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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