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    Sales and Manfuacture Overhead Budgets

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    How to calculate manufacturing overhead budget and sales budget?

    Zeller Electronics Inc. produces and sells two models of pocket calculators, XQ-103 and XQ-104. The calculators sell for $12 and $25, respectively. Because of the intense competition Zeller faces, management budgets sales semiannually. Its projections for the first 2 quarters of 2008 are as follows.
    Unit Sales
    Product Quarter 1 Quarter 2
    XQ- 103 20,000 25,000
    XQ-104 12,000 15,000
    No changes in selling prices are anticipated.
    Instructions
    Prepare a sales budget for the 2 quarters ending June 30, 2008. List the products and show for each quarter and for the 6 months, units, selling price, and total sales by product and in total.
    ZELLER ELECTRONICS INC.
    Sales Budget
    For the Six Months Ending June 30, 2008
    Quarter 1
    Product Units Selling Price Total Sales
    XQ-103
    $
    $

    XQ-104

    Totals
    $

    Quarter 2
    XQ-103
    $
    $

    XQ-104

    Totals
    $

    Six Months
    XQ-103
    $
    $

    XQ-104

    Totals
    $

    For Justus Inc. variable manufacturing overhead costs are expected to be $20,000 in the first quarter of 2008 with $4,000 increments in each of the remaining three quarters. Fixed overhead costs are estimated to be $35,000 in each quarter. Prepare the manufacturing overhead budget by quarters and in total for the year.
    JUSTUS INC.
    Manufacturing Overhead Budget
    For the Year Ending December 31, 2008
    Quarter
    1 2 3 4 Year
    Variable costs $
    $
    $
    $
    $

    Fixed costs

    Total manuf. overhead $
    $
    $
    $
    $

    Palermo Wholesalers is preparing its merchandise purchases budget. Budgeted sales are $400,000 for April and $475,000 for May. Cost of goods sold is expected to be 60% of sales. The company's desired ending inventory is 20% of the following month's cost of goods sold. Compute the required purchases for April.
    $

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    ZELLER ELECTRONICS INC.
    Sales Budget
    For the Six Months Ending June 30, 2008
    Quarter 1
    Product Units Selling Price Total Sales
    XQ-103 20,000 12 240,000 Total sales = units X selling price
    XQ-104 12,000 25 300,000
    Totals 32,000 540,000
    ...

    Solution Summary

    The solution explains how to prepare various budgets

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