1 See The Light Projected Balance Sheet As of December 31, 20x1 $ 34.710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Figurines Electrical Sets Work in Process Finished Goods Total Current Assets 4,600.00 625.00 500 @ $9.20 500 @ $1.25 0 3000 @ $28.9250 86.775.00 194,210.00 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets $ 20,000.00 6,800.00 13,200.00 207.410.00 54,000.00 54,000.00 $ Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Eamings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 141,410,00 153,410.00 $ 207,410.00 GN 7 The projected cost of a lamp is calculated based upon the projected increases or decreases to 8 current costs. The present costs to manufacture one lamp are: 9 0 Figurines $9.2000000 per lamp 1 Electrical Sets 1.2500000 per lamp 11 Lamp Shade 6.0000000 per lamp Direct Labor 2.2500000 per lamp (4 lamps/hr.) Variable Overhead: 0.2250000 per lamp 64 Fixed Overhead: 10.0000000 per lamp (based on normal capacity of 25,000 lamps) 85 5 Cost per lamp: $28.9250000 per lamp 6 7 Expected increases for 20x2 8 When calculating projected increases round to SEVEN decimal places $0.0000000. 99 59 1. Material Costs are expected to increase by 5.50% 80 61 2. Labor Costs are expected to increase by 5.50%. 52 63 3. Variable Overhead is expected to increase by 3.00% 73 74 4. Fixed Overhead is expected to increase to $275,000. 75 76 5. Fixed selling expenses are expected to be $37,000 in 20x2. 77 87 6. Variable selling expenses (measured on a per lamp basis) are expected to increase 88 by 3.00% 89 90 7. Ficed Administrative expenses are expected to increase by $2,000. 91 The total administrative expenses for 20x0 were $41,205.00, when 101 23,500 units were sold. Use the High-Low method to calculate 102 the total fixed administrative expense. 103 104 8. Variable administrative expenses (measured on a por lamp basis) are expected to 105 increase by 2.00%. The total administrative expenses for 20x0 were 115 $41,205.00, when 23,500 units were sold. Use the High-Low method to calculate 116 the variable administrative expense per lamp. 117 118 On the folowing schedule develop the following figures: 119 1- 20X2 Projected Variable Manufacturing Unit Cost of a lamp. 129 130 2- 20x2 Projected Variablo Unit Cost per lamp 131 132 3. 20x2 Projected Fixed Costs 133 f 7 8 Division N has decided to develop its budget based upon projected sales of 25,000 lamps at 9 $48.00 per lamp 10 The company has requested that you prepare a master budget for the year. This budget is to be used 11 for planning and control of operations and should be composed of: 15 16 1. Production Budget 17 18 2. Materials Budget 19 23 3. Direct Labor Budget 24 25 4. Factory Overhead Budget 26 27 5. Seling and Administrative Budget 31 32 6. Cost of Goods Sold Budget 33 34 7. Budgeted Income Statement 35 39 8. Cash Budget 40 41 Notes for Budgeting 42 43 47 The company wants to maintain the same number of units in the beginning and ending inventories of 48 work-in-process and electrical parts while increasing the figurines inventory to 700 places and 49 increasing the finished goods by 23.00% 50 51 Complete the following budgets 55 56 1 Production Budget 57 58 Planned Salos 59 Desired Ending Inventory of Finished Goods (roundup to the next unit) 83 Total Needed 64 Loss Beginning Inventory 65 66 Total Production 07 71 72 73 74 27000 3750 30750 3000 27,750 units (7.01) 70 2 Matennis Budget 6 (8.01) (8.02) Figurines Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, S##.##) 27,750 units 600 units 28350 500 units 27.850 units 9522 265,187.70 (8.03) (8.04) $ (8.05) 8 9 10 11 12 17 18 19 20 21 26 27 28 29 30 35 36 37 38 39 44 45 40 Electrical Parts Needed for Production Desired Ending Inventory Total Needed Loss: Beginning Inventory Total Purchases Cost per place Cost of Purchases (Round to two places, $####) {8.06) 27750 500 28,250 units 500 27750 1.29374991 35,901.56 $ (8.07) 27750 Lamp Shades of the front op doors-in-time Needed for Production Desired Ending Inventory Total Needed Loss Beginning inventory Total Purchase Cost per poco Cost of Purchases (Round to two places, S.) 5,20 172,327.50 $ (8.08) 3 Direct Labor Budget 48 53 54 55 58 57 02 63 64 35 60 71 72 73 74 75 30 31 Labor Cost Por Lamp Production Total