Requirement. The sold 5,800 sets in 2010, and its actual operating room was follows: Click the icon to view the actual income statement) Prepare a lexible budget performance report through operating income for 2019. Show product coels reparately from seling and administrative custs. To simplify the calculations due to set in beginning inventory having a different cool than those produced and sold in 2018, assume the following product coels Cick the lon view the products.) Rene the sales budget you prepared above. Review the walls and administrative expense budes you prerad above Berithe area omen w e (Labe each variances favorable (F) or unfavorableU), Erver for any ere badanne For any 30 vare Lave the Fence ( F r ee US input blank Tinted Toy Company Flexible Budget Performance Report For the Year Ended December 31, 2019 19) - (5) Budget Flexible Amounts Par Unit Actual Results Budget Variance Flexible Budget Volume Variance Static Budget Urils Net Sales Revenue Variable Costs: Product Cools Selling and Admin Costs Contributor Margin Food Coats Product Cats Selling and Admin Costs Tinted Toy Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Total 1,300 4,900 Budgeted sets to be sold Sales price per unit 1,000 70 $ 70,000||$ 1,150 70 $ 80,500 $ 70 $ 1,450 70$ 101,500 $ 70 6 Total sales 91,000 $ 343,000 IN Fourth Quarter Total Tinted Toy Company Selling and Administrative Expense Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Salaries Expense 8,500 $ 8,500 $ 8,500 Rent Expense 5,400 5,400 Insurance Expense 600 600 600 Depreciation Expense 1,500 1,500 1,500 Supplies Expense 1,400 1,820 Total budgeted selling and administrative expense $ 17,400 $ 17,610 $ 17,820||$ 8,500 $ 5,400 5,400 600 34,000 21,600 2,400 6,000 6,860 70,860 1,500 2,030 1,610 18,030||$ Tinted Toy Company Budgeted Income Statement For the Year Ended December 31, 2019 Net Sales Revenue 343,000 Cost of Goods Sold 117,460 Gross Profit 225,540 Selling and Administrative Expenses 70,860 Operating Income 154,680 Other Income and (Expenses): Interest Expense Income Before Income Taxes 154,680 6,000 Income Tax Expense 148,680 Net Income Tinted Toy Company Balance Sheet December 31, 2018 Assets Current Assets: Cash 35,000 50,000 Accounts Receivable Raw Materials Inventory 1,400 11,900 $ 98,300 Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment 194,000 (32,000) 162,000 Less: Accumulated Depreciation $ 260,300 Total Assets Liabilities Current Liabilities: Accounts Payable 12,000 Stockholders' Equity $ Common Stock, no par 100,000 148,300 Retained Earnings Total Stockholders' Equity 248,300 260,300 Total Liabilities and Stockholders' Equity (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,000 sets for the first quarter and expected to increase by 150 sets per quarter. Cash sales are expected to be 30% of total sales, with the remaining 70% of sales on account. Sets are budgeted to sell for $70 per set. b. Finished Goods Inventory on December 31, 2018, consists of 350 sets at $34 each. c. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2020 are expected to be 1,600 sets. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 1,400 pounds. Direct materials requirement is 4 pounds per set. The cost is $1 per pound. e. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 1,400 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.40 hours of direct labor; direct labor costs average $14 per hour. g. Variable manufacturing overhead is $5.60 per set. h. Fixed manufacturing overhead includes $6,000 per quarter in depreciation and $4,060 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $8,500 per quarter for salaries; $5,400 per quarter for rent; $600 per quarter for insurance; and $1,500 per quarter for depreciation. Variable selling and administrative expenses include supplies at 2% of sales. k. Capital expenditures include $25,000 for new manufacturing equipment, to be purchased and paid for in the first quarter. Cash receipts for sales on account are 70% in the quarter of the sale and 30% in the quarter following the sale; Accounts Receivable balance on December 31, 2018, is expected to be received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. m. Direct materials purchases are paid 80% in the quarter purchased and 20% in the following quarter; Accounts Payable balance on December 31, 2018, is expected to be paid in the first quarter of 2019. n. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. o. Income tax expense is projected at $1,500 per quarter and is paid in the quarter incurred. p. Tinted desires to maintain a minimum cash balance of $20,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter; principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 5% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. i. vario 392,000 Tinted Toy Company Income Statement For the Year Ended December 31, 2019 Net Sales Revenue Cost of Goods Sold: Variable 94,708 38,740 Fixed Gross Profit Selling and Administrative Expenses: Variable 7,840 64,000 Fixed Operating Income Other Income and (Expenses): 133,448 258,552 71,840 186,712 (400) Interest Expense Income Before Income Taxes 186,312 11,000 Income Tax Expense 175,312 Net Income Static budget Flexible budget Variable $ $ 77,220 $ 77,220 $ 93,608 Fixed 40, 40,240 $ 40,240 Total 117,460 133,848 Requirement. The sold 5,800 sets in 