User Account

All Pages

Budget Problem, Managerial Accounting

Assignment Help:
BUDGET PROBLEM
The Budget Director of Dave, Inc. with the assistance of the Controller, Production Manager and the Sales Manager has gathered the following data for use in developing the Budgeted Income Statement for 2012. The Company produces and sells two products: Batting Helmets and Football Helmets. Both products use two types of materials: Plastic and Foam Lining and they both go through a Molding Department and then through an Assembly Department before they are ready for sale.
Assume that there is no Work-Process-Inventory.
1. Estimated Sales : 25,800 Batting Helmets at $ 40 each and 54,100 Football Helmets at $ 75 each
2. Raw materials inventories at January 1st: Plastic – 9,500 pounds and Foam lining - 4,700 pounds
3. Finished Goods inventories at January 1st:
Batting Helmets – 2,450 at $ 21 each and Football Helmets – 3,900 at $ 40 each
4. Desired raw material inventory at December 31st: Plastic – 11,400 pounds and Foam lining -
4,500 pounds
5. Desired inventory at December 31st:
Batting Helmets – 2,400 at $ 21 each and Football Helmets - 3,500 at $ 40 each
6. Direct materials used in production:
Batting Helmet – Plastic – 1.40 pounds per unit and Foam lining - .60 pounds per unit
Football Helmet – Plastic – 3.20 pounds per unit and Foam lining – 1.20 pounds per unit
7. Cost of direct materials: Plastics - $ 6.50 per pound and Foam lining - $ 3.00 per pound
8. Direct labor used in production:
Batting Helmets - .16 hour in Molding at $14 per hour and .40 hour in Assembly at $12 per hour Football Helmets - .25 hour in Molding and .60 hour in Assembly (same rates)
9. Budgeted Factory Labor Overhead:
Indirect factory wages - $ 250,000 Depreciation on plant and equipment - $ 63,000 Utilities - $ 24,000 Insurance and property taxes - $ 9,700
10. Budgeted Operating Expenses:
Sales salaries expense - $ 505,700; Advertising Expense - $ 350,800; Office Salaries Expense – $ 145,800; Depreciation Expense Office Equipment - $ 6,200; Telephone Expense Selling - $ 4,700;Telephone Expense Administrative - $ 900; Travel Expense Selling - $ 42,100; Office Supplies Expense - $ 4,000; and Miscellaneous Administrative Expenses - $ 5,000.
11. Budgeted Other income and expenses:
Interest Revenue - $ 12,500 Interest Expense - $ 15,700
12. Budgeted income tax rate – 40%
REQUIRED:
Prepare a Budgeted Income Statement for 2012 with supporting schedules. Please refer to Exhibits 8 to 15 in your text on pages 986 to 994. Project is due by May 13, 2013

Related Discussions:- Budget Problem

Theory of metagames, THEORY OF METAGAMES This theory appears to describ...

THEORY OF METAGAMES This theory appears to describe how most people play non-zero sum games involving any number of persons. Prisoner's dilemma is an example of this; the ai

Medical office accounting final project, John Doe, MD A Business Simulation...

John Doe, MD A Business Simulation This simulation covers the transactions completed by John Doe, MD, a medical service business, which began on July 1 of the current year. Dr. D

Critique of performance measurement, Critique of Performance Measurement ...

Critique of Performance Measurement This section brings together material from preceding data in this lesson in order to provide a critical appraisal of performance measurement

Management, Discuss the different roles played by the qualitative and quant...

Discuss the different roles played by the qualitative and quantitative approaches to managerial decision making

Define materials cost variance, Define Materials cost variance Material...

Define Materials cost variance Material cost variance (MCV) is the difference between the standard cost of material specified and the actual cost of materials used." It is the

International management challenges of globalization., what is the topic ab...

what is the topic about? what are the practical implications? what are the practical criticisms?

Explain operating budgets, Explain Operating budgets These budgets rela...

Explain Operating budgets These budgets relate to the dissimilar activities or operation of a firm the number of such budgets depends upon the size and nature of business. The

Cost-price-total revenue and quantity changes, Quasar Computers are the fir...

Quasar Computers are the first all optical notebooks and their profit largely affects the manipulations in cost, price, total revenue and quantity changes. The market analysis show

Explain about customer oriented pricing, Customer oriented or perceived val...

Customer oriented or perceived value pricing There is an increasing trend to price the product on the basis of the customer's perception of its value. This method takes into ac

Gardner manufacturing company produces, Gardner Manufacturing Company produ...

Gardner Manufacturing Company produces a product that sells for $120. A selling commission of 10% of the selling price is paid on each unit sold. Variable manufacturing costs are $

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd