Purchase Solution

Create a Labor and Manufacturing Budget - Jessi Corporation

Not what you're looking for?

Ask Custom Question

Sales and Production Budgets: The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account):
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Units to be produced 12,000 14,000 13,000 11,000

The selling price of the company's product is $18.00 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made, 30% in the following quarter, and 5% of sales are expected to be "uncollectible." The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $70,200. The company expects to start the first quarter with 1,650 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,850 units.

Prepare the company's sales budget and schedule of expected cash collections.

Prepare the company's production budget for the upcoming fiscal year.

Direct Materials and Direct Labor Budgets: The production department of Hareston Company has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Units to be produced 7,000 8,000 6,000 5,000

In addition, the beginning raw materials inventory for the first quarter is budgeted to be 1,400 pounds and the beginning accounts payable for the first quarter is budgeted to be $2,940. Each unit requires 2 pounds of raw material that costs $1.40 per pound. Management desires to end each quarter with an inventory of raw materials equal to 10% of the following quarter's production needs. The desired ending inventory for the fourth quarter is 1,500 pounds. Management plans to pay for 80% of raw material purchases in the quarter acquired and 20% in the following quarter. Each unit requires 0.60 direct labor-hours and direct labor-hour workers are paid $14.00 per hour.

Prepare the company's direct materials budget and schedule of expected cash disbursements for purchases of materials for the upcoming fiscal year.

Prepare the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

Direct Labor and Manufacturing Overhead Budgets (8-14): The production department of Raredon Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Units to be produced 12,000 14,000 13,000 11,000

Each unit requires 0.70 direct labor-hours, and direct labor-hour workers are paid $10.50 per hour.
In addition, the variable manufacturing overhead rate is $1.50 per direct labor-hour. The fixed
manufacturing overhead is $80,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $22,000 per quarter.

Prepare the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

Prepare the company's manufacturing overhead budget.

Purchase this Solution
Solution Summary

This solution creates the requested budget in Excel and can be used as a template for other assignments and for review of the formulas needed.

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Motivation

This tests some key elements of major motivation theories.

View More Free Quizzes
Related BrainMass Solutions

  • Sales Forecast: Creating a Master Budget

    343748 Sales Forecast: Creating a Master Budget Help create a master budget from the following data: JESSI: Sales and Production Budgets: The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal

  • Jessi Corp direct labor budget manufacturing overhead budget

    449505 Jessi Corp direct labor budget manufacturing overhead budget Complete the following three exercises.

  • Jessi Corp, Hareston: Prepare Budgets for sales, production

    412053 Jessi Corp, Hareston: Prepare Budgets for sales, production, direct materials, labor 1.

  • Budgeting

    solution explains how to prepare the following budgets - Production budget (in units), Direct manufacturing purchases budget (in units) , Direct material purchases budget (in dollars) and Direct manufacuring labor budget (in dollars)

  • Sales and Production Budgets - Jessi Corporation

    416104 Sales and Production Budgets The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account) Budgeted Unit sales 1st Quarter 11,000 2nd quarter 12,000

  • Spiffy Shades Corporation: Prepare a production budget....

    444425 Spiffy Shades Corporation: Prepare a production budget, a direct-labor budget and a manufacturing overhead budget Spiffy Shades Corporation manufactures artistic frames for sunglasses.

  • Krispin Corporation

    215562 Manufacturing Overhead Budget The direct labor budget of Krispin Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours. 1st QTR 2nd QTR 3rd QTR

  • Managerial Account/Cost Accounting

    The solution helps produce a budget for Mink Caress. Furthermore it also produces an overhead budget for Yuvwell Corporation as well as does the cost accounting for Rordan Corporation.

  • Raredon Corporation - Master Budget

    412104 Raredon Corporation - Master Budget Direct Labor and Manufacturing Overhead Budgets) : The production department of Raredon Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Units

View More Related Solutions