Your job is to create the following documents:
Fixed Manufacturing Overhead Rate
Total finished goods units produced
Total fixed overhead
Fixed manufacturing overhead rate
Ending Finished Good Inventory-Absorption
Direct Material
Direct Labor
Variable Overhead
Fixed Overhead
Total product cost per unit manufactured
Units in ending finished goods inventory
Ending Finished Goods Inventory-Variable
Direct material
Direct labor
Variable overhead
Variable cost per unit manufactured
Units in ending finished goods inventory
Diesel Dynamo Company | ||||||
Budget Project | ||||||
Fall 2017 | ||||||
INPUT SECTION | ||||||
SALES | ||||||
4th | 1st | 2nd | 3rd | 4th | ||
Quarter | Quarter | Quarter | Quarter | Quarter | ||
2017 | 2018 | 2018 | 2018 | 2018 | ||
Budgeted Sales in units | 43,000 | 37,900 | 34,500 | 31,000 | 43,000 | |
Budgeted Selling Price | $530 | per production unit (Finished Good) | ||||
RECEIVABLES | ||||||
Receivables Collection Schedule | 91.50% | quarter of sale | ||||
5.50% | quarter following sale | |||||
3.00% | uncollectible | |||||
100.00% | ||||||
Policy | Entire projected uncollectible receivables are written off each quarter | |||||
INVENTORY COSTS | ||||||
Direct Labor | 4.5 | hours | ||||
$19.50 | per direct labor hour | |||||
Raw Materials | 3 | direct material units per finished good production unit | ||||
$85.00 | per raw material unit | |||||
Variable Overhead | $9.50 | per Direct Labor Hour | ||||
Fixed Overhead | ||||||
Depreciation | $304,000 | per quarter | ||||
Other Fixed Overhead | $950,000 | per quarter | ||||
Fixed Overhead Application Rate | CALCULATE FROM PRODUCTION BUDGET | |||||
INVENTORY ACCOUNTS | ||||||
4th | 1st | 2nd | 3rd | 4th | ||
Ending Finished Goods Inventory | Quarter | Quarter | Quarter | Quarter | Quarter | |
in units | 0 | 15,000 | 19,000 | 20,000 | 15,000 | |
Raw Materials Inventory | ||||||
Beginning Inventory 1/1/2018 | 28,436 | units |
Total Finished Goods quantity produced:
Q1 :-(Sales + closing stock)-opening stock
- 34936 units
Q2:- 38500 units
Q3:- 32000 units
Q 4:-38000 units
Total Fixed Overheads
Total:-$ 3800000
Fixed Manufacturing Overheads
3800000/146400 = 26/-
Direct material -$17595000/-
Direct Labour- $ 12846600/-
Fixed overheads-$ 5016000/-
Total cost per unit manufactured- $ 528/- per unit
total units in ending finished goods inventory- 69000/-units
Direct material- 47812 units
Direct labor- 31875 labour hours
Variable overhead:- 1211250
Variable cost per unit manufactured- 8.4 per unit
Units in ending finished goods inventory-15000units in last quarter
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