uestion Content Area Cost of Goods Sold Budget Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing cost
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.
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Question Content Area
Cost of Goods Sold Budget
Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following
manufacturing costs :Direct materials $1.80 Direct labor 0.45 Variable overhead 0.75 Fixed overhead 1.85 Total unit cost $4.85 For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 286,000 of them. Budgeted beginning inventory in units is 18,000 with unit cost of $4.85. (There are no beginning or ending inventories of work in process.)
Required:
Question Content Area
1. Calculate the total budgeted cost of units produced for Play-Disc for the coming year. Show the cost of direct materials, direct labor, and overhead.
Budgeted direct materials $fill in the blank 7fbb030b9f9906d_1 Budgeted direct labor fill in the blank 7fbb030b9f9906d_2 Budgeted overhead fill in the blank 7fbb030b9f9906d_3 Total budgeted manufacturing cost $fill in the blank 7fbb030b9f9906d_4 Question Content Area
Play-DiscCost of Goods Sold BudgetFor the Year2. Prepare a cost of goods sold budget for Play-Disc for the year.
$- Select - - Select - - Select - Total manufacturing cost $fill in the blank 65cdb1fa8030013_7 - Select - - Select - Cost of goods sold $fill in the blank 65cdb1fa8030013_12 Question Content Area
3. What if the beginning inventory of finished goods was $86,600 (for 18,000 units)? How would that affect the cost of goods sold budget? (Assume Play-Disc uses the FIFO method.)
The cost of goods sold wouldto $fill in the blank 07e649fbf01a078_2.
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