150. Assume the Freshii Company is preparing its master budget for the first quarter of its calendar year. The following forecasted data relate to the first quarter:
Unit sales:
January
40,000
February
60,000
March
50,000
Unit sales price
$25
Cost of goods sold per unit
$14
Expenses:
Commissions
10% of sales
Rent
$20,000/month
Advertising
15% of sales
Office salaries
$75,000/month
Depreciation
$50,000/month
Interest
15% annually on a $250,000 note payable
Tax rate
40%
Prepare a budgeted income statement for this first quarter.
151. David, Inc. is preparing its master budget for the second quarter. The following sales and production data have been forecasted:
April
May
June
July
August
Unit sales
400
500
520
480
540
Finished goods inventory on March 31: 120 unitsRaw materials inventory on March 31: 450 poundsDesired ending inventory each month:Finished goods:30% of next month's salesRaw materials:25% of next month's production needsNumber of pounds of raw material required per finished unit: 4 lb.
Number of direct labor hours to produce each unit: 3 hours
Labor rate per hour: $10
(a) How many units should be produced during April and May?(b) How many pounds of raw materials should be purchased in April?
(c) What is the budgeted labor cost for April?
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