ACCOUNTING-The East Division of Kensic Company manufactures a vital component

ACCOUNTING-The East Division of Kensic Company manufactures a vital component

ACCOUNTING-The East Division of Kensic Company manufactures a vital component

KENSIC COMPANY

SALES BUDGET

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April
May
June
Total

Units
20,000
35,000
50,000
105,000

X Sales price per unit
75.00
75.00
75.00
75.00

Total Sales
1,500,000
2,625,000
3,750,000
105,075

PRODUCTION BUDGET

April
May
June
Total

Sales in Units
20,000
35,000
50,000
105,000

Desired units of ending
inventory
7,000
10,000
9,000
9,000

Desired Total Units
27,000
45,000
59,000
114,000

Less: desired units of
beginning inventory
4,000
7,000
10,000
4,000

Total production units
23,000
38,000
49,000
110,000

DIRECT MATERIALS
BUDGET (No. 208)

April
May
June
Quarter

Units to be produced
23,000
38,000
49,000
110,000

x 4 lbs.
4
4
4
4

Total material needs
92,000
152,000
196,000
440,000

Add: desired end. Inv.
76000
98000
84000
84000

Subtotal
168,000
250,000
280,000
524,000

Less: Beginning Inventory
46000
76000
98000
46000

Total materals to be
purchased
122,000
174,000
182,000
478,000

x $5.00
$5.00
$5.00
$5.00
$5.00

Total cost of purchases
610,000
870,000
910,000
2,390,000

DIRECT MATERIALS
BUDGET (No. 311)

April
May
June
Quarter

Units to be produced
23000
38000
49000
110000

x 9 feet
9
9
9
9

Total material needs
207,000
342,000
441,000
990,000

Add: Desired end. Inv.
114,000
147,000
126,000
126,000

Subtotal
321,000
489,000
567,000
1,116,000

Less: Beginning Inventory
69,000
114,000
147,000
69,000

Total materials to be
purchased
252,000
375,000
420,000
1,047,000

x $2.00
$2.00
$2.00
$2.00
$2.00

Total cost of purchased
504,000
750,000
840,000
2,094,000

SCHEDULE OF CASH
PAYMENTS FOR DIRECT MATERIALS

April
May
June
Quarter

Accounts Payable 3/31

April

May

June

Total

DIRECT LABOR BUDGET

April
May
June
Quarter

Units to be produced
23,000
38,000
49,000
110,000

x .25 (Shaping)
0.25
0.25
0.25
0.25

Hrs. Shaping Dept.
5,750
9,500
12,250
27,500

x $18.00
$18.00
$18.00
$18.00
$18.00

Labor cost Shaping dept.
103,500
171,000
220,500
495,000

x .70 (Assembly)
0.7
0.7
0.7
0.7

Hrs. Assembly Dept.
16,100
26,600
34,300
77,000

x $16.00
$16.00
$16.00
$16.00
$16.00

Labor cost for Assembly dept.
257,600
425,600
548,800
1,232,000

x .10 (Finishing)
0.1
0.1
0.1
0.1

Hrs. Finishing Dept.
2,300
3,800
4,900
11,000

x $20.00
$20.00
$20.00
$20.00
$20.00

Labor cost Finishing dept.
46,000
76,000
98,000
220,000

Total Labor Cost
407,100
672,600
867,300
1,947,000

MANUFACTURING
OVERHEAD BUDGET

April
May
June
Quarter
Rate

Variable Overhead:

Utilities

1.78

Indirect Labor

0.97

Supplies

0.5

Other

0.25

Total Variable Overhead

Fixed Overhead
385,667
385,667
385,667
1,157,001

Total Overhead

less: depreciation
2,910,000
2,910,000
2,910,000
8,730,000

Total Overhead paid in

CASH BUDGET

April
May
June
Quarter

Total Cash Receipts

Cash Payments:

Material Purchases

Direct Labor

Overhead

Fixed Sell. & Admin.

Variable Sell. & Admin.

Total Cash Payments

Excess (deficiency)

of cash

Beg. Balance of cash

Endng Balance of cash

SALES BUDGET
(Repeated)

February
March
April
May
Quarter

Units
10,000
14,000
20,000
35,000
105,000

Sales price per unit
$75.00
$75.00
75.00
75.00
75.00

Total Sales
$750,000
$1,050,000
$20,075
$35,075
$105,075

SCHEDULE OF
EXPECTED CASH COLLECTIONS

April
May
June
Quarter

February (.10)
75,000

105,000

March (.20; .10)

April (.70;.20;.10)

May (.70;.20)

June (.70)

Totals

 

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