Question

1. Sleep Tight, Inc., manufactures bedding sets. The budgeted production is for 40,700 comforters this year. Each comforter requires 1.5 hours to cut and sew the material. The cost of cutting and sewing labor is $14.00 per hour. Determine the direct labor budget for this year.
$

2. Big Wheel, Inc., collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. Sales on account are budgeted to be $17,400 for March and $62,300 for April. What are the budgeted cash receipts from sales on account for April?
$

3.

1. Sleep Tight, Inc., manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and materials were $38,000, $30,000, and $29,000, respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $45,000, $38,000, and $20,000, respectively. Direct materials purchases were $560,000, direct labor was $241,000 for the year, and factory overhead was $152,000.

   Prepare a cost of goods sold budget for Sleep Tight, Inc.

   Sleep Tight, Inc.
   Cost of Goods Sold Budget
   For the Year Ending December 31
   Finished goods inventory, January 1			$
   Work in process inventory, January 1		$
   Direct materials:
   Direct materials, January 1	$
   Direct materials purchases
   Cost of direct materials available for sale	$
   Direct materials inventory, December 31
   Cost of direct materials placed in production	$
   Direct labor
   Factory overhead
   Total manufacturing costs
   Total work in process during the period		$
   Work in process inventory, December 31
   Cost of goods manufactured
   Cost of finished goods available for sale			$
   Finished goods inventory, December 31
   Cost of goods sold			$

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4.Magnolia, Inc., manufactures bedding sets. The budgeted production is for 25,800 comforters this year. Each comforter requires 7 yards of material. The estimated January 1 beginning inventory is 4,520 yards with the desired ending balance of 3,400 yards of material. If the material costs $5.70 per yard, determine the materials budget for the year.
$

Answer 1

1. Sleep Tight, Inc., manufactures bedding sets. The budgeted production is for 40,700 comforters this year. Each comforter requires 1.5 hours to cut and sew the material. The cost of cutting and sewing labor is $14.00 per hour. Determine the direct labor budget for this year.

40700 * 1.5 hrs * $ 14 = $ $ 854700 ( answer )

2. Big Wheel, Inc., collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. Sales on account are budgeted to be $17,400 for March and $62,300 for April. What are the budgeted cash receipts from sales on account for April?

( 62300 * 25 % ) + ( 17400 * 75 % ) = $ 28625

Note :-

An expert answerer is required to answer 1 independent question or 4 MCQs in a single post.