- Problem 3 Master Budget Kyungsoo Co Produces Photo Album Using Two Kinds Of Materials Which Are Plastic And Rubber 1 (170.39 KiB) Viewed 29 times
Problem 3 - Master Budget Kyungsoo Co. produces photo album using two kinds of materials, which are plastic and rubber. Based on the Q3 (July - September) production, to produce 1 album, the following inputs are needed: Direct Materials: - Plastic Rubber Direct Labor Machinery 1.75 m 0.9 m 0.5 hours 0.5 machine hours Variable overhead consist of assembly cost with the tariff of Rp2.000/hours and inspection cost with the tariff of Rp75.000/batch. 1 batch equals to 30 photo albums. The following are the data regarding Kyungsoo Co. inventory at the end of Q3: Direct materials inventory: Unit Value in IDR Plastic 300 m 12.000.000 Rubber 270 m 8.100.000 Finished goods (album) 20 3.000.000 Kyungsoo Co. predicts that it will sell 3.650 photo albums at the price of Rp150.000 in Q4. The following information are the target inventory level at the end of Q4 (December): Direct materials inventory: Unit Plastic 120 m Rubber 150 m Finished goods (album) 90 The prediction for the costs in Q4 are as follows: Harga (Rp) Plastic 45.000/m Rubber 35.000/m Direct labor 7.500/hour Variable overhead cost Increases 15% from Q3 Administration salary 10.000.000/month Other fixed costs 5.500.000/month Sales commission 1.5% from sales Required: Create master budget for October - December (Q4) period which consist of: 1. Sales Budget 2. Production Budget 3. Direct Materials Usage Budget in Quantity and IDR 4. Direct Materials Purchases Budget 5. Direct Manufacturing Labor Cost Budget 6. Manufacturing Overhead Costs Budget 7. Budgeted Unit Costs of Ending INventory 8. Ending Inventory Budget 9. COGS Budget 10. Income Statement Budget