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Category > Accounting Posted 23 Jul 2017 My Price 14.00

Clarenville Kitchen Products

(Comprehensive) Clarenville Kitchen Products produces and sells upscale mixers and breadmakers. In October 2010, Clarenville’s budget department gathered the following data to meet budget requirements for 2011.

2011 PROJECTED SALES

    

Product

Units

Price

Mixers

60,000

$ 90

Breadmakers

40,000

140

2011 INVENTORIES (UNITS)

    
 

Expected

Desired

Product

1/1/11

12/31/11

Mixers

15,000

20,000

Breadmakers

4,000

5,000

To produce one unit of each product, the following major internal components are used (in addition to the plastic housing for products, which is subcontracted in a subsequent operation):

Component

Mixer

Breadmaker

Motor

1

1

Beater

2

4

Fuse

2

3

Projected data for 2011 with respect to components are as follows:

 

Anticipated

Expected Inventory

Desired Inventory
 

Purchase Price

1/1/11

12/31/11

Motor

$18.00

2,000

3,600 units

Beater

1.75

21,000

24,000 units

Fuse

2.40

6,000

7,500 units

Projected direct labor requirements for 2011 and rates are as follows:

Product

Hours per Unit

Rate per Hour

Mixers

2

$ 8

Breadmakers

3

10

Overhead is applied at a rate of $7.50 per direct labor hour.

Based on these projections and budget requirements for 2011 for mixers and bread-makers, prepare the following budgets for 2011:

a. Sales budget (in dollars)

b. Production budget (in units)

c. Internal components purchases budget (in units and dollars)

d. Direct labor budget (in dollars)

e. The total production cost, excluding subsequent departments, per mixer and per breadmaker

Answers

Maurice Tutor
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Status NEW Posted 23 Jul 2017 10:07 PM My Price 14.00

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