Problem 09-39 Student Name:
Class:
EDGEWORTH BOX CORPORATION
Master Budget
1. Sales Budget:
Box C Box P Total
Sales (in units) * *
Sales price per unit *
Sales revenue *
2. Production Budget (in units):
Box C Box P
Sales * *
Add: Desired ending inventory * *
Total units needed * *
Deduct: Beginning inventory * *
Production requirements * *
3. Raw material budget:
PAPERBOARD
Box C Box P Total
Production requirements (number of boxes) * *
Raw material required per box (pounds) * *
Raw material required for production (pounds) * * *
Add: Desired ending raw-material inventory *
Total raw-material needs *
Deduct: Beginning raw-material inventory *
Raw material to be purchased *
Price (per pound) *
Cost of purchases (paperboard) *
CORRUGATING MEDIUM
Box C Box P Total
Production requirements (number of boxes) * *
Raw material required per box (pounds) * *
Raw material required for production (pounds) * * *
Add: Desired ending raw-material inventory *
Total raw-material needs *
Deduct: Beginning raw-material inventory *
Raw material to be purchased *
Price (per pound) *
Cost of purchases (corrugating medium) *
Total cost of raw-material purchases *
4. Direct labor budget:
Box C Box P Total
Production requirements (number of boxes) * *
Direct labor required per box (hours) * *
Direct labor required for production (hours) * * *
Direct-labor rate *
Total direct-labor cost *
5. Manufacturing overhead budget:
Indirect material *
Indirect labor *
Utilities *
Property taxes *
Insurance *
Depreciation *
Total overhead *
6. Selling and administrative expense budget:
Salaries and fringe benefits of sales personnel *
Advertising *
Management salaries and fringe benefits *
Clerical wages and fringe benefits *
Miscellaneous administrative expenses *
Total selling and administrative expenses *
7. Budgeted income statement:
Sales revenue *
Less: Cost of goods sold:*
Box C *
Box P * *
Gross margin *
Selling and administrative expenses *
Income before taxes *
Income tax expense *
Net income *
*Calculation of cost of goods sold:
(a) Predetermined overhead rate
Budgeted manufacturing overhead rate *
Volume of direct-labor hours *
Rate per hour *
(b) Calculation of manufacturing cost per unit:
Box C Box P
Direct material
Paperboard * *
Corrugating medium * *
Direct labor * *
Applied manufacturing overhead * *
Manufacturing cost per unit * *
Problem 09-39 Student Name:
Class:
EDGEWORTH BOX CORPORATION
Master Budget
1. Sales Budget:
Box C Box P Total
Sales (in units) 500,000 500,000
2. Production Budget (in units):
Box C Box P
Sales 500,000 500,000
3. Raw material budget:
PAPERBOARD
Box C Box P Total
Production requirements (number of boxes) 495,000 495,000
CORRUGATING MEDIUM
Box C Box P Total
Production requirements (number of boxes) 495,000 495,000
4. Direct labor budget:
Box C Box P Total
Production requirements (number of boxes) 495,000 495,000
Instructor
McGraw-Hill/Irwin
5. Manufacturing overhead budget:
Indirect material 15,750$
Indirect labor 75,000
6. Selling and administrative expense budget:
Salaries and fringe benefits of sales personnel 112,500$
7. Budgeted income statement:
Sales revenue 1,650,000$
Less: Cost of goods sold:*
Box C 157,500
(b) Calculation of manufacturing cost per unit:
Box C Box P
Direct material
Paperboard $0.09 $0.21