accounting 447067
Aug 29, 2021 | Uncategorized
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Mercury Bag Company produces cases of grocery bags. The managers at Mercury are trying to develop budgets for the upcoming quarter. The following data have been gathered:
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|
|
|
| Projected sales in units |
|
1,290 |
cases |
| Selling price per case |
$ |
240 |
|
| Inventory at the beginning of the quarter |
|
150 |
cases |
| Target inventory at the end of the quarter |
|
100 |
cases |
| Direct labor hours needed to produce one case |
|
2 |
hours |
| Direct labor wages |
$ |
10 |
per hour |
| Direct materials cost per case |
$ |
8 |
|
| Variable manufacturing overhead cost per case |
$ |
6 |
|
| Fixed overhead costs for the upcoming quarter |
$ |
220,000 |
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| a. |
Using the above information, develop Mercury’s sales forecast in dollars and production schedule in units. (Amounts to be deducted should be indicated with a minus sign. Omit the “$” sign in your response.)
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| Sales forecast: |
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| Budgeted sales (in cases) |
$ |
| Selling price per case |
|
|
|
| Budgeted sales (in dollars) |
$ |
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|
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| Production schedule: |
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| Budgeted sales (cases) |
$ |
| Target ending inventory |
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|
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| Cases budgeted to be available for sale |
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| Less: Beginning inventory |
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|
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| Planned production(cases) |
$ |
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| b. |
What is Mercury’s budgeted variable manufacturing cost per case? (Omit the “$” sign in your response.)
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| Total variable cost per case |
$ |
| c. |
Prepare Mercury’s manufacturing cost budget. (Round your cost per unit answer to 2 decimal places. Omit the “$” sign in your response.)
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| Variable manufacturing costs: |
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| (Click to select) Direct labor Manufacturing overhead Selling overhead Direct materials Variable overhead |
$ |
| (Click to select) Rent payable Common stock Direct labor Direct material Interest expense |
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| (Click to select) Manufacturing overhead Rent payable Interest expense Variable overhead Interest payable |
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|
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| Total variable manufacturing costs |
$ |
| (Click to select) Direct material Add: Fixed manufacturing overhead Depreciation expenses Less: Fixed manufacturing overhead Salaries expense |
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|
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| Total cost of finished goods manufactured |
$ |
|
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| (Click to select) Manufacturing cost per unit Interest expense Rent payable Contribution margin per unit Selling cost per unit |
$ |
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| d. |
What is the projected ending value of the Inventory account? (Round intermediate calculations to 2 decimal places and your final answer to the nearest dollar amount. Omit the “$” sign in your response.)
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