Scribd
Upload
44 views1 page

Assignment On Master Budget

Budget Note

Uploaded by

Negash adane
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
44 views1 page

Assignment On Master Budget

Budget Note

Uploaded by

Negash adane
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

ABC Manufacturing Company manufactures and sells product X.

The company managements


and accountants gathered the following data to prepare a master budget for 2015:

Materials and Labor Requirements for product X


Direct materials
Rm1 5 kg per product X
Rm2 6 yards per product X
Direct manufacturing labor 5 hours per product X

The company management expects to sell 1,000 Product X during 2015 at an estimated retail
price of $450 per product X. Further, the management expects 2015 beginning inventory of 100
product X and would like to end 2015 with 200 product X in stock.

Direct Materials Inventories


Beginning Inventory 1/1/2015 Ending Inventory 12/31/2015
Rm1 2,000 Kg 1,500 kg
Rm2 1,000 yards 2,000 yard

Variable manufacturing overhead is $7 per direct manufacturing labor-hour. There are also
$66,000 in fixed manufacturing overhead costs budgeted for 2015. The company combines both
variable and fixed manufacturing overhead into a single rate based on direct manufacturing
labor-hours. Variable marketing costs are allocated at the rate of $250 per sales visit. The
marketing plan calls for 30 sales visits during 2015. Finally, there are $30,000 in fixed
nonmanufacturing costs budgeted for 2015.
Other data include the following:
2014 Unit Price 2015 Unit Price
Rm1 $28.00 per kg $30.00 per kg
Rm2 $ 4.80 per yard $ 5.00 per yard
Direct manufacturing labor $24.00 per hour $25.00 per hour

The inventoriable unit cost for ending finished goods inventory on December 31, 2014, is
$374.80. Assume the company uses a FIFO inventory method for both direct materials and
finished goods. Ignore work in process in your calculations. Budgeted balances at December 31,
2015, in the selected accounts are as follows: Cash $ 10,000, PPE (net) 850,000, Current
liabilities 17,000, Long-term liabilities 178,000, Stockholders’ equity 800,000.
Required :- Prepare the following types of master budget for the year 2015.
A. Revenues budget (in dollars)
B. Production budget (in units)
C. Direct material usage budget
D. Direct material purchases budget
E. Direct manufacturing labor budget
F. Manufacturing overhead budget
G. What is the budgeted manufacturing overhead rate
H. What is the budgeted manufacturing overhead cost per output unit in 2015?
I. Calculate the cost of a product X manufactured.
J. Ending inventory budget for both direct materials and finished goods.
K. Cost of goods sold budget.
L. Budgeted income statement.
M. Budgeted balance sheet for the company.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy