Brief Exercise 23-2

ASIGNACION CAP 23

Brief Exercise 23-2

Moon Company

Sales Budget

For the year ending December 31, 2012

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year

Expected unit sales 10,000 12,000 14,000 18,000 54,000

Unit selling price x $80 x $80 x $80 x $80 x $80

Total sales $800,000 $960,000 $1,120,000 $1,440,000 $4,320,000

Brief Exercise 23-3

Moon Company

Production Budget

For the six months ending June 30, 2012

Quarter 1 Quarter 2 Six Months

Expected unit sales 10,000 12,000

Add: Desired ending finished goods 2,400 (12,000 x .20) 2,800 (14,000 x .20)

Total required units 12,400 14,800

Less: Beginning finished goods inventory 2,000 (10,000 x .20) 2,400 (12,000 x .20)

Required production units 10,400 12,400 22,800

Brief Exercise 23-4

Gutierrez Company

Direct Materials Budget

For the month ending January 31, 2013

Units to be produced 4,000

Direct materials per unit x 2

Total pounds required for production 8,000

Add: Desired ending inventory (20% x 5,500 x 2) 2,200

Total materials required 10,200

Less: Beginning materials inventory 1,600

Direct materials purchases 8,600

Cost per pound x $6

Total cost of direct materials purchases $51,600

Brief Exercise 23-5

Pickney Company

Direct Labor Budget

For the six months ending June 30, 2012

Quarter 1 Quarter 2 Six Months

Units to be produced 5,000 6,000

Direct labor time (hours) per unit x 1.5 x 1.5

Total required direct labor hours 7,500 9,000

Direct labor cost per hour x $14 x $14

Total direct labor cost $105,000 $126,000 231,000

Brief Exercise 23-6

Orville Inc.

Manufacturing Overhead Budget

For the year ending December 31, 2012

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year

Variable costs $20,000 $24,000 $28,000 $32,000 $104,000

Fixed costs 35,000 35,000 35,000 35,000 140,000

Total manufacturing overhead $55,000 $59,000 $63,000 $67,000...