Acc 561 Essay

621 WordsApr 20, 20123 Pages
Goody Company Sales Budget For the year ending December 31, 2010 Quarter 1 2 3 4 Year__ Expected unit sales 10,000 12,000 14,000 18,000 54,000 Unit selling price x $80 x $80 x $80 x $80 x $80 Total sales $800,000 $960,000 $1,120,000 $1,440,000 $4,320,000 Goody Company Production Budget For the six months ending June 30, 2010 Quarter 1 2 Six Months Expected unit sales 10,000 12,000 + Desired ending finished goods 2,400(a) 2,800(c) Total required units 12,400 14,800 - Beginning finished goods inv. 2,000(b) 2,400 Required production units 10,400 12,400 22,800 (a) 12,800 x 020 (b) 10,000 x .20 (c) 14,000 x .20 Moreno Industries Direct Materials Purchases Budget For the quarter ending March 31, 2011 January February March Units to be produced 10,000 8,000 5,000 Direct materials per unit x 3 x 3 x 3 Total pounds needed for production 30,000 24,000 15,000 Add: Desired ending direct materials (*pounds) +7,200 + 4,500 + 3,600 Total materials required 37,200 28,500 18,600 Less: Beginning direct materials (pounds) -9,000 -7,200 -4,500 Direct materials purchases 28,200 21,300 14,100 Cost per pound x $2 x $2 x $2 Total cost of direct materials purchases $56,400 $42,600 $28,200 *30% of next month’s production needs! Neely, Inc. Direct Labor Budget For the year ending December 31, 2010 Quarter 1 2 3 4 Year__ Units to be produced 20,000 25,000 35,000 30,000 Direct labor time (hours) per unit x 1.6 x 1.6 x 1.6 x 1.6 Total required direct labor hours 32,000 40,000 56,000 48,000 Direct labor cost per hour x $15 x $15 x $15 x $15 Total direct labor cost $480,000 $600,000 $896,000

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