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Category > Accounting Posted 17 Aug 2017 My Price 15.00

Donnegal Company

Donnegal Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2014.

	January	February	March	April	May
Estimated unit sales	10,100	11,200	8,400	8,600	8,300
Sales price per unit	$50.1	$47.7	$47.7	$47.7	$47.7
Direct labor hours per unit	2.3	2.3	1.5	1.5	1.5
Wage per direct labor hour	$9	$9	$9	$10	$10

Donnegal has a labor contract that calls for a wage increase to $10 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1.

Donnegal expects to begin the year with 15,700 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following monthAc€?cs sales, plus 50% of the second following monthAc€?cs sales.

Prepare a production budget for Donnegal Company by month and for the first quarter of the year.

DONNEGAL COMPANY Production Budget For the Quarter Ending March 31, 2014
	Jan	Feb	Mar	Total
Beginning Direct MaterialsBeginning InventoryCost Per PoundDesired Ending Direct MaterialsDesired Ending InventoryDirect Labor Hours Per UnitDirect Materials PurchasesRequired Production UnitsRate Per HourSales in UnitsTotal Cost of Direct Materials PurchasesTotal Direct LaborTotal Hours NeededTotal Materials RequiredTotal Needs
AddLess: Beginning Direct MaterialsBeginning InventoryCost Per PoundDesired Ending Direct MaterialsDesired Ending InventoryDirect Labor Hours Per UnitDirect Materials PurchasesRequired Production UnitsRate Per HourSales in UnitsTotal Cost of Direct Materials PurchasesTotal Direct LaborTotal Hours NeededTotal Materials RequiredTotal Needs
Beginning Direct MaterialsBeginning InventoryCost Per PoundDesired Ending Direct MaterialsDesired Ending InventoryDirect Labor Hours Per UnitDirect Materials PurchasesRequired Production UnitsRate Per HourSales in UnitsTotal Cost of Direct Materials PurchasesTotal Direct LaborTotal Hours NeededTotal Materials RequiredTotal Needs
AddLess: Beginning Direct MaterialsBeginning InventoryCost Per PoundDesired Ending Direct MaterialsDesired Ending InventoryDirect Labor Hours Per UnitDirect Materials PurchasesRequired Production UnitsRate Per HourSales in UnitsTotal Cost of Direct Materials PurchasesTotal Direct LaborTotal Hours NeededTotal Materials RequiredTotal Needs
Beginning Direct MaterialsBeginning InventoryCost Per PoundDesired Ending Direct MaterialsDesired Ending InventoryDirect Labor Hours Per UnitDirect Materials PurchasesRequired Production UnitsRate Per HourSales in UnitsTotal Cost of Direct Materials PurchasesTotal Direct LaborTotal Hours NeededTotal Materials RequiredTotal Needs

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Prepare a direct labor budget for Donnegal Company by month and for the first quarter of the year. The direct labor budget should include direct labor hours.

DONNEGAL COMPANY Direct Labor Budget For the Quarter Ending March 31, 2014
	Jan	Feb	Mar	Total
Beginning Direct MaterialsBeginning InventoryCost Per PoundDesired Ending Direct MaterialsDesired Ending InventoryDirect Labor Hours Per UnitDirect Materials PurchasesProduction in UnitsRate Per HourSales in UnitsTotal Cost of Direct Materials PurchasesTotal Direct LaborTotal Hours NeededTotal NeedsTotal Materials Required
Beginning Direct MaterialsBeginning InventoryCost Per PoundDesired Ending Direct MaterialsDesired Ending InventoryDirect Labor Hours Per UnitDirect Materials PurchasesProduction in UnitsRate Per HourSales in UnitsTotal Cost of Direct Materials PurchasesTotal Direct LaborTotal Hours NeededTotal NeedsTotal Materials Required
Beginning Direct MaterialsBeginning InventoryCost Per PoundDesired Ending Direct MaterialsDesired Ending InventoryDirect Labor Hours Per UnitDirect Materials PurchasesProduction in UnitsRate Per HourSales in UnitsTotal Cost of Direct Materials PurchasesTotal Direct LaborTotal Hours NeededTotal NeedsTotal Materials Required
Beginning Direct MaterialsBeginning InventoryCost Per PoundDesired Ending Direct MaterialsDesired Ending InventoryDirect Labor Hours Per UnitDirect Materials PurchasesProduction in UnitsRate Per HourSales in UnitsTotal Cost of Direct Materials PurchasesTotal Direct LaborTotal Hours NeededTotal NeedsTotal Materials Required	$	$	$
Beginning Direct MaterialsBeginning InventoryCost Per PoundDesired Ending Direct MaterialsDesired Ending InventoryDirect Labor Hours Per UnitDirect Materials PurchasesProduction in UnitsRate Per HourSales in UnitsTotal Cost of Direct Materials PurchasesTotal Direct LaborTotal Hours NeededTotal NeedsTotal Materials Required	$	$	$	$

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Maurice Tutor

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Status NEW Posted 17 Aug 2017 06:08 PM My Price 15.00

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