Chapter 22

Question 1

Sales Budget:

Total Sales

Answer 1

= Expected Sales Units x Unit Selling Price

Question 2

Production Budget:

Required Production Units

Answer 2

= Expected Sales Units + Desired Ending FG Units - Beginning FG Units

Question 3

Direct Materials Budget:

DM Required for Production

Answer 3

= Units to be produced x DM Units per Unit Produced

Question 4

Direct Materials Budget:

DM Units to be Purchased

Answer 4

= DM Required for Production + Ending DM Units - Beginning DM Units

Question 5

Direct Materials Budget:

Cost of DM Purchased

Answer 5

= DM Units to be Produced x DL Hours per Unit x DL Cost per Hour

Question 6

Direct Labor Budget:

Total Direct Labor Cost

Answer 6

= Units to be produced x DL Hours per Unit x DL Cost per hour