Preparing a Cost of Goods Sold BudgetAndrews Company manufactures a line of office chairs. Each chair takes $14 of direct materials and uses 1.9 direct labor hours at $16 per direct labor hour. The variable overhead rate is $1.20 per direct labor hour, and the fixed overhead rate is $1.60 per direct labor hour. Andrews expects to produce 20,000 chairs next year and expects to have 675 chairs in ending inventory. There is no beginning inventory of office chairs. Required: Prepare a cost of goods sold budget for Andrews Company

A manufacturer reports the following costs to produce 27,000 units in its first year of operations: direct materials, $27 per unit, direct labor, $23 per unit, variable overhead, $243,000, and fixed overhead, $ 378,000. Of the 27,000 units produced, 25, 900 were sold, and 1,100 remain in inventory at year-end. Under variable costing, the value of the inventory is: Multiple Choice $55,000. $64,900. $80, 300. $70,400. $ 39,600.

Ashavin

Garden Yeti manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $2 per pound and 0.4 direct labor hour at a rate of $18 per hour. Varlable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted fixed overhead is $4,500 per month. The company's policy is to maintain direct materials Inventory equal to 30% of the next month's direct materials requirement. At the end of February the company had 7,440 pounds of direct materials in Inventory. The company's production budget reports the following. Production Budget Units to produce March April 3,100 4,400 (1) Prepare direct materials budgets for March and April. (2) Prepare direct labor budgets for March and April. (3) Prepare factory overhead budgets for March and April. Complete this question by entering your answers in the tabs below. Units to produce Required 1 Required 2 Required 3 Prepare direct materials budgets for March and April. GARDEN YETI Direct Materials Budget…

Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $12.00 per hour. Iguana has the following inventory policies:     Ending finished goods inventory should be 40 percent of next month’s sales. Ending direct materials inventory should be 30 percent of next month’s production. Expected unit sales (frames) for the upcoming months follow:      March 275 April 250 May 300 June 400 July 375 August 425   Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 4,000 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.60 per unit sold.Iguana, Inc., had $10,800 cash on hand on April 1. Of its sales, 80 percent is in cash. Of the…

Bonita Sleep Systems manufactures nylon mesh hammocks for a chain of retail outlets located throughout the southeast. The company plans to manufacture and sell 28,000 hammocks during the fourth quarter. Overhead costs are expected to include:                   Variable indirect materials   $ 4.75   per hammock     Variable indirect labor   $ 11.25   per hammock     Other variable overhead   $ 3.25   per hammock     Salaries   $ 50,000   per quarter     Insurance   $ 6,000   per quarter     Depreciation   $ 25,000   per quarter   Prepare Bonita's manufacturing overhead budget for the fourth quarter.

Zaria Inc. provides the following cost information for producing 10,000 units of inventory during the current month: Direct materials costs $30,000 Direct labor costs 55,000 Variable manufacturing overhead costs 20,000 Fixed manufacturing overhead costs 25,000 Variable Selling and Administrative expenses 15,000 Fixed Selling and Administrative expenses 10,000 The product costs per unit under absorption costing would be: Group of answer choices $15.50 per unit $10.50 per unit $2.5 per unit $13 per unit

Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $850. Selected data for the company's operations last year follow. Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 250 225 25 $ 100 $ 320 $ 40 $ 20 $ 60,000 $ 20,000 The absorption costing Income statement prepared by the company's accountant for last year appears below. Sales $ 191,250 Cost of goods sold 157,500 Gross margin 33,750 Selling and administrative expense 24,500 $ 9,250 Net operating income Required: 1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's Inventory at the end of last year? 2. Prepare an income statement for last year using variable costing. Answer is complete…

Variable and Absorption CostingChandler Company sells its product for $108 per unit. Variable manufacturing costs per unit are $49, and fixed manufacturing costs at the normal operating level of 12,000 units are $240,000. Variable selling expenses are $17 per unit sold. Fixed administrative expenses total $104,000. Chandler had no beginning inventory for the year. During the year, the company produced 12,000 units and sold 9,000. Would net income for Chandler Company be higher if calculated using variable costing or using absorption costing?Calculate reported income using each method.Do not use negative signs with any answers. Absorption Costing Income Statement Sales       Answer   Cost of Goods Sold:         Beginning Inventory     Answer     Variable Costs     Answer     Fixed Costs     Answer     Less: Ending Inventory     Answer     Cost of Goods Sold       Answer   Answer         Answer   Answer         Answer   Administrative expense…

Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $850. Selected data for the company's operations last year follow. Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 250 225 25 $ 100 $ 320 $ 40 $ 20 $ 60,000 $ 20,000 The absorption costing Income statement prepared by the company's accountant for last year appears below. Sales Cost of goods sold Gross margin $ 191,250 157,500 33,750 Selling and administrative expense 24,500 $ 9,250 Net operating income Required: 1. Under absorption costing, how much fixed manufacturing overhead cost is Included in the company's Inventory at the end of last year? 2. Prepare an Income statement for last year using variable costing. Complete this…