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AaBbCcDc AaBbCcDc AaBbc 1 Normal 1 No Spac... Heading 1 Headil Paragraph Styles Milo Corporation manufactures beach umbrellas. The company is now preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: The marketing department has estimated sales as follows for the remainder of the year (in units): July 30,000 October 20,000 August 70,000 November 10,000 September 50,000 December 10,000 The selling price of the beach umbrellas is $36 per unit. Sales in June were 25,000 units. The company maintains finished goods inventories equal to 15% of the following month's sales. Each beach umbrella requires four metres of Sildes, a material that is sometimes hard to get Therefore, the company requires that the inventory of Silden on hand at the end of each month be equal to 50% of the following month's production needs. The company had 72,000 metres of Silden on hand at June 30. Silden costs $0.80 per metre. Each umbrella also requires 8 metres of steel piping. The company carries inventory of steel piping on hand at the end of each month to be equal to 12% of the following month's production needs. The company had 35,000 metres of steel piping on hand at June 30. Steel piping costs $0.50 per metre. The company estimates that it requires two employees spending 0.5 hours each in assembling one umbrella. The employees get paid at a rate of $11.50 per hour Manufacturing overhead costs are allocated at a rate of S8 per direct labour hour. REQUIRED Prepare an operational budget for the third quarter. G26 B D 7 TOTAL SALES 8 3 PRODUCTION BUDGET 10 Budgeted sales (units) 11 Desired ending inventory 12 Total needs 13 Beginning inventory 14 REQUIRED PRODUCTION (units) 15 16 DIRECT MATERIALS BUDGET - GILDEN 17 Required produotion (units) 18 Materials needed per unit (metres) 19 Production needs (metres) 20 Desired ending inventory 21 Total needs 22 Beginning inventory 23 Materials to be purchased (metres) 24 Cost of materials per metre 25 COST OF MATERIALS TO BE PURCHASED 26 COST PER UNIT - GILDEN 27 26 DIRECT MATERIALS BUDGET - STEEL 20 Required production (units) 30 Materials needed per unit (metres) 31 Produotion needs (metres) 32 Desired ending inventory 39 Total needs 34 Beginning inventory 35 Materials to be purchased (metres) 36 Cost of materials permetre 31 COST OF MATERIALS TO BE PURCHASED 30 COST PER UNIT - STEEL 30 40 DIRECT LABOUR BUDGET 41 Required production (units) 42 Direct hours per 45 Direct labour hours required 44 Cost of labour per how BUDGET + Type here to search o ti B DIRECT MATERIALS BUDGET - GILDEN Required production (units) Materials needed per unit (metres) Production needs (metres) Desired ending inventory Total needs 2 Beginning inventory 3 Materials to be purchased (metres) 4 Cost of materials per metre 5 COST OF MATERIALS TO BE PURCHASED 36 COST PER UNIT - GILDEN 27 28 DIRECT MATERIALS BUDGET - STEEL 29 Required production (units) 30 Materials needed per unit (metres) 31 Production needs (metres) 32 Desired ending inventory 33 Total needs 34 Beginning inventory 35 Materials to be purchased (metres) 36 Cost of materials per metre 37 COST OF MATERIALS TO BE PURCHASED 38 COST PER UNIT - STEEL 40 DIRECT LABOUR BUDGET 41 Required production (units) 42 Direct hours per unit 43 Direct labour hours required 44 Cost of labour per hour 45 COST OF DIRECT LABOUR 46 COST PER UNIT - LABOUR 47 48 MANUFACTURING OVERHEAD 49 Required labour hours required 50 Allocation rate per labour hour 51 COST OF MANUFACTURING OVERHEAD 52 53 BUDGET o

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