Carolina Production sales embroidered baseball caps. The company procures the caps and then caps are embroidered in accordance with the customer's instructions. The company has been growing significantly over the last year at a rate of 45%. Because Carolina Production has had recent problems with getting direct materials, a portion of the next period's sales is completed in the current period. Chara works in the embroidery plant. She has been given the following Information:
Using the information provided above, create the following: (All calculations should be rounded to the nearest whole number.)
a. Manufacturing overhead budget for the year.
b. Scheduled cost of goods sold for the year.
c. What does the Budgeted Cost of Goods Available for Sale represent?
d. What is the gross margin for the year? Explain how this amount was calculated.
e. What would the SG&A expenses be if the operating income is as shown above? Explain how you calculated the amount.

Question

Carolina Production sales embroidered baseball caps. The company procures the caps and then caps are embroidered in accordance with the customer's instructions. The company has been growing significantly over the last year at a rate of 45%. Because Carolina Production has had recent problems with getting direct materials, a portion of the next period's sales is completed in the current period. Chara works in the embroidery plant. She has been given the following Information: 
  Using the information provided above, create the following: (All calculations should be rounded to the nearest whole number.)
a. Manufacturing overhead budget for the year.
b. Scheduled cost of goods sold for the year.
c. What does the Budgeted Cost of Goods Available for Sale represent?
d. What is the gross margin for the year? Explain how this amount was calculated.
e. What would the SG&A expenses be if the operating income is as shown above? Explain how you calculated the amount.

Quizplus · Accepted Answer

The Answer of Carolina Production sales embroidered baseball caps. The company procures the caps and then caps are embroidered in accordance with the customer's instructions. The company has been growing significantly over the last year at a rate of 45%. Because Carolina Production has had recent problems with getting direct materials, a portion of the next period's sales is completed in the current period. Chara works in the embroidery plant. She has been given the following Information: 
  Using the information provided above, create the following: (All calculations should be rounded to the nearest whole number.)
a. Manufacturing overhead budget for the year.
b. Scheduled cost of goods sold for the year.
c. What does the Budgeted Cost of Goods Available for Sale represent?
d. What is the gross margin for the year? Explain how this amount was calculated.
e. What would the SG&A expenses be if the operating income is as shown above? Explain how you calculated the amount.

Carolina Production Sales Embroidered Baseball Caps