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    Budget Numerical

    Uploaded by

    Nouman Sheikh
    Yount Company provides a production budget, direct materials budget, and direct labor budget for the first quarter of 2009 which shows expected unit sales, required production units, direct materials needed in pounds and cost, and direct labor hours and costs based on a unit labor rate of $11 per hour to meet sales and inventory targets. Raw materials on hand at the end of 2008 was 3,920 pounds and finished goods was 1,000 units. Each unit requires 2 pounds of raw materials costing $4 per pound and 1.5 hours of direct labor.

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    Budget Numerical

    Uploaded by

    Nouman Sheikh
    33 views3 pages
    Yount Company provides a production budget, direct materials budget, and direct labor budget for the first quarter of 2009 which shows expected unit sales, required production units, direct materials needed in pounds and cost, and direct labor hours and costs based on a unit labor rate of $11 per hour to meet sales and inventory targets. Raw materials on hand at the end of 2008 was 3,920 pounds and finished goods was 1,000 units. Each unit requires 2 pounds of raw materials costing $4 per pound and 1.5 hours of direct labor.

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    Yount Company provides a production budget, direct materials budget, and direct labor budget for the first quarter of 2009 which shows expected unit sales, required production units, direct materials needed in pounds and cost, and direct labor hours and costs based on a unit labor rate of $11 per hour to meet sales and inventory targets. Raw materials on hand at the end of 2008 was 3,920 pounds and finished goods was 1,000 units. Each unit requires 2 pounds of raw materials costing $4 per pound and 1.5 hours of direct labor.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    33 views3 pages

    Budget Numerical

    Uploaded by

    Nouman Sheikh
    Yount Company provides a production budget, direct materials budget, and direct labor budget for the first quarter of 2009 which shows expected unit sales, required production units, direct materials needed in pounds and cost, and direct labor hours and costs based on a unit labor rate of $11 per hour to meet sales and inventory targets. Raw materials on hand at the end of 2008 was 3,920 pounds and finished goods was 1,000 units. Each unit requires 2 pounds of raw materials costing $4 per pound and 1.5 hours of direct labor.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Yount Company has budgeted the following unit sales:

    2009 Units
    January 10,000
    February 8,000
    March 9,000
    April 11,000
    May 15,000
    The finished goods units on hand on December 31, 2008, was 1,000 units. Each unit
    requires 2 pounds (Weight) of raw materials that are estimated to cost an average of $4 per
    pound. It is the company's policy to maintain a finished goods inventory at the end of each
    month equal to 10% of next month's anticipated sales. They also have a policy of
    maintaining a raw materials inventory at the end of each month equal to 20% of the pounds
    needed for the following month's production. There were 3,920 pounds of raw materials on
    hand at December 31, 2008.
    Each unit requires 1.5 hours of direct labor. Wage rate is $11 per hour.

    Instructions
    For the first quarter of 2009, prepare (1) a production budget and (2) a direct materials
    budget (3)direct labor budget.

    (1) YOUNT COMPANY


    Production Budget
    For the Quarter Ended March 31, 2009

    January February March April


    Expected unit sales 10,000 8000 9000 11000
    Add: Desired ending finished goods 8000x10%= 900 1100 1500
    units 800
    Total required units 10,800 8900 10,100 12500
    Less: Beginning finished goods (1000) (800) (900) (1100)
    units
    Required production units 9800 8100 9200 11400

    (2) YOUNT COMPANY


    Direct Materials Budget
    For the Quarter Ended March 31, 2009
    January February March
    Units to be produced (Required 9800 8100 9200 11400
    Production Units )
    Direct materials per unit X2 X2 X2 X2
    Total DM needed for production 19600 16200 18400 22800
    Add Desired ending direct materials 16200X20%= 3680 4560
    (pounds) 3240
    Total materials required 22840 19880 22960
    Less: Beginning direct materials (3920) (3240) 3680
    (pounds)
    Direct materials purchases(Pounds) 18920 16640 19280
    Cost per pound X4 X4 X4
    Total cost of direct materials 75680 66560 77120 219360
    purchases (Income Statement)
    **April units: 11,400 × 2 = 22,800 ×
    20%.

    (3) YOUNT COMPANY


    Direct Labor Budget
    For the Quarter Ended March 31, 2009

    January February March Total


    Units to be produced (Production 9800 8100 9200
    Budget)
    Direct labor time (hours) per unit x 1.5 X1.5 X1.5
    Total required direct labor hours 14700 12150 13800
    Direct labor cost per hour X11 X11 X11
    Total direct labor cost (Income 161700 133650 151800 447150
    Statement)

    MOH = Manfac Cost= Indirect Material, Indirect LABOUR, Variable cost Deperciation
    (Plant and Equipment), Factory Maint, Insurance (Relevant Fixed Assets)

    MOH Fixed AND Variable

    Neeley Company combines its operating expenses for budget purposes in a selling and
    administrative expense budget. For the first quarter of 2008, the following data are
    developed:
    1. Sales: 20,000 units; unit selling price: $35
    2. Variable costs per dollar of sales:
    Sales commissions 6%
    Delivery expense 2%
    Advertising 4%
    3. Fixed costs per quarter:
    Sales salaries $24,000
    Office salaries 17,000
    Depreciation 6,000
    Insurance 2,000
    Property taxes 1,000

    Instructions
    Prepare a selling and administrative expense budget for the first quarter of 2008.

    NEELEY COMPANY
    Selling and Administrative Expense Budget
    For the Quarter Ended March 31, 2008

    January Feb March


    Variable Costs
    Indirect Material
    (Sales ) or
    Production Unit
    Indirect Labour
    (Sales) or
    Production Unit
    Total Variable
    Cost
    Fixed Cost

    Total Cost

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