Scribd Logo
Încărcați

Bine ați venit la Scribd!

  • Chap 15-Problem Cost 2

    Încărcat de

    Star Museum
    14 vizualizări6 pagini
    The document provides information for Holland Company to prepare its annual budget for 2019. It includes sales forecasts by product and territory, inventory levels of materials and finished goods, materials and labor requirements and costs for each product, machine hours and overhead allocation for production departments, and commercial expense budgets. Holland Company manufactures 3 products (Q1, Q2, Q3) and sells in 3 territories (North, East, South). The budgets cover sales, production, materials, labor, overhead, and expenses.

    Descriere originală:

    Testing files

    Drepturi de autor

    © © All Rights Reserved

    Formate disponibile

    XLSX, PDF, TXT sau citiți online pe Scribd

    Vi se pare util acest document?

    Este necorespunzător acest conținut?

    Raportați acest document
    The document provides information for Holland Company to prepare its annual budget for 2019. It includes sales forecasts by product and territory, inventory levels of materials and finished goods, materials and labor requirements and costs for each product, machine hours and overhead allocation for production departments, and commercial expense budgets. Holland Company manufactures 3 products (Q1, Q2, Q3) and sells in 3 territories (North, East, South). The budgets cover sales, production, materials, labor, overhead, and expenses.

    Drepturi de autor:

    © All Rights Reserved
    Descărcați ca XLSX, PDF, TXT sau citiți online pe Scribd
    Indicator pentru conținut neadecvat
    14 vizualizări6 pagini

    Chap 15-Problem Cost 2

    Încărcat de

    Star Museum
    The document provides information for Holland Company to prepare its annual budget for 2019. It includes sales forecasts by product and territory, inventory levels of materials and finished goods, materials and labor requirements and costs for each product, machine hours and overhead allocation for production departments, and commercial expense budgets. Holland Company manufactures 3 products (Q1, Q2, Q3) and sells in 3 territories (North, East, South). The budgets cover sales, production, materials, labor, overhead, and expenses.

    Drepturi de autor:

    © All Rights Reserved
    Descărcați ca XLSX, PDF, TXT sau citiți online pe Scribd
    Indicator pentru conținut neadecvat
    din 6

    Chapter 15 - Problem

    Submission date: Thursday, 31 January 2019 -- only one per group


    Highly recommended to use MS. Excel in completing your task.

    Your main task is to:


    Prepare annual budget schedules (using format in textbook):
    1) Sales budget - by product and by sales territories
    2) Production budget
    3) Direct material budget in units
    4) Materials purchases budget
    5) Cost of materials required for production
    6) Direct labor budget
    7) Budgeted machine hours in the Forming Department.
    8) Budgeted factory overhead and departmental rates
    9) Budgeted unit product costs
    10) Beginning and ending inventories
    11) Budgeted cost of goods manufactured and sold
    12) Budgeted income statement
    Chapter 15 - Problem
    Holland Company manufactures three products: Q1, Q2, dan Q3 which are marketed in three territo
    North, East, and South. The production departments are designated Forming and Finishing.
    Jersey Company is preparing estimated budget for the coming year ending on December 31, 2019.

    a. Sales information by territory in 2018:


    Units
    Sales Price
    Product North East South (per unit)
    Q1 50,000 62,500 62,500 € 50.00
    Q2 20,000 40,000 30,000 € 70.00
    Q3 20,000 55,000 35,000 € 90.00

    Demand for Q2 is expected to double in all territories. Product Q1 will probably experience
    a 20% increase in demand in all territories, while demand for Q3 is expected to remain constant.

    b. Inventories:
    Materials (December 31, 2018):
    Units Unit cost
    A 25,000 € 3.30
    B 50,000 € 1.225
    C 40,000 € 0.425
    The desired ending inventory in 2019:
    Material C is expected to increase 125%, while material A and B to decrease 40% and 10% respect

    There is no beginning or ending inventory of work in process.


    Finished goods (fifo):
    Beginning Inventory Units Ending
    Product Unit Unit Cost Inventory
    Q1 15,000 € 24.75 20,000
    Q2 15,000 € 38.00 15,000
    Q3 15,000 € 55.00 10,000

    c. Materials requirements for products and estimated material costs


    Estimated Cost
    Material Q1 Q2 Q3 per unit
    A 2 3 4 € 3.30
    B 4 7 11 € 1.225
    C 10 14 18 € 0.425

    d. Estimated labor time requirements and rates in hours:


    Forming Finishing
    Product Department Department
    Q1 0.05 0.50
    Q2 0.05 0.75
    Q3 0.05 1.00
    Direct labor rate per hour € 12.00 € 10.00

    e. Estimated machine time in Forming Department


    Hours
    Product required
    Q1 0.15
    Q2 0.25
    Q3 0.35

    f. Budgeted factory overhead


    Forming Department Finishing Department
    Fixed cost Variable Fixed cost
    estimate rate per LH estimate
    Indirect material & supplies € 157,000 € 0.35 € 158,000
    Indirect labor € 250,000 € 1.00 € 350,000
    Payroll taxes € 55,000 € 0.10 € 382,500
    Employee fringe benefits € 114,000 € - € 347,500
    Equipment depreciation € 215,000 € - € 65,000
    Repairs and maintenance € 35,000 € 1.50 € 25,000
    Allocated building & general cost € 91,700 € - € 253,125

    Overhead is allocated to production on the basis of machine hours in the Forming Department
    and on the basis of direct labor hours in the Finishing Department.

    g. Budgeted commercial expenses:


    Expenses in 2018:
    Marketing ###
    Administrative ###
    Expenses in 2019 is estimated to increase 10% - Marketing, and 8% Administrative.

    h. Income tax rate is 40%


    are marketed in three territories,
    orming and Finishing.
    ding on December 31, 2019.

    probably experience
    ected to remain constant.

    rease 40% and 10% respectively.


    nishing Department
    Variable
    rate per LH
    € 1.50
    € 0.50
    € 0.05
    € -
    € -
    € 0.40
    € -

    he Forming Department

    ministrative.
    Holland Company
    Schedule 1
    Sales Budget

    Territories
    Product Q1 East West South Total
    Units 60000 75000 75000 210000
    Units Price
    Total
    Product Q2
    Units
    Units Price
    Total
    Product Q3
    Units
    Units Price
    Total
    Total Sales

    S-ar putea să vă placă și