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5) Southern Plastics Company SA produces three lines of plastic pens: Fine Point, Midpoint and Punto Grande. The CEO is i fill the post of head of budgets, but first want to make sure that person knows the art to put in evidence which to draw: It asks: a) The Production Budget b) The Budget Raw Material Requirements c) Materials Purchase Budget d) The Budget Direct Labor e) The Budget Indirect Manufacturing Costs f) The Budget and Administrative Expense g) The budget Ending Stocks h) Cost of Goods Sold Budget This relevant information is provided: FEATHERS midpoint 1 gr 3 grs 5 grs 0.03 $ 800000
MATERIALS component A Component B component C Hours Direct Labor Cost per hour of MOD I budgeted Sales Sem 2001
20.00
The B component cost is $ 2000 per kg. Kilogram the cost of A is considered to be equal to 5% of the cost of a kilogram of is estimated as the cost of component A MATERIALS Component B Component A Component C COST $ 2,000.00 x kgr $ 100.00 x kgr $ 100.00 x kgr COST 2.00 0.1 0.1
The Sales department believes it would be desirable to have an inventory for the period 700000 feathers, composed as fo 60% and 15% of Great Point. Inventory Final = FINE POINT= MIDPOINT = GREAT POINT= 700000 plumas 25% Inv. Final 60% Inv. Final 15% Inv. Final FEATHERS MIDPOINT 420000
The stock of the year just completed an inventory of 500000 arrojn feathers, that is for each line the same percentage a inventory estimates.
500000 plumas 25% Inv. Final 60% Inv. Final 15% Inv. Final
Unit costs for each product line were $ 5.00 for Fine Point, $ 7.00 for middle and $ 12.00 for large point last year. Last Year: Cost UNIT COST $ FINE POINT 5.00 $ MIDPOINT 7.00
MIDPOINT 2080000 gr
900000 grs
800000 grs
Indirect manufacturing expenses are as follows (applied on the basis of hours of direct labor):
MANUFACTURING OVERHEAD Maintenance Costs insurance energy supervision accessories depreciation The pomp and sales management will include SELLING AND ADMINISTRATIVE EXPENSES Salaries Commissions Stationery and office tilies depreciation Miscellaneous Expenses
$ $ $ $ $
$ $ $ $ $
Commissions
ACCOUNTS projected Sales (+) Finished Produc Final Inv (-) Inv. Initial Finished Products REQUIRED PRODUCTION
PRODUCT FINE POINT MIDPOINT BIG POINT GRAMS TOTAL REQUIRED PRODUCTION Total required production kilograms Cost per kilogram TOTAL
$ $
COMPONENT A 550000 grs 920000 grs 430000 grs 1900000 grs 1900 Kg 100.00 $ 190,000.00 $
COMPONENTB 1100000 grs 2760000 grs 2150000 grs 6010000 grs 6010 Kg 2,000.00 12,020,000.00
Required Raw Material in Kg (+) Desired Ending Inventory (-) Initial Inventory (=) Purchase of Raw Material (*) Unit Cost (=) TOTAL PURCHASES
Planned Production
Hrs per Unit Total hrs Cost per hr COST OF DIRECT LABOR
$ $
BUDGET GIF
Plsticos del Sur S.A
maintenance insurance energy supervision depreciation accessories TOTAL $ $ $ $ $ $ $ 10,000 7,000 80,000 809,000 12,000 10,000 928,000
TOTAL
RATEGIF =
RATE GIF =
RATE GIF =
$ $ $
oint and Punto Grande. The CEO is interested in hiring an expert to o put in evidence which to draw:
COST gr gr gr
or each line the same percentage as the sales department for final
MIDPOINT 7.00 $
MIDPOINT 2080000 gr
800000 grs
700000 grs
Mano de Obra
10%
SUELDOS
GET
REQUIREMENT
COMPONENTB 1100000 grs 2760000 grs 2150000 grs 6010000 grs 6010 Kg 2,000.00 $ 12,020,000.00 $
COMPONENT C 2750000 grs 4600000 grs 2150000 grs 9500000 grs 9500 Kg 100.00 950,000.00
ATERIAL
RAW MATERIAL B 6010 Kg 800 -2080 4730 Kg 2,000.00 $ 9,460,000 $ RAW MATERIAL C 9500 Kg 700 -998 9202 Kg 100.00 920,200
BOR
BIG POINT TOTAL 430000 plu
$ $
IVE EXPENSES
UDGET
FINAL BUDGET
TOTAL
NAL BUDGET
ED BUDGET
ALES
$ $ 3,625,000.00 13,101,200
$ $ $