You are required to prepare operational budget for the upcoming year including following: 1) Sales budget; 2) Production budget and Readymade production budget; 3) Direct materials budget; 4) Direct labor budget; 5) Purchase’s budget; 6) Overheads budget; 7) General production costs distribution; 8) Cost of sales budget; 9) Selling expenses budget; 10) Ending materials and ending Readymade production; 11) Profit and loss(Income statement). Double Bubble Inc company is engaged into production of metal jewelry - «Gold» and «Silver». Thedata below is for running of business:1. Management had decided with the sales for the upcoming period: Gold-2500 units per 920 $ andSilver 500 units per 980 S.2. Expected inventory stock for the end of the: Gold-20% of the sales volume; Silver -10% of the salesvolume.3. Expected cost for materials: AA-35 $ per kg; BB-25 $ per kg; CC-10 S per kg.4. Consumption of materials per unit:MaterialGold23kgI1,55. Management considers the required stock of materials for the end of the period. AA - 12% ofproduction need; BB-15% of production need; CC-10% of production need.6. Average cost per 1 hour of preparatory operations-20 $, 1 hour of main operations - 30 p$; 1 hourof completion operations - 10 $.7. Required labor per unit:Operations1)2)AABBCCPreparatoryMainMeasureHoursHoursCompletionHours8. The company plans the following expenses: 1)general production, 2)administrative and selling:№₂12378945Equipment depreciation.6 Workshop depreciationNoTools and applicationsSalaries of repairmen and fitters10 Total12Electricity of equipmentMaterials for repair purposes6TitleAdmin and managers salaryEmployee's salary3Maintenance of admin office4 Depreciation of admin office5Other admin expensesTitleIntra-plant movement of goodsSalary of foremenWorkshop lighting and electricityTotalMeasurekgkgIndicatorsBeginning stock, in unitsCost in SAA528Gold1MaterialsBB840IndicatorsTo the start of theperiod, kg.Cost, $18 48021 00012. Availability of readymade production stock for the start of the period:Unit title62Gold400284 800SSilverI4Silver17284 000145 00045 0009 00048 000115 00015 05095 00060 000S9. The ready-made production estimated on the base of average weighted method.10. Company calculates the cost of production on the base of direct-costing. General production costsdistributed based on proportion to direct labor costs (83%:17%). Admin and selling expenses are written toprofit and loss.11. Availability of materials for the start of the period:616 05074 00041 00046 000135 00080 400376 400CC4504 500Silver10075 050

Budgeting is the estimation of revenue and expenses over the period of time, the budgeting start…

Double Bubble Inc company is engaged into production of metal jewelry - «Gold» and «Silver». The data below is for running of business: 1. Management had decided with the sales for the upcoming period: Gold-2500 units per 920 $ and Silver 500 units per 980 S. 2. Expected inventory stock for the end of the Gold-20% of the sales volume; Silver-10% of the sales volume. 3. Expected cost for materials: AA-35 $ per kg; BB-25 $ per kg; CC-10 S per kg. 4. Consumption of materials per unit: Material Measure Gold kg 2 kg 3 kg I 1,5 5. Management considers the required stock of materials for the end of the period. AA - 12% of AA BB CC Silver I 4

Double Bubble Inc company is engaged into production of metal jewelry - «Gold» and «Silver». The data below is for running of business: 1. Management had decided with the sales for the upcoming period: Gold-2500 units per 920 $ and Silver 500 units per 980 S. 2. Expected inventory stock for the end of the Gold-20% of the sales volume; Silver-10% of the sales volume. 3. Expected cost for materials: AA-35 $ per kg; BB-25 $ per kg; CC-10 S per kg. 4. Consumption of materials per unit: Material Measure Gold kg 2 kg 3 kg I 1,5 5. Management considers the required stock of materials for the end of the period. AA - 12% of AA BB CC Silver I 4

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterC: Cases

Section: Chapter Questions

Problem 1C

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