FINANCIAL ACCOUNTING
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ISBN: 9781259964947
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Transcribed Image Text:**Vista Electronics, Inc. Coil Manufacturing Data**
Vista Electronics, Inc. produces two types of coils used in electric motors. The following data was compiled by Erica Becker, the controller, for the fall of the current year.
### Sales Forecast for 20x0
(All units to be shipped in 20x0)
- **Product: Light coil**
- Units: 52,000
- Price: $220
- **Product: Heavy coil**
- Units: 32,000
- Price: $320
### Raw-Material Prices and Inventory Levels
- **Expected Inventories as of January 1, 20x0:**
- Sheet Metal: 30,000 lb
- Copper Wire: 27,000 lb
- Platform: 5,200 units
- **Desired Inventories by December 31, 20x0:**
- Sheet Metal: 34,000 lb
- Copper Wire: 30,000 lb
- Platform: 6,200 units
- **Anticipated Purchase Prices:**
- Sheet Metal: $14 per lb
- Copper Wire: $8 per lb
- Platform: $4 per unit
### Use of Raw Material
(Amount Used per Unit)
- **Light Coil:**
- Sheet Metal: 5 lb
- Copper Wire: 3 lb
- Platform: 2 units
- **Heavy Coil:**
- Sheet Metal: 6 lb
- Copper Wire: 4 lb
- Platform: 2 units
### Direct-Labor Requirements and Rates
- **Light Coil:**
- Hours per Unit: 5
- Rate per Hour: $10
- **Heavy Coil:**
- Hours per Unit: 7
- Rate per Hour: $15
### Finished-Goods Inventories (in units)
- **Expected Inventory as of January 1, 20x0:**
- Light Coil: 17,000
- Heavy Coil: 9,500
- **Desired Inventory by December 31, 20x0:**
- Light Coil: 22,000
- Heavy Coil: 10,500
This data provides a comprehensive overview of the production, raw material needs, and labor requirements needed for the upcoming year, aiding in planning and forecasting for Vista Electronics,
![### Finished-Goods Inventories (in units):
- **Product**
- **Light Coil**
- **Expected (January 1, 20x0):** 17,000
- **Desired (December 31, 20x0):** 22,000
- **Heavy Coil**
- **Expected (January 1, 20x0):** 9,500
- **Desired (December 31, 20x0):** 10,500
### Production Overhead:
- **Overhead Cost Item**
- **Purchasing and Material Handling:** $0.80 per pound of sheet metal and copper wire purchased
- **Depreciation, Utilities, and Inspection:** $7.00 per coil produced (either type)
- **Shipping:** $1.00 per coil shipped (either type)
- **General Production Overhead:** $5.00 per direct-labor hour
### Problem 9-39 Part 5
5. **Prepare the Direct-Labor Budget (in dollars) for 20x0.**
#### Direct-Labor Budget for 20x0:
- **Projected Production (units)**
- Light Coils: [Data to be added]
- Heavy Coils: [Data to be added]
- **Hours per Unit**
- Light Coils: [Data to be added]
- Heavy Coils: [Data to be added]
- **Total Hours**
- Light Coils: [Data to be added]
- Heavy Coils: [Data to be added]
- **Rate**: [Data to be added]
- **Total Cost**
- Overall Total: $0](https://content.bartleby.com/qna-images/question/0c838bf2-db15-4344-a47d-87b85cebb7ca/64483a82-c8de-4ce4-9a1e-9db9eae8de23/g66leza_processed.png)
Transcribed Image Text:### Finished-Goods Inventories (in units):
- **Product**
- **Light Coil**
- **Expected (January 1, 20x0):** 17,000
- **Desired (December 31, 20x0):** 22,000
- **Heavy Coil**
- **Expected (January 1, 20x0):** 9,500
- **Desired (December 31, 20x0):** 10,500
### Production Overhead:
- **Overhead Cost Item**
- **Purchasing and Material Handling:** $0.80 per pound of sheet metal and copper wire purchased
- **Depreciation, Utilities, and Inspection:** $7.00 per coil produced (either type)
- **Shipping:** $1.00 per coil shipped (either type)
- **General Production Overhead:** $5.00 per direct-labor hour
### Problem 9-39 Part 5
5. **Prepare the Direct-Labor Budget (in dollars) for 20x0.**
#### Direct-Labor Budget for 20x0:
- **Projected Production (units)**
- Light Coils: [Data to be added]
- Heavy Coils: [Data to be added]
- **Hours per Unit**
- Light Coils: [Data to be added]
- Heavy Coils: [Data to be added]
- **Total Hours**
- Light Coils: [Data to be added]
- Heavy Coils: [Data to be added]
- **Rate**: [Data to be added]
- **Total Cost**
- Overall Total: $0
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