Tools Window Help n Screen Shot 2018-04-17 at 22.24.38 (3 documents, 3 total pag
ID: 2525142 • Letter: T
Question
Tools Window Help n Screen Shot 2018-04-17 at 22.24.38 (3 documents, 3 total pages) ACCT 201-05- SPRING 2018 2 BAFFOUR ADJE? BIG DOG, INC $550.00 3.500 4,000 5,500 ,000 4 Sales price per housing unt 5 April sales forecast (in units) 6 May sales forecast (in units) 7 June sales forecast (in units) 8 July sales forecast (in units) 9 August sales forecast (in units) 10 Raw material used per house (# of board feet 1Raw material cost per board foot 2 Direct labor hours per housing unl 3 Direct labor rate 4 Variable manufacturing overhead per DLH 5 Flxed manufacturing overhead per month 6 Ending material inventory (% of next months production needs) 7 Ending Finished Goods Inventory (% next months sales) 8 Variable selling expense per housing unit 9 Foxed selling expense per month 0 Income tax rate $3.50 3.5 $22.00 $4.25 $175,000 35% $95.00 $130,000 35% Sales Budget MAY APRIL 3,500 4,000 5,500 4 Sales (in units) 5 Sales price per housing unit $550 00 3,025,000.00 Sales revenue 1925,000.00 $2,200,000.00 Production Budget 3,500 1400 4,900 4,000 1925 5,925 5,500 2100 1 Add: Desired ending inventory 2 Total requiremerts 3 Less: Projected beginning inventory 4 Planned production in units 8 Planned Production on units) 9 Raw Material required for production (board feet) o Add: Desired Ending Inventory of Raw Material, in board feet 1 Total Requirements 2 Less: Projected Beginning Inventory of Raw Material, in board feet Raw Material Purchases 4.525 36,200 29,400 5,675 45,400 38,200 3,675 29 400 Planned Purchases of Raw Material (board feet) 4 Cost per board foot 5 Planned Purchases of Raw Material (dollars) 356,387.50 $449,312.50 Sheet1 Sheet4 Sheet2 Sheet3 + 17Explanation / Answer
BIG DOG INC Manufacturing Cost budget April May June Total Raw Materials: Total raw material required for production 73500 90500 113500 277500 Cost of raw material per board foot $3.50 $3.50 $3.50 $3.50 Budgeted cost of raw material used in production 257250 316750 397250 971250 Direct Labor: Direct labor hours per housing unit 3.50 3.50 3.50 3.50 Total direct labor hours required 12862.5 15837.5 19862.5 48562.5 Labor rate per hour $22.00 $22.00 $22.00 $22.00 Budgeted labor cost required for porduction 282975 348425 436975 1068375 Manufacturing overhead: Variable 54666 67309 84416 206391 Fixed 175000 175000 175000 525000 Total Manufacturing Costs 769891 907484 1093641 2771016 Selling Expenses budget April May June Total Variable selling expense 332500 380000 522500 1235000 Fixed selling expense 130000 130000 130000 390000 Planned total selling expense 462500 510000 652500 1625000 BIG DOG INC Income statement for the second quarter ended 6/30/2018 (Contribution Margin Format) Sales 7150000 Variable costs: Direct material 971250 Direct labor 1068375 Variable manufacturing overheads 206391 Variable selling expenses 1235000 Total variable costs 3481016 Contribution margin 3668984 Fixed expenses: Manufacturing overhead 525000 Selling expenses 390000 Total fixed expenses 915000 Net income before taxes 2753984 Income tax expense 963895 Net income 1790090 BIG DOG INC Income statement for the second quarter ended 6/30/2018 Sales 7150000 Cost of goods sold 2596267 Gross profit 4553733 Operating costs 1625000 Income before taxes 2928733 Income taxes 1025057 Net income 1903676 Direct material cost 971250 Direct labor cost 1068375 Variable manufacturing overhead 206391 Fixed manufacturing overhead 525000 Total manufacturing cost 2771016 Total production -- units 13875 Product cost per set 200 Sales -- no.of sets 13000 Cost of goods sold 2596267