ACCT 6111

 Case 1 only

Case 1: Budgeting

Muscat Sandals Company (MSC) makes a very popular cloth sandal in one style, but in Regular and Deluxe. The Regular sandals have cloth soles and the Deluxe sandals have cloth covered wooden soles. MSC is preparing its budget for January 2013, and has estimated sales based on past experience.

Other information for the month of January follows:

Input Prices

Direct materials

Cloth $3.50 per yard

Wood $5.00 per board foot

Direct manufacturing labor $10 per direct manufacturing labor-hour