175 level. The K102 level can process one batch of duraflex per hour; each batch consists of 100 units. The manufacturing of Duraflex also requires one-tenth of an hour of K175 workers' time for each unit manufactured. Answer is complete but not entirely correct. Sales budget for July (in dollars) Production budget for July (in units) Production budget for August (in units) September 7,600 Direct materials purchases budget for July (in pounds) Direct materials purchases budget for July (in dollars) Direct manufacturing labor budget for July (in dollars) $ 524,800 6,570 7,420 39,420 98,550 32,850 $ $
Transcribed Image Text:a. Hansell Company's management wants to prepare budgets for one of its products, Duraflex, for July 2022. The firm sells the product for $82 per unit and has the following expected sales (in units) for these months in 2022: b. April 4,800 C₁ d. May 5,600 e. 1. June July 5,700 6,400 Self-Study Problem 10-1 (Algo) Master Budget a. Sales budget for July (in dollars). b. Production budget for July (in units). c. Production budget for August (in units). d. Direct materials purchases budget for July (in pounds). e. Direct materials purchases budget for July (in dollars). f. Direct manufacturing labor budget for July (in dollars). Required: On the basis of the preceding data and projections, prepare the following budgets: The production process requires 4 pounds of Dura-1000 and 2 pounds of Flexplas. The firm's policy is to maintain an ending inventory each month equal to 10% of the following month's budgeted sales, but in no case less than 500 units. All materials inventories are to be maintained at 5% of the production needs for the next month, but not to exceed 1,000 pounds. The firm expects all inventories at the end of June to be within the guidelines. The purchases department expects the materials to cost $1.25 per pound and $5.00 per pound for Dura-1000 and Flexplas, respectively. August 7,400 The production process requires direct labor at two skill levels. The rate for labor at the K102 level is $50 per hour and $20 per hour for the K175 level. The K102 level can process one batch of duraflex per hour; each batch consists of 100 units. The manufacturing of Duraflex also requires one-tenth of an hour of K175 workers' time for each unit manufactured. Answer is complete but not entirely correct. Sales budget for July (in dollars) Production budget for July (in units) Production budget for August (in units) September 7,600 Direct materials purchases budget for July (in pounds) Direct materials purchases budget for July (in dollars) Direct manufacturing labor budget for July (in dollars) $ 524,800 6,570 7,420 39,420 98,550 32,850 $ $
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