Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner’s master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer’s share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company’s union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 5,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 25 percent of the following month’s projected sales in inventory. Information on the first four months of the coming year is as follows: January February March April Estimated unit sales 35,600 34,600 40,400 39,600 Sales price per unit $80 $80 $76 $76 Direct labor hours per unit 2.70 2.70 2.40 2.40 Direct labor hourly rate $18 $18 $19 $19 Direct materials cost per unit $9 $9 $9 $9 Required: Unless otherwise indicated, round all calculated amounts to the nearest dollar or unit. 1. Prepare the following monthly budgets for Greiner Company for the first quarter of the coming year. Question Content Area a. Production budget in units: Greiner CompanyProduction Budget (units)For the First Quarter of the Coming Year January February March Total Unit sales fill in the blank e75d75ff8069f94_1 fill in the blank e75d75ff8069f94_2 fill in the blank e75d75ff8069f94_3 fill in the blank e75d75ff8069f94_4 Desired ending inventory fill in the blank e75d75ff8069f94_5 fill in the blank e75d75ff8069f94_6 fill in the blank e75d75ff8069f94_7 fill in the blank e75d75ff8069f94_8 Total units required fill in the blank e75d75ff8069f94_9 fill in the blank e75d75ff8069f94_10 fill in the blank e75d75ff8069f94_11 fill in the blank e75d75ff8069f94_12 Less: Beginning inventory fill in the blank e75d75ff8069f94_13 fill in the blank e75d75ff8069f94_14 fill in the blank e75d75ff8069f94_15 fill in the blank e75d75ff8069f94_16 Units produced fill in the blank e75d75ff8069f94_17 fill in the blank e75d75ff8069f94_18 fill in the blank e75d75ff8069f94_19 fill in the blank e75d75ff8069f94_20 Question Content Area b. Direct labor budget in hours: Round your answers to two decimal places, if required. Greiner CompanyDirect Labor Budget (hours)For the First Quarter of the Coming Year January February March Total Units produced fill in the blank 5b46cf00106ffd1_1 fill in the blank 5b46cf00106ffd1_2 fill in the blank 5b46cf00106ffd1_3 fill in the blank 5b46cf00106ffd1_4 Direct labor hours per unit fill in the blank 5b46cf00106ffd1_5 fill in the blank 5b46cf00106ffd1_6 fill in the blank 5b46cf00106ffd1_7 Total labor budget (hours) fill in the blank 5b46cf00106ffd1_8 fill in the blank 5b46cf00106ffd1_9 fill in the blank 5b46cf00106ffd1_10 fill in the blank 5b46cf00106ffd1_11 Question Content Area c. Direct materials cost budget: Greiner CompanyDirect Materials Cost BudgetFor the First Quarter of the Coming Year January February March Total Units produced fill in the blank 110fb00bf036faf_1 fill in the blank 110fb00bf036faf_2 fill in the blank 110fb00bf036faf_3 fill in the blank 110fb00bf036faf_4 Cost per unit $fill in the blank 110fb00bf036faf_5 $fill in the blank 110fb00bf036faf_6 $fill in the blank 110fb00bf036faf_7 $fill in the blank 110fb00bf036faf_8 Total direct materials $fill in the blank 110fb00bf036faf_9 $fill in the blank 110fb00bf036faf_10 $fill in the blank 110fb00bf036faf_11 $fill in the blank 110fb00bf036faf_12

Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner’s master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer’s share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company’s union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 5,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 25 percent of the following month’s projected sales in inventory. Information on the first four months of the coming year is as follows: January February March April Estimated unit sales 35,600 34,600 40,400 39,600 Sales price per unit $80 $80 $76 $76 Direct labor hours per unit 2.70 2.70 2.40 2.40 Direct labor hourly rate $18 $18 $19 $19 Direct materials cost per unit $9 $9 $9 $9 Required: Unless otherwise indicated, round all calculated amounts to the nearest dollar or unit. 1. Prepare the following monthly budgets for Greiner Company for the first quarter of the coming year. Question Content Area a. Production budget in units: Greiner CompanyProduction Budget (units)For the First Quarter of the Coming Year January February March Total Unit sales fill in the blank e75d75ff8069f94_1 fill in the blank e75d75ff8069f94_2 fill in the blank e75d75ff8069f94_3 fill in the blank e75d75ff8069f94_4 Desired ending inventory fill in the blank e75d75ff8069f94_5 fill in the blank e75d75ff8069f94_6 fill in the blank e75d75ff8069f94_7 fill in the blank e75d75ff8069f94_8 Total units required fill in the blank e75d75ff8069f94_9 fill in the blank e75d75ff8069f94_10 fill in the blank e75d75ff8069f94_11 fill in the blank e75d75ff8069f94_12 Less: Beginning inventory fill in the blank e75d75ff8069f94_13 fill in the blank e75d75ff8069f94_14 fill in the blank e75d75ff8069f94_15 fill in the blank e75d75ff8069f94_16 Units produced fill in the blank e75d75ff8069f94_17 fill in the blank e75d75ff8069f94_18 fill in the blank e75d75ff8069f94_19 fill in the blank e75d75ff8069f94_20 Question Content Area b. Direct labor budget in hours: Round your answers to two decimal places, if required. Greiner CompanyDirect Labor Budget (hours)For the First Quarter of the Coming Year January February March Total Units produced fill in the blank 5b46cf00106ffd1_1 fill in the blank 5b46cf00106ffd1_2 fill in the blank 5b46cf00106ffd1_3 fill in the blank 5b46cf00106ffd1_4 Direct labor hours per unit fill in the blank 5b46cf00106ffd1_5 fill in the blank 5b46cf00106ffd1_6 fill in the blank 5b46cf00106ffd1_7 Total labor budget (hours) fill in the blank 5b46cf00106ffd1_8 fill in the blank 5b46cf00106ffd1_9 fill in the blank 5b46cf00106ffd1_10 fill in the blank 5b46cf00106ffd1_11 Question Content Area c. Direct materials cost budget: Greiner CompanyDirect Materials Cost BudgetFor the First Quarter of the Coming Year January February March Total Units produced fill in the blank 110fb00bf036faf_1 fill in the blank 110fb00bf036faf_2 fill in the blank 110fb00bf036faf_3 fill in the blank 110fb00bf036faf_4 Cost per unit $fill in the blank 110fb00bf036faf_5 $fill in the blank 110fb00bf036faf_6 $fill in the blank 110fb00bf036faf_7 $fill in the blank 110fb00bf036faf_8 Total direct materials $fill in the blank 110fb00bf036faf_9 $fill in the blank 110fb00bf036faf_10 $fill in the blank 110fb00bf036faf_11 $fill in the blank 110fb00bf036faf_12

