Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner’s master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer’s share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company’s union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 5,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 35 percent of the following month’s projected sales in inventory. Information on the first four months of the coming year is as follows: January February March April Estimated unit sales 35,800 35,600 39,800 40,800 Sales price per unit $83 $83 $75 $75 Direct labor hours per unit 2.80 2.80 2.50 2.50 Direct labor hourly rate $17 $17 $18 $18 Direct materials cost per unit $9 $9 $9 $9 Required: Unless otherwise indicated, round all calculated amounts to the nearest dollar or unit. 1. Prepare the following monthly budgets for Greiner Company for the first quarter of the coming year. a. Production budget in units: Greiner Company Production Budget (units) For the First Quarter of the Coming Year January February March Total Unit sales fill in the blank b2252d05000afe5_1 fill in the blank b2252d05000afe5_2 fill in the blank b2252d05000afe5_3 fill in the blank b2252d05000afe5_4 Desired ending inventory fill in the blank b2252d05000afe5_5 fill in the blank b2252d05000afe5_6 fill in the blank b2252d05000afe5_7 fill in the blank b2252d05000afe5_8 Total units required fill in the blank b2252d05000afe5_9 fill in the blank b2252d05000afe5_10 fill in the blank b2252d05000afe5_11 fill in the blank b2252d05000afe5_12 Less: Beginning inventory fill in the blank b2252d05000afe5_13 fill in the blank b2252d05000afe5_14 fill in the blank b2252d05000afe5_15 fill in the blank b2252d05000afe5_16 Units produced fill in the blank b2252d05000afe5_17 fill in the blank b2252d05000afe5_18 fill in the blank b2252d05000afe5_19 fill in the blank b2252d05000afe5_20 b. Direct labor budget in hours: Round your answers to two decimal places, if required. Greiner Company Direct Labor Budget (hours) For the First Quarter of the Coming Year January February March Total Units produced fill in the blank 7b399ffab07506a_1 fill in the blank 7b399ffab07506a_2 fill in the blank 7b399ffab07506a_3 fill in the blank 7b399ffab07506a_4 Direct labor hours per unit fill in the blank 7b399ffab07506a_5 fill in the blank 7b399ffab07506a_6 fill in the blank 7b399ffab07506a_7 Total labor budget (hours) fill in the blank 7b399ffab07506a_8 fill in the blank 7b399ffab07506a_9 fill in the blank 7b399ffab07506a_10 fill in the blank 7b399ffab07506a_11 c. Direct materials cost budget: Greiner Company Direct Materials Cost Budget For the First Quarter of the Coming Year January February March Total Units produced fill in the blank 0d7ec5f4c005fb4_1 fill in the blank 0d7ec5f4c005fb4_2 fill in the blank 0d7ec5f4c005fb4_3 fill in the blank 0d7ec5f4c005fb4_4 Cost per unit $fill in the blank 0d7ec5f4c005fb4_5 $fill in the blank 0d7ec5f4c005fb4_6 $fill in the blank 0d7ec5f4c005fb4_7 $fill in the blank 0d7ec5f4c005fb4_8 Total direct materials $fill in the blank 0d7ec5f4c005fb4_9 $fill in the blank 0d7ec5f4c005fb4_10 $fill in the blank 0d7ec5f4c005fb4_11 $fill in the blank 0d7ec5f4c005fb4_12 d. Sales budget: Round unit selling price amounts to the nearest cent and use the same for subsequent requirements. Greiner Company Sales Budget (dollars) For the First Quarter of the Coming Year January February March Total Unit sales fill in the blank 356a67fc9f8cf9e_1 fill in the blank 356a67fc9f8cf9e_2 fill in the blank 356a67fc9f8cf9e_3 fill in the blank 356a67fc9f8cf9e_4 Unit selling price $fill in the blank 356a67fc9f8cf9e_5 $fill in the blank 356a67fc9f8cf9e_6 $fill in the blank 356a67fc9f8cf9e_7 $fill in the blank 356a67fc9f8cf9e_8 Total sales revenue $fill in the blank 356a67fc9f8cf9e_9 $fill in the blank 356a67fc9f8cf9e_10 $fill in the blank 356a67fc9f8cf9e_11 $fill in the blank 356a67fc9f8cf9e_12 2. Calculate the total budgeted contribution margin for Greiner Company by month and in total for the first quarter of the coming year. (CMA adapted) Greiner Company Budgeted Contribution Margin For the First Quarter of the Coming Year January February March Total Sales revenue $fill in the blank $fill in the blank $fill in the blank $fill in the blank Direct labor cost fill in the blank fill in the blank fill in the blank fill in the blank Materials cost fill in the blank fill in the blank fill in the blank fill in the blank Contribution margin $fill in the blank $fill in the blank $fill in the blank $fill in the blank

Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner’s master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer’s share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company’s union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 5,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 35 percent of the following month’s projected sales in inventory. Information on the first four months of the coming year is as follows: January February March April Estimated unit sales 35,800 35,600 39,800 40,800 Sales price per unit $83 $83 $75 $75 Direct labor hours per unit 2.80 2.80 2.50 2.50 Direct labor hourly rate $17 $17 $18 $18 Direct materials cost per unit $9 $9 $9 $9 Required: Unless otherwise indicated, round all calculated amounts to the nearest dollar or unit. 1. Prepare the following monthly budgets for Greiner Company for the first quarter of the coming year. a. Production budget in units: Greiner Company Production Budget (units) For the First Quarter of the Coming Year January February March Total Unit sales fill in the blank b2252d05000afe5_1 fill in the blank b2252d05000afe5_2 fill in the blank b2252d05000afe5_3 fill in the blank b2252d05000afe5_4 Desired ending inventory fill in the blank b2252d05000afe5_5 fill in the blank b2252d05000afe5_6 fill in the blank b2252d05000afe5_7 fill in the blank b2252d05000afe5_8 Total units required fill in the blank b2252d05000afe5_9 fill in the blank b2252d05000afe5_10 fill in the blank b2252d05000afe5_11 fill in the blank b2252d05000afe5_12 Less: Beginning inventory fill in the blank b2252d05000afe5_13 fill in the blank b2252d05000afe5_14 fill in the blank b2252d05000afe5_15 fill in the blank b2252d05000afe5_16 Units produced fill in the blank b2252d05000afe5_17 fill in the blank b2252d05000afe5_18 fill in the blank b2252d05000afe5_19 fill in the blank b2252d05000afe5_20 b. Direct labor budget in hours: Round your answers to two decimal places, if required. Greiner Company Direct Labor Budget (hours) For the First Quarter of the Coming Year January February March Total Units produced fill in the blank 7b399ffab07506a_1 fill in the blank 7b399ffab07506a_2 fill in the blank 7b399ffab07506a_3 fill in the blank 7b399ffab07506a_4 Direct labor hours per unit fill in the blank 7b399ffab07506a_5 fill in the blank 7b399ffab07506a_6 fill in the blank 7b399ffab07506a_7 Total labor budget (hours) fill in the blank 7b399ffab07506a_8 fill in the blank 7b399ffab07506a_9 fill in the blank 7b399ffab07506a_10 fill in the blank 7b399ffab07506a_11 c. Direct materials cost budget: Greiner Company Direct Materials Cost Budget For the First Quarter of the Coming Year January February March Total Units produced fill in the blank 0d7ec5f4c005fb4_1 fill in the blank 0d7ec5f4c005fb4_2 fill in the blank 0d7ec5f4c005fb4_3 fill in the blank 0d7ec5f4c005fb4_4 Cost per unit $fill in the blank 0d7ec5f4c005fb4_5 $fill in the blank 0d7ec5f4c005fb4_6 $fill in the blank 0d7ec5f4c005fb4_7 $fill in the blank 0d7ec5f4c005fb4_8 Total direct materials $fill in the blank 0d7ec5f4c005fb4_9 $fill in the blank 0d7ec5f4c005fb4_10 $fill in the blank 0d7ec5f4c005fb4_11 $fill in the blank 0d7ec5f4c005fb4_12 d. Sales budget: Round unit selling price amounts to the nearest cent and use the same for subsequent requirements. Greiner Company Sales Budget (dollars) For the First Quarter of the Coming Year January February March Total Unit sales fill in the blank 356a67fc9f8cf9e_1 fill in the blank 356a67fc9f8cf9e_2 fill in the blank 356a67fc9f8cf9e_3 fill in the blank 356a67fc9f8cf9e_4 Unit selling price $fill in the blank 356a67fc9f8cf9e_5 $fill in the blank 356a67fc9f8cf9e_6 $fill in the blank 356a67fc9f8cf9e_7 $fill in the blank 356a67fc9f8cf9e_8 Total sales revenue $fill in the blank 356a67fc9f8cf9e_9 $fill in the blank 356a67fc9f8cf9e_10 $fill in the blank 356a67fc9f8cf9e_11 $fill in the blank 356a67fc9f8cf9e_12 2. Calculate the total budgeted contribution margin for Greiner Company by month and in total for the first quarter of the coming year. (CMA adapted) Greiner Company Budgeted Contribution Margin For the First Quarter of the Coming Year January February March Total Sales revenue $fill in the blank $fill in the blank $fill in the blank $fill in the blank Direct labor cost fill in the blank fill in the blank fill in the blank fill in the blank Materials cost fill in the blank fill in the blank fill in the blank fill in the blank Contribution margin $fill in the blank $fill in the blank $fill in the blank $fill in the blank

Name: Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John…
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Cornerstones of Cost Management (Cornerstones Series)

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Chapter8: Budgeting For Planning And Control

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Problem 38P: Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven,...

