Questionxyz inc this company manufactures picture frames

Assignment Help Financial Accounting

Reference no: EM13348355

Question:

XYZ, Inc. This company manufactures picture frames that sell for $20 each. Each frame needs 4 linear feet of bamboo, which costs $1.50 per foot. Every frame takes approximately .50 minutes to build, and the labor rate averages $10.00 per hour.

XYZ has the subsequnt inventory policies:

Ending finished goods inventory should be 40 % of the next month's sales.

Ending raw materials inventory should be 30 % of the next month's production.

Expected unit sales (frames) for the upcoming months follow:

March 275

April 250

May 300

June 400

July 375

August 425

Variable manufacturing overhead is incurred at a rate of $.25 per unit produced. Annual fixed manufacturing overhead is computed to be $7,200 ($600 per month) for an expected production of 4,000 units for the year. Administrative and Selling expenses are estimated at $650 per month plus $.60 per unit sold.

Requirement: 1 Sales Budget

April May June 2nd Quarter

Budgeted Sales (units)

Unit Sales Price

Budgeted sales revenue

Requirement: 2 Production Budget

April May June 2nd Quarter

Budgeted Sales (units)

Ending finished goods inventory

Beginning finished goods inventory

Budgeted production

Requirement: 3 Raw Materials purchase budget

April May June 2nd Quarter

Budget production

Material Requirements per unit

Total Material needed for production

Ending Raw Materials inventory

Beginning raw materials inventory

Budgeted Raw Materials Purchases

Material Cost per foot

Budgeted cost of raw material purchases

Requirement: 4 Direct Labor Budget

April May June 2nd Quarter

Budgeted Production

Direct labor requirements per unit

Direct Labor Hours Required

Direct Labor Rate

Budgeted direct labor cost

Requirement 5: Manufacturing overhead cost budget

April May June 2nd Quarter

Budgeted Production

Variable manufacturing overhead rate

Budgeted Variable manufacturing

Fixed Manufacturing overhead

Budgeted Manufacturing overhead

Reference no: EM13348355

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