11 The budgets are prepared by quarter for the year ending on December 31, 2022. 12 W 13 a 14 15 Each tab of the workbook contains a different operating budgets: 1. Sales Budget 5. Manufacture Overhead Budget 2. Production Budget 6. Selling and Administration Budget 3. Direct Material Budget 7. Budgeted Income Statement 4. Direct Labor Budget Please fill in all colored cells. And be sure to complete all seven operating budgets. The bud 16 17 18 19 20 21 22 23 24 Provided below are some check figuires; you can use these to check your work: Sales Budget: Total Sales for the year = $1,644,500.00 Production Budget: Total Required Production Units for the year = 11,590 DM Budget: Total Cost of Direct Materials Purchases for the year = $105,111.00 DL Budget: Total Cost of Direct Labor for the year = $834,480.00 MOH Budget: Total Variable Overhead Costs for the year = $134,444.00 MOH Budget: Total Overhead Costs for the year = $199,348.00 S&A Expenses Budget: Total Variable Costs for the year = $69,000.00 Budgeted Income Statement: Net Income for the year = $323,307.50 25 - 26 . 27 28 29 30 Click to Begin 31 32 A B D E F G H K M N 0 1 2 Step 1: Sales Budget Points Possible: 0.1 pts #15 -1.5 pts 3 Instruction: Provided below is the expected selling price and expected unit sales for the four quarters of 2022. Use this information to complete the sales budget. 4 5 6 Expected Selling Price: $143 7 8 9 Expected Sales Volume (in units): Quarter 1 Quarter 2 2,000 2.100 Quarter 3 3,400 Quarter 4 4,000 10 11 12 13 14 15 Bear Company Sales Budget For the year ending December 31, 2022 Quarter Quarter 1 Quarter 2 Quarter 3 16 17 Quarter 4 Year 18 19 Expected Unit Sales Unit Selling Price Toal Sales 20 21 22 23 24 25 26 27 Click to Next Budget 28 29 30 Introduction 1.Sales budget 2.Production budget 3.DM budget 4.DL budget 5.MOH budget 6.5&A expense budget 7.Budgeted Income Statement E18 A B C D G H 1 K L M N 0 P 1 Step 2: Production Budget Points Possible: 0.1 pts 17 -1.7 pts 2 3 Instruction: Bear Company expects to meet future sales requirements by maintaing an ending inventory equal to 10% of the next quarter's hudpted sales volume. Use these information to complete the production budget. 4 5 6 7 Ending Inventory as_ofnext quarter's sules volume: Ending Tinished Goods Inventory on Devenieber 31, 2021: Expected Sales Volume lor Quarter 1 ol'year 2023: 10% 200 2.900 unils 8 unils 9 10 11 12 13 Bear Company Production Budget For the year ending December 31, 2022 Quarter Quarter 2 Quarter 3 2,100 3,400 14 15 Year Quurler 1 2,000 Quarter 4 4.000 16 17 18 Expected Unit Sales Add: Desired ending Finished Goods Units Total Required Units Less: Begimming Finished Gools Units Required Production Units 19 20 21 22 23 24 25 26 27 28 Click to Next Budget Introduction 1 Sales budget 2.Production budget 3.12M budget 4.1 budoet 5.MOH budoet 5.584 expense budoet Budgeted Income Statement 7. A M N 0 P B Instruction: D E G H K Bear Company maintains an ending inventory equal to 10% of the next quarter's production requirements. Use these inlirmation to complete the Direct Material Budget. Assuming only one type of material are used for production 4 5 6 10% 7 3 lbs 8 Ending Inventory as of next quarter's production requirements: Number of pounds of direct material required for each product: Expected cost per pound: Beginning inventory of direct materials for Quarter 1 of 2022, in pounds: Desired ending inventory of direct materials for Quarter 4 of 2022. in pounds: $3.00 per lb 603 870 Ihs lbs 10 11 12 13 14 15 16 17 Quarter 4 Year 18 19 20 21 22 Complete 'Production Budget' first before you start this budget! Bear Company Direct Material Budget For the year ending December 31, 2022 Quarter Quarter 1 Quarter 2 Quarter 3 Units to be Producted Direct Material per Unit Total Pounds needed for production Add: Desired ending Direct Material, pund: Total Material Required Less: Beginning Direct Material, pounds Direct Material Purachases Cost per Pound Total Cost of Direct Material Purchases 23 24 25 $0.00 26 27 28 29 30 31 Click to Next Budget Introduction 1.Sales budget 2. Production budget 3.DM budget 4.DL budget 5.MOH budget 6.S&A expense budget A 7.Budgeted Income Statement E16 A B C D F G H K M N 0 P 1 2 Step 4: Direct Labor Budget Points Possible: 0.1 pts 12 = 1.2 pts 3 4 Instruction: Use the information below to prepare the Direct Labor Budget. 