Cost Accounting Master Budgeting

BUDGETED INCOME STATEMENT

A. EACH CHAIR SPECIFICATION

REVENUES SC 1 DIRECT MATERIAL

COST OF GOODS SOLD SC 7 PLYWOOD 2 b.f per table

GROSS MARGIN TEAK WOOD 7 b.f per table

OPERATING COSTS DIRECT MANUFACTURING LABOR

HUMAN LABOR 0.3 hrs per table

R & D / PRODUCT DESIGN SC 8 MACHINING HOURS 3 hrs per table

MARKETING COSTS SC 8

DISTRIBUTION COSTS SC 8 B. INVENTORY INFORMATION IN PHYSICAL UNITS FOR 2011 IS

CUSTOMER SERVICE COSTS SC 8 BEGINNING INVENTORY TARGET ENDING INVENTORY

ADMINISTRATIVE COSTS SC 8 DIR MATERIAL

OPERATING INCOME PB 18000 b.f 16000 b.f

RO 21000 b.f 18000 b.f

SCHEDULE 1 FINISHED GOODS

REVENUE BUDGET FOR THE YEAR ENDING 2011 COFFEE TABLE 3000 units 1000 units

CHAIR SELLING PRICE UNITS SOLD TOTAL REVENUES

275 64000 17600000 C. CHAIR REVENUES EXPECTED FOR 2011

SELLING PRICE 275

SCHEDULE 7 UNITS SOLD 64000

COST OF GOODS SOLD BUDGET FOR THE YEAR ENDED DEC 2011

D. COSTS EXPECTED FOR 2011 2003 2004

BEGINNING FINISHED GOODS INVENTORY JAN1 2011 PB (per board feet ) 4 4.2

190 3000 GIVEN 570000 RO (per b.f) 6 6.5

DIRECT MATERIAL USED SC 3A 3327700 LAMINATING LABOR 22 23

DIRECT MANUFACTURING LABOUR SC 4 3841500 MACHINING LABOR 27 30

MANUFACTURING OVERHEAD SC 5 3200000 E. OTHER BUDGETED COST RATES AND AMOUNT FOR 2011 ARE

COST OF GOODS MANUFACTURED 10369200 VARIABLE MANF. OVERHEAD COST - 9.51 per.direct manu.lb/hrs.

COST OF GOODS AVAILABLE FOR SALE 10939200 VARIABLE NON-MANF. COSTS 13.27% OF REVENUES

DEDUCT ENDING W.I.Process (FG + PB & RO ) INVENTORY DEC 2004 SC 6B 202412.9032 FIXED MANF. OVERHEAD COSTS 1400000

COST