$4$ Factory Overhead Budget

Overhead Allocation rate based on:

$1.$ Number of Units

Total Factory Overhead $/$ Number of Units

$($Round to two places, $##$.$##$)$ $$9\mathrm{.}59\{9\mathrm{.}01\}$

$5$ Cost of making one unit next year

Cost of one Lamp Kit $16\mathrm{.}72$

Labor Cost Per Lamp $$2\mathrm{.}13\{9\mathrm{.}02\}$

Factory overhead per unit

Total cost of one unit $$26\mathrm{.}13\{9\mathrm{.}03\}$

$($Round to two places, $##$.$##$)$

$6$ Selling and Admin. Budget

Fixed Selling $23000$

Variable Selling $($Round to two places, $##$.$##$)\{9\mathrm{.}04\}$

Fixed Administrative $42000$

Variable Administrative $($Round to two places, $##$.$##$)\{9\mathrm{.}05\}$

Total Selling and Administrative $($Round to two places, $##$.$##$)\{9\mathrm{.}06\}$

$7$ Cost of Goods Sold Budget $-$ Assume FIFO $($First$-$In$,$ First$-$Out$)$ and overhead is applied based on the number of units to be produced. Round dollars to two places, $##$.$##

Beginning Inventory, Finished Goods $$90,000\mathrm{.}00\{9\mathrm{.}07\}$

Production Costs:

Materials:

Lamp Kits:

Beginning Inventory $$8,000\mathrm{.}000$

Purchased $612788$

Available for Use $$620,788\mathrm{.}000$

Ending Inventory of Lamp Kits $$12,540\mathrm{.}00\{9\mathrm{.}08\}$

Lamp Kits Used In Production $608248$

Total Materials: $$608,248\mathrm{.}00\{9\mathrm{.}09\}$

Labor $\{9\mathrm{.}10\}$

Overhead $\{9\mathrm{.}11\}$

Cost of Goods Available $\{9\mathrm{.}12\}$

Less: Ending Inventory, Finished Goods $\{9\mathrm{.}13\}$

Cost of Goods Sold $$1,057,460\mathrm{.}00\{9\mathrm{.}14\}$

fill in the empty yellow boxes Cora Rabey

$9602$

PART $3$

Budgets

Division $N$ has decided to develop its budget based upon projected sales of $37,000$ lamps at

$$54\mathrm{.}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:

Production Budget

Materials Budget

Direct Labor Budget

Factory Overhead Budget

Selling and Administrative Budget

Cost of Goods Sold Budget

Budgeted Income Statement

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 Lamp Kits to $750$ pieces and

decreasing the finished goods by $20\%.$

Complete the following budgets

$1$ Production Budget

Planned Sales

Desired Ending Inventory of Finished Goods

Total Needed

Less: Beginning Inventory

Total Production Projected Income Statement

For the Period Ending December $31,20$x$1$

I See The Light

Projected Balance Sheet

As of December $31,20$x$1$

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

$$20,000\mathrm{.}00$

$6,800\mathrm{.}00$

$ $34,710\mathrm{.}0067,500\mathrm{.}00$

$3000$ @ $$30\mathrm{.}00$

$\backslash$table$[[,90,000\mathrm{.}00],[$$$,200,210\mathrm{.}00,]]$

Current Liabilities

Accounts Payable

Total Liabilities

Stockholder's Equity

Common Stock

Retained Earnings

Total Stockholder's Equity

Total Liabilities and Stockholder's Equity Fixed and Variable Cost Determinations

Unit Cost Calculations

The projected cost of a lamp is calculated based upon the projected increases or decreases to

current costs. The present costs to manufacture one lamp are:

Lamp Kit:

Direct Labor:

Variable Overhead:

Fixed Overhead:

Cost per lamp:

$$16\mathrm{.}0000000$ per lamp

$2\mathrm{.}0000000$ per lamp $(4$ lamps$/$hr$.)$

$2\mathrm{.}0000000$ per lamp

$10\mathrm{.}0000000$ per lamp $($based on normal capacity of $25,000$ lamps$)$

$$30\mathrm{.}0000000$ per lamp

Expected increases for $202$

When calculating projected increases round to TWO $($$$0\mathrm{.}00)$ decimal places.

Material Costs are expected to increase by $4\mathrm{.}50\%.$

Labor Costs are expected to increase by $6\mathrm{.}50\%.$

Variable Overhead is expected to increase by $3\mathrm{.}00\%.$

Fixed Overhead is expected to increase to $$275,000.$

Fixed Administrative expenses are expected to increase to $$56,000.$

Variable selling expenses $($measured on a per lamp basis$)$ are expected to increase

by $6\mathrm{.}00\%.$

Fixed selling expenses are expected to be $$41,000$ in $202.$

Variable administrative expenses $($measured a per lamp basis$)$ are expected to

increase by $2\mathrm{.}00\%.$

On the following schedule develop the following figures:

$1-\frac{20}{?}$