Labor Cost (Round to two places, SW) 2.3175 27750 84,310.03 $ (8.09) Please 4 Factory Overhead Budget Variable Factory Overhead Varable Factory Overhead Cost Per Unit Number of Units to be produced 0.2295 27750 0.2295 27750 6,368.63 270000 $ 4 Factory Overhead Budget Variable Factory Ovomead: Variable Factory Overhead Cont. Per Unit Number of Units to be produced Total Variable Factory Overhead (Round to two places, S####) Fixed Factory Overhead Total Factory Overhead (Round to two places, 5###) Predetermined Factory Overhead Rate based upon the budgeted total factory OH, divided by the budgeted number of units to be produced, and then runded to seven places, 58 ) (8.10) $ 276,368.63 (8.11) $ 9.95900000 (8.12) 5 Selling and Admin Budget Fred Seling Variable Seling (Round to two places, S.) Fixed Administrative Variable Administrative (Round to two places, S##.##) Total Seling and Administrative (Round to two places, S##.##) 29000 87176.25 43500 1383.75 $161.060.00 (9.01) 6 Cost of Goods Sold Budant-Assume FIFO (Firstan, Fit-Out) and overhead is applied based on the comber of units to be produced Cost of making one unit noxt year Motoral cost per unit Labor Cost Per Lamp Factory overhead per un Total cost of one un (Round to seven places, S####### Round dollars to seven places, S######## 17.02575 2.3175 9.9592297 IS 29. 302479709.02) Round dollars to two places, S### 28.92515 86.775.00 19.03 30000 4800 2651877 2097877 5713.2 S11 264,074 50 19.04) 2 Beginning Inventory, Finished Goods Production Costs Materials Figurinos Beginning Inventory Purchased Avaliable for Use Ending Inventory of Figurines Figurines Used In Production Electrical Parts Beginning Inventory Purchased Available for Use Ending Inventory of Electrical Parts Electrical Parts Used In Producton Lamp Shades Lamp Shades Used In Production Total Materials: Labor Overhead Cost of Goods Available Loss Ending Inventory. Finished Goods 9 10 11 2 33 19 0 +1 42 2 23 79 30 825 35901.56 36525.58 646.875 Sa79.69 (9.05) Please $1111172.327.50 19.06) $1472 281.699.07) $64 310.63 (9.08) S276,368,03 (9.09) S812.960.95 (9.10) s 109,859.59 19.11) 1 See The Light Projected Balance Sheet As of December 31, 20x1 $ 34.710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Figurines Electrical Sets Work in Process Finished Goods Total Current Assets 4,600.00 625.00 500 @ $9.20 500 @ $1.25 0 3000 @ $28.9250 86.775.00 194,210.00 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets $ 20,000.00 6,800.00 13,200.00 207.410.00 54,000.00 54,000.00 $ Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Eamings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 141,410,00 153,410.00 $ 207,410.00 GN 7 The projected cost of a lamp is calculated based upon the projected increases or decreases to 8 current costs. The present costs to manufacture one lamp are: 9 0 Figurines $9.2000000 per lamp 1 Electrical Sets 1.2500000 per lamp 11 Lamp Shade 6.0000000 per lamp Direct Labor 2.2500000 per lamp (4 lamps/hr.) Variable Overhead: 0.2250000 per lamp 64 Fixed Overhead: 10.0000000 per lamp (based on normal capacity of 25,000 lamps) 85 5 Cost per lamp: $28.9250000 per lamp 6 7 Expected increases for 20x2 8 When calculating projected increases round to SEVEN decimal places $0.0000000. 99 59 1. Material Costs are expected to increase by 5.50% 80 61 2. Labor Costs are expected to increase by 5.50%. 52 63 3. Variable Overhead is expected to increase by 3.00% 73 74 4. Fixed Overhead is expected to increase to $275,000. 75 76 5. Fixed selling expenses are expected to be $37,000 in 20x2. 77 87 6. Variable selling expenses (measured on a per lamp basis) are expected to increase 88 by 3.00% 89 90 7. Ficed Administrative expenses are expected to increase by $2,000. 91 The total administrative expenses for 20x0 were $41,205.00, when 101 23,500 units were sold. Use the High-Low method to calculate 102 the total fixed administrative expense. 103 104 8. Variable administrative expenses (measured on a por lamp basis) are expected to 105 increase by 2.00%. The total administrative expenses for 20x0 were 115 $41,205.00, when 23,500 units were sold. Use the High-Low method to calculate 116 the variable administrative expense per lamp. 117 118 On the folowing schedule develop the following figures: 119 1- 20X2 Projected Variable Manufacturing Unit Cost of a lamp. 129 130 2- 20x2 Projected Variablo Unit Cost per lamp 131 132 3. 