Fresh Pak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit and vegetables. The

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Fresh Pak Corporation Manufactures Two Types Of Cardboard Boxes Used In Shipping Canned Food Fruit And Vegetables The 1 (59.64 KiB) Viewed 25 times

Fresh Pak Corporation Manufactures Two Types Of Cardboard Boxes Used In Shipping Canned Food Fruit And Vegetables The 2 (17.78 KiB) Viewed 25 times

Fresh Pak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements. Type of Box с P Direct material required per 100 boxes: Paperboard ($.20 per pound) 30 pounds 70 pounds Corrugating medium (S. 10 per pound) 20 pounds 30 pounds Direct labor required per 100 boxes ($12.00 per hour) .25 hour .50 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 495,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours. Indirect material Indirect labor Utilities Property taxes Insurance Depreciation Total 20900 65,000 45,000 18.000 34,000 S6000 $238,900 The following selling and administrative expenses are anticipated for the next year. Salaries and fringe benefits of sales personnel $95.000 Advertising 56,000 Management salaries and fringe benefits 60.000 Clerical wages and fringe benefits 46,000 Miscellaneous administrative expenses 4000 Total $261,000 The following inventory information is available for the next year. The unit production costs for each product are expected to be the same this year and next year. Finished goods Box type C Box type P Sales Volume boxes 500,000 500,000 Sales Price per hundred boxes $150.00 200 Expected inventory Jan 1st 30,000 15,000 Desired inventory Dec 31st 7,000 boxes 20,000 boxes Finished goods: Box type c Box type P Raw material: Paperboard Corrugating medium 30,000 15,000 5,000 pounds 10,000 pounds
Prepare a master budget for Fresh Pak Corporation for the next year. Assume an income tax rate of 40 percent. Include the following schedules. 1. Sales budget. 2. Production budget. 3. Direct-material budget. 4. Direct-labor budget. 5. Production-overhead budget. 6. Selling and administrative expense budget. 7. Budgeted income statement. (Hint: To determine cost of goods sold, first compute the production cost per unit for each type of box. Include applied production overhead in the cost.)