Shamrock Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants have provided the following data: Product LN 35 Product LN 40 Sales budget Expected volume in units 400,000 239,000 Unit selling price $31 $34 Production budget Desired ending finished good units 33,000 21,000 Beginning finished goods units 21,000 14,000 Direct materials budget: Direct materials per unit (kilograms) 2 3 Desired kilograms of ending direct materials 49,000 16,000 Beginning kilograms of direct materials 40,000 10,000 Cost per kilogram $2 $3 Direct labour budget Direct labour time per unit (hours) 0.50 0.70 Direct labour rate per hour $12 $12 Budgeted income statement Total unit cost $11 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expenses budget. The latter shows selling expenses of $856,000 for product LN 35 and $393,000 for product LN 40, and administrative expenses of $525,000 for product LN 35 and $181,000 for product LN 40. Income taxes are expected to be 30%. Prepare the direct labour budget for the year. (Round direct labour hours per unit to 2 decimal places, e.g. 0.15.) SHAMROCK INC. Direct Labour Budget For the Year Ending December 31, 2022 LN 35 LN 40 Total select an opening direct labour budget item enter a number of units enter a number of units select a labour budget item enter a number of hours rounded to 2 decimal places enter a number of hours rounded to 2 decimal places select a summarizing line for the first part enter a total number of hours for the first part enter a total number of hours for the first part select a labour budget item $enter a dollar amount $enter a dollar amount select a closing direct labour budget item $enter a total dollar amount $enter a total dollar amount $enter a total dollar amount Prepare the budgeted income statement for the year. (Note: Income taxes are not allocated to the products.) SHAMROCK INC. Budgeted Income Statement For the Year Ending December 31, 2022 LN 35 LN 40 Total select an income statement item $enter a dollar amount $enter a dollar amount $enter a dollar amount select an income statement item enter a dollar amount enter a dollar amount enter a dollar amount select a summarizing line for the first part enter a total amount for the first part enter a total amount for the first part enter a total amount for the first part select between addition and deduction : select an income statement item enter a dollar amount enter a dollar amount enter a dollar amount select a summarizing line for the second part $enter a total amount for the second part $enter a total amount for the second part enter a total amount for the second part select an income statement item enter a dollar amount select a closing name for this statement $enter a total amount for this statement

Shamrock Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants have provided the following data: Product LN 35 Product LN 40 Sales budget Expected volume in units 400,000 239,000 Unit selling price $31 $34 Production budget Desired ending finished good units 33,000 21,000 Beginning finished goods units 21,000 14,000 Direct materials budget: Direct materials per unit (kilograms) 2 3 Desired kilograms of ending direct materials 49,000 16,000 Beginning kilograms of direct materials 40,000 10,000 Cost per kilogram $2 $3 Direct labour budget Direct labour time per unit (hours) 0.50 0.70 Direct labour rate per hour $12 $12 Budgeted income statement Total unit cost $11 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expenses budget. The latter shows selling expenses of $856,000 for product LN 35 and $393,000 for product LN 40, and administrative expenses of $525,000 for product LN 35 and $181,000 for product LN 40. Income taxes are expected to be 30%. Prepare the direct labour budget for the year. (Round direct labour hours per unit to 2 decimal places, e.g. 0.15.) SHAMROCK INC. Direct Labour Budget For the Year Ending December 31, 2022 LN 35 LN 40 Total select an opening direct labour budget item enter a number of units enter a number of units select a labour budget item enter a number of hours rounded to 2 decimal places enter a number of hours rounded to 2 decimal places select a summarizing line for the first part enter a total number of hours for the first part enter a total number of hours for the first part select a labour budget item $enter a dollar amount $enter a dollar amount select a closing direct labour budget item $enter a total dollar amount $enter a total dollar amount $enter a total dollar amount Prepare the budgeted income statement for the year. (Note: Income taxes are not allocated to the products.) SHAMROCK INC. Budgeted Income Statement For the Year Ending December 31, 2022 LN 35 LN 40 Total select an income statement item $enter a dollar amount $enter a dollar amount $enter a dollar amount select an income statement item enter a dollar amount enter a dollar amount enter a dollar amount select a summarizing line for the first part enter a total amount for the first part enter a total amount for the first part enter a total amount for the first part select between addition and deduction : select an income statement item enter a dollar amount enter a dollar amount enter a dollar amount select a summarizing line for the second part $enter a total amount for the second part $enter a total amount for the second part enter a total amount for the second part select an income statement item enter a dollar amount select a closing name for this statement $enter a total amount for this statement

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 4P

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Shamrock Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting assistants have provided the following data:

	Product LN 35	Product LN 40
Sales budget
Expected volume in units		400,000	239,000
Unit selling price		$31	$34
Production budget
Desired ending finished good units		33,000	21,000
Beginning finished goods units		21,000	14,000
Direct materials budget:
Direct materials per unit (kilograms)		2	3
Desired kilograms of ending direct materials		49,000	16,000
Beginning kilograms of direct materials		40,000	10,000
Cost per kilogram		$2	$3
Direct labour budget
Direct labour time per unit (hours)		0.50	0.70
Direct labour rate per hour		$12	$12
Budgeted income statement
Total unit cost		$11	$20

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expenses budget. The latter shows selling expenses of $856,000 for product LN 35 and $393,000 for product LN 40, and administrative expenses of $525,000 for product LN 35 and $181,000 for product LN 40. Income taxes are expected to be 30%.

Prepare the direct labour budget for the year. (Round direct labour hours per unit to 2 decimal places, e.g. 0.15.)

SHAMROCK INC. Direct Labour Budget For the Year Ending December 31, 2022
	LN 35	LN 40	Total
select an opening direct labour budget item	enter a number of units	enter a number of units
select a labour budget item	enter a number of hours rounded to 2 decimal places	enter a number of hours rounded to 2 decimal places
select a summarizing line for the first part	enter a total number of hours for the first part	enter a total number of hours for the first part
select a labour budget item	$enter a dollar amount	$enter a dollar amount
select a closing direct labour budget item	$enter a total dollar amount	$enter a total dollar amount	$enter a total dollar amount

Prepare the budgeted income statement for the year. (Note: Income taxes are not allocated to the products.)

SHAMROCK INC. Budgeted Income Statement For the Year Ending December 31, 2022
	LN 35	LN 40	Total
select an income statement item	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount
select an income statement item	enter a dollar amount	enter a dollar amount	enter a dollar amount
select a summarizing line for the first part	enter a total amount for the first part	enter a total amount for the first part	enter a total amount for the first part
select between addition and deduction : select an income statement item	enter a dollar amount	enter a dollar amount	enter a dollar amount
select a summarizing line for the second part	$enter a total amount for the second part	$enter a total amount for the second part	enter a total amount for the second part
select an income statement item			enter a dollar amount
select a closing name for this statement			$enter a total amount for this statement

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