Question

А E Computer Accessories Sales Budget For the year ending December 31, 2019 1 Budget #1 4 Second First Quarter Quarter $2,600 $110 $286.000 Fourth Third Quarter Quarter $2,900 $110 $319,000 Annual Total 5 $12,700 $110 $3,200 $110 $352,000 Units Sales price Sales Budget $4,000 $110 $440,000 6 7 $1,397,000 8 Computer Accessories Production Budget For the year ending December 31, 2019 10 Budget #2 11 12 13 Second Fourth First Quarter Quarter $3,200 $270 $3,470 $510 Third Quarter Quarter $4,000 $431 $4,431 $416 $4,015 Annual Total $12,700 $602 $13,302 $431 $12,871 14 $2.900 $2,600 Unit sales 15 Desired Ending Inventory Total Requirements Less Beginning Inventory Budgeted Production in units $444 $3,044 $270 $2,774 $416 $3,316 $444 16 17 18 $2,960 $2,872 19 20 Computer Accessories Purchases Budget For the year ending December 31, 2019 22 Budget #3 25 Fourth Second Third Quarter Quarter $4,000 $566 $4,566 $542 $4,025 First Quarter Quarter $3,200 Annual Total $12,700 26 Budgeted production in units Desired ending inventory of kits Total Requirements Less Beginning Inventory Kits Purchase requirements in kits Cost per kit Total purchases of kits in dollars $2,600 $2,900 27 $609 $3,209 $500 $2,709 $78 $211,333 $542 $3.442 $609 $2,832 $78 $220,933 $500 $3,700 $805 $13,505 $566 $12,938 $78 $1,009,197 28 29 $653 $3,047 30 31 $78 $237,666 $78 $313,920 32 33 34 35 Computer Accessories Manufacturing Cost Budget For the year ending December 31, 2019 36 Budget #4 37 38 39 Fourth Third Quarter Quarter Second First Quarter Quarter 40 Direct Materials: Budgeted production in units Cost per kit Direct material cost 41 $3,200 $50 $160,000 $4,000 $50 $200,000 $2,600 $50 $130,000 $2,900 $12,700 $50 $635,000 42 $50 $145,000 43 44 45 Direct labor: Budgeted production in units Direct labor cost per unit Direct labor cost 46 $3,200 $25 $80,000 $4,000 $25 $100,000 $2,600 $25 $65,000 $12,700 $25 $317,500 $2,900 $25 $72,500 47 48 Variable Manufacturing Overhead: Budgeted production in units Variable Overhead cost per unit Variable Manufacturing Overhead $3,200 $6 $2,600 $6 $15,600 $2,900 $6 $17,400 $4,000 $6 $24,000 $12,700 $6 $76,200 $19.200 55 $40.000 Fixed Manufacturing Overhead: $40,000 $40,000 $40,000 $40,000 57 $299.200 $364.000 $1,068.700 $250,600 Total Manufacturing Costs $274,900 58 59

Please check if Total Column for the tasks 1, 2, 3 and 4 solved correct, i am confused Thank you!

Answer 1

Budget #1
Budgeted production in first quarter		$3,200
Budgeted production in second quarter		$2,600
Budgeted production in third quarter		$2,900
Budgeted production in fourth quarter		$4,000
		$12,700
The Annual total column has been solved correctly.
Budget # 2
In annual total column,the values should be as under:
Unit Sales = Sum total of the unit sales of all the four quarters
Desired ending inventory = desired ending inventory of the fourth quarter
Beginning inventory = beginning inventory of the first quarter
Looking at the value in the annual total column, we find that both the
beginning and ending inventory values are incorrect.
The correct computation would be as under
Unit		Annual Turnover
Unit Sales
Unit Sales - First Quarter	3,200
Unit Sales - Second Quarter	2,600
Unit Sales - Third Quarter	2,900
Unit Sales - Fourth Quarter	4,000	12,700
Desired ending inventory
- Desired ending inventory of fourth quarter		431
Total Requirement		13,131
Less Beginning Inventory
- Beginning inventory of first quarter		510
Budgeted production in units		12,621
To verify if the answer is correct, we can add the production in all
four quarters and match it with annual total.Both should be same
Budgeted production in first quarter		2,960
Budgeted production in second quarter		2,774
Budgeted production in third quarter		2,872
Budgeted production in fourth quarter		4,015
		12,621
Hence,it can be verified that the answer derived from the values
taken above is the correct answer.
Budget # 3
In annual total column,the values should be as under:
Unit Sales = Sum total of the unit sales of all the four quarters
Desired ending inventory = desired ending inventory of the fourth quarter
Beginning inventory = beginning inventory of the first quarter
Looking at the value in the annual total column, we find that both the
beginning and ending inventory values are incorrect.
The correct computation would be as under
Budgeted production in units		Annual Total
Budgeted production in units - first quarter	3,200
Budgeted production in units - second quarter	2,600
Budgeted production in units - third quarter	2,900
Budgeted production in units - fourth quarter	4,000	12,700
Desired ending inventory of kits
- Desired ending invenory of kits - fourth quarter		566
Total Requirement		13,266
Less Beging inventory of kits
- Beginning inventory of kits - first quarter		653
Purchase requirements in kits		12,613
Cost per kit		$78
Total Purchase of kits in dollars		$983,814
To verify if the answer is correct, we can add the purchase requirements
in all four quarters and match it with annual total.Both should be same
Purchase requirements in kits - first quarter		3,047
Purchase requirements in kits - second quarter		2,709
Purchase requirements in kits - third quarter		2,832
Purchase requirements in kits - fourth quarter		4,025
		12,613
Hence,it can be verified that the answer derived from the values
taken above is the correct answer.
Budget # 4
The annual total fixed manufacturing overhead should be the sum
total of the fixed manufacturing overhead of all the four quarters
Fixed Manufacturing Overhead - first quarter		$40,000
Fixed Manufacturing Overhead - second quarter		$40,000
Fixed Manufacturing Overhead - third quarter		$40,000
Fixed Manufacturing Overhead - fourth quarter		$40,000
		$160,000
Looking at the value in the annual total column, we find that the total
annual manufacturing overhead value is incorrect.
The correct computation would be as under
Direct Materials:
Budgeted production in units
Budgeted production in units - first quarter	3,200
Budgeted production in units - second quarter	2,600
Budgeted production in units - third quarter	2,900
Budgeted production in units - fourth quarter	4,000	12,700
Cost per kit		$50
Direct material cost		$635,000
Direct Labor:
Budgeted production in units
Budgeted production in units - first quarter	3,200
Budgeted production in units - second quarter	2,600
Budgeted production in units - third quarter	2,900
Budgeted production in units - fourth quarter	4,000	12,700
Direct labor cost per unit		$25
Direct labor cost		$317,500
Variable Manufacturing Overhead:
Budgeted production in units
Budgeted production in units - first quarter	3,200
Budgeted production in units - second quarter	2,600
Budgeted production in units - third quarter	2,900
Budgeted production in units - fourth quarter	4,000	12,700
Variable overhead cost per unit		$6
		$76,200
Fixed Manufacturing Overhead:
Fixed Manufacturing Overhead - first quarter	$40,000
Fixed Manufacturing Overhead - second quarter	$40,000
Fixed Manufacturing Overhead - third quarter	$40,000
Fixed Manufacturing Overhead - fourth quarter	$40,000	$160,000
Total Manufacturing Costs		$1,188,700