FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
3.3
Cost of Goods Sold Budget
Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following
Direct materials | $1.65 |
Direct labor | 0.45 |
Variable |
0.70 |
Fixed overhead | 1.80 |
Total unit cost | $4.60 |
For the coming year, Play-Disc expects to make 400,000 plastic discs, and to sell 390,000 of them. Budgeted beginning inventory in units is 20,000 with unit cost of $4.60. (There are no beginning or ending inventories of work in process.)
Expert Solution
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 nowThis is a popular solution!
Step by stepSolved in 2 steps
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.Similar questions
- vnt.2 Matthew Company has a sales budget for last month of $400,000. Cost of goods sold is expected to be 40% of sales. All units are paid for in the month following purchase. The beginning inventory is $5,000 and an ending inventory of $12,000 is desired. Beginning accounts payable is $76,000. The costs of goods solf for the next month is a) $220,000 b) $160,000 c) $172,000 d) $140,000arrow_forwardDeacon Inc. produces leather shoes. The production budget for the next four months is: July 5350 units, August 6780, September 7360, October 8180. Each shoe requires 0.8 square meters of leather. Deacon Inc.'s leather inventory policy is 34% of next month's production needs. If the leather policy is met, what will the October inventory be? vi Question 2 of 5arrow_forwardA-7arrow_forward
- Saved en hrc produces lesther handbags The production budget for the next four months is July 5,200 units, August 7,600, September 7,500, October 31 8300 Each handbag requires 19 hous of unskilled labor (paid $15 per hour) and 3.2 hours of skilled labor (pald $23 per hour), What will be the total abor cost for the morth of August? Matple Croce ST75.950 $E59 360 $125 350 $TAB00arrow_forwardCurrent Attempt in Progress Sheridan Construction Company determines that 58000 pounds of direct materials are needed for production in July. There are 4200 pounds of direct materials on hand at July 1 and the desired ending inventory is 3000 pounds. If the cost per unit of direct materials is $5, what is the budgeted total cost of direct materials purchases for the month? ○ $296000. ○ $156000. O $284000. ○ $192000. Save for Later Attempts: 0 of 1 used Submit Answerarrow_forwardMandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 662,000 units, estimated beginning inventory is 110,000 units, and desired ending inventory is 87,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below. Material A 0.50 lb. per unit @ $0.52 per pound Material D 1.00 lb. per unit @ $2.46 per pound Material C 1.20 lb, per unit @ $1.01 per pound The dollar amount of Material t used in production during the year is O&$1571,940 Ob $1.257.552 O $2,357910 Od $1.886.320arrow_forward
- lens junction sells lenses for 45$ and each and is estimating sales of 15,000 units in january and 18000 units in february. each lens consist of 2 pounds of silicion costing $2.50 per pound, 3 ounces of solution costing $3 per ounce, and 30 minutes of direct labor at a rate of $18 per hour . prepare a sales budget, production budget, direct mateials budget for siliconarrow_forwardPreparing an Ending Finished Goods Inventory Budget Andrews Company manufactures a line of office chairs. Each chair takes $14 of direct materials and uses 1.9 direct labor hours at $18 per direct labor hour. The variable overhead rate is $1.00 per direct labor hour, and the fixed overhead rate is $1.70 per direct labor hour. Andrews expects to have 670 chairs in ending inventory. There is no beginning inventory of office chairs. Required: 1. Calculate the unit product cost. Round your answer to the nearest cent.$fill in the blank 1 2. Calculate the cost of budgeted ending inventory. Round your answer to the nearest dollar.$fill in the blank 2arrow_forwardShadee Corporation expects to sell 570 sun shades in May and 450 in June. Each shade sells for $146. Shadee's beginning and ending finished goods inventories for May are 75 and 45 shades, respectively. Ending finished goods inventory for June will be 55 shades. E8-8 (Algo) Preparing Cost of Goods Sold Budget [LO 8-3f] Each shade requires a total of $50.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 90 poles in inventory on May 31, and 110 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $15 per hour. Additionally, Shadee's fixed manufacturing overhead is $11,000 per month, and variable manufacturing overhead is $10 per unit produced. Use the information and solutions presented to complete the requirements. Required: 1. Determine Shadee's budgeted manufacturing cost per shade. (Note: Assume that fixed overhead per…arrow_forward
- nprogress=false Print Item Sunrise Poles manufactures hiking poles and is planning on producing 3,800 units in March and 3,700 units in April. Each pole requires a half pound of material, which costs $1.00 per pound. The company's policy is to have enough material on hand to equal 10% of the next month's production needs and to maintain a finished goods inventory equal to 25% of the next month's production needs. What is the budgeted cost of purchases for March? Budgeted cost of purchases $ Previous Nexarrow_forwardCameroon Corp. manufactures and sells electric staplers for $16.10 each. If 10,000 units were sold in December, and management forecasts 3% growth in sales each month, the dollar amount of electric stapler sales budgeted for February should be: Multiple Choice $181.207 $165,830 $175,929 $170.805 $161.000arrow_forwardAlpesharrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education