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    Particulars Executive Line Chairman Line: February 2020 March 2020

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    Gemechis Lema
    Serra Furniture manufactures two products: executive desks made of oak and chairman desks made of red oak. The budget for March 2020 includes a revenue budget of $1,020 per executive desk and $1,600 per chairman desk. The production budget calls for 740 executive desks and 390 chairman desks to be manufactured. The direct material, labor, and overhead budgets are also provided to calculate the cost of goods sold and ending inventory budgets for March.

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    Particulars Executive Line Chairman Line: February 2020 March 2020

    Uploaded by

    Gemechis Lema
    35 views2 pages
    Serra Furniture manufactures two products: executive desks made of oak and chairman desks made of red oak. The budget for March 2020 includes a revenue budget of $1,020 per executive desk and $1,600 per chairman desk. The production budget calls for 740 executive desks and 390 chairman desks to be manufactured. The direct material, labor, and overhead budgets are also provided to calculate the cost of goods sold and ending inventory budgets for March.

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    cost

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    assissgnment I

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    Serra Furniture manufactures two products: executive desks made of oak and chairman desks made of red oak. The budget for March 2020 includes a revenue budget of $1,020 per executive desk and $1,600 per chairman desk. The production budget calls for 740 executive desks and 390 chairman desks to be manufactured. The direct material, labor, and overhead budgets are also provided to calculate the cost of goods sold and ending inventory budgets for March.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    35 views2 pages

    Particulars Executive Line Chairman Line: February 2020 March 2020

    Uploaded by

    Gemechis Lema
    Serra Furniture manufactures two products: executive desks made of oak and chairman desks made of red oak. The budget for March 2020 includes a revenue budget of $1,020 per executive desk and $1,600 per chairman desk. The production budget calls for 740 executive desks and 390 chairman desks to be manufactured. The direct material, labor, and overhead budgets are also provided to calculate the cost of goods sold and ending inventory budgets for March.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 2

    Cost and management accounting II assignment summit date April 30,

    Serra Furniture is an Elite desk manufacture. It manufactures two products.


    1. Executive desks – Oak desks
    2. Chairman desks – Red Oak desks
    The budgeted direct cost inputs for each production in 2020 are as follows:
    Particulars Executive line Chairman line
    Direct material:
    Oak top 16Sqf -----
    Red Oak top --- 25Sqf
    Oak legs 4 legs ----
    Red Oak legs -- 4 legs
    Direct Labor: 3 Hr. 5 Hr.
    Unit data pertaining to the direct materials for March 2020 as follows: Actual
    beginning direct material’s inventory (2020)
    Particulars Executive line Chairman Line
    Oak top 320 Sqf -----
    Red Oak top ----------- 150 Sqf
    Oak legs 100 legs ----
    Red Oak legs 40 legs
    Target ending direct material inventory at March 31, 2020.
    Particulars Executive line Chairman Line
    Oak top 192Sqf
    Red Oak top 200Sqf
    Oak legs 80 legs
    Red Oak legs 44 legs
    Unit cost data for direct cost inputs pertaining to February 2020 and March 2020 are:
    Particulars February 2020 March
    2020
    Oak top (per sqf) Bir.18.00 Bir.20.00
    Red Oak top (per sqf) Bir.23.00 Bir.25.00
    Oak top (per leg) Bir.11.00 Bir.12.00
    Red oak legs (per leg) Bir.17.00 Bir.18.00
    Manufacturing labor (per Hr) Bir.30.00 Bir.30.00
    Manufacturing overhead (both variable and fixed) is allocated to each desk on the basis of
    budgetary direct manufacturing labor hours per desk. The budgeting variable manufacturing
    overhead rate for March 1998 is Bir.35.00 per Direct manufacturing labor Hour. The
    budgeted fixed manufacturing overhead for March 1998 is Bir.42, 500. Both variable and
    fixed manufacturing overhead cost is allocated to each unit of finished goods.
    Data relating to finished goods inventory for March 20201 are
    Particulars Executive line Chairman Line
    Beginning inventory 20 units 5 units
    Beginning inventory Bir.10, 480 Bir.4850
    Target ending inventory 30 units’ 15 units
    Budgeted sale for March 1998 are 740 units of the executive line and 390 units of the
    chairman line. The budgeted selling prices per unit in March 2020 are Bir.1, 020 for
    an executive line desk and Bir.1600 for a chairman line desk.
    Take the following assumptions in your answer:
    a) Works in Process inventories are negligible and ignored.
    b) Direct material inventory and finished goods inventory are determined using the
    FIFO method.
    c) Unit costs of direct material purchased and finished goods are constant in March
    2020 Required:
    Prepare the following budget for March, 2020
    1. Revenue budget
    2. production budget in units
    3. Direct material usage budget and direct material purchase budget
    4. Direct manufacturing labor budget
    5. Ending inventory budget
    6. Cost of goods sold budget

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