Scribd
Upload
150 views

Unit 6 - Chapter 9 Homework

The document provides a production budget for Ortiz Company over 3 months. It gives expected unit sales for each month and calculates required production units to meet sales and maintain inventory goals. Raw material needs and purchases are also calculated on a monthly basis.

Uploaded by

missiemom
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
150 views

Unit 6 - Chapter 9 Homework

The document provides a production budget for Ortiz Company over 3 months. It gives expected unit sales for each month and calculates required production units to meet sales and maintain inventory goals. Raw material needs and purchases are also calculated on a monthly basis.

Uploaded by

missiemom
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 8

*AE9-3

Crede and Rensing, CPAs, are preparing their service revenue (sales) budget for the coming year (2011). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below. Quarter 1 2,212 3,073 1,503 Quarter 3 1,966 2,078 1,503 Quarter 4 2,404 2,430 1,503

Department Auditing Tax Consulting

Quarter 2 1,629 2,485 1,503

Average hourly billing rates are: auditing $82, tax $90, and consulting $105.

Complete the service revenue (sales) budget for 2011 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue. CREDE AND RENSING, CPA's Sales Revenue Budget

For the Year Ending December 31, 2011 Quarter 1 Billable Billable Hours Rate 2,212 3,073 1,503

Dept Auditing Tax Consulting Totals

Total Rev.

6,788

82 90 105 277
Quarter 2

181,384 276,570 157,815 615,769 1880276

Auditing Tax Consulting Totals

1,629 2,485 1,503

5,617

82 90 105 277
Quarter 3

133,578 223,650 157,815 515,043

Auditing Tax Consulting Totals

1,966 2,078 1,503

5,547

82 90 105 277
Quarter 4

161,212 187,020 157,815 506,047

Auditing Tax

2,404 2,430

82 90

197,128 218,700

Consulting Totals

1,503

6,337

105 277
Totals

157,815 573,643

Auditing Tax Consulting Totals

8,211 10,066 6,012 24,289

82 90 105 277

673,302 905,940 631,260 2,210,502 6,728,053

673302 905940 631260

*AE9-4
Pletcher Company produces and sells automobile batteries, the heavy-duty HD-240. The 2011 sales budget is as follows. Quarter 1 2 3 4 HD-240 5,400 7,290 7,720 10,970

The January 1, 2011, inventory of HD-240 is 2,030 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter of 2012 are expected to be 40% higher than sales in the same quarter in 2011.

Prepare quarterly production budgets for each quarter and in total for 2011. (Enter all amounts as positive amounts and subtract where necessary.) PLETCHER COMPANY Production Budget For the Year Ending December 31, 2011 Product HD-240 Quarter 1 2 3 4

Expected Unit Sales Add: Desired Ending Finished Goods Units Total Required Units Less: Beginning Finished Goods Units Required Production Units

5,400 2,916 8,316 2,030 6,286

7,290 3,088 10,378 2,916 7,462

7,720 4,388 12,108 3,088 9,020

10,970 3,024 13,994 4,388 9,606

budget is as follows.

each quarter equal to 40% les in the same quarter in

s positive amounts and

Year

31,380 13,416 44,796 12,422 32,374

*AE9-5
Dewitt Industries has adopted the following production budget for the first 4 months of 2012. Month January February Units 10,700 7,900

Each unit requires 4 pounds of raw materials costing $4 per pound. On December 31, 2011, the ending raw materials inventory was 14,98 wants to have a raw materials inventory at the end of the month equal to 35% of next month's production requirements.

Complete a direct materials purchases budget by month for the first quarter. (Enter all amounts as positive amounts and subtract w DEWITT INDUSTRIES Direct Materials Purchases Budget For the Quarter Ending March 31, 2012 January February March April

Units to be produced Direct materials per unit Total pounds needed for production Add: Desired ending direct materials (pounds) Total materials required Less: Beginning direct materials (pounds) Direct materials purchases Cost per pound Total cost of direct materials purchases

10,700 7,900 4 4 42,800 31,600 11,060 6,440 53,860 38,040 14,980 11,060 38,880 26,980 $ 4.00 $ 4.00 $ 155,520 107,920

4,600 4 18,400 5,740 24,140 6,440 17,700 4.00 70,800

4100 4 16400

Month March April

Units 4,600 4,100

g raw materials inventory was 14,980 pounds. Management tion requirements.

positive amounts and subtract where necessary.)

*AE9-12

Ortiz Company's sales budget projects unit sales of part 198Z of 10,800 units in January, 12,000 units in February, and 13,400 units in M pound. Ortiz Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its endin sales. These goals were met at December 31, 2010.

Prepare a production budget for January and February 2011. (Enter all amounts as positive amounts and subtract where necessar

ORTIZ COMPANY Production Budget For the Two Months Ending February 28, 2011 January February

Expected unit sales Add: Desired ending finished goods units Total required units Less: Beginning finished goods units Required production units
ORTIZ COMPANY Direct Materials Budget For the Month Ending January 31, 2011

10,800 3,600 14,400 3,240 11,160

March 12,000 13400 4,020 16,020 3,600 12,420

Units to be Produced Direct Materials per Unit Total pounds needed for Production Add: Desired ending direct materials (a) Total materials required Less: Beginning Direct Materials Direct materials purchases Cost per pound Total cost of materials purchases

11,160 4 44,640 19,872 64,512 17,856 46,656 4.00 186,624

12,420 4 49,680

n February, and 13,400 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $4 per uction requirements, and its ending finished goods inventory to equal 30% of the next month's expected unit

s and subtract where necessary.)

You might also like