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Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin

Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner’s master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer’s share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company’s union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 5,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 35 percent of the following month’s projected sales in inventory. Information on the first four months of the coming year is as follows:


	January	February	March	April
Estimated unit sales	35,800	35,600	39,800	40,800
Sales price per unit	$83	$83	$75	$75
Direct labor hours per unit	2.80	2.80	2.50	2.50
Direct labor hourly rate	$17	$17	$18	$18
Direct materials cost per unit	$9	$9	$9	$9

Required:
Unless otherwise indicated, round all calculated amounts to the nearest dollar or unit.

1. Prepare the following monthly budgets for Greiner Company for the first quarter of the coming year.

a. Production budget in units:

Greiner Company
Production Budget (units)
For the First Quarter of the Coming Year
	January	February	March	Total
Unit sales	fill in the blank b2252d05000afe5_1	fill in the blank b2252d05000afe5_2	fill in the blank b2252d05000afe5_3	fill in the blank b2252d05000afe5_4
Desired ending inventory	fill in the blank b2252d05000afe5_5	fill in the blank b2252d05000afe5_6	fill in the blank b2252d05000afe5_7	fill in the blank b2252d05000afe5_8
Total units required	fill in the blank b2252d05000afe5_9	fill in the blank b2252d05000afe5_10	fill in the blank b2252d05000afe5_11	fill in the blank b2252d05000afe5_12
Less: Beginning inventory	fill in the blank b2252d05000afe5_13	fill in the blank b2252d05000afe5_14	fill in the blank b2252d05000afe5_15	fill in the blank b2252d05000afe5_16
Units produced	fill in the blank b2252d05000afe5_17	fill in the blank b2252d05000afe5_18	fill in the blank b2252d05000afe5_19	fill in the blank b2252d05000afe5_20

b. Direct labor budget in hours: Round your answers to two decimal places, if required.

Greiner Company
Direct Labor Budget (hours)
For the First Quarter of the Coming Year
	January	February	March	Total
Units produced	fill in the blank 7b399ffab07506a_1	fill in the blank 7b399ffab07506a_2	fill in the blank 7b399ffab07506a_3	fill in the blank 7b399ffab07506a_4
Direct labor hours per unit	fill in the blank 7b399ffab07506a_5	fill in the blank 7b399ffab07506a_6	fill in the blank 7b399ffab07506a_7
Total labor budget (hours)	fill in the blank 7b399ffab07506a_8	fill in the blank 7b399ffab07506a_9	fill in the blank 7b399ffab07506a_10	fill in the blank 7b399ffab07506a_11

c. Direct materials cost budget:

Greiner Company
Direct Materials Cost Budget
For the First Quarter of the Coming Year
	January	February	March	Total
Units produced	fill in the blank 0d7ec5f4c005fb4_1	fill in the blank 0d7ec5f4c005fb4_2	fill in the blank 0d7ec5f4c005fb4_3	fill in the blank 0d7ec5f4c005fb4_4
Cost per unit	$fill in the blank 0d7ec5f4c005fb4_5	$fill in the blank 0d7ec5f4c005fb4_6	$fill in the blank 0d7ec5f4c005fb4_7	$fill in the blank 0d7ec5f4c005fb4_8
Total direct materials	$fill in the blank 0d7ec5f4c005fb4_9	$fill in the blank 0d7ec5f4c005fb4_10	$fill in the blank 0d7ec5f4c005fb4_11	$fill in the blank 0d7ec5f4c005fb4_12

d. Sales budget: Round unit selling price amounts to the nearest cent and use the same for subsequent requirements.

Greiner Company
Sales Budget (dollars)
For the First Quarter of the Coming Year
	January	February	March	Total
Unit sales	fill in the blank 356a67fc9f8cf9e_1	fill in the blank 356a67fc9f8cf9e_2	fill in the blank 356a67fc9f8cf9e_3	fill in the blank 356a67fc9f8cf9e_4
Unit selling price	$fill in the blank 356a67fc9f8cf9e_5	$fill in the blank 356a67fc9f8cf9e_6	$fill in the blank 356a67fc9f8cf9e_7	$fill in the blank 356a67fc9f8cf9e_8
Total sales revenue	$fill in the blank 356a67fc9f8cf9e_9	$fill in the blank 356a67fc9f8cf9e_10	$fill in the blank 356a67fc9f8cf9e_11	$fill in the blank 356a67fc9f8cf9e_12

2. Calculate the total budgeted contribution margin for Greiner Company by month and in total for the first quarter of the coming year. (CMA adapted)

Greiner Company
Budgeted Contribution Margin
For the First Quarter of the Coming Year
	January	February	March	Total
Sales revenue	$fill in the blank	$fill in the blank	$fill in the blank	$fill in the blank
Direct labor cost	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Materials cost	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Contribution margin	$fill in the blank	$fill in the blank	$fill in the blank	$fill in the blank

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