Sales, production, direct materials purchases, and direct labor cost budgetsThe budget director of Gourmet Grill Company requests estimates of sales,production, and other operating data from the various administrative units every month. Selected information concerning sales and production for March issummarized as follows: Instructions1. Prepare a sales budget for March.2. Prepare a production budget for March.3. Prepare a direct materials purchases budget for March.4. Prepare a direct labor cost budget for March. a. Estimated sales for March by sales territory:Maine:Backyard Chef850 units at 8800 per unitMaster Chef200 units at 81,400 per unitVermont:Backyard Chef400 units at 2825 per unitMaster Chef240 units at 81,500 per unitNew Hampshire:Backyard Chef820 units at 2850 per unitMaster Chef200 units at 81,600 per unitb. Estimated inventories at March 1:Direct materiale:Finished products:s20 units Backyard Chef 80 unitsGratesstainless steel1.700 Ib. Master Chef36 unitsBurner subassemblies 190 units850 unitsshelvesc. Desired inventories at March 81:Direct materialo:Finished producte:Grates800 units Backyard Chef40 unitsstainless steel1,500 lb. Master Chef26 unitsBurner subassemblies 210 unitsshelves400 units d. Direct materials used in production:In manufacture of Backyard Chef:S units per unit of productGratesStainless steel24 Ib. per unit of productBurner subassemblies2 units per unit of productshelves4 units per unit of productIn manufacture of Master Chef:6 units per unit of productGratesstainless steel42 lb. per unit of productBurner subassemblies4 units per unit of productshelvesS units per unit of producte. Anticipated purchase price for direct materials:816 per unit Burner subassemblies 8120 per unitGratesStainless oteel 88 per Ib.shelves812 per unitf. Direct labor requirements:Backyard Chef:Stamping Department 0.50 hr. at $18 per hr.Forming Department 0.60 hr. at $16 per hr.Assembly Department 1.00 hr. at $15 per hr.Master Chef:stamping Department 0.60 hr. at 818 per hr.Forming Department 0.80 hr. at 216 per hr.Assembly Department 1.50 hrs. at 815 per hr.

Budgeting is a future estimate of the expected Cash inflows and outflows prepared on the basis of…

The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for March is summarized as follows: Instructions 1. Prepare a sales budget for March. 2. Prepare a production budget for March. 3. Prepare a direct materials purchases budget for March.

The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for March is summarized as follows: Instructions 1. Prepare a sales budget for March. 2. Prepare a production budget for March. 3. Prepare a direct materials purchases budget for March.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...

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Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
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Synergy Manufacturing Co. Ltd. manufactures Product A and Product B. The following information is available for March 2020 Product A Product B Production (units) 5,000 3,500 Sales (units) 4,600 3,200 Opening inventory (units) Financial data: Product A Product B Unit selling price £ 180.00 £ 150.00 Unit cost: direct materials £ 30.00 £ 24.00 direct labour £ 36.00 £ 24.00 variable production overheads £ 24.00 £ 16.00 fixed production overheads £ 60.00 £ 40.00 variable selling overheads £ 2.00 £ 2.00 Fixed production overheads for the period were £210,000 and fixed administration overheads were £54,000. Please note that fixed production overheads and fixed administration overheads are shared based on the number of production units for Product A and Product B. Required: Based on the details provided in the table below, prepare and interpret accurate income statements for the company using a range of management accounting techniques, such as marginal and absorption costs.
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