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Paige Company estimates that unit sales will be 10,100 in quarter 1, 12,100 in quarter 2, 14,100 in quarter 3, and 18,100 in quarter 4. Using a sales price of $81 per unit.
Prepare the sales budget by quarters for the year ending December 31, 2020.
Problem 2:
Paige Company estimates that unit sales will be 11,000 in quarter 1, 12,600 in quarter 2, 14,500 in quarter 3, and 18,800 in quarter 4. Management desires to have an ending finished goods inventory equal to 21% of the next quarter’s expected unit sales.
Prepare a production budget by quarters for the first 6 months of 2020.
Problem 3:
Perine Company has 3,784 pounds of raw materials in its December 31, 2019, ending inventory. Required production for January and February of 2020 are 4,300 and 6,100 units, respectively. 4 pounds of raw materials are needed for each unit, and the estimated cost per pound is $7. Management desires an ending inventory equal to 22% of next month’s materials requirements.
Prepare the direct materials budget for January.
Problem 4:
For Gundy Company, units to be produced are 5,500 in quarter 1 and 6,100 in quarter 2. It takes 1.5 hours to make a finished unit, and the expected hourly wage rate is $15 per hour.
Prepare a direct labor budget by quarters for the 6 months ending June 30, 2020.
Problem 5:
For Roche Inc., variable manufacturing overhead costs are expected to be $21,010 in the first quarter of 2020, with $4,160 increments in each of the remaining three quarters. Fixed overhead costs are estimated to be $35,320 in each quarter.
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