7. Revenue and production budgets Candy would like revenue and production projection budgets for the coming period. The following information is available Projected Sales: Product Units Price Doughnuts (Full Dozen) 18,000 $8.50 Coffee 25,200 $5.00 The following direct materials are used in the two products: Direct Materials Unit Doughnuts Coffee Purchase price per unit Target Inventory Batter Mix Cups 1 0 $ 0.45 1,200 Flavors Ounces 0.25 1 $ 0.20 1,500 Icing Ounces 2 0 $ 0.21 2,050 Coffee Beans Ounces 0 0.2 $ 0.52 240 *There are no units in beginning inventory for any materials. Projected direct manufacturing labor requirements and rates are: Product Hours per unit Rate per hour Doughnuts 0.10 $ 14.00 Coffee 0.05 $ 14.00 Manufacturing overhead is allocated at the rate of $15.13 per direct manufacturing labor-hour. Required: Based on the preceding projections and budget requirements for doughnuts and coffee, prepare the following prediction budgets: 1. Revenue’s budget (in dollars) 2. Production budget (in units) 3. Direct material purchases budget (in quantities) 4. Direct material purchases budget (in dollars) 5. Direct manufacturing labor budget (in dollars)

7. Revenue and production budgets Candy would like revenue and production projection budgets for the coming period. The following information is available Projected Sales: Product Units Price...

7. Revenue and production budgets

Candy would like revenue and production projection budgets for the coming period. The following information is available
	Projected Sales:
	Product			Units	Price
	Doughnuts (Full Dozen)			18,000	$8.50
	Coffee			25,200	$5.00

	The following direct materials are used in the two products:
	Direct Materials	Unit	Doughnuts			Coffee	Purchase price per unit	Target Inventory
	Batter Mix	Cups	1			0	$ 0.45	1,200
	Flavors	Ounces	0.25			1	$ 0.20	1,500
	Icing	Ounces	2			0	$ 0.21	2,050
	Coffee Beans	Ounces	0			0.2	$ 0.52	240
	*There are no units in beginning inventory for any materials.

	Projected direct manufacturing labor requirements and rates are:
	Product		Hours per unit		Rate per hour
	Doughnuts		0.10	$ 14.00
	Coffee		0.05	$ 14.00
	Manufacturing overhead is allocated at the rate of $15.13 per direct manufacturing labor-hour.

Required:
Based on the preceding projections and budget requirements for doughnuts and coffee, prepare the following prediction budgets:
1. Revenue’s budget (in dollars)
2. Production budget (in units)
3. Direct material purchases budget (in quantities)
4. Direct material purchases budget (in dollars)
5. Direct manufacturing labor budget (in dollars)

Jun 10, 2022