4 Factory Overhead Budget Overhead Allocation rate based on: 1. Number of Units Total Factory Overhead / Number of Units 'Round to two places, $##.##) $12.11 {9.01} 5 Cost of making one unit next year Cost of one Lamp Kit Labor Cost Per Lamp $2. 13 (9.02} Factory overhead per unit Total cost of one unit $ 30.64 (9.03} (Round to two places, $##.##) 6 Selling and Admin. Budget Fixed Selling Variable Selling (Round to two places, $##.##) {9.04) Fixed Administrative Variable Administrative (Round to two places, $##.##) (9.05} Total Selling and Administrative (Round to two places, $##.##) (9.06} Goods Sold Round dollars to two Budget - places, $##.## Beginning Inventory, Finished Goods $ 90.000.00 (9.07} Production Costs: Materials: Lamp Kits: Beginning Inventory Purchased Available for Use Ending Inventory of Lamp Kits $ 10,660.00 {9.08 } Lamp Kits Used In Production Total Materials: 465,560.00 (9.09} Labor 60,492.00 {9.10) Overhead 343,924.00 {9.11) Cost of Goods Available 959,976.00 (9.12} Less: Ending Inventory, Finished Goods 73,536.00 (9.13} Cost of Goods Sold (9.14)2 Materiais Budget Lamp Kits Needed for Production {8.01} Desired Ending Inventory {8.02} Total Needed {8.08} Less: Beginning Inventory {8.04} Total Purchases Cost per piece {8.05} Cost of Purchases (Round to two places, $##.##) {8.08} 3 Direct Labor Budget Labor Cost Per Lamp {8.07} Production Total Labor Cost (Round to two places, $##.##) {8.08} 4 Factory Overhead Budget Variable Factory Overhead: Variable Factory Overhead Cost Per Unit Number of Units to be Produced Total Van'able Factory Overhead (Round to two places. $##.##) {3.09} Fixed Factory Overhead {8.10} Total Factory Overhead (Round to two places, $##.##) {8.11} Division N has decided to develop its budget based upon projected sales of 29,000 lamps at $55.00 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 com posed 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 3. 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 inventory of Lam p Kits to 650 pieces and decreasing the nished goods by 20%. Com plete the following budgets 1 WW Planned Sales m Desired Ending Inventory of Finished Goods .551 Total Needed Lees: Beginning Inventory I Total Production {7.01} The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lam p are: Lam p Kit: $15.0000000 per lam p Direct Labor: 2.0000000 per lam p (4 lam pslhr.) Variable Overhead: 2.0000000 per lamp Fixed Overhead: 10.0000000 per lam p (based on normal capacity of 25,000 lam ps) Cost per lam p: 30.0000000 Er lam 9 Expected increases for 20x2 When calculating projected increases round to TWO ($0. 00) decimal places. 1. Material Costs are expected to increase by 2.50% . 2. Labor Costs are expected to increase by 6.50%. 3. Variable Overhead is expected to increase by 5.50%. 4. Fixed Overhead is expected to increase to $280,000. 5. Fixed Administrative expenses are expected to increase to $48, 000. 5. Variable selling expenses (measured on a per lam p basis) are expected to increase by 6.50%. 7. Fixed selling expenses are expected to be $33,000 in 20x2. 3. Variable administrative expenses (measured a per lamp basis) are expected to increase by 5.00%. Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets Current Liabilities Accounts Payable Total Liabilities Stockholders Equity Common Stock Retained Eamings Total Stockholder's Equity Total Liabilities and Stockholders Equity | See The Light Projected Balance Sheet As of December 31, 20x1 500 @ $16.00 0 3000 @ $30.00 $ 20,000.00 6,800.00 $ 12,000.00 147,410.00 {6&6 34,710.00 67,500.00 8,000.00 90,000.00 200,210.00 13,200.00 213,410.00 54,000.00 54,000.00 159,410.00 213,410.00 comma: Assume actual cash receipts and disbursements will follow the pattern below: (Note: Receivables and Payables of 12I31Ix1 will have a cash impact in 20x2.) 1. WP?!\" 21.00% of sales for the year are made in November and December. Since our customers have 50 day terms those funds will be collected be collected in January and February. 81.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February. All other manufacturing and operating costs are paid for when incurred. The budgeted depreciation expense is equal to 0.5% of the fixed manufacturing, selling and administrative expenses. Minimum Cash Balance needed for 20x2, $185,000 . I See The Light Projected Cash Budget For the Year Ending December 31, 20x2 Beginning Cash Balance Cash Inflows: Sales Collections: Account Receivable (Sales last year not collected) Sales made and collected in 20x2 Cash Available Cash Outflows: Purchases Accounts Payable (Purchases last year) Purchases made and paid for in 20x2 Other Manufacturing Costs Direct Labor Total Manufacturing Overhead Selling and Administrative Less: Depreciation Total Cash Outflows Budgeted Cash Balance before financing Needed Minimum Balance Amount to be borrowed (if any) Budgeted Cash Balance Round dollars to two laces, $##.## I_l - -__ --_ {10.02} {10.03} {10.04} {10.05} {10.00} {10.07} {10.00} {10.09} {10.10}