60.1K

Verified Solution

Link Copied!

Jones Corporation has the following budgeted sales for the selected four-month period: Month Unit Sales July 20,000 August 35,000 September 25,000 October 30,000 Sales price per unit is $180 Plans are to have an inventory of finished product equal to 20 percent of the unit sales for the next month. There were 4,000 units in beginning inventory on July 1. Three pounds of materials are required for each unit produced. Each pound of material costs $20. Inventory levels for materials equal 30 percent of the needs for the next month. Desired ending inventory for September is 25,200 pounds of material. Beginning inventory for July was 20,700 pounds of material. Each unit requires 0.6 hours of direct labor and the average wage rate is $16 per hour. Variable overhead rate is $3.50 per direct labor hour. There is also fixed overhead of $22,000 per month. The company pays a 3% commission on sales. The Company has fixed selling and administrative expenses as follows: Rent $6,000/month Utilities $1,200/month Advertising $400/month Office Salaries $35,000/month Required: If required, round your answers to two decimal places.

G. Prepare an ending finished goods inventory budget for the quarter. (Hint: You have already calculated the desired ending finished goods inventory quantity. Assume a stable per-unit rate and round the per-unit fixed factory overhead rate to two decimal places.) Jones Corporation Ending Finished Goods Inventory Budget blank Desired ending inventory $fill in the blank 68361301ffd1046_1 Direct materials $fill in the blank 68361301ffd1046_2 Direct labor $fill in the blank 68361301ffd1046_3 Overhead: Variable overhead $fill in the blank 68361301ffd1046_4 Fixed overhead $fill in the blank 68361301ffd1046_5 Unit cost $fill in the blank 68361301ffd1046_6

H. Prepare a cost of goods sold budget for the quarter. Jones Corporation Cost of goods sold Budget blank Direct materials $fill in the blank 5d1d5b0b4faf031_1 Direct labor fill in the blank 5d1d5b0b4faf031_2 Overhead fill in the blank 5d1d5b0b4faf031_3 Add: Beginning inventory fill in the blank 5d1d5b0b4faf031_4 Goods available for sale fill in the blank 5d1d5b0b4faf031_5 Less: Ending inventory fill in the blank 5d1d5b0b4faf031_6 Cost of goods sold $fill in the blank 5d1d5b0b4faf031_7

I. Prepare a budgeted income statement for the quarterthe company falls into the 35 percent tax bracket for income taxes. Jones Corporation Budgeted Income Statement blank $Sales Cost of goods sold Gross margin $fill in the blank c7fb3f0a207e041_5 Less: Variable selling and adm. expenses Less: Fixed selling and administrative expenses $Operating income Less: Income tax expense Net income $fill in the blank c7fb3f0a207e041_14

Answer & Explanation Solved by verified expert

See Answer