Betty Baskets
Betty’s Beautiful Baskets
Betty’s Beautiful Baskets, a manufacturing business that sells baskets, wants a master budget prepared for the first three months of this year (January, February and March).
The managers of the different departments have provided the following information:
The Sales Manager has projected the following sales: o January 5,000 units o February 4,000 units o March 6,000 units o Projected selling price is $35.00/unit
Your Production Manager gave the following information: o Ending Inventory is to be 20% of next month’s production need **rounded to the nearest 10 o April’s Projected Sales 5,000 units o December 20X5 Ending Inventory was 1,000 units
The Manufacturing Manager has estimated the following: o Each unit will require 4 grams of material o Material in Ending Inventory is 20% of next month’s needs o December’s Ending Material Inventory was 4,800 g o Projected cost of material: $2.50/gram
The Personnel Manager has estimated that Direct Labour will be projected at: o 0.75 hours of Direct Labour per unit o Direct Labour Cost: $8.50/hour
The Facilities Manager has estimated that the Manufacturing Overhead will be projected at: o Variable Overhead Rate to be $8 per Direct Labour hours o Fixed Overhead Rate to be $3,000 per month
The Accounting Department Manager has provided the following information:
Selling and Administrative Expenses are projected to be a monthly cost of: o Salaries $6,000 o Rent $1,500 o Advertising $1,100 o Telephone $300 o Other $500
Cash Receivable: o December’s Sales were $10,000 o 80% of sales is collected in the quarter in which they were made o 20% of sales collected in the following quarter in which they were made o Bad Debts is negligible
Accounts
Betty’s Beautiful Baskets, a manufacturing business that sells baskets, wants a master budget prepared for the first three months of this year (January, February and March).
The managers of the different departments have provided the following information:
The Sales Manager has projected the following sales: o January 5,000 units o February 4,000 units o March 6,000 units o Projected selling price is $35.00/unit
Your Production Manager gave the following information: o Ending Inventory is to be 20% of next month’s production need **rounded to the nearest 10 o April’s Projected Sales 5,000 units o December 20X5 Ending Inventory was 1,000 units
The Manufacturing Manager has estimated the following: o Each unit will require 4 grams of material o Material in Ending Inventory is 20% of next month’s needs o December’s Ending Material Inventory was 4,800 g o Projected cost of material: $2.50/gram
The Personnel Manager has estimated that Direct Labour will be projected at: o 0.75 hours of Direct Labour per unit o Direct Labour Cost: $8.50/hour
The Facilities Manager has estimated that the Manufacturing Overhead will be projected at: o Variable Overhead Rate to be $8 per Direct Labour hours o Fixed Overhead Rate to be $3,000 per month
The Accounting Department Manager has provided the following information:
Selling and Administrative Expenses are projected to be a monthly cost of: o Salaries $6,000 o Rent $1,500 o Advertising $1,100 o Telephone $300 o Other $500
Cash Receivable: o December’s Sales were $10,000 o 80% of sales is collected in the quarter in which they were made o 20% of sales collected in the following quarter in which they were made o Bad Debts is negligible
Accounts