5 6 6 4 hours Number of direct labor hours required to produce each unit of finished goods: Expected cost per direct labor hour: 7 $18.00 per hour 8 9 9 10 11 Complete 'Production Budget' first before you start this budget! Bear Company Direct Labor Budget For the year ending December 31, 2022 Quarter Quarter 1 Quarter 2 Quarter 3 12 13 14 Quarter 4 Year 15 16 17 Unit to be produced Direct Labor Hours per Unit Total Required Direct Labor Hours Direct Labor Cost per Ilour Total Direct Labor Cost 18 $18.00 $18.00 $18.00 $18.00 S0.00 19 20 21 22 23 24 25 26 27 28 Click to Next Budget Introduction 1.Sales budget 2.Production budget 3.DM budget 4.DL budget 5.MOH budget 6.5&A expense budget 7.Budgeted Income Statement A E H K L M N B C D G J Instruction: Bear Company expects variable overhead costs to flucturate with production volume according to the following rates: 4 5 6 7 8 9 Indirect Material Indircct Labor: Utilities: Maintenance: S1.20 $1.00 $0.50 $11.20 per direct labor hour per direct labor hour per direct labor hour per direct labor hour 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Buff Company also incurs fixed overhead cost. The amounts of fixed overhcad arc alrcady provided in the budget hclow. Use the information to complete the Manufacturing Overhead Budget. Complete 'Direct Labor Budget' first before you start this budget! Bear Company Manufacturing Overhead Budget For the year ending December 31, 2022 Quarter Quarter 1 Quarter 2 Quarter 3 Charter 4 Year Variable Costs: Indirect Materials ( $1.2/hour) Indirect Labor ($1/hour) Utilities ( $0.Shour) Maintenance ($0.2 hour) Total Variable Costs SO T'ixed Costs: Supervisory Saluries S5.795 $5.795 $5.795 $5,795 $23,180 Depreciation S3.477 $3.477 $3.477 $3.477 $13.908 Property Taxes and Insurance S2,318 $2.318 $2.318 $2.318 $9.272 Maintenance $4,636 $4,636 $4.636 $4.636 $18.544 Total Fixed Costs $16,226 $16.226 $16.226 $16.226 $64.904 Total Manufacturing Overhead SO Direct Iabor Hours Predetermined MOH allocation ratet * This predetermined MOH rate is a traditional MOH rate - 11sing the yearly amounts, compute the hudgcted overhead rate per direct labor hour. - Introduction 1.Sales budget 2.Production budget 3.DM budget 4.0L budget 5.MOH budget 6.5&A expense budget 7.Budgeted Income Statement A B D H M N 0 P 4 5 6 6 7 7 8 C D F F G Instruction: Bear Company expects variable selling and administrative expenses to fluctuate with unit sales volume according to the following rate. Sales Commissions: S4.20 per unit of goods sold Freight-out* S1.80 per unit of goods sold Bear Cumpany also incrus fixed selling and administrative experises. The atmounts of fixed selling and administrative experises are already provided in the budgct below. Use the information to complete the Selling and Administrative Expenses Budget. 9 9 10 11 12 13 14 15 16 Bear Company Selling and Administrative Expenses Budget For the year ending December 31, 2022 Quarter Quarter 1 Quarter 2 Quarter 3 2.000 2.100 3,400 Y car Quarter 4 4,000 17 18 19 20 21 SO 22 23 Budgeted Sales in Units Variable Expenses: Sales Commissions ( $4.2'unit) ) Freight-out ( SL8/unit) Toul Variable Expenses warance T'ixed Txpenses: Advertising . Sales Salaries Office Salaries Depreciation Property Taxes and Insurance Total Fixed Expenses Total Selling and Administrative Expenses 24 25 26 27 28 $4,000 $18,000 $19.000 $2,500 $2,600 $46.100 $4,000 $18,000 $19.000 $2.500 $2,600 $46,100 $4.000 $18,000 $19.000 $2.500 $2,600 $46,100 $4.000 $18,000 $19.000 $2.500 $2,600 $46,100 $16.000 $72.000 $76,000 $10.000 $10,400 29 30 * Freight-out - Costs to get product delivered to custumor ready for use. For example, the transportation costs associated with the delivery are paid by the company (us seller). Similar to Treight-out, Freight-in the the costs associated with yelling purchases goods ready to use by the company. For example, the transpiration costs arc associated with purchased raw materials, supplics, or equipments, these costs are paid by the company (as customer) as addition to the costs of raw materials, supplies, or equipments. Introduction 1. Sales budget 2.Production budget 3.DM budget 4.DL budget 5. MOH budget 6.5&A expense budget 7.Budgeted Income Statement 31 5 A B C K L MN 0 P Q 5 5 6 7 D E F G H Complete 'Manufacturing Overhead Budget' first before you start this budget! Product Caxsl per Unit Source of Data Quantity Unit Cost DM Budget 3 lbs 53.00 DI. Budget 4 hours S18.00 per hour MOI Budget 1 1 linit per unit Toul 8 per lb Carl Element Direct Material Direct Labur Manufacturing Overhead Total Unit Cost 9 10 11 12 13 14 15 Cost of Good Sold -Complete the 'Product Cost per Unit' first- Total Unit Cost Units Sold Budgeled Cost of Good Sold 16 17 18 19 Additional Information Interest Expenses for 2022: Income Tax Rate for 2022: $900.00 21% 20 21 2 22 23 24 25 26 27 4 28 29 301 31 32 Bear Company Budgeted Income Statement For the year ending December 31, 2022 Sales Cost of Good Sold Gross Profit Selling and Administrative Expenses Income from Continues Operation Interest Expenses Income before Taxes Income Tax Expenses Net Income 33 34 35 36 * Income lax rate is applied to the "Income helore Taxes". Bv multiply the income before taxes with the lax rate, you could get the income tax expneses. Introduction 1.Sales budget 2.Production budget 3.DM budget 4.DL budget 5.MOH budget 6.5&A expense budget 7.Budgeted Income Statement