2010, and its actual operating room was follows: Click the icon to view the actual income statement) Prepare a lexible budget performance report through operating income for 2019. Show product coels reparately from seling and administrative custs. To simplify the calculations due to set in beginning inventory having a different cool than those produced and sold in 2018, assume the following product coels Cick the lon view the products.) Rene the sales budget you prepared above. Review the walls and administrative expense budes you prerad above Berithe area omen w e (Labe each variances favorable (F) or unfavorableU), Erver for any ere badanne For any 30 vare Lave the Fence ( F r ee US input blank Tinted Toy Company Flexible Budget Performance Report For the Year Ended December 31, 2019 19) - (5) Budget Flexible Amounts Par Unit Actual Results Budget Variance Flexible Budget Volume Variance Static Budget Urils Net Sales Revenue Variable Costs: Product Cools Selling and Admin Costs Contributor Margin Food Coats Product Cats Selling and Admin Costs Tinted Toy Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Total 1,300 4,900 Budgeted sets to be sold Sales price per unit 1,000 70 $ 70,000||$ 1,150 70 $ 80,500 $ 70 $ 1,450 70$ 101,500 $ 70 6 Total sales 91,000 $ 343,000 IN Fourth Quarter Total Tinted Toy Company Selling and Administrative Expense Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Salaries Expense 8,500 $ 8,500 $ 8,500 Rent Expense 5,400 5,400 Insurance Expense 600 600 600 Depreciation Expense 1,500 1,500 1,500 Supplies Expense 1,400 1,820 Total budgeted selling and administrative expense $ 17,400 $ 17,610 $ 17,820||$ 8,500 $ 5,400 5,400 600 34,000 21,600 2,400 6,000 6,860 70,860 1,500 2,030 1,610 18,030||$ Tinted Toy Company Budgeted Income Statement For the Year Ended December 31, 2019 Net Sales Revenue 343,000 Cost of Goods Sold 117,460 Gross Profit 225,540 Selling and Administrative Expenses 70,860 Operating Income 154,680 Other Income and (Expenses): Interest Expense Income Before Income Taxes 154,680 6,000 Income Tax Expense 148,680 Net Income Tinted Toy Company Balance Sheet December 31, 2018 Assets Current Assets: Cash 35,000 50,000 Accounts Receivable Raw Materials Inventory 1,400 11,900 $ 98,300 Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment 194,000 (32,000) 162,000 Less: Accumulated Depreciation $ 260,300 Total Assets Liabilities Current Liabilities: Accounts Payable 12,000 Stockholders' Equity $ Common Stock, no par 100,000 148,300 Retained Earnings Total Stockholders' Equity 248,300 260,300 Total Liabilities and Stockholders' Equity (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,000 sets for the first quarter and expected to increase by 150 sets per quarter. Cash sales are expected to be 30% of total sales, with the remaining 70% of sales on account. Sets are budgeted to sell for $70 per set. b. Finished Goods Inventory on December 31, 2018, consists of 350 sets at $34 each. c. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2020 are expected to be 1,600 sets. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 1,400 pounds. Direct materials requirement is 4 pounds per set. The cost is $1 per pound. e. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 1,400 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.40 hours of direct labor; direct labor costs average $14 per hour. g. Variable manufacturing overhead is $5.60 per set. h. Fixed manufacturing overhead includes $6,000 per quarter in depreciation and $4,060 per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include $8,500 per quarter for salaries; $5,400 per quarter for rent; $600 per quarter for insurance; and $1,500 per quarter for depreciation. Variable selling and administrative expenses include supplies at 2% of sales. k. Capital expenditures include $25,000 for new manufacturing equipment, to be purchased and paid for in the first quarter. Cash receipts for sales on account are 70% in the quarter of the sale and 30% in the quarter following the sale; Accounts Receivable balance on December 31, 2018, is expected to be received in the first quarter of 2019; uncollectible accounts are considered insignificant and not considered for budgeting purposes. m. Direct materials purchases are paid 80% in the quarter purchased and 20% in the following quarter; Accounts Payable balance on December 31, 2018, is expected to be paid in the first quarter of 2019. n. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. o. Income tax expense is projected at $1,500 per quarter and is paid in the quarter incurred. p. Tinted desires to maintain a minimum cash balance of $20,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter; principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 5% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. i. vario 392,000 Tinted Toy Company Income Statement For the Year Ended December 31, 2019 Net Sales Revenue Cost of Goods Sold: Variable 94,708 38,740 Fixed Gross Profit Selling and Administrative Expenses: Variable 7,840 64,000 Fixed Operating Income Other Income and (Expenses): 133,448 258,552 71,840 186,712 (400) Interest Expense Income Before Income Taxes 186,312 11,000 Income Tax Expense 175,312 Net Income Static budget Flexible budget Variable $ $ 77,220 $ 77,220 $ 93,608 Fixed 40, 40,240 $ 40,240 Total 117,460 133,848