Cost Accounting Complete Budget First picture describes all necessary requiremen
ID: 2562572 • Letter: C
Question
Cost Accounting Complete Budget
First picture describes all necessary requirements, and the second has all the numbers to be used. Any help is appreciated - thank you!
Overview / Requirements DOGGY DELIGHTS makes plush dog chew toys in two sizes-Small and Large-which it sells directly to consumers. Your task is to assist the company in its preparation of next month's budget. Specifically you are to use a computer spreadsheet(s) to calculate the following budgeted amounts for November: Total revenues ½pt ½pt + Cash received for sales Units of each product to produce Total cost of direct materials purchases + Cash payments for materials purchases Total cost of direct materials used Cost of ending direct materials inventory Total direct labor cost ½pt ½pt ½pt 1 pt 1 pt 1 pt 1 pt ½pt O Total manufacturing overhead O Total cost of ending finished goods inventories Cost of goods sold Total operating expenses Net operating income Use as many cell references in your formúlas as possible. That way if any budgeting assumptions were to change, all you'd have to do is input the new data and voila -the budgeted amounts would recalculate without having to alter any formulas.Explanation / Answer
1)Total revenue = [Expected unit sales *price -small]+[Expected unit sales*price-large]
= [8000*4]+[10000*6]
= 32000+ 60000
= 92000
Cash collection :[Total revenue *% of credit card sales*(1-processing fee)]+[Total revenue*% of cash sales]
=[92000*.95*(1-.025)]+[92000*.05]
= 85215+4600
= 89815
2)unit to produce :
3)
cost of material purchased =material purchase*purchaseprice
= 3655*5= 18275
Cash payment for purchase =[October purchase *% ]+[Nov*%]
=[17850*.80]+[18275*.20]
= 14280+3655
= 17935
4)Cost of direct material used: cost of begiinning inventory+ current purchase (material from current purchase*purchas eprice)
= 2400+ [3615-460]*5
= 2400 +15775
= $ 18175
=
Total material consumed(computed in 3)=3615 out of which 460 is from beginning inventory +and remaining from current month purchase
small large unit sold 8000 10000 Ending inventory 1600 1700 lesS:beginning inventory -1500 -2100 unit to produce 8100 9600