answer to 9.11 and 9.12 with calculations

1,125,000 723.250 401,750 Sales 25,000 lamps 45 Cost of Goods Sold 28.93 Gross Profit Selling Expenses: Fixed Variable (Commission per unit) 3.15 Administrative Expenses Total Selling and Administrative Expenses: Net Profit 23.000 78,750 101,750 40,750 142,500 259,250 See The Light ed Balance Sheet Hecember 31, 20x1 34,710 67,500 Current Assets Cash Accounts Receivable Inventory Raw Material Figurines Electrical Sets Work in Process Finished Goods Total Current Assets Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 500 92 500 1.25 0 3000 28.925 4,600 625 0 86.775 194,210 20,000 6,800 13.200 207,410 54,000 54,000 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity 12,000 141,410 153,410 207,410 PART 1 Fixed and Variable Cost Determinations Unit Cost Calculations The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are: Figurines Electrical Sets Lamp Shade Direct Labor Variable Overhead: Fixed Overhead: $9.2000000 per lamp 1.25 per lamp 6 per lamp 2.25 per lamp (4 lamps./hr.) 0.225 per lamp 10 per lamp (based on normal capacity of 25,000 lamps) Cost per lamp: $28.9250000 per lamp Expected increases for 20x2 When calculating projected increases round to SEVEN decimal places.S0.0000000 1. Material Costs are expected to increase by 3.50% 2. Labor Costs are expected to increase by 3.00%. 3. Variable Overhead is expected to increase by 2.00% 4. Fixed Overhead is expected to increase to $270,000. 5. Fixed selling expenses are expected to be $29,000 in 20x2. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 2.50% 7. Fixed Administrative expenses are expected to increase by S4,000. The total administrative expenses for 20x0 were 540.625.00, when 22,500 units were sold. Use the High-Low method to calculate the total fixed administrative expense. 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 2.50%. The total administrative expenses for 20x0 were $40,625.00, when 22,500 units were sold. Use the High-Low method to calculate the variable administrative expense per lamp. On the following schedule develop the following figures: 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 2- 2012 Projected Variable Unit Cost per lamp. 3- 20x2 Projected Fixed Costs. PART 3 Budgets Keep in mind that the budget section builds on work from the previous parts, including Part I as well as the Background Information (tabs 1-4). You should continue to use the same file with your previously submitted answers. Division N has decided to develop its budget based upon projected sales of 27,000 lamps at $47.00 per lamp The company has requested that you prepare a master budget for the year. This budget is to be used for planning and control of operations and should be composed of: 1. Production Budget 2. Materials Budget 3. Direct Labor Budget 4. Factory Overhead Budget 5. Selling and Administrative Budget 6. Cost of Goods Sold Budget 7. Budgeted Income Statement 8. Cash Budget Notes for Budgeting: The company wants to maintain the same number of units in the beginning and ending inventories of work-in-process, and electrical parts while increasing the figurines inventory to 600 pieces and increasing the finished goods by 25.00% Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods (roundup to the next unit) Total Needed Less: Beginning Inventory 27000 3750 30750 3000 Total Production 27.750 units 17.01) 2 Materials Budget 18.01 27,750 units 600 units 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.MH) SOOnits 27.850 units 18.03 8,043 265.1877 8053 27750 500 Electrical Parts Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, S##.##) 500 27750 1.293749 35.901.56 18.07 27750 Lamp Shades - no inventoried they arrive from the shop next door Just-is-time. Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, S#### 172,3275 8.083 3 Direct Labor Budget Labor Cost Per Lamp Production Total Labor Cost (Round to two places, ##.#) 23175 27750 64310,63 18.091 4 Factory Overhead Budget 0.2295 Variable Factory Overhead: Variable Factory Overhead Cost Per Unit Number of Units to be Produced Total Variable Factory Overhead (Round to two places, S##.##) Fixed Factory Overhead 6.368.63 270000 18.103 Total Factory Overhead (Round to two places, $##.##) 276.36363 Predetermined Factory Overhead Rate based upon the budgeted total factory OH, divided by the budgeted number of units to be produced, and then rounded to seven places, S#########) 9.959 18.123 5 Selling and Admin. Budget Fixed Selling Variable Selling (Round to two places, S.) Fixed Administrative Variable Administrative (Round to two places, Sa#.##) Total Selling and Administrative (Round to two places, Sa. ##) 29000 87176.25 43500 1383.75 $161.060.00 19.01 6 Cost of Goods Sold Budget Assume FIFO (First in, First-Out) and overhead is applied based on the number of units to be produced Labor Cost Per Lamp Factory overhead per unit 2.31750018 9.9592297 29.302 19.02) Total cost of one unit (Round to seven places, S.) Round dollars to two places. S. 28.925 86,775 19.03 3000 4600 265187.7 269787.7 5713.2 264.0745 19.04 Beginning Inventory, Finished Goods Production Costs: Materials: Figurines: Beginning Inventory Purchased Available 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 Production Lamp Shades: Lamp Shades Used In Production Total Materials: Labor Overhead Cost of Goods Available Less: Ending Inventory, Finished Goods Cost of Goods Sold 625 35901.56 36526.56 646.875 35,879.69 19.05 172.327.5 9.06 472.281.699.07 64,310,63 19.08 276,368.63 19.09 899.735.95 19.10 19.11) 899.735.95 19.121