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Comprehensive Problem 5 Part B: Note: This section is a continuation from Part A of the comprehensive problem. Be sure you have completed Part A before attempting Part B. You may have to refer back to data presented in Part A and use answers from Part A when completing-this section. Genuine Spice Inc, began operations on January 1 of the current year. The company produces eight-ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12 -bottle cases for $100 per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as follows: nTDERT I AROR Part B-August Budgets During July of the current year, the management of Genuine Spice Inc. asked the controller to prepare August manufacturing and income statement budgets. Demand was expected to be 1,500 cases at $100 per case for August. Inventory planning information is provided as During July of the current year, the management of Genuine Spice Inc, asked the controller to prepare August manufacturing and income statement budgets. Demand was expected to be 1,500 cases at $100 per case for August. Inventory planning information is provided as follows: Finished Goods Inventory: Materials Inventory: There was negligible work in process inventory assumed for either the beginning or end of the month; thus, none was assumed. In addition, there was no change in the cost per unit or estimated units per case operating data from January. Required: 5. Prepare the August production budget. Enter all amounts as positive numbers. 6. Prepare the August direct materials purchases budget. Enter the unit price to the nearest cent. Enter all amounts as positive numbers 7. Prepare the August direct labor cost budget. For hours required, round to nearest whole hour. For hourly rate, enter to the nearest cent, if required. 8. Prepare the August factory overhead cost budget. If an amount box does not require an entry, leave it blank. 9. Prepare the August budgeted income statement, including selling expenses. Enter all amounts as positive numbers. For the Month Ended August 31 Revenue from sales Finished goods inventory, August 1 Direct Materials: Direct materials inventory, August 1 Less direct materials inventory, August 31 Direct labor Factory overhead Cost of goods manufactured materials placed in production Cost of finished goods available for sale Less finished goods inventory, August 31 Cost of goods sold Income before income tax

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