Chapter 22

Question 1

Sales budget
Total sales

Answer 1

Expected sales in unit x Unit selling price

Question 2

Required production units

Answer 2

Budgeted sales unit + desired ending finished goods unit + beginning finished goods unit.

Question 3

Direct materials units required for production

Answer 3

Units to be produced x direct materials units per unit of unit produced

Question 4

Direct materials required to be purchased

Answer 4

Direct materials units required for production + desired ending direct materials units - beginning direct materials units

Question 5

Cost of direct materials purchased

Answer 5

Direct materials units to be purchased x cost per direct materials units.

Question 6

Total direct labor cost

Answer 6

United to be produced x direct labor hours per unit x direct labor cost per hour

Question 7

Total manufacturing overhead

Answer 7

Direct labor hours
Variable costs
Indirect materials
Indirect labor
Utilities
Maintenance
Total variable costs
Fixed costs
Supervisory salaries
Depreciation
Property taxes and insurance
Maintenance
Total fixed costs
Total manufacturing overhead +

Question 8

Total selling and administrative expense

Answer 8

Budgeted sales units
Variable costs
Sales commissions
Freight out
Total variable costs
Fixed costs
Advertising
Sales salaries
Office salaries
Depreciation
Property taxes and insurance
Total fixed costs
Total selling and administrative +

Question 9

Total unit cost

Answer 9

Direct materials + direct labor + manufacturing overhead

Question 10

Budgeted income statement

Answer 10

Sales
Cost of goods sold
Gross profit
Selling and administrative expenses
Income from operations
Interest expense
Income before income taxes
Income tax expense
Net income -