Required information
[The following information applies to the questionsdisplayed below.]
FreshPak Corporation manufactures two types of cardboard boxesused in shipping canned food, fruit, and vegetables. The cannedfood box (type C) and the perishable food box (type P) have thefollowing material and labor requirements.
Type of Box C P Direct materialrequired per 100 boxes: Paperboard ($0.40 perpound) 35 pounds 75 pounds Corrugating medium ($0.20 perpound) 25 pounds 35 pounds Direct labor required per 100boxes ($20.00 per hour) 0.20 hour 0.40 hour
The following production-overhead costs are anticipated for thenext year. The predetermined overhead rate is based on a productionvolume of 425,000 units for each type of box. Production overheadis applied on the basis of direct-labor hours.
Indirectmaterial $ 12,900 Indirect labor 54,600 Utilities 33,000 Property taxes 22,000 Insurance 15,000 Depreciation 41,000 Total $ 178,500
The following selling and administrative expenses areanticipated for the next year.
Salaries and fringebenefits of sales personnel $ 123,000 Advertising 26,000 Management salaries and fringebenefits 142,000 Clerical wages and fringebenefits 42,500 Miscellaneous administrativeexpenses 6,700 Total $ 340,200
The sales forecast for the next year is as follows:
Sales Volume Sales Price Box type C 430,000 boxes $ 115.00 per hundredboxes Box type P 430,000 boxes 175.00 per hundred boxes
The following inventory information is available for the nextyear. The unit production costs for each product are expected to bethe same this year and next year.
Expected Inventory January 1 Desired Ending Inventory December 31 Finished goods: Box type C 17,000 boxes 12,000 boxes Box type P 27,000 boxes 22,000 boxes Raw material: Paperboard 18,500 pounds 8,500 pounds Corrugating medium 8,500 pounds 13,500 pounds
Prepare a master budget for FreshPak Corporation for the nextyear. Assume an income tax rate of 30 percent.
Prepare the budgeted income statement for the next year.(Do not round intermediate calculations.)
Prepare the budgeted income statement for the next year.(Do not round intermediate calculations.)
Required information
[The following information applies to the questionsdisplayed below.]
FreshPak Corporation manufactures two types of cardboard boxesused in shipping canned food, fruit, and vegetables. The cannedfood box (type C) and the perishable food box (type P) have thefollowing material and labor requirements.
| Type of Box | |||||||
| C | P | ||||||
| Direct materialrequired per 100 boxes: | |||||||
| Paperboard ($0.40 perpound) | 35 | pounds | 75 | pounds | |||
| Corrugating medium ($0.20 perpound) | 25 | pounds | 35 | pounds | |||
| Direct labor required per 100boxes ($20.00 per hour) | 0.20 | hour | 0.40 | hour | |||
The following production-overhead costs are anticipated for thenext year. The predetermined overhead rate is based on a productionvolume of 425,000 units for each type of box. Production overheadis applied on the basis of direct-labor hours.
| Indirectmaterial | $ | 12,900 | |
| Indirect labor | 54,600 | ||
| Utilities | 33,000 | ||
| Property taxes | 22,000 | ||
| Insurance | 15,000 | ||
| Depreciation | 41,000 | ||
| Total | $ | 178,500 | |
The following selling and administrative expenses areanticipated for the next year.
| Salaries and fringebenefits of sales personnel | $ | 123,000 | |
| Advertising | 26,000 | ||
| Management salaries and fringebenefits | 142,000 | ||
| Clerical wages and fringebenefits | 42,500 | ||
| Miscellaneous administrativeexpenses | 6,700 | ||
| Total | $ | 340,200 | |
The sales forecast for the next year is as follows:
| Sales Volume | Sales Price | ||||||
| Box type C | 430,000 | boxes | $ | 115.00 | per hundredboxes | ||
| Box type P | 430,000 | boxes | 175.00 | per hundred boxes | |||
The following inventory information is available for the nextyear. The unit production costs for each product are expected to bethe same this year and next year.
| Expected Inventory January 1 | Desired Ending Inventory December 31 | ||||
| Finished goods: | |||||
| Box type C | 17,000 | boxes | 12,000 | boxes | |
| Box type P | 27,000 | boxes | 22,000 | boxes | |
| Raw material: | |||||
| Paperboard | 18,500 | pounds | 8,500 | pounds | |
| Corrugating medium | 8,500 | pounds | 13,500 | pounds | |
Prepare a master budget for FreshPak Corporation for the nextyear. Assume an income tax rate of 30 percent.
Prepare the budgeted income statement for the next year.(Do not round intermediate calculations.)
Prepare the budgeted income statement for the next year.(Do not round intermediate calculations.)
