Hi (: please help!! SEE PICTURE FOR DETAILS THANKS! Instructions: 1. Prepare a b
ID: 2568317 • Letter: H
Question
Hi (: please help!!
SEE PICTURE FOR DETAILS THANKS!
Instructions:
1. Prepare a budget for July.
2. Prepare a production budget for July.
3 Prepare a direct materials purchases budget for July.
4. Prepare a direct labor cost budget for July.
5. Prepare the cost of good manufactred statement for July.
6. Prepare a cost of goods sold budget for July.
If you could show your work so I can see what i was doing wrong that woyuld be great!
Thanks! :)
a. Estimated sales: Product K: Product L 40,000 units at $30 per unit 20,000 units at $65 per unit b. Estimated inventories, July 1, 2016 Material A: 4,000 Ibs. Material B: 3,500 lbs. There were not work in process inventories estimated for July 1, 2016. 51,000 94,500 Product K: Product L: 3,000 units at $17 per unit 2,700 units at $35 per unit c. Desired inventories at July 31, 2016: Material A: 3,000 lbs. Material B: 2,500 lbs. There were no work in process inventories desired for July 31, 2016. Product K: Product L: 2,500 units at $17 per unit 2,000 units at $35 per unit 42,500 70,000 d. Direct materials used in production ProductK Material A: Material B: 0.7 lb. per unit 1.2 lbs. per unit Product L 3.5 lbs. per unit 1.8 lbs per unit e. Unit costs for direct materials: Material A: Material B: $4.00 per lb. $2.00 per lb. f. Direct labor requirements: Product K: Product L: Department 1 0.4 hr. per unit 0.6 hr. per unit Department 2 0.15 hr. per unit 0.25 hr. per unit Department 1 $12.00 per hr Department 2 $16.00 per hr. 9. Direct labor rate h. Estimated factory overhead costs for July: Indirect factory wages Depreciation of plant & equpment Power & light Indirect materials 200,000 40,000 25,000 34,000 299,000 INSTRUCTIONS: 1 Prepare a sales budget for July. 2 Prepare a production budget for July. 3 Prepare a direct materials purchases budget for July. 4 Prepare a direct labor cost budget for July. 5 Prepare the cost of goods manufactured statement for July. 6 Prepare a cost of goods sold budget for July.Explanation / Answer
Sales Budget
For the month July
Product K
Product L
Totals
Sales in units
40000
20000
Selling price - per unit
$30
$65
Sales in dollars
$12,00,000
$13,00,000
$25,00,000
Production Budget
For the month July
Product K
Product L
Totals
Sales in units
40000
20000
60000
Add: Desired Ending Inventory
2500
2000
4500
Total units required
42500
22000
64500
Less: Beginning Inventory
3000
2700
5700
Units to produce
39500
19300
58800
Direct Material Purchase Budget
For the month July
Material A
Material B
Totals
Product K
Units to produce
39500
39500
Material used in production (in lb)
0.70
1.20
material required in production
27650
47400
Product L
Units to produce
19300
19300
Material used in production (in lb)
3.50
1.80
material required in production
67550
34740
Total material required in production
95200
82140
Add: Desired Ending Inventory
3000
2500
Total material required
98200
84640
Less: Beginning Inventory
4000
3500
Units to be purchased
94200
81140
Unit cost - per lb
$4
$2
Cost of Material purchased
$3,76,800
$1,62,280
$5,39,080
Direct labor cost Budget
For the month July
Department 1
Department 2
Totals
Product K
Units to produce
39500
39500
Labor hours - per unit
0.40
0.15
Labor hours - required
15800
5925
Product L
Units to produce
19300
19300
Labor hours - per unit
0.60
0.25
Labor hours - required
11580
4825
Total Labor hours - required
27380
10750
Labor cost - per hour
$12
$16
Cost of Material purchased
$3,28,560
$1,72,000
$5,00,560
Sales Budget
For the month July
Product K
Product L
Totals
Sales in units
40000
20000
Selling price - per unit
$30
$65
Sales in dollars
$12,00,000
$13,00,000
$25,00,000
Production Budget
For the month July
Product K
Product L
Totals
Sales in units
40000
20000
60000
Add: Desired Ending Inventory
2500
2000
4500
Total units required
42500
22000
64500
Less: Beginning Inventory
3000
2700
5700
Units to produce
39500
19300
58800
Direct Material Purchase Budget
For the month July
Material A
Material B
Totals
Product K
Units to produce
39500
39500
Material used in production (in lb)
0.70
1.20
material required in production
27650
47400
Product L
Units to produce
19300
19300
Material used in production (in lb)
3.50
1.80
material required in production
67550
34740
Total material required in production
95200
82140
Add: Desired Ending Inventory
3000
2500
Total material required
98200
84640
Less: Beginning Inventory
4000
3500
Units to be purchased
94200
81140
Unit cost - per lb
$4
$2
Cost of Material purchased
$3,76,800
$1,62,280
$5,39,080
Direct labor cost Budget
For the month July
Department 1
Department 2
Totals
Product K
Units to produce
39500
39500
Labor hours - per unit
0.40
0.15
Labor hours - required
15800
5925
Product L
Units to produce
19300
19300
Labor hours - per unit
0.60
0.25
Labor hours - required
11580
4825
Total Labor hours - required
27380
10750
Labor cost - per hour
$12
$16
Cost of Material purchased
$3,28,560
$1,72,000
$5,00,560