20x2 Projected Fixed Costs 133 f 7 8 Division N has decided to develop its budget based upon projected sales of 25,000 lamps at 9 $48.00 per lamp 10 The company has requested that you prepare a master budget for the year. This budget is to be used 11 for planning and control of operations and should be composed of: 15 16 1. Production Budget 17 18 2. Materials Budget 19 23 3. Direct Labor Budget 24 25 4. Factory Overhead Budget 26 27 5. Seling and Administrative Budget 31 32 6. Cost of Goods Sold Budget 33 34 7. Budgeted Income Statement 35 39 8. Cash Budget 40 41 Notes for Budgeting 42 43 47 The company wants to maintain the same number of units in the beginning and ending inventories of 48 work-in-process and electrical parts while increasing the figurines inventory to 700 places and 49 increasing the finished goods by 23.00% 50 51 Complete the following budgets 55 56 1 Production Budget 57 58 Planned Salos 59 Desired Ending Inventory of Finished Goods (roundup to the next unit) 83 Total Needed 64 Loss Beginning Inventory 65 66 Total Production 07 71 72 73 74 27000 3750 30750 3000 27,750 units (7.01) 70 2 Matennis Budget 6 (8.01) (8.02) Figurines Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, S##.##) 27,750 units 600 units 28350 500 units 27.850 units 9522 265,187.70 (8.03) (8.04) $ (8.05) 8 9 10 11 12 17 18 19 20 21 26 27 28 29 30 35 36 37 38 39 44 45 40 Electrical Parts Needed for Production Desired Ending Inventory Total Needed Loss: Beginning Inventory Total Purchases Cost per place Cost of Purchases (Round to two places, $####) {8.06) 27750 500 28,250 units 500 27750 1.29374991 35,901.56 $ (8.07) 27750 Lamp Shades of the front op doors-in-time Needed for Production Desired Ending Inventory Total Needed Loss Beginning inventory Total Purchase Cost per poco Cost of Purchases (Round to two places, S.) 5,20 172,327.50 $ (8.08) 3 Direct Labor Budget 48 53 54 55 58 57 02 63 64 35 60 71 72 73 74 75 30 31 Labor Cost Por Lamp Production Total Labor Cost (Round to two places, SW) 2.3175 27750 84,310.03 $ (8.09) Please 4 Factory Overhead Budget Variable Factory Overhead Varable Factory Overhead Cost Per Unit Number of Units to be produced 0.2295 27750 0.2295 27750 6,368.63 270000 $ 4 Factory Overhead Budget Variable Factory Ovomead: Variable Factory Overhead Cont. Per Unit Number of Units to be produced Total Variable Factory Overhead (Round to two places, S####) Fixed Factory Overhead Total Factory Overhead (Round to two places, 5###) Predetermined Factory Overhead Rate based upon the budgeted total factory OH, divided by the budgeted number of units to be produced, and then runded to seven places, 58 ) (8.10) $ 276,368.63 (8.11) $ 9.95900000 (8.12) 5 Selling and Admin Budget Fred Seling Variable Seling (Round to two places, S.) Fixed Administrative Variable Administrative (Round to two places, S##.##) Total Seling and Administrative (Round to two places, S##.##) 29000 87176.25 43500 1383.75 $161.060.00 (9.01) 6 Cost of Goods Sold Budant-Assume FIFO (Firstan, Fit-Out) and overhead is applied based on the comber of units to be produced Cost of making one unit noxt year Motoral cost per unit Labor Cost Per Lamp Factory overhead per un Total cost of one un (Round to seven places, S####### Round dollars to seven places, S######## 17.02575 2.3175 9.9592297 IS 29. 302479709.02) Round dollars to two places, S### 28.92515 86.775.00 19.03 30000 4800 2651877 2097877 5713.2 S11 264,074 50 19.04) 2 Beginning Inventory, Finished Goods Production Costs Materials Figurinos Beginning Inventory Purchased Avaliable for Use Ending Inventory of Figurines Figurines Used In Production Electrical Parts Beginning Inventory Purchased Available for Use Ending Inventory of Electrical Parts Electrical Parts Used In Producton Lamp Shades Lamp Shades Used In Production Total Materials: Labor Overhead Cost of Goods Available Loss Ending Inventory. Finished Goods 9 10 11 2 33 19 0 +1 42 2 23 79 30 825 35901.56 36525.58 646.875 Sa79.69 (9.05) Please $1111172.327.50 19.06) $1472 281.699.07) $64 310.63 (9.08) S276,368,03 (9.09) S812.960.95 (9.10) s 109,859.59 19.11)