Problem 9 43
- 1. Problem: 9-43. Page no: 391 -392 1. Sales Budget Products Type C Type P Unit sold X Selling Price 500,000 0.9 500,000 1.3 Total Sales revenue 450,000 650,000 1,100,000/= 2. Production Budget Products Type C Type P Unit sold + FG at End - FG at Start 500,000 5,000 (10,000) 500,000 15,000 (20,000) Units to be produced 495,000 495,000 3. Material Usage Products Type C Type P Material Usage Unit Produced Paperboard Corrugating medium 495,000 148,500 99,000 495,000 346,500 148,500 495,000 247,500 4. Material Purchase Budget Products Paperboard Corrugating medium Material Usage + Material at End - Material at Start 495,000 5,000 (15,000) 247,500 10,000 (5,000) Material usage (QTY) X Purchase Price 485,000 0.2 252,500 0.1 Purchase Price Budget 97,000 25,250 5. Direct – Labor Budget Products Units Unit Per Hour Total Hour Rate Per Hour Direct Labor
- 2. Produced X = X Cost Type C 495,000 0.0025 123.5 12 14,850 Type P 495,000 0.005 2475 12 29,700 3712.5/= 44,550/= 6. Manufacturing Overhead Budget Overhead Budget 148,500 Selling and Administration 210,000 7. Income Statement Sales 1,100,000 Less: COGS (320,000) Gross Profit 780,000 Less: Selling and administration (210,000) EBT 570,000 Less: Tax @ 40% (228,000) Net Income 342,000/= 8. Per Unit Cost Type C Type P Direct Material Direct Material Paperboard = 0.06 Paperboard = 0.14 Corrugating medium (0.2 X 0.1) = 0.02 Corrugating medium (0.3 X 0.1) = 0.03 Direct Labor (0.3 X 0.2) Direct Labor (0.7 X 0.2)
- 3. D/L (0.0025 X 12) = 0.03 Factory Overhead D/L (0.005 X 12) = 0.06 = 0.2 Factory Overhead FOH (0.0025 X 40) = FOH (0.005 X 40) 0.21/= Per Unit cost 0.1 Per Unit cost 0.43/= FOH Rate: FOH Rate = FOH / Direct Labor Hour FOH Rate = 148,500 / 3,712.50 FOH Rate = 40 = Unit Sold COGS: Products X V.C = COGS Type C 500,000 0.21 105,000 Type P 500,000 0.43 215,000 320,000/=