1. Sales for the year are expected to total 1,500,000 units. Quarterly sales are 20%, 25%, 25%, and 30% respectively. The sales price is expected to be $60 per unit for the first three quarters and $65 per unit beginning in the fourth quarter. Sales in the first quarter of 2010 are expected to be 10% higher than the budgeted sales for the first quarter of 2011. 2. Production: Management desires to maintain ending finished goods inventories at 25% of next quarter's budgeted sales volume. 3. Direct materials: Each unit requires 4 pounds of raw materials at a cost of $6 per pound. Management desires to maintain raw materials inventories at 5% of the next quarter's production requirements. Assume the production requirements for the first quarter of 2010 are 950,000 pounds. 4. Direct labor hours are determined from the production budget. Al-Kamal Company, two hours of direct labor are required to produce each unit of finished goods. The anticipated hourly wage rate is $15. 5. Al-Kamal Company expects variable costs to fluctuate with production volume on the basis of the following rates per direct labor hour: indirect materials $1.50, indirect labor $2.00, utilities $0.50, and maintenance $0.40. Thus, for the 6,500 direct labor hours to produce 3,100 units, budgeted indirect materials are $6,200 (6,500 x $1.50), and budgeted indirect labor is $7,600 (6,500 x $2.00). Al-Kamal also recognizes that some maintenance is fixed. The amounts reported for fixed costs are assumed 6. Variable expense rates per unit of sales are sales commissions $2.50 and freight-out $1. Variable expenses per quarter are based on the unit sales from the sales budget. Al-Kamal expects sales in the first quarter to be 4,000 units. Fixed expenses are based on assumed data. 7. Al-Nada company has the following information Company sold 15,000 units of product. Sales price is $60 per unit. Interest expense is expected to be $100, and Income taxes are estimated to be $12,000. Cost of One Right-ride Cost Element Illustration Quantity Unit Cost Total direct materials 2 Pounds $$8.00 4.00 Direct labor 20-9 2 Hours $10.00 $20.00 Manufacturing Overhead 20-10 2 Hours $8.00 $16.00 Total Unit Cost $44.00 Cost of Goods Sold-15000X 560-5660.00 Requirements A. Prepare the sales budget by quarters for 2016. B. Prepare the productie 2014 11:20 LTE Done ACCT 212 PROJECT 20202021... Requirements A. Prepare the sales budget by quarters for 2016. B. Prepare the production budget by quarters for 2016. C. Prepare the direct materials budget by quarters for 2016. D. Prepare the direct Labor budget by quarters for 2016. E. Prepare the Manufacturing Overhead budget by quarters for 2016 F. Prepare a selling and administrative expense budget by quarters for 2016 G. Prepare income statement budget Year Al-Nada Company A. sales budget for the Year Ending December 31.2016 Quarter 2 3 Al-Nada Company Expected unles Unit selling price Total sales 11:20 7 .llLTE Done ACCT 212 PROJECT 20202021... Al-Nada Company B. Production budget for the Year Ending December 31,2016 Quarter 2 3 Year Expected unt sales Add Desired ending finished goods us Total required units Les Beginning freshed goods units Required production units 25% of each quarters and sales Estimated Sint-quaner 2017 sales units 2festined fest-panter 2017 sales - Al-Nada Company C. Direct materials budget for the Year Ending December 31,2016 Quan 1 2 3 Year Unit to be produced thiriost mutitials por Total pounds needed for production Add Desired ending Direct materials (pound Total materials sequired Less: Beginning direct materials and Direct materials purchases Cost per pound Total cost of direct materials purchases Estimated first quarter 2017 production requintents &5% Of Estimated first-quarter pounds needed for production Al-Nada Company D. Direct Labor budget for the Year Ending December 31.2016 Ques 2 T Year Unit to be producer Direct Laborhoun) per unit Total monitod diet laber br 11:20 7 ..llLTE Done ACCT 212 PROJECT 20202021... D. Direct Labor budget for the Year Ending December 31.2016 Quer 1 2 3 Unit to be producer Direct Laborthours) per unit Total required direct labor hours direct laber cost Total direct lahor cod Al-Nada Company E. Manufacturing Overhead budget for the Year Ending December 31,2016 Quan T Your Variable co Indictmaterial (1.30 hour Indirect labor (2.00 hor Utilities (50.50D) Maintenance ($0.40) Total variable o Fixed cost Supervisory salaries Depreciation Taxes and insurance Maimenance Total fised cond facing Total verhead Direct labor hours manufacturing everhead rate per direct hours Al-Nada Company F. selling and administrative expense budget for the Year Ending December 31 2016 11:20 LTE Done ACCT 212 PROJECT 20202021... Al-Nada Company F. selling and administrative expense budget for the Year Ending December 31,2016 Quart 1 2 3 Year Bandaged sales in unita Variable expense sales commissions ($2.50 per unit) freight-out (S1per unit) Total variable expenses Fised expenses Advertising Sales salaries Office salaries Depreciation Taxes and Insurance Total fised expenses Total selling and administrative expense Cost of goods sold Gross profit Selling and administrative expense Interest expense Income before tanes Taxes Net income Al-Nada Company G. Prepare income statement budget for the Year Ending December 31, 2016 1. Sales for the year are expected to total 1,500,000 units. Quarterly sales are 20%, 25%, 25%, and 30% respectively. The sales price is expected to be $60 per unit for the first three quarters and $65 per unit beginning in the fourth quarter. Sales in the first quarter of 2010 are expected to be 10% higher than the budgeted sales for the first quarter of 2011. 