11 BASE DATA 12 Foundation Data for Solving questions 1. 2 and 3 131 BudgetedDirectMaterialSCostPer UNIT 14 Budgeted Direct Manufacturing Labor Per UNIT 5 Budgeted Manufacturing Overhead Per UNIT 16 15.00 17 IN ADDITION TO ABOVE USE THE FOLLOWING: 18 19 This is Next Year\'s Budgeted Data for XYZ 20 Budgeted Sales Price Per UNIT 20.00 21 22 Budgeted Sales-UNITS 23 ,558Units . 24 Target Ending Finished Goods Inventory in UNITS 15,058 Units 25 26 Target Beginning Finished Goods Inventory in UNITS 4,408 Units 27 28 Target Ending Direct Materials Inventory in UNITS 21,058 Units 29 30 Target Beginning Direct Materials Inventory in UNITS 19,058 Units 31 32?Note It takes one unit of direct materials to make one production unit. 34 WITH THE ABOVE DATA SOLVE THE FOLLOWING QUESTIONS REGARDING YOUR PRODUCT 36 1) How many units should be produced next year? 7 Record your answer, using excel formulas, here 38 39 2) What is the dollar amount budgeted for direct material purchased for next year? 40 Record your answer, using excel formulas, here 41 42 3) What is the Budgeted Revenues for next year 43 Record your answer, using excel formulas, here USE ONLYTHEFOLLOW NGINFORMATIONTOANSWER THISQUEST ON DONOTUSEANY FORMATION,FROM ABOVE 4S 46 47 48 49 50 51 Historically.he cash collection of sales hasheen \"fellow.i 52 The % of sales collected in the month of sale is 53 T he % of sales collected in the month following the sale is 54 The % of sales collected in the second month following the sale is 55 The % of sales that are uncollectible 56 Gamble Company has the following sales budget for the last six months January February March S 35,116 s 37.116 5 29,116 s 32,616 40,116 S 27,616 May June 30% 15% 5% 7 58 4) What are the budgeted Cash collections for the month of May Record your answer, using excel formulas, here
1. Budgeted Production:
Units to be produced = Budgeted Sales Units + Target Ending Finished Goods Inventory - Beginning Finished Goods Inventory
= 27,558 + 15,058 - 14,408
= 28,208 units.
Therefore, 28,208 units should be produced next year.
2. Dollar amount budgeted for direct material purchased for next year:
Budgeted Materials consumption during next year = 28,208 units x 1 = 28,208direct material unit
Direct Material Purchases = Target Ending Direct materials inventory + Budgeted material consumption during next year - Target Beginning Direct materials inventory
= 21,058 + 28,208 - 19,058
= 30,208 units of direct material
Therefore, 30,208 units of direct materials are to be purchased next year.
Direct Material cost per unit = $15
Dollar amount of direct material purchases = $15 x 30,208 = $453,120
3. Budgeted Revenues for the next year:
Budgeted Sales unit = 27,558 units;
Budgeted Selling Price = $20
Budgeted Revenue = $20 x 27,558 = $551,160
4. Budgeted Cash collections for the month of May:
May sales collection = $40,116 x 50% = $20,058
April Sales collection = $32,616 x 30% = $9,784.80
March Sales collection = $29,116 x 15% = $4,367.40
TOtal cash collections = $34,210.20
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