Please help with the following question part (a) and refer to data table, Sparkle Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. It expects to manufacture 26,000Knox lamps and 12,000 Ayer lamps in 2020. The following data are available for the year 2020.(Click the icon to view the information.)(Click the icon to view the December312020 production budget in units.)Calculate (a) the direct materials usage budget in quantity and dollars (label it Schedule 3A); (b) the direct materials purchasebudget in quantity and dollars (label it Schedule 3B); and (c) the direct manufacturing labor costs budget (label it Schedule 4) forthe year ending December312020.(a). Begin by calculating the direct materials usage budget in quantity and then in dollars (label it Schedule 3A) for the year endingDecember 31, 2020.Schedule 3A: Direct Material Usage Budget in Quantity and Dollarsfor the Year Ending December 31, 2020Physical Units BudgetDirect materials required for Knox lampsDirect materials required for Ayer lampsTotal quantity of direct materials to be usedCost BudgetAvailable from beginning direct materials inventory(under a FIFO cost-flow assumption)MetalFabricTo be purchased and used this periodMetalFabricDirect materials to be used this period☐ ☐MaterialMetalFabricTotallbs.yardslbs.yardslbs.yards Data tableSchedule 2: Production Budget (in Units)for the Year Ending December 31, 2020KnoxAyerBudgeted units sales26,90012,0001,600600Add target ending finished goods inventoryTotal required units28,50012,6002,500600Deduct beginning finished goods inventoryUnits of finished goods to be produced26,00012,000PrintDoneaterData tableaterntitdgDirect materialsfroこMetalFabricDirect manufacturing laborContent of Each Product Unit$2 per pound (same as in 2019)$3 per yard (same as in 2019)$ 23 per hourchProductKnoxAyerMetal2 pounds3 poundsaterFabric1.00 yard2.00 yardslatDirect manufacturing labor0.05 hours0.35 hoursDirect MaterialsMetalFabricBeginning inventory9,000 pounds3,000 yardsTarget ending inventory7,000 pounds1,000 yards☑-✗

Budgeting:Budgeting is the process where the company creates a plan of how they are spend their…

(a). Begin by calculating the direct materials usage budget in quantity and then in dollars (label it Schedule 3A) for the year ending December 31, 2020. Schedule 3A: Direct Material Usage Budget in Quantity and Dollars for the Year Ending December 31, 2020 Material

(a). Begin by calculating the direct materials usage budget in quantity and then in dollars (label it Schedule 3A) for the year ending December 31, 2020. Schedule 3A: Direct Material Usage Budget in Quantity and Dollars for the Year Ending December 31, 2020 Material

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 4E: Prepare a cost of goods sold budget for the Crest Hills Manufacturing Co. for the year ended...

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Operating Budget, Comprehensive Analysis Allison Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturers and aircraft maintenance facilities. Projected sales in units for the coming 5 months follow: The following data pertain to production policies and manufacturing specifications followed by Allison Manufacturing: a. Finished goods inventory on January 1 is 32,000 units, each costing 166.06. The desired ending inventory for each month is 80% of the next months sales. b. The data on materials used are as follows: Inventory policy dictates that sufficient materials be on hand at the end of the month to produce 50% of the next months production needs. This is exactly the amount of material on hand on December 31 of the prior year. c. The direct labor used per unit of output is 3 hours. The average direct labor cost per hour is 14.25. d. Overhead each month is estimated using a flexible budget formula. (Note: Activity is measured in direct labor hours.) e. Monthly selling and administrative expenses are also estimated using a flexible budgeting formula. (Note: Activity is measured in units sold.) f. The unit selling price of the subassembly is 205. g. All sales and purchases are for cash. The cash balance on January 1 equals 400,000. The firm requires a minimum ending balance of 50,000. If the firm develops a cash shortage by the end of the month, sufficient cash is borrowed to cover the shortage. Any cash borrowed is repaid at the end of the quarter, as is the interest due (cash borrowed at the end of the quarter is repaid at the end of the following quarter). The interest rate is 12% per annum. No money is owed at the beginning of January. Required: 1. Prepare a monthly operating budget for the first quarter with the following schedules. (Note: Assume that there is no change in work-in-process inventories.) a. Sales budget b. Production budget c. Direct materials purchases budget d. Direct labor budget e. Overhead budget f. Selling and administrative expenses budget g. Ending finished goods inventory budget h. Cost of goods sold budget i. Budgeted income statement j. Cash budget 2. CONCEPTUAL CONNECTION Form a group with two or three other students. Locate a manufacturing plant in your community that has headquarters elsewhere. Interview the controller for the plant regarding the master budgeting process. Ask when the process starts each year, what schedules and budgets are prepared at the plant level, how the controller forecasts the amounts, and how those schedules and budgets fit in with the overall corporate budget. Is the budgetary process participative? Also, find out how budgets are used for performance analysis. Write a summary of the interview.
Bright Light Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. It expects to manufacture 25,000 Knox lamps and 15,000 Ayer lamps in 2020. The following data are available for the year 2020. (Click the icon to view the information.) (Click the icon to view the December 31, 2020 production budget in units.) Calculate (a) the direct materials usage budget in quantity and dollars (label it Schedule 3A); (b) the direct materials purchase budget in quantity and dollars (label it Schedule 3B); and (c) the direct manufacturing labor costs budget (label it Schedule 4) for the year ending December 31, 2020. (a). Begin by calculating the direct materials usage budget in quantity and then in dollars (label it Schedule 3A) for the year ending December 31, 2020. Schedule 3A: Direct Material Usage Budget in Quantity and Dollars for the Year Ending December 31, 2020 Physical Units Budget Direct materials required for Knox lamps Direct materials required for Ayer lamps…
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