2. Production: Management desires to maintain ending finished goods inventories at 25% of next quarter's budgeted sales volume. 3. Direct materials: Each unit requires 4 pounds of raw materials at a cost of $6 per pound. Management desires to maintain raw materials inventories at 5% of the next quarter's production requirements. Assume the production requirements for the first quarter of 2010 are 950,000 pounds. 4. Direct labor hours are determined from the production budget. Al-Kamal Company, two hours of direct labor are required to produce each unit of finished goods. The anticipated hourly wage rate is $15. 5. Al-Kamal Company expects variable costs to fluctuate with production volume on the basis of the following rates per direct labor hour: indirect materials $1.50, indirect labor $2.00, utilities $0.50, and maintenance $0.40. Thus, for the 6,500 direct labor hours to produce 3,100 units, budgeted indirect materials are $6,200 (6,500 x $1.50), and budgeted indirect labor is $7,600 (6,500 x $2.00). Al-Kamal also recognizes that some maintenance is fixed. The amounts reported for fixed costs are assumed 6. Variable expense rates per unit of sales are sales commissions $2.50 and freight-out $1. Variable expenses per quarter are based on the unit sales from the sales budget. Al-Kamal expects sales in the first quarter to be 4,000 units. Fixed expenses are based on assumed data. 7. Al-Nada company has the following information Company sold 15,000 units of product. Sales price is $60 per unit. Interest expense is expected to be $100, and Income taxes are estimated to be $12,000. Cost of One Right-ride Cost Element Illustration Quantity Unit Cost Total direct materials 2 Pounds $$8.00 4.00 Direct labor 20-9 2 Hours $10.00 $20.00 Manufacturing Overhead 20-10 2 Hours $8.00 $16.00 Total Unit Cost $44.00 Cost of Goods Sold-15000X 560-5660.00 Requirements A. Prepare the sales budget by quarters for 2016. B. Prepare the productie 2014 11:20 LTE Done ACCT 212 PROJECT 20202021... Requirements A. Prepare the sales budget by quarters for 2016. B. Prepare the production budget by quarters for 2016. C. Prepare the direct materials budget by quarters for 2016. D. Prepare the direct Labor budget by quarters for 2016. E. Prepare the Manufacturing Overhead budget by quarters for 2016 F. Prepare a selling and administrative expense budget by quarters for 2016 G. Prepare income statement budget Year Al-Nada Company A. sales budget for the Year Ending December 31.2016 Quarter 2 3 Al-Nada Company Expected unles Unit selling price Total sales 11:20 7 .llLTE Done ACCT 212 PROJECT 20202021... Al-Nada Company B. Production budget for the Year Ending December 31,2016 Quarter 2 3 Year Expected unt sales Add Desired ending finished goods us Total required units Les Beginning freshed goods units Required production units 25% of each quarters and sales Estimated Sint-quaner 2017 sales units 2festined fest-panter 2017 sales - Al-Nada Company C. Direct materials budget for the Year Ending December 31,2016 Quan 1 2 3 Year Unit to be produced thiriost mutitials por Total pounds needed for production Add Desired ending Direct materials (pound Total materials sequired Less: Beginning direct materials and Direct materials purchases Cost per pound Total cost of direct materials purchases Estimated first quarter 2017 production requintents &5% Of Estimated first-quarter pounds needed for production Al-Nada Company D. Direct Labor budget for the Year Ending December 31.2016 Ques 2 T Year Unit to be producer Direct Laborhoun) per unit Total monitod diet laber br 11:20 7 ..llLTE Done ACCT 212 PROJECT 20202021... D. Direct Labor budget for the Year Ending December 31.2016 Quer 1 2 3 Unit to be producer Direct Laborthours) per unit Total required direct labor hours direct laber cost Total direct lahor cod Al-Nada Company E. Manufacturing Overhead budget for the Year Ending December 31,2016 Quan T Your Variable co Indictmaterial (1.30 hour Indirect labor (2.00 hor Utilities (50.50D) Maintenance ($0.40) Total variable o Fixed cost Supervisory salaries Depreciation Taxes and insurance Maimenance Total fised cond facing Total verhead Direct labor hours manufacturing everhead rate per direct hours Al-Nada Company F. selling and administrative expense budget for the Year Ending December 31 2016 11:20 LTE Done ACCT 212 PROJECT 20202021... Al-Nada Company F. selling and administrative expense budget for the Year Ending December 31,2016 Quart 1 2 3 Year Bandaged sales in unita Variable expense sales commissions ($2.50 per unit) freight-out (S1per unit) Total variable expenses Fised expenses Advertising Sales salaries Office salaries Depreciation Taxes and Insurance Total fised expenses Total selling and administrative expense Cost of goods sold Gross profit Selling and administrative expense Interest expense Income before tanes Taxes Net income Al-Nada Company G. Prepare income statement budget for the Year Ending December 31, 2016