Q1 Below is budgeted production and sales information for Fl

Q1:

Below is budgeted production and sales information for Flushing Company for the month of December:

The unit selling price for product XXX is $6 and for product ZZZ is $13. Budgeted sales for the month are

$9,394,000

$8,694,000

$12,376,000

$5,712,000

Q2:

Below is budgeted production and sales information for Flushing Company for the month of December:

The unit selling price for product XXX is $7 and for product ZZZ is $16. Budgeted production for product ZZZ during the month is

408,300 units

392,200 units

583,400 units

393,000 units

Q3:

Magnolia, Inc. manufactures bedding sets. The budgeted production is for 14,800 comforters this year. Each comforter requires 7 yards of material. The estimated January 1 beginning inventory is 4,350 yards with the desired ending balance of 6,100 yards of material. If the material costs $7.40 per yard, determine the materials budget for the year.
$

Q4:

Sleep Tight, Inc. manufactures bedding sets. The budgeted production is for 30,200 comforters this year. Each comforter requires 1.5 hours to cut and sew the material. The cost of cutting and sewing labor is $16.70 per hour. Determine the direct labor budget for this year.

	Product XXX	Product ZZZ
Estimated beginning inventory	31,600 units	17,100 units
Desired ending inventory	35,100 units	14,200 units
Region I, anticipated sales	345,000 units	279,000 units
Region II, anticipated sales	181,000 units	147,000 units

Solution

Q1

Product XXX

Product ZZZ

Estimated beginning inventory

31,600 units

17,100 units

Desired ending inventory

35,100 units

14,200 units

Region I, anticipated sales

345,000 units

279,000 units

Region II, anticipated sales

181,000 units

147,000 units

Sales

Product XXX

Product ZZZ

$ 3,156,000.00

$ 5,538,000.00

Total

                                  $ 8,694,000.00

Correct Answer (B)

$ 8,694,000.00

Q2

Product ZZZ

(A) Desired ending inventory

15,300

(B) Region I, anticipated sales

251,000

(C ) Region II, anticipated sales

142,000

(D) Estimated beginning inventory

16,100

(A+B+C-D) Desired Production

392,200

Correct Answer (B)

392200 Units

Q3

Material Budget

Production units

14800

Yards required per Unit

$                   7.00

Total Yards Needed for production

103600

Add: Desired Ending Material Invemtory

6100

Less: Opening Inventory

4350

Total Purchases (Yards in Unit)

105350

Cost per Yard

$                   7.40

Total value of Purchases

$      779,590.00

Q4

Labor cost Budget

Production units

30200

Labor Hours per Unit

1.5

Total Labour Hours required

45300

Rate per Hour

$                16.70

Total Labor Cost

$      756,510.00

Q1		Product XXX	Product ZZZ
	Estimated beginning inventory	31,600 units	17,100 units
	Desired ending inventory	35,100 units	14,200 units
	Region I, anticipated sales	345,000 units	279,000 units
	Region II, anticipated sales	181,000 units	147,000 units
	Sales	Product XXX	Product ZZZ
		$ 3,156,000.00	$ 5,538,000.00
	Total	$ 8,694,000.00
Correct Answer (B)	$ 8,694,000.00