Scribd Logo
Upload

Welcome to Scribd!

  • 19 views

    Cost Accounting

    Uploaded by

    Muhammad Saleem
    The document provides production forecasts and other financial information for Priston Company to prepare budgets for materials, labor, and manufacturing overhead for the upcoming fiscal year. It includes beginning inventory balances, production unit requirements, material and labor costs per unit, overhead rates, and payment terms. The budgets will help Priston plan its material purchases and costs, labor needs, and overhead expenses for each quarter.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    Cost Accounting

    Uploaded by

    Muhammad Saleem
    19 views2 pages
    The document provides production forecasts and other financial information for Priston Company to prepare budgets for materials, labor, and manufacturing overhead for the upcoming fiscal year. It includes beginning inventory balances, production unit requirements, material and labor costs per unit, overhead rates, and payment terms. The budgets will help Priston plan its material purchases and costs, labor needs, and overhead expenses for each quarter.

    Original Description:

    problem no 25

    Original Title

    cost accounting

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document provides production forecasts and other financial information for Priston Company to prepare budgets for materials, labor, and manufacturing overhead for the upcoming fiscal year. It includes beginning inventory balances, production unit requirements, material and labor costs per unit, overhead rates, and payment terms. The budgets will help Priston plan its material purchases and costs, labor needs, and overhead expenses for each quarter.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    19 views2 pages

    Cost Accounting

    Uploaded by

    Muhammad Saleem
    The document provides production forecasts and other financial information for Priston Company to prepare budgets for materials, labor, and manufacturing overhead for the upcoming fiscal year. It includes beginning inventory balances, production unit requirements, material and labor costs per unit, overhead rates, and payment terms. The budgets will help Priston plan its material purchases and costs, labor needs, and overhead expenses for each quarter.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    Assignment

    Hint***

    opening inventory
    Add Purchase
    Less Ending inventory
    CGS
    Question 2: The production department of Priston Company has submitted the following
    forecast of units to be produced by quarter for the upcoming fiscal year.

    In addition, the beginning raw materials inventory for the 1st Quarter is budgeted to be 3,600
    pounds and the beginning accounts payable for the 1st Quarter is budgeted to be $11,775. Each
    unit requires three pounds of raw material that costs $2.50 per pound. Management desires to end
    each quarter with a raw materials inventory equal to 20% of the following quarter’s production
    needs. The desired ending inventory for the 4th Quarter is 3,700 pounds. Management plans to
    pay for 70% of raw material purchases in the quarter acquired and 30% in the following quarter.

    Each unit requires 0.50 direct labor-hours and direct labor-hour workers are paid $15 per hour.

    In addition, the variable manufacturing overhead rate is $2.50 per direct labor-hour. The fixed
    manufacturing overhead is $90,000 per quarter. The only noncash element of manufacturing
    overhead is depreciation, which is $34,000 per quarter.

    Requirement

    Prepare the Material Budget

    Prepare the Labor Budget

    Prepare the MOH Budget

    You might also like