Preparing sales production

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Reference no: EM13965035

Preparing sales, production, direct materials purchases, and direct labor cost budgets

Techno Logics specializes in producing gear for high-tech gadgets, such as laptop computers, cell phones, and personal music players. The company is in the process of creating budgets for 2015 and has asked for your assistance. Data have been compiled to help you analyze the projected sales and production needs for the company's two types of laptop-carrying cases.

Sales

Sales	Sim Line Carrying Case	Heavy-Duty Carrying Case
Selling price(per unit)	$ 62.00	$96.50
Expected annual sales(in units)	106,000	83,500

Based on the preceding information prepare the budgets for Techno Logics for the year ending December 31,2015.

A. Sales Budget Please complete the following Slim Line carrying case, heavy duty carrying case, and total revenue from sales:

Techno Logics Sales Budget for the year ending Dec. 31,2015

	Unit Sales	Unit Selling
Product	Volume	Price	Total Sales
Slim Line Carrying
Heavy-Duty Carrying Case
Total revenue from sales

Production Inventory

Inventory	Slim Line Carrying Case	Heavy-Duty Carrying Case
Beginning inventory, Jan. 1, 2015	6,440	5,080
Desired ending inventory, Dec. 31,2015	5,370	4,230

B. Production Budget Please complete the following:

Techno Logics Production Budget For the Year Ending Dec. 31,2015

		Units
	Slim Line Carrying Case	Heavy-Duty Carrying Case
Expected units to be sold
Plus desired ending inventory, Dec. 31, 2015
Total
Less estimated beginning inventory, Jan. 1,2015
Total units to be produced	104,930

Direct Material Needed For Each Unit

Direct Materials Needed For Each Unit	Slim Line Carrying Case	Heavy-Duty Carrying Case
Nylon material($1.06 per square foot)	10 square feet	14 square feet
Zipper tape ($1.52 per foot)	3 feet	4 feet
Carrying strap ($2.80 per strap)	1 per case	1 per case

C. Direct Materials Purchases Budget Please complete the following:

Techno Logics Direct Materials Purchases Budget For the Year Ending Dec. 31,2015

		Direct Materials
Product	Nylon Material	Zipper Tape	Carrying Strap	Total
Amount required for production:
Slim Line Carrying Case	1,049,300
Heavy-Duty Carrying Case
Pluse desired inventory, Dec. 31,2015
Total
Less estimated inventory, Jan.1,2015
Total amount to be purchased
Unit price
Total cost of direct materials to be purchased				$3,746,220.80

Materials Inventory

Inventory	Nylon Material	Zipper Tape	Carrying Strap
Beginnining inventory, Jan.1,2015	220,000 sq ft	66,000 ft	22,000
Desired ending inventory, Dec. 31,2015	165,000 sq ft	49,500 ft	16,500

Direct Labor Needed for Each Unit

Direct Labor Needed for each unit	Slim Line Carrying Case	Heavy-Duty Carrying Case
Cutting and sewing ($8.20 per hour)	2.50 hours	3.00 hours
Assembly ($10.40 per hour)	0.50 hour	1.00 hour

D. Direct Labor Cost Budget Please complete the following:

Techno Logis Direct Labor Cost Budget For the Year Ending Dec. 31,2015

	Cutting and Sewing	Assembly	Total
Hours required for production:
Slim Line Carrying Case
Heavy-Duty Carrying Case
Total Hours
Hourly rate
Total direct labor cost			$5,589,451.00

Reference no: EM13965035

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