Question: Condor Corporation manufactures two different types
Condor Corporation manufactures two different types of coils used in electric motors. In the fall of the current year, the controller compiled the following data
• Sales forecast for 20x3 (all units to be shipped in 20x3):
• Raw-material prices and inventory levels:
• Use of raw material:
• Direct-labor requirements and rates:
• Finished-goods inventories (in units):
• Production overhead:
Overhead Cost Item Activity-Based Budget Rate
Purchasing and material handling ...... $.50 per pound of sheet metal and copper wire purchased
Depreciation, utilities, and inspection ................................. $8.00 per coil produced (either type)
Shipping ................................................................................ $2.00 per coil shipped (either type)
General production overhead ............................................................ $6.00 per direct-labor hour
Required:
Prepare the following budgets for 20x3.
1. Sales budget (in dollars).
2. Production budget (in units).
3. Raw material purchases budget (in quantities).
4. Raw material purchases budget (in dollars).
5. Direct-labor budget (in dollars).
6. Production-overhead budget (in dollars).
Transcribed Image Text:
Product Units Price Light coil Heavy coil 60,000 $240 40,000 $340 Expected Inventories January 1, 20x3 Desired Inventories, December 31, 20x3 Anticipated Purchase Price Raw Material Sheet metal 32,000 lb. 36,000 Ib. $16 Copper wire 29,000 lb. 32,000 lb. 10 Platform 6,000 units 7,000 units 6. Amount Used per Unit Raw Material Light Coil Heavy Coil Sheet metal 4 lb. 5 lb. ...... Copper wire 2 lb. 3 lb. ... Platform 1 unit ........ Product Hours per Unit Rate per Hour Light coil 4 $15 Heavy coil 6 20
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