question archive 1) Exercise E20-2 Zeller Electronics Inc
1) Exercise E20-2 Zeller Electronics Inc
Subject:AccountingPrice: Bought3
1) Exercise E20-2
Zeller Electronics Inc. produces and sells two models of pocket calculators, XQ-103 and XQ-104. The calculators sell for $12 and $25, respectively. Because of the intense competition Zeller faces, management budgets sales semiannually. Its projections for the first 2 quarters of 2010 are as follows.
Unit Sales
Product Quarter 1 Quarter 2
XQ- 103 20,000 25,000
XQ-104 12,000 15,000
No changes in selling prices are anticipated.
Complete the sales budget for the 2 quarters ending June 30, 2010. List the products and show for each quarter and for the 6 months, units, selling price, and total sales by product and in total.
2) Exercise E20-5
Moreno Industries has adopted the following production budget for the first 4 months of 2011.
Month Units Month Units
January 10,000 March 5,000
February 8,000 April 4,000
Each unit requires 3 pounds of raw materials costing $2 per pound. On December 31, 2010, the ending raw materials inventory was 9,000 pounds. Management wants to have a raw materials inventory at the end of the month equal to 30% of next month's production requirements.
Complete the direct materials purchases budget by month for the first quarter.
3) Brief Exercise BE21-4
Hannon Company expects to produce 1,200,000 units of Product XX in 2010. Monthly production is expected to range from 80,000 to 120,000 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $6, and overhead $8. Budgeted fixed manufacturing costs per unit for depreciation are $2 and for supervision are $1. Complete the flexible manufacturing budget for the relevant range value using 20,000 unit increments.
4) Exercise E22-5
Compute the total materials variance and the price and quantity variances.
Total materials variance $3,400 Favorable
Materials
price variance $8,400 Favorable
Materials quantity variance $5,000 Unfavorable
