Mercury Bag Company produces cases of grocery bags. The managers at Mercury are
ID: 2374287 • Letter: M
Question
Mercury Bag Company produces cases of grocery bags. The managers at Mercury are trying to develop budgets for the upcoming quarter. The following data have been gathered:
Using the above information, develop Mercury's sales forecast in dollars and production schedule in units. (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)
What is Mercury's budgeted variable manufacturing cost per case? (Omit the "$" sign in your response.)
Prepare Mercury's manufacturing cost budget. (Round your cost per unit answer to 2 decimal places. Omit the "$" sign in your response.)
What is the projected ending value of the Inventory account? (Round intermediate calculations to 2 decimal places and your final answer to the nearest dollar amount. Omit the "$" sign in your response.)
Mercury Bag Company produces cases of grocery bags. The managers at Mercury are trying to develop budgets for the upcoming quarter. The following data have been gathered:
Explanation / Answer
(a)
Budgeted Sales (Cases) 1290
Selling Price (Cases) 240
Budget Sales 309,600
Budgeted Sales 1290
Targeted Ending Inventory 100
Cases Available to sell 1390
Less: Beginning Inventory 150
Planned Production 1240
(b) Total variable cost per case = 2*10 + 8 + 6 = 34
(c)
Variable Manufacturing Cost
Direct Labor (2*10*1240) 24,800
Direct Material ( 8*1240) 9,920
Variable Overhead (6*1240) 7,440
Total Variable Manufacturing Cost 42,160
Added: Fixed Manufacturing Overhead 220,000
Total Cost of good Manufactured 262,160
Cost per unit (262160/1240) 211.42
(d) Ending Inventory Vallue = 100*211.42 = 21,142