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425
P13–1, Continued
3.
A B C D E F
1 ROYAL BRITISH FURNITURE COMPANY
2 Direct Materials Purchases Budget
3 For the Month Ending March 31
4 Direct Materials
5
Fabric
(sq. yds.)
Wood
(lineal ft.)
Filler
(cu. ft.)
Springs
(units) Total
6 Required units for
production:
7 William 66,000
1
264,000
2
62,700
3
231,000
4
426
P13–1, Concluded
4.
A B C D E
1 ROYAL BRITISH FURNITURE COMPANY
2 Direct Labor Cost Budget
3 For the Month Ending March 31
4 Framing
Department
Cutting
Department
Upholstery
Department
Total
5 Hours required for production:
6 William* 41,250 16,500 49,500
17
427
P13–2
1.
A B C D
1 JUPITER HELMETS INC.
2 Sales Budget
3 For the Month Ending May 31
4 Unit Sales Unit Selling
Volume Price Total Sales
2.
A B C
1 JUPITER HELMETS INC.
2 Production Budget
3 For the Month Ending May 31
4 Units
5
Bicycle
Helmet
Motorcycle
Helmet
6 Expected units to be sold 7,500 5,000
428
P13–2, Continued
3.
A B C D
1 JUPITER HELMETS INC.
2 Direct Materials Purchases Budget
3 For the Month Ending May 31
4 Plastic Foam Lining Total
5 Units required for production:
1
2
429
P13–2, Continued
4.
A B C D
1 JUPITER HELMETS INC.
2 Direct Labor Cost Budget
3 For the Month Ending May 31
4 Molding
Department
Assembly
Department
Total
5 Hours required for production:
6 Bicycle helmet 2,310
1
770
2
5.
A B C
1 JUPITER HELMETS INC.
2 Factory Overhead Cost Budget
3 For the Month Ending May 31
4 Indirect factory wages $125,000
430
P13–2, Continued
6.
A B C D
1 JUPITER HELMETS INC.
2 Cost of Goods Sold Budget
3 For the Month Ending May 31
4 Finished goods inventory,
May 1 $ 12,0001
5 Work in process, May 1 $ 4,200
6 Direct materials:
21
22
1
Bicycle helmet (200 × $15.00) $ 3,000
23 Motorcycle helmet (100 × $90.00) 9,000
431
P13–2, Concluded
7.
A B C
1 JUPITER HELMETS INC.
2 Selling and Administrative Expenses Budget
3 For the Month Ending May 31
4 Selling expenses:
5 Sales salaries expense $175,000
8.
A B C
1 JUPITER HELMETS INC.
2 Budgeted Income Statement
3 For the Month Ending May 31
4 Revenue from sales $1,055,000
432
P13–3
1.
A B C D
1 SHOE MART INC.
2 Cash Budget
3 For the Three Months Ending March 31
4 January February March
5 Estimated cash receipts from:
(Continued)
433
P13–3, Concluded
24 Computations:
25 aCollections of accounts receivable: January February March
26 November sales $ 50,000
1
37
b
Payments for manufacturing costs: January February March
434
P13–4
a. Standard
Materials and
Labor Cost
per Faucet
b. Direct Materials Cost Variance
Price variance:
Direct Materials Price Variance = (Actual Price – Standard Price) × Actual Quantity
Quantity variance:
Direct Materials Quantity Variance = (Actual Quantity – Standard Quantity) ×
Standard Price
Total direct materials cost variance:
Direct Materials Cost Variance = Direct Materials Price Variance + Direct
Materials Quantity Variance
