Overhead to be charged to production by product

Assignment Help Cost Accounting

Reference no: EM133424675

Production and related schedules

Goldstein Inc. manufactures and sells plastic boxes and trays. Sales are projected to be evenly spread over the annual period. Estimated product sales and material needs for each unit of product follow.

Boxes Trays
Annual Sales 42,000 30,000
Material A 2.0 pounds 1.0 pound
Material B 1.5 pounds 0.8 pound
Direct Labor 0.3 hour 0.2 hour
Overhead is applied at a rate of $1.60 per direct labor hour.

Expected Beg. Inv Desired End. Inv.
Material A (pounds) 1,780 1,500
Material B (pounds) 5,000 1,400
Boxes (units) 1,200 1,800
Trays (units) 800 650
Material A costs $0.05 per pound, and Material B costs $0.07 per pound. Prepare the following information:

a. Production schedule by product.
Note: Use a negative sign in your schedule to indicate that an amount is subtracted.

Production budget Boxes Trays
Units of sales Answer Answer
Units desired in ending inv. Answer Answer
Units needed Answer Answer
Units in beginning inv. Answer Answer
Budgeted production Answer Answer
b. Purchases budget in units by raw material, in total, and in dollars.
Note: Round your final answers to the nearest whole dollar.

Material purchases: Pounds Dollars
Material A Answer Answer
Material B Answer Answer
Total Answer
c.
Direct labor budget in hours by product, in total, and in dollars.
The average direct labor wage rate is $9.50 per hour.

Direct labor budget
Required DL hours: Boxes Answer
Trays Answer
Total DLHs Answer
Average DL wage rate Answer
Total DL cost Answer
d. Overhead to be charged to production by product and in total.

Reference no: EM133424675

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