Solution-Prepare the selling and administrative expenses

Prepare the selling and administrative expenses budget

Assignment Help Managerial Accounting

Reference no: EM133092803

Question - Diane Buswell is preparing the 2022 budget for one of Current Designs' rotomolded kayaks. Extensive meetings with members of the sales department and executive team have resulted in the following unit sales projections for 2022.

Quarter 1 1,300 kayaks

Quarter 2 1,600 kayaks

Quarter 3 1,150 kayaks

Quarter 4 1,150 kayaks

Current Designs' policy is to have finished goods ending inventory in a quarter equal to 30% of the next quarter's anticipated sales. Preliminary sales projections for 2023 are 1,100 units for the first quarter and 1,600 units for the second quarter. Ending inventory of finished goods at December 31, 2021, will be 390 rotomolded kayaks.

Production of each kayak requires 42 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). Company policy is that the ending inventory of polyethylene powder should be 25% of the amount needed for production in the next quarter. Assume that the ending inventory of polyethylene powder on December 31, 2021, is 21,800 pounds. The finishing kits can be assembled as they are needed. As a result, Current Designs does not maintain a significant inventory of the finishing kits.

The polyethylene powder used in these kayaks costs $1.20 per pound, and the finishing kits cost $160 each. Production of a single kayak requires 3 hours of time by more experienced, type I employees and 4 hours of finishing time by type II employees. The type I employees are paid $12 per hour, and the type II employees are paid $9 per hour.

Selling and administrative expenses for this line are expected to be $47 per unit sold plus $7,900 per quarter. Manufacturing overhead is assigned at 160% of labor costs.

Required -

(a) Prepare the production budget for this product line by quarter and in total for 2022.

(b) Prepare the direct materials budget for this product line by quarter and in total for 2022.

(d) Prepare the manufacturing overhead budget for this product line by quarter and in total for 2022.

(e) Prepare the selling and administrative expenses budget for this product line by quarter and in total for 2022.

Reference no: EM133092803

Questions Cloud

What is the contribution margin ratio and how is it used : What is the contribution margin ratio and how is it used? Why is CVP analysis important in planning the use of new manufacturing technology

Determining its pricing strategy and its impact : Should the company focus on gross margin or contribution margin when determining its pricing strategy and its impact on throughput accounting

Discuss what you believe the role of a leader : Discuss what you believe the role of a leader / manager should be in encouraging diversity in the workplace and in work practices

Employer take to discourage employees from joining a union : a) Sam Wong has decided to file grievance with the manager, alleging that he was not promoted and a junior employee was promoted in his place.

Prepare the selling and administrative expenses budget : Selling and administrative expenses for this line are expected to be $47 per unit sold plus $7,900 per quarter. Prepare the selling and administrative expenses

Behaviour dependent variables in jamaican organizations : To what extent does leadership impact organizational Behaviour dependent variables in Jamaican organizations?

Effective reward and incentive programs : Why are effective reward and incentive programs important for the modem corporation? Give reasons for your answer

Facilitate good strategy execution : Discuss how well-designed policies and procedures can facilitate good strategy execution.

Determine Shauna taxable income : Shauna sustained $2,000 in gambling losses over the year and had only $200 in winnings. Determine Shauna taxable income

User Account

All Pages

Prepare the selling and administrative expenses budget

Reference no: EM133092803

Reference no: EM133092803

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT