Vista Electronics, Incorporated, manufactures two different types of coils used in electric motors. In the fall of the current year, Erica Becker, the controller, compiled the following data. • Sales forecast for 20x0 (all units to be shipped in 20x0): Units 58,000 38,000 Product Light coil Heavy coil • Raw-material prices and inventory levels: Expected Inventories, January 1, 20x0 36,000 Pound 33,000 Pound 5,800 units • Use of raw material: ● Raw Material Sheet metal Copper wire Platform . Price $ 280 380 Product Light coil Raw Material Sheet metal Copper wire Platform Direct-labor requirements and rates: Amount Used per Unit Light Coil 4 Pound 2 Pound Product Light coil Heavy coil Finished-goods inventories (in units): Hours per Unit 3 5 Desired Inventories, December 31, 20x0 40,000 Pound 36,000 Pound 6,800 units 20x0 23.000 Heavy Coil 5 Pound 3 Pound 2 unit Rate per Hour $15 20 Expected January 1, Desired December 31, 20x0 28.000 Anticipated Purchase Price $15 8 4
Vista Electronics, Incorporated, manufactures two different types of coils used in electric motors. In the fall of the current year, Erica Becker, the controller, compiled the following data. • Sales forecast for 20x0 (all units to be shipped in 20x0): Units 58,000 38,000 Product Light coil Heavy coil • Raw-material prices and inventory levels: Expected Inventories, January 1, 20x0 36,000 Pound 33,000 Pound 5,800 units • Use of raw material: ● Raw Material Sheet metal Copper wire Platform . Price $ 280 380 Product Light coil Raw Material Sheet metal Copper wire Platform Direct-labor requirements and rates: Amount Used per Unit Light Coil 4 Pound 2 Pound Product Light coil Heavy coil Finished-goods inventories (in units): Hours per Unit 3 5 Desired Inventories, December 31, 20x0 40,000 Pound 36,000 Pound 6,800 units 20x0 23.000 Heavy Coil 5 Pound 3 Pound 2 unit Rate per Hour $15 20 Expected January 1, Desired December 31, 20x0 28.000 Anticipated Purchase Price $15 8 4
Chapter18: The Management Of Accounts Receivable And Inventories
Section: Chapter Questions
Problem 19P
Related questions
Topic Video
Question
Prepare the sales budget (in dollars) for 20x0.
light coils, heavy coils and projected sales.
![Vista Electronics, Incorporated, manufactures two different types of coils used in electric motors. In the fall of the current
year, Erica Becker, the controller, compiled the following data.
• Sales forecast for 20x0 (all units to be shipped in 20x0):
Units
58,000
38,000
●
●
Product
Light coil
Heavy coil
Raw-material prices and inventory levels:
Expected Inventories,
January 1, 20x0
36,000 Pound
33,000 Pound
5,800 units
Ra Material
Sheet metal
Copper wire
Platform
Use of raw material:
Price
Product
Light coil
Heavy coil
Finished-goods
Product
Light coil
Heavy coil
$ 280
380
Raw Material
Sheet metal
Copper wire
Platform
Direct-labor requirements and rates:
Amount Used per Unit
Light Coil
4 Pound
2 Pound
Hours per Unit
3
5
inventories (in units):
Desired Inventories,
December 31, 20x0
40,000 Pound
36,000 Pound
6,800 units
20x0
23,000
9,500
Heavy Coil
5 Pound
3 Pound
2 unit
Rate per Hour
$ 15
20
Expected January 1, Desired December 31,
20x0
28,000
10,500
Anticipated
Purchase Price
$15
8
4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb87f551d-3fc5-4766-9e3a-b14ac4833b45%2Fd23cf4e9-6fdc-409f-8234-f3d3d4809dc0%2Fqo3auib_processed.png&w=3840&q=75)
Transcribed Image Text:Vista Electronics, Incorporated, manufactures two different types of coils used in electric motors. In the fall of the current
year, Erica Becker, the controller, compiled the following data.
• Sales forecast for 20x0 (all units to be shipped in 20x0):
Units
58,000
38,000
●
●
Product
Light coil
Heavy coil
Raw-material prices and inventory levels:
Expected Inventories,
January 1, 20x0
36,000 Pound
33,000 Pound
5,800 units
Ra Material
Sheet metal
Copper wire
Platform
Use of raw material:
Price
Product
Light coil
Heavy coil
Finished-goods
Product
Light coil
Heavy coil
$ 280
380
Raw Material
Sheet metal
Copper wire
Platform
Direct-labor requirements and rates:
Amount Used per Unit
Light Coil
4 Pound
2 Pound
Hours per Unit
3
5
inventories (in units):
Desired Inventories,
December 31, 20x0
40,000 Pound
36,000 Pound
6,800 units
20x0
23,000
9,500
Heavy Coil
5 Pound
3 Pound
2 unit
Rate per Hour
$ 15
20
Expected January 1, Desired December 31,
20x0
28,000
10,500
Anticipated
Purchase Price
$15
8
4
![Finished-goods inventories (in units):
Expected January 1, Desired December 31,
20x0
20x0
23,000
9,500
Product
Light coil
Heavy coil
Production overhead:
Overhead Cost Item
Purchasing and material handling
Depreciation, utilities, and inspection
Shipping
General production overhead
28,000
10,500
Activity-Based Budget Rate
$ 0.80
$ 7.00
$ 2.00
$ 5.00
per pound of sheet metal and copper
wire purchased
per coil produced (either type)
per coil shipped (either type)
per direct-labor hour](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb87f551d-3fc5-4766-9e3a-b14ac4833b45%2Fd23cf4e9-6fdc-409f-8234-f3d3d4809dc0%2F5hr43ji_processed.png&w=3840&q=75)
Transcribed Image Text:Finished-goods inventories (in units):
Expected January 1, Desired December 31,
20x0
20x0
23,000
9,500
Product
Light coil
Heavy coil
Production overhead:
Overhead Cost Item
Purchasing and material handling
Depreciation, utilities, and inspection
Shipping
General production overhead
28,000
10,500
Activity-Based Budget Rate
$ 0.80
$ 7.00
$ 2.00
$ 5.00
per pound of sheet metal and copper
wire purchased
per coil produced (either type)
per coil shipped (either type)
per direct-labor hour
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT