Question

LBL Corporation is preparing its master budget for the first quarter of the upcoming year. The following contains detail on LBL’s operations necessary for their master budget:

LBL Corporation is preparing its master budget for the first quarter of the upcoming year. The following contains detail on LDirect Labor There is little DL necessary at LBL with only 0.05 direct labor hours needed per unit. Labor costs are paid in tCash payments for Direct material purchases (based off of purchases found in requirement 3. above) а. b. Direct labor Manufac

0 0
Add a comment Improve this question Transcribed image text
Answer #1
Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.
1. Sales Budget Working
Jan Feb Mar Total Apr May
Budgeted Units                              7,727                      8,273                                8,727                           24,727            10,182            10,909
Budgeted Selling Price $                                11 $                        11 $                                  11 $                               11 $                11 $                11
Budgeted Sale $                        85,000 $               91,000 $                          96,000 $                       24,738 $      112,000 $      120,000
2. Production Budget
Jan Feb Mar Total Apr May
Budgeted No of Units                              7,727                      8,273                                8,727                           24,727            10,182            10,909
Add: Desired ending inventory 20%                              1,655                      1,745                                2,036                              2,036               2,182
Units available                              9,382                    10,018                              10,764                           26,764            12,364
Less: Beginning Inventory                             -1,545                    -1,655                               -1,745                            -1,545             -2,036
Budgeted Production units                              7,836                      8,364                                9,018                           25,218            10,327
3. Direct Material Budget
Jan Feb Mar Total Apr
Budgeted Production Units                              7,836                      8,364                                9,018                           25,218            10,327
Material needed per unit                                       3                              3                                         3                                      3                       3
Total Material needed                            23,509                    25,091                              27,055                           75,655            30,982
Add: Desired ending inventory 20%                              5,018                      5,411                                6,196                              6,196
Units available                            28,527                    30,502                              33,251                           81,851
Less: Beginning Inventory                             -4,702                    -5,018                               -5,411                            -4,702
Budgeted Purchases Units                            23,825                    25,484                              27,840                           77,149
Unit price of Material $                            1.50 $                    1.50 $                              1.50 $                            1.50
Total Budgeted Purchase $                        35,738 $               38,225 $                          41,760 $                     115,724
4. Schedule of cash collection
Jan Feb Mar Total
Same month Sale 40% $                        34,000 $               36,400 $                          38,400 $                     108,800
Following month 60% $                     112,000 $               51,000 $                          54,600 $                     217,600
Total $                     146,000 $               87,400 $                          93,000 $                     326,400
Cash Payment for Direct Material Purchase:
Jan Feb Mar Total Payable
December Purchase $                        35,700 $                       35,700
January Pur $               35,738 $                       35,738
Feb Pur $                          38,225 $                       38,225
Mar Pur $                                -   $        41,760
Total payment for Material $                        35,700 $               35,738 $                          38,225 $                     109,664 $        41,760
Cash Payment for Direct Labor $                          3,526 $                  3,764 $                            4,058 $                       11,348
Cash Payment for Manufacturing overheads $1.10per unit+$10,000 $                        18,500 $               19,100 $                          19,600 $                       57,200
Cash Payment for Operating Expense $1.25 per unit+$2,000 $                        11,659 $               12,341 $                          12,909 $                       36,909
Add a comment
Know the answer?
Add Answer to:
LBL Corporation is preparing its master budget for the first quarter of the upcoming year. The...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • LBL Corporation is preparing its master budget for the first quarter of the upcoming year. The...

    LBL Corporation is preparing its master budget for the first quarter of the upcoming year. The following contains detail on LBL’s operations necessary for their master budget: Sales Information: Actual / Projected Sales are as follows: December (Prior Year; Actual):   $75,000 January (Estimated):   $85,000 February (Estimated):   $91,000 March (Estimated):   $96,000 April (Estimated):   $112,000 May (Estimated):   $120,000 Units are sold at $11 each Sales in a month are paid in cash for 40% and on credit for the remainder with credit...

  • LBL Corporation is preparing its master budget for the first quarter of the upcoming year. The...

    LBL Corporation is preparing its master budget for the first quarter of the upcoming year. The following contains detail on LBL’s operations necessary for their master budget: •Sales Information: oActual / Projected Sales are as follows: ♣December (Prior Year; Actual): $75,000 ♣January (Estimated): $85,000 ♣February (Estimated): $91,000 ♣March (Estimated): $96,000 ♣April (Estimated): $112,000 ♣May (Estimated): $120,000 oUnits are sold at $11 each oSales in a month are paid in cash for 40% and on credit for the remainder with credit...

  • Please complete the rest LBL Corporation is preparing its master budget for the first quarter of...

    Please complete the rest LBL Corporation is preparing its master budget for the first quarter of the upcoming year. The following contains detail on LBL's operations necessary for their master budget: • Sales Information: o Actual / Projected Sales are as follows: : December (Prior Year; Actual): $75,000 January (Estimated): $85,000 February (Estimated): $91,000 March (Estimated): $96,000 . April (Estimated): $112,000 . May (Estimated): $120,000 o Units are sold at $11 each o Sales in a month are paid in...

  • Decker Manufacturing is preparing its master budget for the first quarter of the upcoming year. The...

    Decker Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to deckers manufacturing s operation Current Assets as of December 31 (prior year): Cash 4600 Accounts receivable, net 47000 Inventory 15100 Property, plant, and equipment, net 123000 Accounts payable. 43000 Capital stock. 123500 Retained earnings. 23100 a. Actual sales in December were $71,000. Selling price per unit is projected to remain stable at $12 per unit throughout the budget period. Sales...

  • Dalley Manufacturing is preparing its master budget for the first quarter of the upcoming year. The...

    Dalley Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Dalley Manufacturing's operations: (Click the icon to view the data.) (Click the icon to view additional data.) Read the requirements. Requirement 1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total. Dalley Manufacturing Cash Collections Budget For the Quarter Ended March 31 Month January February March Quarter Cash sales Credits sales Total...

  • Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to...

    Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process. Sales Unit sales for November 2019 114,000 Unit sales for December 2019 102,000 Expected unit sales for January 2020 114,000 Expected unit sales for February 2020 113,000 Expected unit sales for March 2020 117,000 Expected unit sales for April 2020 126,000...

  • Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process.

    SalesUnit sales for November 2019114,000Unit sales for December 2019103,000Expected unit sales for January 2020114,000Expected unit sales for February 2020111,000Expected unit sales for March 2020116,000Expected unit sales for April 2020125,000Expected unit sales for May 2020136,000Unit selling price$12Waterways likes to keep 10% of the next month’s unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts...

  • Okay Company is preparing to build its master budget. The budget will detail each quarter's activity and the activity for the year in total.

    Master Budget ProjectOkay Company is preparing to build its master budget. The budget will detail each quarter's activity and the activity for the year in total. The master budget will be based on the following information:a. This will be the first year of operation for Okay Company.b. Budgeted unit sales by quarter for 2017 are projected as follows: First quarter 6,300 , Second quarter 6,100 , Third quarter 6,100 & Fourth quarter 6,450 . First and second quarter 2018 budgeted...

  • Webster Corporation is preparing a master budget for the first quarter of the year. The company...

    Webster Corporation is preparing a master budget for the first quarter of the year. The company budgets production of 2,760 units in January, 2,640 units in February and 2,940 units in March. Each unit requires 0.5 hours of direct labor. The direct labor rate is $13 per hour. Compute the budgeted direct labor cost for the first quarter budget. Multiple Choice $51,480. $54,210. $108,420. $102,960. $41,700.

  • Webster Corporation is preparing a master budget for the first quarter of the year. The company...

    Webster Corporation is preparing a master budget for the first quarter of the year. The company budgets production of 2,680 units in January, 2,600 units in February and 2,740 units in March. Each unit requires 0.6 hours of direct labor. The direct labor rate is $12 per hour. Compute the budgeted direct labor cost for the first quarter budget. Multiple Choice $48,120. $57,744. $56,160. $93,600. $96,240.

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT