Campbell Manufacturing Company produced 3,200 units of inventory in January Year 2. It expects to produce an additional 8,700 units during the remaining 11 months of the year. In other words, total production for Year 2 is estimated to be 11,900 units. Direct materials and direct labor costs are $65 and $66 per unit, respectively. Campbell expects to incur the following manufacturing overhead costs during the Year 2 accounting period. $ 4,800 186,000 125,000 Production supplies Supervisor salary Depreciation on equipment Utilities 27,000 Rental fee on manufacturing facilities 264,100 Required 1. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. 2. Determine the cost of the 3,200 units of product made in January. Determine the cost of the 3,200 units of product made in January. Allocated Cost Indirect overhead costs Direct materials Direct labor Total Required A Required B Predetermined overhead rate $ Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. Note: Round your answer to 2 decimal places. per unit 0

Campbell Manufacturing Company produced 3,200 units of inventory in January Year 2. It expects to produce an additional 8,700 units during the remaining 11 months of the year. In other words, total production for Year 2 is estimated to be 11,900 units. Direct materials and direct labor costs are $65 and $66 per unit, respectively. Campbell expects to incur the following manufacturing overhead costs during the Year 2 accounting period. $ 4,800 186,000 125,000 Production supplies Supervisor salary Depreciation on equipment Utilities 27,000 Rental fee on manufacturing facilities 264,100 Required 1. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. 2. Determine the cost of the 3,200 units of product made in January. Determine the cost of the 3,200 units of product made in January. Allocated Cost Indirect overhead costs Direct materials Direct labor Total Required A Required B Predetermined overhead rate $ Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is number of units. Note: Round your answer to 2 decimal places. per unit 0

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14PA: Total Pops data show the following information: New machinery will be added in April. This machine...

See similar textbooks

Similar questions

A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140
If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of capacity the next month, will a different cost per unit be charged to the work-in-process account each month for factory overhead assuming that a predetermined annual overhead rate is used?
Total Pops data show the following information: New machinery will be added in April. This machine will reduce the labor required per unit and increase the labor rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next months requirements. Direct material requires 2 pounds per unit at a cost of $3 per pound. The ending inventory required for direct materials is 15% of the next months needs. In January, the beginning inventory is 3,000 units of finished goods and 4,470 pounds of material. Prepare a production budget, direct materials budget, and direct labor budget for the first quarter of the year.
If the sales forecast estimates that 50,000 units of product will be sold during the following year, should the factory plan on manufacturing 50,000 units in the coming year? Explain.
One Device makes universal remote controls and expects to sell 500 units in January, 800 in February, 450 in March, 550 in April, and 600 in May. The required ending inventory is 20% of the next months sales. Prepare a production budget for the first four months of the year.
The Sales Department of Minimus Inc. has forecast sales for May 2016 to be 40,000 units. Additional information follows: Materials used in production: Direct labor hours required in production: Prepare the following: a. A production budget for May. b. A direct materials budget for May. c. A direct labor budget for May.
Baylor Company began its operations on March 31 of the current year. Projected manufacturing costs for the first three months of business are $156,800, $198,200, and $217,600, respectively, for April, May, and June. Depreciation, insurance, and property taxes represent $28,800 of the estimated monthly manufacturing costs. Insurance was paid on March 31, and property taxes will be paid in November. Three-fourths of the remainder of the manufacturing costs are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month. What are the cash payments for manufacturing in the month of June?
Your company expects sales of Production W to be 60,000 units in April, 75,000 units in May and 70,000 units in June. The company desires that the inventory on hand at the end of each month be equal to 40% of the next month’s expected unit sales. Given this information, Walsh Company’s production of Product W for the month of May should be ____.
Assume that a company expects to produce 10,300, 11,300, and 13,300 units of finished goods in January, February, and March, respectively. Each unit of finished goods requires 4 pounds of raw material and each pound of raw material costs $1.75. The company always maintains an ending raw materials inventory equal to 25% of next month’s production needs. What is the amount of expected raw materials purchases for February?
Expected unit sales (frames) for the upcoming months follow: March April May June July August 295 290 340 440 415 465 Variable manufacturing overhead is incurred at a rate of $0.20 per unit produced. Annual fixed manufacturing overhead is estimated to be $9,000 ($750 per month) for expected production of 5,000 units for the year. Selling and administrative expenses are estimated at $800 per month plus $0.50 per unit sold. Iguana, Incorporated, had $11,800 cash on hand on April 1. Of its sales, 80 percent is in cash. Of the credit sales, 50 percent is collected during the month of the sale, and 50 percent is collected during the month following the sale. Of direct materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month. Direct materials purchases for March 1 totaled $2,600. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $190 in depreciation. During April, Iguana…
Ajax Manufacturing produces a single product, which takes 8.0 pounds of direct material per unit produced. The company's policy is to maintain an end-of-quarter inventory of materials equal to 25 percent of the following quarter's material requirements for production. At the end of the 4th quarter, there were 72,000 pounds of material on hand. Assume it is currently the end of the first quarter of the new year. a. How many units of product were produced this quarter? b. Under the assumption that production will increase by 10% in the second quarter, what are the direct material requirements (in pounds) for planned production in the second quarter?