181.Argenta, Inc. is preparing its master budget for the first quarter of its calendar year. The following forecasted data relate to the first quarter:
Unit sales:
January40,000
February55,000
March50,000
Unit sales price$25
Cost of goods sold per unit$13
Expenses:
Commissions10% of sales
Rent$20,000/month
Advertising15% of sales
Office salaries$75,000/month
Depreciation$50,000/month
Interest15% annually on a $250,000 note payable
Tax rate40%
Prepare a budgeted income statement for this first quarter.
182.The production budget for Greski Company revealed the following production volume for the months of July-September. Each unit produced requires 2.5 hours of direct labor. The direct labor rate is predicted to be $16 per hour in all months. Prepare a direct labor budget for Greski Company for July-September.
JulyAugSept
Units to be produced620680540
183.Addams, Inc., is preparing its master budget for the second quarter. The following sales and production data have been forecasted:
AprilMayJuneJulyAugust
Unit sales400500520480540
Finished goods inventory on March 31: 120 units
Raw materials inventory on March 31: 450 pounds
Desired ending inventory each month:
Finished goods: 30% of next month's sales
Raw materials: 25% of next month's production needs
Number of pounds of raw material required per finished unit: 4 lbs.
How many pounds of raw materials should be purchased in April?
184.Snap, Inc., provides the following data for the next four months:
AprilMayJune
Budgeted production units442570544
Ending Raw Materials Inventory663 lbs.
Ending Finished Goods Inventory174 Units
Desired Ending Inventory:
Raw Materials = 30% of next month's production needs
Pounds of raw material required for each finished Unit = 5 lbs.
Required:
Calculate the amount of purchases of raw materials in pounds for April and May.