The following data are available for the 2012 budget: Direct materials Red Oak $ 7 per board foot (b.f.) (same as in 2011) Granite $10 per square foot (sq. ft.) (Same as in 201- Direct manufacturing labor $20 per hour Content of Each Product Unit Product Casual Granite Table Deluxe Granite Table Red Oak 12 board feet 12 board feet 8 square feet 6 hours Granite 6 square feet Direct manufacturing 4 hours labor Product Casual Granite Table Deluxe Granite Table Expected sales in 50,000 10,000 units Selling price Target ending $ 600 $ 800 11,000 500 inventory in units Beginning inventory in 1,000 500 units Beginning inventory in $384,000 $262,000 dollars Direct Materials Red Oak Granite Beginning inventory Target ending inventory 70,000 b.f. 60,000 sq. ft. 20,000 sq. f 80,000 b.f. Required: Based on the above data prepare:- A. Revenue Budget B. Production Budget C. Prepare the Direct Material Usage Budget and Direct Material Purchases Budget.
The following data are available for the 2012 budget: Direct materials Red Oak $ 7 per board foot (b.f.) (same as in 2011) Granite $10 per square foot (sq. ft.) (Same as in 201- Direct manufacturing labor $20 per hour Content of Each Product Unit Product Casual Granite Table Deluxe Granite Table Red Oak 12 board feet 12 board feet 8 square feet 6 hours Granite 6 square feet Direct manufacturing 4 hours labor Product Casual Granite Table Deluxe Granite Table Expected sales in 50,000 10,000 units Selling price Target ending $ 600 $ 800 11,000 500 inventory in units Beginning inventory in 1,000 500 units Beginning inventory in $384,000 $262,000 dollars Direct Materials Red Oak Granite Beginning inventory Target ending inventory 70,000 b.f. 60,000 sq. ft. 20,000 sq. f 80,000 b.f. Required: Based on the above data prepare:- A. Revenue Budget B. Production Budget C. Prepare the Direct Material Usage Budget and Direct Material Purchases Budget.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 2P: Sales, production, direct materials, direct labor, and factory overhead budgets King Tire Co.s...
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:The following data are available for the 2012 budget:
Direct materials Red Oak
$7 per board foot (b.f.) (same as in 2011)
Granite
$10 per square foot (sq. ft.) (Same as in 2011
Direct manufacturing labor
$20 per hour
Content of Each Product Unit
Product
Casual Granite Table
Deluxe Granite Table
Red Oak
12 board feet
12 board feet
6 square feet
4 hours
8 square feet
6 hours
Granite
Direct manufacturing
labor
Product
Casual Granite Table
Deluxe Granite Table
Expected sales in
50,000
10,000
units
Selling price
Target ending
$ 600
$ 800
11,000
500
inventory in units
Beginning inventory in 1,000
500
units
Beginning inventory in $384,000
$262,000
dollars
Direct Materials
Red Oak
Granite
Beginning inventory
Target ending
inventory
70,000 b.f.
60,000 sq. ft.
20,000 sq. f
80,000 b.f.
Required: Based on the above data prepare:-
A. Revenue Budget
B. Production Budget
C. Prepare the Direct Material Usage Budget and Direct Material Purchases
Budget.
D. Prepare the Direct Manufacturing Labor Costs Budget
E. Prepare the Manufacturing Overhead Costs Budget
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