*10 PART QUESTION*

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LeamCo manufactures and sols one product, an abacus for classroom use, with two models, the Basic model and the Doluxe model. The company began operations on January 1, 20Y1, and is planning for 20Y2, its second year of operations, by preparing budgets from its master budget The company is trying to decide how many unts to manufacture, how much it might spend on direct materials and direct labor, and what their factory overhead expenses might be. In addition, the company is interested in budgeting for selling and administrative costs, and in creating a budgeted Income statement showing a prediction of net income for 2012 You have been asked to assist the controiler of LeamCo in preparing tho 2012 budgets. The salos budget often uses the prior year's sales as a starting point, and then salos quantities are revised for various factors such as planned advertising and promotion, projected pricing changes, and expected industry and general economic conditions. Loanco has completed reviewing is prlor year's sales and has prepared the following sales budget Aftor reviewing Leanco's sales budget, you note that three numbers have been omitted. The company's controller has told you that the units sold for the Basic and Deluxe models are expected to be the same. Fw in the missing amounts Learno Sales Budget For the Year Ending December 31, 20Y2 Product Unit Sales Volume Unit Selling Price Total Sales Basic Abacus $6.00 $216,000 504,000 Deluxe Abacus Totals 72,000 $720,000 The production budget should be Integrated with the salos budget to ensure that production and sales are kept in balance during the year. The production budget estimates the number of units to be manufactured to meet budgeted sales and desired Inventory levels. You note that Loamco has omitted six numbers from the following production budget and was in the missing amounts. You may need to use numbers from the salos budger you propared. Learnco Production Budget For the Year Ending December 31, 20Y2 Units Basic Units Deluxe 1,000 3,000 Expected units to be sold (from Sales Budget) Desired ending inventory, December 31, 2012 Total units available Estimated beginning inventory, January 1, 2012 Total units to be produced (1.050) 12.100) Before you make any changes to the bustoot, you roviow the information in the following Direct Materials Data Tabie and enter the units to be produced from the Production Budget panel. Aflor scanning the diroct materials purchases budget (which kollows the Direct Materiales Data Tablo), you observe that LearnCo has ornited quite a low numbers from the budget. Fu in the missing amounts. You may need to use numbers from the Doct Materials Data Tabio, or from the sales budget and production budget you propared. When required, round your answers to the nearest dollar. Direct Materiale Data Table Wood Proces Heads 2 Packages required per unit: Basto abacus Deluxe abacus Cost per package Wood pleco 3 56.25 Beads 30.25 Units to be produced (from Production Budget) Basic abacus Deluxe abacus LearnCo Direct Materials Purchases Budget For the Year Ending December 31, 20Y2 Direct Materials Wood Pleces Beads Total Packages required for production: Basic abacus Deluxe abacus Desired inventory, December 31, 20Y2 2,200 5,000 Total packages available Estimated inventory, January 1, 20Y2 (3,500) (4,500) Total packages to be purchased Unit price (per package) XS Total direct materials to be purchased S s $ $72,888 Before you make any changes to the budget you review the information in the foliowing Direct Labor Data Tables and enter the units to be produced from the Production Budget panel, After scanning the Direct Labor Cost Budget (which follows the Direct Labor Data Tabio), you observe that Leanco has omitted quite a fow numbers from the budget. Fut in the missing amounts. You may noed to use numbers from the Direct Labor Data Table, or from the sales budget, production budget and direct materials purchases budget you prepared. When required, round your answers to the nearest doltar Direct Labor Data Table Gluing Assembly 0.10 0.10 0.10 0.20 Hours required per unit: Basio abacus Deluxe abacus Labor hourly rato Gluing Assembly Units to be produced (from Production Budget): Basic Abacus Deluxe abacus $12.00 $17.00 LearnCo Direct Labor Cost Budget For the Year Ending December 31, 20Y2 Gluing Assembly Total Hours required for production: Basic abacus Deluxe abacus Total Hourly rate Total direct labor cost x $ x $ $ $ $273,995 Anor reviewing the following factory overhead cost budget you note that Learco has completed the budget with the exception of one amount Filin the missing amount. Learnco Factory Overhead Cost Budget For the Year Ending December 31, 2012 Indirect factory wages Power and light Depreciation of plant and equipment 1.450 Total factory overhead cost $5,400 $18,100 Complete the preparation of the cost of goods sold budget for Learnco, using information that follows provided by the controller, and using the previous budgets you have prepared. $9,870 $2,010 Loamco Cost of Goods Sold Budget For the Year Ending December 31, 2012 Finished goods inventory, January 1, 20Y2 Work in process inventory, January 1, 2012 Direct materials: Direct materials inventory, January 1, 2012 $2,000 Direct materials purchases Cost of direct materials available for use Direct materials Inventory, December 31, 2042 (1.800) Cost of direct materials placed in production Direct labor Direct labor (1.250) Factory overhead Total manufacturing costs Total work in process during period Work in process inventory, December 31, 2012 Cost of goods manufactured Cost of finished goods avatable for sale Finished goods Inventory, December 31, 2012 Cost of goods sold (1,500) > Selling/Admin Expenses Budget The sales budget is often used as the starting point for the seling and administrativo expenses budget. For example, a budgeted increase in sales may require more advertising expenses. LearnCo has prepared to selling and administrative expenses budget as follows. This budget is merely reviewed by you for use in the budgeted income statement Leamco Selling and Administrative Expenses Budget For the Year Ending December 31, 2012 Seting expenses Sales salaries expense $45,000 Advertising expense 15,000 Travel expense 5.400 Total selling expenses $65,400 Administrative expenses Officers' salaries expense Office salaries expense 35,000 $85,000 Officers' salaries expense $85,000 Office salaries expense 35,000 Office rent expense 26,000 Office supplies expense 6,400 Miscellaneous administrative expenses 1,600 Total administrative expenses 154,000 Total selling and administrative expenses $219,400 Review the Budgeted Income Statement Data Table, then complete the budgeted income statoment that follows the table. Round the computed amount for income tax to the nearest whole dollar Enter all amounts as positive numbers, Budgeted Income Statement Data Table Interest revenue for the year $2,000 Interest expense for the your $1,500 LearnCo's income tax rato 40% LearnCo