l LTE11:10project cost accountingfe07...Done3 of 3Problem 2. Preparing Master budgetsUBS Company, a manufacturing business that sells baskets, wants a master budget prepared forthe first three months of this year (January, February and March)The managers of the different departments have provided the following information:The Sales Manager has projected the following sales:January 6,000 unitsFebruary 5,000 unitsMarch 6,000 unitsProjected selling price is $40.00/unitYour Production Manager gave the following information:Ending Inventory is to be 20% of next month's production need **rounded to the nearest10.April's Projected Sales 5,500 units, May 11250 unitsDecember 20X5 Ending Inventory was 1,000 unitsThe Manufacturing Manager has estimated the followingEach unit will require 4 grams of materialMaterial in Ending Inventory is 20% of next month's needsDecember's Ending Material Inventory was 4,800 gProject cost of material: $2.50/gramThe Personnel Manager has estimated that Direct Labor will be projected at:0.75 hours of Direct Labor per unitDirect Labor Cost: $8.50/hourThe Facilities Manager has estimated that the Manufacturing Overhead will be projected at:Variable Overhead Rate to be $8 per Direct Labor hoursFixed Overhead Rate to be $3,000 per monthThe Accounting Department Manager has provided the following information:Selling and Administrative Expenses are projected to be a monthly cost ofSalaries $6,000Rent $1,500Advertising $1,100Telephone $300Other $500For the operating budget, you are expected to prepare the following:Sales BudgetProduction BudgetDirect Materials BudgetDirect Labor BudgetManufacturing Overhead BudgetSelling & Administrative Expenses Budget

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Asked Nov 25, 2019
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l LTE
11:10
project cost accounting
fe07...
Done
3 of 3
Problem 2. Preparing Master budgets
UBS Company, a manufacturing business that sells baskets, wants a master budget prepared for
the first three months of this year (January, February and March)
The managers of the different departments have provided the following information:
The Sales Manager has projected the following sales:
January 6,000 units
February 5,000 units
March 6,000 units
Projected selling price is $40.00/unit
Your Production Manager gave the following information:
Ending Inventory is to be 20% of next month's production need **rounded to the nearest
10.
April's Projected Sales 5,500 units, May 11250 units
December 20X5 Ending Inventory was 1,000 units
The Manufacturing Manager has estimated the following
Each unit will require 4 grams of material
Material in Ending Inventory is 20% of next month's needs
December's Ending Material Inventory was 4,800 g
Project cost of material: $2.50/gram
The Personnel Manager has estimated that Direct Labor will be projected at:
0.75 hours of Direct Labor per unit
Direct Labor Cost: $8.50/hour
The Facilities Manager has estimated that the Manufacturing Overhead will be projected at:
Variable Overhead Rate to be $8 per Direct Labor hours
Fixed Overhead Rate to be $3,000 per month
The Accounting Department Manager has provided the following information:
Selling and Administrative Expenses are projected to be a monthly cost of
Salaries $6,000
Rent $1,500
Advertising $1,100
Telephone $300
Other $500
For the operating budget, you are expected to prepare the following:
Sales Budget
Production Budget
Direct Materials Budget
Direct Labor Budget
Manufacturing Overhead Budget
Selling & Administrative Expenses Budget
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l LTE 11:10 project cost accounting fe07... Done 3 of 3 Problem 2. Preparing Master budgets UBS Company, a manufacturing business that sells baskets, wants a master budget prepared for the first three months of this year (January, February and March) The managers of the different departments have provided the following information: The Sales Manager has projected the following sales: January 6,000 units February 5,000 units March 6,000 units Projected selling price is $40.00/unit Your Production Manager gave the following information: Ending Inventory is to be 20% of next month's production need **rounded to the nearest 10. April's Projected Sales 5,500 units, May 11250 units December 20X5 Ending Inventory was 1,000 units The Manufacturing Manager has estimated the following Each unit will require 4 grams of material Material in Ending Inventory is 20% of next month's needs December's Ending Material Inventory was 4,800 g Project cost of material: $2.50/gram The Personnel Manager has estimated that Direct Labor will be projected at: 0.75 hours of Direct Labor per unit Direct Labor Cost: $8.50/hour The Facilities Manager has estimated that the Manufacturing Overhead will be projected at: Variable Overhead Rate to be $8 per Direct Labor hours Fixed Overhead Rate to be $3,000 per month The Accounting Department Manager has provided the following information: Selling and Administrative Expenses are projected to be a monthly cost of Salaries $6,000 Rent $1,500 Advertising $1,100 Telephone $300 Other $500 For the operating budget, you are expected to prepare the following: Sales Budget Production Budget Direct Materials Budget Direct Labor Budget Manufacturing Overhead Budget Selling & Administrative Expenses Budget

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Expert Answer

Step 1

As per authoring guidelines the first three parts of the question is answered. Repost the question specifying the parts for answer.

Step 2

Prepare a sales budget for January, February and March as shown below:

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Sales budget January February March 6,000 Particulars Projected sales (A) Projected selling price (B) Projected sales revenue (AxB) 5,000 6,000 $40 S240,000 $200,000 $240,000 $40 $40

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Step 3

Prepare a production budget for January, February...

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с E F G н Production budget 8 January February| March 6,000 1,000 Particulars 9 Аpril 5,500 May 11,250 10 Projected sales 11 Add: Desired ending inventory 12 Total inventory of production 13 Less: Beginning Inventory 14 Desired units need to be produced 5,000 6,000 1,200 1,100 2,250 7,000 1,000 6,200 7,100 7,750 1,200 1,000 1,100 $5,200 S6,000 $5,900 $6,650 Calculation formulas: с Е G н Production budget 8 January February 5000 6000 Particulars April 5500 =E10*20%F10*20%| -G10*20%| =H10*20% -D10+D11-E10+E11-F10+F11G10+G11 F11 -D12-D13-E12-E13 F12-F13G12-G13 March May 11250 10 Projected sales 11 Add: Desired ending inventory 12 Total inventory of production 13 Less: Beginning Inventory 14 Desired units need to be prođuced 6000 D11 1000 =E11

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