59 points Alternate Problem A: CRD Company prepares monthly operating and financial budgets. Estimates of sales in units are made for each month. Production is scheduled at a level high enough to take care of current needs and to carry into each month 30% of the next month's unit sales. Direct materials, direct labor, and variable manufacturing overhead are estimated at $10, S8, and $3 per unit, respectively. Total fixed manufacturing overhead is budgeted at $520,000 per month. The inventory at January 1 consists of 20,000 units. Sales for April, May, June, and July are estimated at 80,000, 100,000, 95,000, and 110,000 units with a rate of $60 per unit. Variable selling and administrative expenses are $20 per unit. Fixed selling and administrative expenses are $800,000 per month. a) Prepare a sales budget for the second quarter by month. b) Prepare a schedule showing the budgeted production in units for April, May, and June. c) Prepare a schedule showing the budgeted cost of goods sold for the same three months. d) Prepare a budgeted income statement for the first quarter by month. Alt Problem A: Sales, Production, Cost of Goods Sold Budgets and Budgeted Income Statement CRD Company Sales Budget For Second Quarter April 80,000 $ 60 $ 4,800,000 May June 2nd Quarter (The first month has been done for you.) Budgeted Sales (in units) Avg. Sales price per unit Sales revenue May June 2nd Quarter (The first month has been done for you.) (Remember to enter items to be deducted as negative numbers) 6 7 CRD Company 8 Production Budget For Second Quarter D April 1 Sales in units (from sales budget) 80,000 2 Add: desired ending finished goods inv. 30,000 3 (next quarter's sales x 30%) 4 Total Finished goods inventory needed 110,000 s Deduct: Beg, finished goods inventory (20,000) 6 (previous gtr ENDING balance except for 1st at which is given in problem and given in problem) 7 Units to be producted 90.000 3 9 D CRD Company 1 Cost of Goods Sold Budget 2 2 For Second Quarter 3 April 4 Sales in units (from sales budget) 80,000 5 Cost of Goods Sold: 16 Direct Materials - $10 per unit $ 800,000 7 Direct Labor - $8 per unit 640,000 8 Variable Overhead - $3 per unit 240,000 9 Fixed Overhead - $520,000 per month 520,000 Total Cost of Goods Sold $ 2,200,000 1 May June 2nd Quarter (The first month has been done for you.) May June 2nd Quarter (The first month has been done for you.) Sales Revenue Less: Cost of Goods Sold Gross Profit Less: Variable Selling and Admin. Expenses Less: Fixed Selling and Admin. Expenses Budgeted Income CRD Company Budgeted Income Statement For Second Quarter April $ 4,800,000 2,200,000 $ 2,600,000 1,600,000 800,000 $ 200,000 given in the