The Y Co. has a division that manufactures bicycles. Its budgeted sales for Model G in 2018 are 4,750 units. Y's target ending inventory is 350 units, and its beginning inventory is 550 units and $165,000 in dollars. The company's budgeted selling price to its distributors and dealers is $300 per bicycle. Y buys all its wheels from an outside supplier. No defective wheels are accepted. Y's needs for extra wheels for replacement parts are ordered by a separate division of the company. The company's target ending inventory is 700 wheels, and its beginning inventory is 800 wheels. The budgeted purchase price is $50 per wheel.
The budgeted manufacturing labor cost per hour is $20/hr. The direct manufacturing labor needed for manufacturing one bicycle is 4 hours.
Manufacturing overhead (both variable and fixed) is allocated to each bicycle on the basis of budgeted direct manufacturing labor-hours per bicycle. The budgeted variable manufacturing overhead rate for 2018 is $15 per direct manufacturing labor-hour. The budgeted fixed manufacturing overhead for 2018 is $250,000. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods.
Required
1. Compute the budgeted revenues in dollars: $
2. Compute the number of bicycles that Y Co. should produce:
3. Compute the budgeted uses of wheels in units: & in dollars:
4. Compute the budgeted purchases of wheels in units: & in dollars:
5. Compute direct manufacturing labor costs budget: $
6. Compute variable manufacturing overhead costs budget: $
7. Compute total manufacturing overhead cost budget: $
8. Compute the budgeted cost of goods manufactured (neglect WIP inventory, FIFO method):
9. Compute the budgeted unit cost of product (Round your answer to the nearest integer!!!):
10. Compute ending finished goods inventories budget in dollars (neglect WIP inventory, FIFO method), calculate your answer based on the ROUNDED answer of requirement 9:
11. Compute cost of goods sold budget, calculate your answer based on the answer of requirement 10: