Assignment
-1. Palermo Company estimates that unit sales will be 10,000 in quarter 1; 12,000 in quarter 2; 15,000 in quarter 3; and 18,000 in quarter 4.
Using a sales price of $70 per unit, prepare the sales budget by quarters for the year ending December 31, 2014.
-2. Sales budget data for Palermo Company are given in BE9-2. Management desires to have an ending ?nished goods inventory equal to 25% of the next quarter's expected unit sales.
Prepare a production budget by quarters for the ? rst 6 months of 2014.
-3. Perine Company has 2,000 pounds of raw materials in its December 31, 2013, ending inventory. Required production for January and February of 2014 are 4,000 and 5,000 units, respectively. Two pounds of raw materials are needed for each unit, and the estimated cost per pound is $6. Management desires an ending inventory equal to 25% of next month's materials requirements.
Prepare the direct materials budget for January.
-4. For Mize Company, units to be produced are 5,000 in quarter 1 and 6,000 in quarter 2. It takes 1.6 hours to make a ?nished unit, and the expected hourly wage rate is $15 per hour.
Prepare a direct labor budget by quarters for the 6 months ending June 30, 2014
-5. For Roche Inc., variable manufacturing overhead costs are expected to be $20,000 in the ? rst quarter of 2014, with $5,000 increments in each of the remaining three quarters. Fixed overhead costs are estimated to be $40,000 in each quarter.
Prepare the manufacturing overhead budget by quarters and in total for the year.
-6. Noble Company classi? es its selling and administrative expense budget into variable and ? xed components. Variable expenses are expected to be $22,000 in the ? rst quarter, and $4,000 increments are expected in the remaining quarters of 2014. Fixed expenses are expected to be $40,000 in each quarter.
Prepare the selling and administrative expense budget by quarters and in total for 2014.
-7. North Company has completed all of its operating budgets. The sales budget for the year shows 50,000 units and total sales of $2,250,000. The total unit cost of making one unit of sales is $25. Selling and administrative expenses are expected to be $300,000. Income taxes are estimated to be $210,000.
Prepare a budgeted income statement for the year ending December 31, 2014.