Actualidad

FRESH COMPANY Sales budget For the year ending December 31 2014 Quarter 1 2 3 Expected unit sales 19,000 23,000 27,000 Unit selling price X 15 X 15 X 15 Total sales 285,000 345,000 405,000 The total budgeted unit sales are 100,000 at the unit selling Price of $15. 4 31,000 X 15 465,000 Year 100,000 1’500,000

For the first quarter is the 19%, the second 23%, the third 27% and the last quarter31% FRESH COMPANY Production Budget For the year ending December 31, 2014 1 19,000 3,910 22,910 3,230 19,680 2 23,000 4,590 27,590 3,910 23,680 Quarter 3 27,000 5,270 32,270 4,590 27,680 4 31,000 5,950 36,950 5,270 31,680 102,720 Year 100,000

Expected unit sales Add: Desired ending finished goods inventory Total required units Less: Beginning finished goods inventory Required production unitsIt was decided to have ending finished goods inventory equal to 17% of the next quarter’s expected unit sales and the beginning finished goods inventory equal to 17% of the quarter’s expected units sales; assume that the ending finished goods inventory for the first quarter of 2015 is 23,000. FRESH COMPANY Direct materials budget For the year ending December 31, 2014 1 19,680 X 1.5 29,520 3,55233,072 1,968 31,104 2 23,680 X 1.5 35,520 4,152 39,672 2,368 37,304 Quarter 3 27,680 X 1.5 41,520 4,752 46,272 2,768 43,504 4 31,680 X 1.5 47,520 5,352 52,872 3,168 49,704 Year 102,720

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

X2 62,208

X2 74,608

X2 87,008

X2 99,408 $323,232

FRESH COMPANY maintains an ending inventory of raw materials equal to 10% of the next quarter’s production requirements and a beginning inventory equal to 10% of estimated pounds needed for production for each quarter; assume that the desired ending direct materials amount is53,520 pounds for the first quarter of 2015. The manufacture of each unit requires 1 1/2 pounds of raw materials, and the expected cost per pound is $2. FRESH COMPANY Direct labor budget For the year ending December 31, 2014 Quarter 1 2 3 Units to be produced 19,680 23,680 27,680 Direct labor time (hours) per unit X 0.3 X 0.3 X 0.3 Total required direct labor hours 5,904 7,104 8,304 Direct laborcost per hour X $10 X $10 X $10 Total direct labor cost 59,040 71,040 83,040

4 31,680 X 0.3 9,504 X $10 95,040

Year 102,720

$308,160

Each unit requires 20 minutes of direct labor to be produced and the anticipated hourly wage rate is $10. FRESH COMPANY Manufacturing Overhead budget For the year ending December 31, 2014 1 Variable costs Indirect materials Indirect labor UtilitiesMaintenance Total variable costs Fixed costs Supervisory salaries Depreciation Property taxes and insurance Maintenance Total fixed costs Total manufacturing overhead 5,904 11,808 2,952 5,904 26,568 18,000 3,500 8,000 6,800 36,300 62,868 2 7,104 14,208 3,552 7,104 31,968 18,000 3,500 8,000 6,800 36,300 68,268 Quarter 3 8,304 16,608 4,152 8,304 37,368 18,000 3,500 8,000 6,800 36,300 73,668 4 9,504 19,0084,752 9,504 42,768 18,000 3,500 8,000 6,800 36,300 79,068 Year

138,672

283,872 $422,544

Direct labor hours 5,904 7,104 Manufacturing overhead rate per direct labor hour

8,304

9,504

30,816 $13.71

Fresh Company expects variable costs to fluctuate with production volume on the basis of the following rates per direct labor hour: Indirect materials $1 Indirect labor $2 Utilities$0.50 Maintenance $1 FRESH COMPANY Selling and administrative expense budget For the year ending December 31, 2014 1 19,000 19,000 5,700 24,700 8,000 18,000 9,500 1,200 2,500 39,200 63,900 2 23,000 23,000 6,900 29,900 8,000 18,000 9,500 1,200 2,500 39,200 69,100 Quarter 3 27,000 27,000 8,100 35,100 8,000 18,000 9,500 1,200 2,500 39,200 74,300 4 31,000 31,000 9,300 40,300 8,000 18,000 9,500 1,200...