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 1PB

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Question Content Area

Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin

Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner’s master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer’s share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company’s union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 5,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 25 percent of the following month’s projected sales in inventory. Information on the first four months of the coming year is as follows:


	January	February	March	April
Estimated unit sales	35,600	34,600	40,400	39,600
Sales price per unit	$80	$80	$76	$76
Direct labor hours per unit	2.70	2.70	2.40	2.40
Direct labor hourly rate	$18	$18	$19	$19
Direct materials cost per unit	$9	$9	$9	$9

Required:
Unless otherwise indicated, round all calculated amounts to the nearest dollar or unit.

1. Prepare the following monthly budgets for Greiner Company for the first quarter of the coming year.

Question Content Area

a. Production budget in units:

Greiner CompanyProduction Budget (units)For the First Quarter of the Coming Year

	January	February	March	Total
Unit sales	fill in the blank e75d75ff8069f94_1	fill in the blank e75d75ff8069f94_2	fill in the blank e75d75ff8069f94_3	fill in the blank e75d75ff8069f94_4
Desired ending inventory	fill in the blank e75d75ff8069f94_5	fill in the blank e75d75ff8069f94_6	fill in the blank e75d75ff8069f94_7	fill in the blank e75d75ff8069f94_8
Total units required	fill in the blank e75d75ff8069f94_9	fill in the blank e75d75ff8069f94_10	fill in the blank e75d75ff8069f94_11	fill in the blank e75d75ff8069f94_12
Less: Beginning inventory	fill in the blank e75d75ff8069f94_13	fill in the blank e75d75ff8069f94_14	fill in the blank e75d75ff8069f94_15	fill in the blank e75d75ff8069f94_16
Units produced	fill in the blank e75d75ff8069f94_17	fill in the blank e75d75ff8069f94_18	fill in the blank e75d75ff8069f94_19	fill in the blank e75d75ff8069f94_20

Question Content Area

b. Direct labor budget in hours: Round your answers to two decimal places, if required.

Greiner CompanyDirect Labor Budget (hours)For the First Quarter of the Coming Year

	January	February	March	Total
Units produced	fill in the blank 5b46cf00106ffd1_1	fill in the blank 5b46cf00106ffd1_2	fill in the blank 5b46cf00106ffd1_3	fill in the blank 5b46cf00106ffd1_4
Direct labor hours per unit	fill in the blank 5b46cf00106ffd1_5	fill in the blank 5b46cf00106ffd1_6	fill in the blank 5b46cf00106ffd1_7
Total labor budget (hours)	fill in the blank 5b46cf00106ffd1_8	fill in the blank 5b46cf00106ffd1_9	fill in the blank 5b46cf00106ffd1_10	fill in the blank 5b46cf00106ffd1_11

Question Content Area

c. Direct materials cost budget:

Greiner CompanyDirect Materials Cost BudgetFor the First Quarter of the Coming Year

	January	February	March	Total
Units produced	fill in the blank 110fb00bf036faf_1	fill in the blank 110fb00bf036faf_2	fill in the blank 110fb00bf036faf_3	fill in the blank 110fb00bf036faf_4
Cost per unit	$fill in the blank 110fb00bf036faf_5	$fill in the blank 110fb00bf036faf_6	$fill in the blank 110fb00bf036faf_7	$fill in the blank 110fb00bf036faf_8
Total direct materials	$fill in the blank 110fb00bf036faf_9	$fill in the blank 110fb00bf036faf_10	$fill in the blank 110fb00bf036faf_11	$fill in the blank 110fb00bf036faf_12

d. Sales budget: Round unit selling price amounts to the nearest cent and use the same
for subsequent requirements.
Greiner Company
Sales Budget (dollars)
For the First Quarter of the Coming Year
January February March
Total
Unit sales
Unit selling price
Total sales revenue
2. Calculate the total budgeted contribution margin for Greiner Company by month and
in total for the first quarter of the coming year. (CMA adapted)
Greiner Company
Budgeted Contribution Margin
For the First Quarter of the Coming Year
January February March
Total
Sales revenue
Direct labor cost
Materials cost
Contribution margin

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