Selling and Administrative Budget 2. Materials Budget \begin{tabular}{|c|c|c|c|c|} \hline Figurines & & & & Ref# \\ \hline Needed For Production & From 7.01 & 26,400 & units & 8.01 \\ \hline Desired Ending Inventory & & 525 & units & 8.02 \\ \hline Total Needed & & 26,925 & units & \\ \hline Less: Beginning Inventory & & 500 & units & 8.03 \\ \hline Total Purchases & & 26,425 & units & 8.04 \\ \hline Cost per piece & From 4.015 & $9.5220000 & & \\ \hline Cost of Purchases (Round to two places, \$\#\#\# & s & 251,618.85 & & 8.05 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline Electrical Parts & & & & Ref \# \\ \hline Needed For Production & From 7.01 & 26,400 & units & \\ \hline Desired Ending Inventory & & 500 & units & \\ \hline Total Needed & & 26,900 & units & 8.06 \\ \hline Less: Beginning Inventory & & 500 & units & \\ \hline Total Purchases & & 26,400 & units & \\ \hline Cost per piece & From 4.025 & $1.2937500 & & \\ \hline Cost of Purchases (Round to two places, S\#\#.\#) & 5 & 34,155.00 & & 8.07 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline Lamp Shades & & & & Ref \# \\ \hline Needed For Production & From 7.01 & 26,400 & units & \\ \hline Desired Ending Inventory & & 0 & units & \\ \hline Total Needed & & 26400 & units & \\ \hline Less: Beginning Inventory & & 0 & units & \\ \hline Total Purchases & 14 & 26400 & units & \\ \hline Cost per piece & From 4.03 & $6.21 & & \\ \hline Cost of Purchases (Round to two places, \$\#\#\#\# & 5 & 163,944 & & 8.08 \\ \hline \end{tabular} 3. Direct Labor Budget \begin{tabular}{|c|c|c|c|c|} \hline Labor Cost per Lamp & & From 4.04$ & $2.3175000 & \\ \hline Production & & & 26,400 & units \\ \hline Total Labor Cost (Rour & two places, \$\#\#.\#\# & $ & 61,182 & 8.09 \\ \hline \end{tabular} 4. Factory Overhead Budget \begin{tabular}{|c|c|c|c|c|} \hline Variable Factory Overhead: & & & & Ref \# \\ \hline Variable Factory Overhead Cost per Unit & From 4.05 . & $0.2362500 & & \\ \hline Number of Units to be Produced & From 7.01 & 26,400 & units & \\ \hline Total Variable Factory Overhead & $ & 6,237 & & 8.10 \\ \hline (Round to two places, \$\#\#\#) & & & & \\ \hline Fixed Factory Overhead & & 255,000 & & \\ \hline Total Factory Overhead & $ & 261,237 & & 8.11 \\ \hline \end{tabular} (Round to two places, \$\#\#\#) PART 5 BUDGETS Division B has decided to develop its budget based upon projected sales of 27,000 lamps at $48.00 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 inventories to 525 pieces and decreasing the finished goods by 20%. Complete the following budgets 1. Production Budget Ref \# \begin{tabular}{|l|r|} \hline Planned Sales & 27,000 \\ \hline Desired Ending Inventory of Finished Goods & 2,400 \\ \hline Total Needed & 29,400 \\ \hline Less: Beginning Inventory & 3,000 \\ \hline Total Production & 26,400 units {7,01} \\ \hline \end{tabular} ABC D E F G H 1 1 K L M Betty's Design Projected Balance Sheet As of December 31, 2022 Current Assets Cash Accounts Receivable Inventory Raw Material \begin{tabular}{cc} Figurines & 500@$9.20 \\ Electrical Sets & 500@$1.25 \\ Work in Process & 0 \\ Finished Goods & 3000@$28.93 \\ Total Current Assets & \end{tabular} Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets Current Liabilities Accounts Payable Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $34,710.00 67,500.00 $$207,425.0013,200.00 $54,000.00 $54,000.00 \$ 12,000.00141,425.00 $207,425,00153,425.00 Background Information Betty's Design is a subchapter S corporation that manufactures children's lampsightlights for use in bedrooms. These lamps are sold nationwide through a group of independent sales representatives who have an exclusive sales region. The business is in its tenth year and has asked you to assist in planning for next year's operations. The lamps are ceramic figurines of animals, boats, boys and girls playing and singing, all in delightful colors. The owner of the business, Betty, creates a drawing for the figurine and faxes it to a plant in China where a mold is created and a sample produced and hand painted. If the mold meets the expectations of Betty an order of 500 pieces is placed. There are presently 10 different figurines that come in six different colors; 60 models. The lamp shades and the electrical parts are supplied from domestic manufacturers. There are presently 10 workers in the plant. They are responsible for receiving the raw material, manufacturing the product, packing and shipping. In addition to Betty there are two office workers who are responsible for all administrative duties: Betty had her accountant prepare the Projected Income Statement and Balance Sheet presented in the two proceeding tabs. Betty heard about your skills in managerial accounting and would like your assistance in the following areas: Part 1: Fixed and Variable Cost Determinations Part 2: Cost Volume Profit Relationships Part 3: Job Order Costing Part 4: (Independent of Parts 1-3) COGM and COGS Part 5: Budgets Part 6: Process Costing - Weighted Average Part 7: Standard Costing - Variance Analysis Betty's Design Schedule of Projected costs Variable Manufcturing Unit Cost Figurines Electrical Sets Lamp Shade Labor Variable Overhead Projected Variable Manufacturing Cost-Per Unit $18.9250000 {4.06} Total Variable Cost Per Unit 18. 19 20 21 Variable Selling 22 Variable Administrative 23 Projected Variable Manufacturing Cost-Per Unit 24. 25 Projected Total Variable Per Unit 26 27 28 Schedule of Fixed Eosts 29 30 31 32 33 Fixed Overhead 34 (normal capacity 25,000 lamps @\$10 per lamp) 35 Fixed Selling 36 Fixed Administrative 37. 38 Projected Total Fixed costs Part 2