Question

Your job is to create the following documents: Fixed Manufacturing Overhead Rate Total finished goods units...

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

Homework Answers

Answer #1

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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