Course Managerial Accounting ACCTG 4B Fall
Course: Managerial Accounting (ACCTG 4B) – Fall 2014
Lab Assignment No: 8 (Chapter 23)
Assignment Due Date: 10/30/14 by 6:00AM
Instructions Complete the following problems; make sure to include your calculations. Any incomplete work or partially completed will automatically receive zero points.
PART I:
Herron Company has budgeted the following unit sales: 2008 Units April 25,000 May 50,000 June 75,000 July 45,000
Of the units budgeted, 40% are sold by the Southern Division at an average price of $15 per unit and the remainder 60% are sold by the Eastern Division at an average price of $12 per unit.
Instructions
Prepare separate sales budgets for each division and for the company in total for the second quarter of 2008.
PART II:
Kelso Company manufactures two products, (1) Regular and (2) Deluxe. The budgeted units to be produced are as follows: Units of Product
2008 Regular Deluxe Total
July 10,000 15,000 25,000
August 6,000 10,000 16,000
September 9,000 14,000 23,000
October 8,000 12,000 20,000
It takes 3 pounds of direct materials to produce the Regular product and 5 pounds of direct materials to produce the Deluxe product. It is the company's policy to maintain an inventory of direct materials on hand at the end of each month equal to 30% of the next month's production needs for the Regular product and 20% of the next month's production needs for the Deluxe product. Direct materials inventory on hand at June 30 were 9,000 pounds for the Regular product and 15,000 pounds for the Deluxe product. The cost per pound of materials is $5 Regular and $7 Deluxe.
Instructions
Prepare separate direct materials budgets for each product for the third quarter of 2008.
KELSO COMPANY Direct Materials BudgetDeluxe For the Quarter Ended September 30, 2008 July Units to be produced 15,000
Direct materials per unit 5 Total pounds needed for production 75,000
Add: Desired ending direct materials (pounds) 10,000 Total materials required 85,000
Lab Assignment No: 8 (Chapter 23)
Assignment Due Date: 10/30/14 by 6:00AM
Instructions Complete the following problems; make sure to include your calculations. Any incomplete work or partially completed will automatically receive zero points.
PART I:
Herron Company has budgeted the following unit sales: 2008 Units April 25,000 May 50,000 June 75,000 July 45,000
Of the units budgeted, 40% are sold by the Southern Division at an average price of $15 per unit and the remainder 60% are sold by the Eastern Division at an average price of $12 per unit.
Instructions
Prepare separate sales budgets for each division and for the company in total for the second quarter of 2008.
PART II:
Kelso Company manufactures two products, (1) Regular and (2) Deluxe. The budgeted units to be produced are as follows: Units of Product
2008 Regular Deluxe Total
July 10,000 15,000 25,000
August 6,000 10,000 16,000
September 9,000 14,000 23,000
October 8,000 12,000 20,000
It takes 3 pounds of direct materials to produce the Regular product and 5 pounds of direct materials to produce the Deluxe product. It is the company's policy to maintain an inventory of direct materials on hand at the end of each month equal to 30% of the next month's production needs for the Regular product and 20% of the next month's production needs for the Deluxe product. Direct materials inventory on hand at June 30 were 9,000 pounds for the Regular product and 15,000 pounds for the Deluxe product. The cost per pound of materials is $5 Regular and $7 Deluxe.
Instructions
Prepare separate direct materials budgets for each product for the third quarter of 2008.
KELSO COMPANY Direct Materials BudgetDeluxe For the Quarter Ended September 30, 2008 July Units to be produced 15,000
Direct materials per unit 5 Total pounds needed for production 75,000
Add: Desired ending direct materials (pounds) 10,000 Total materials required 85,000