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

Activity-based costing system, The Pinewood Furniture Company Pty Ltd plans...

The Pinewood Furniture Company Pty Ltd plans to design two lines of chairs in the coming year-lounge and patio. The company is considering introducing an activity-based costing sys

Steps of developing a cost estimating relationship , STEPS OF DEVELOPING A ...

STEPS OF DEVELOPING A COST ESTIMATING RELATIONSHIP Firmly speaking, a CER is not a quantitative method. It is a framework for using suitable quantitative methods to quantify a

Engineering method-cost estimation method, Engineering method These met...

Engineering method These methods are based on the use of engineering analysis of technological relationship between inputs and outputs e.g. method studies and time and motion s

Disadvantages of participatory budgets , Disadvantages of participatory bud...

Disadvantages of participatory budgets   They consume more time and therefore are more expensive The advantage of management participation may be negated by failure t

What is behind the wave of mergers in the banking industry, What is behind ...

What is behind the wave of mergers in the banking industry? A: Several economic factors have caused banking institutions to merge over the past several years. These factors inc

Order acceptance or rejection, Excess machine hours 20,000. Received offers...

Excess machine hours 20,000. Received offers from two companies to buy 210,000 units of F at 0.60 and 300,000 units of D at 0.70. Estimated costs for the two products are;

Positioning, Positioning An essential part of the planning process is p...

Positioning An essential part of the planning process is positioning the organization to attain its goals. Positioning is a wide concept and depends on gathering and evaluating

Schedule of non-discretionary data, Schedule of Non-discretionary Data: and...

Schedule of Non-discretionary Data: and tables, in a form that is readable and readily understood.  This worksheet is to be used to identify/capture the various non-discretionar

Assignment help, I need help making sure I did my accounting assignment cor...

I need help making sure I did my accounting assignment correctly

English, accounting process or accounting cycle

accounting process or accounting cycle

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