FORMAT FINAL EXAM
125 minutes
4 question
Focus Master budgeOperational budget
Flexible budget
High-low method
Master budget
Sales budget
April May June Quarter
Budgeted sales 20000 50000 30000 100000
Selling price per unit 10 10 10 10
Total sales 200000 500000 300000 1000000
Production budget
April May June Quarter
Budgeted sales 20000 50000 30000 100000
Add desire ending inventory 10000 0 5000 5000
Total needed 30000 50000 35000 105000
Less begining inventory 4000 10000 0 4000
Required production 26000 40000 35000 101000
Direct materials budget
April May June Quarter
Production 26000 46000 29000 101000
Material per unit 5 5 5 5
Production needs 130000 230000 145000 505000
Add desired ending inventory 23000 14500 11500 11500
Total needed 153000 244500 156500 516500
Less begining inventory 13000 23000 14500 13000
Material to be purchcased 140000 221500 142000 503500
Direct labour budget
April May June Quarter
Production 26000 46000 29000 101000
Direct labour hours 0.05 0.05 0.05 0.05
Labour hour required 1300 2300 1450 5050
Guaranteed labour hours 1500 1500 1500
Labour hour paid 1500 2300 1500 5300
Wage rate 10 10 10 10
Manufacturing overhead budget
April May June Quarter
Production in units 26000 46000 29000 101000
Variable MOH rate 1 1 1 1
Variable MOH costs 26000 46000 29000 101000
Fixed MOH costs 50000 50000 50000 150000
Total MOH costs 76000 96000 79000 251000
Less noncash costs 20000 20000 20000 60000
Cash disbursements for MOH 56000 76000 59000 191000
Budget Sales
Sales (in sets)
Sales price per set
Sales revenue
Production budget
Sales
Add desired ending inventory
Total requirement
Less projected beginning inventory
Planned production
Raw material purchases
Sales
Raw material required per set
Raw material required for production
Add desired ending inventory of raw material
(10% of next month's requirement)
Total requirement
Less: Projected beginning inventory of raw material
(10% of current month's requirment"
Planned purchases of raw material
Cost per board foot
Planned purchases of raw material (dollars)
Direct labour budget
Planned production (sets)
Direct labour hours per set
Direct labour hours required
Cost per hour
Planned direct labour cost
1, Empire Chemical Company's production budget 20X2
Sales
Add: Desired ending inventory
(8% of next year projected sales)
Total requirement
Less projected ending inventory
(8% of current projected sales)
Planned production
2, Empire Chemical Company's conversion cost budget
Planned production
Direct labour hour
Total labour hour
Cost per hour
Conversion cost
Total conversion cost
3. Raw material purchased
Sales
Raw material required for each product
Raw material required for production
Add desired ending inventory
Total requirement
Less projected beginning inventory
Plan purchased raw materia;
April May June
10000 12000 15000
50 50 50
500000 600000 750000
April May June
10000 12000 15000
ding inventory 2400 3000 3000
12400 15000 18000
beginning inventory 2000 2400 3000
10400 12600 15000
April May June
10400 12600 15000
quired per set 10 10 10
quired for production 104000 126000 150000
ding inventory of raw material 12600 15000 16000
onth's requirement)
116600 141000 166000
beginning inventory of raw material 10400 12600 15000
month's requirment"
ses of raw material 106200 128400 151000
0.5 0.5 0.5
ses of raw material (dollars) 53100 64200 75500
April May June
10400 12600 15000
ours per set 1.5 1.5 1.5
ours required 15600 18900 22500
20 20 20
abour cost 312000 378000 450000
mical Company's production budget 20X2
Yarex Darol Norex
60000 40000 25000
ding inventory 5200 2800 2400
r projected sales)
65200 42800 27400
ending inventory 4800 3200 2000
projected sales)
60400 39600 25400
mical Company's conversion cost budget
Yarex Darol Norex
60400 39600 25400
0.07 0.1 0.16
4228 3960 4064
20 20 20
84560 79200 81280
245040
l purchased
Yarex Darol Norex
60400 39600 25400
quired for each product 1 0.7 0.5
quired for production 60400 27720 12700
ding inventory 6040 2772 1270
66440 30492 13970
beginning inventory 10000
raw materia; 56440 30492 13970 100902
Sales budget
Light coil
Budget sales 60000
Price per unit 120
Total sales 7,200,000
Production budget in units
Light coil
Sales 60000
Add desired ending
inventory 25000
Total needed 85000
Less begining inventory 20000
Required production
65000
Raw material purchased
Sheet metal Light coil
Sheet metal to be produced 65000
Raw material per unit 4
Raw material required for production 260000
Add desired ending inventory
of raw material 36000
Total raw meterial required 296000
Less: Expected beggining inventory of raw material 32000
Raw material to be purchased 264000
Cost per unit 8
Total cost of sheet metal purchase 2112000
Copper wire Light coil
Copper wire to be produced 65000
Raw material per unit 2
Raw material required for production 130000
Add desired ending inventory of raw material 32000
Total raw material required 162000
Less beginning inventory 29000
Raw material to be purchased 133000
Cost per unit 5
Total cost of copper wire 665000
Platforms Light coil
Platforms to be produced 65000
Raw material per unit 0
Raw material required for production 0
Add desired ending inventory of raw material 7000
Total raw material required 7000
Less begining inventory 6000
Raw material to be purchased 1000
Cost per unit 3
Total cost of Platform 3000
Direct labour budgets
Light coil
Productions 65000
Direct labour hours per unit 2
Direct labour hours required 130000
Cost per hours 15
Planned direct labour hour cost 1950000
Production overhead
Light coil
Production in units 65000
Variable MOH rate 4.25
Total MOH costs 276250
Less noncash costs 260000
Cash disbursements for MOH 16250
Heavy coil
40000
170
6,800,000
Heavy coil
40000
9000
49000
8000
41000
Heavy coil
41000
5
205000
36000
241000
32000
209000
8
1672000
Heavy coil
41000
3
123000
32000
155000
29000
126000
5
630000
Heavy coil
41000
1
41000
7000
48000
6000
42000
3
126000
Heavy coil
41000
3
123000
20
2460000
Heavy coil
41000
4.25 3+1+0,25 4.25
174250
164000
10250