ACCOUNTING- please work cost of goods sold budget.
Please fill in incorrect (red) boxes.
Mastery Problem Budgeting Lean comandate and the one produit, un autor dome, with twendell, the code and the Dale model. The tomov began operation on howary 1, 2011, and is ning for 2017, conde operation, vorom budou The commistie te decide how many units to manufacture how much the end on direct and dret tuber, and what their factory where he added, the company wstwrested it butoiting for and administratie cuts, and in gaudited come statement the prediction et rom for 302 you have banned to the contaminanthe 20 budete Sales de The best ones there year's starting in ander how to play and promotion pronto andre tinuty and con conditions Completed and read the fing sheron tam budget, vou ret that the numbers have been on the comme cerider has toll out the units of the late modeled to be the same in the many mt Tesco Sales Budget For the Year Ending December 31, 2012 Unit Si Price Total Sale 10.000 120.000 3.000 12 457.000 120.000 23000 2 3 Before you make any changes to the budget, you review the information on the following Direct Materials Oata table and enter the units to be produced from the Production Hudpet, Alter scoring the directe (which follows the Direct Material Data Table), you observe that team has omitted quite a few numbers from the budget. Fin the missing amounts. You may need to use numbers from the Direct sales budget and production budget you prepared. When required, round your answers to the nearest dla Direct Materials Data Table Wood Pieces Beads Packages reured perunt: + Deluxe abac 2 Cost adde Wood proces 10.25 Bede 10.25 unts to be produced from Production Budget 35.950 Dabacus 30.000 Laco Direct Materials Purchases Hudget For the Year Ending December, 2012 Direct Materials Wodecs Beads Yotal Vacature for production 25.050 71.000 Db 200 110.700 De wory. Dec. 2003 2200 3,000 To 111,950 17.500 minor 2012 3.500 14,500) Totgested 100450 181.100 Dock Tatud 22535 50,00 Complete the preparation of the cost of goods sold budget for Leanco, using information that follows provided by the controles and using the previous budgets you have prepared. LearnCo Cost of Goods Sold Budget For the Year Ending December 31, 2012 Finished goods inventory, lanuary 1, 2012 59,370 Work in process inventory, January 1, 2012 52,010 Direct materials Direct matinals inventory, January 1, 2012 $2.000 Direct materials purchases 72,000 74,08 (1.000) 73,000 Cost of delect materiaalab for use Direct materials tory, December 31, 2012 Cost of direct materiais placed in production Direct labor Factory overhead Total manufacturing costs Total work in process during period Work in proces inventory, December 31, 2012 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, December 31, 2012 Cost of goods sold 1,250 2,010 (1.250) 7,060 9,870 (1,500) 15.00 Mastery Problem Budgeting Learco Learco manufactures and sell one product, an abacus for classroom use, with twa models, the Basic model and the Deloce model. The company began operations on January 1, 2011, operations, by preparing budgets from its master budost. The company is trying to decide how many units to manufacture, how much t might spend on direct materials and direct labor, and what their factory overhead expenses migte be. In ad seling and administrative costs, and in creating a budgeted income statement showing a prediction of net income for 2012. You have been asked to as the controller of Learnco in preparing the 2012 budgets. Sales Budget The sales budget often uses the prior year's sales as a starting point, and then sabes quantities are revised for various factors such as planned advertising and sometion, rejected pric economic conditions. Learco has completed reviewing its prior year's sales and has prepared the following sales budget. After reviewing arcos tales budget, you note that three numbers have been omitted. The company's controller has told you that the units sold for the date and Deluxe modelu are amounts Learco Sales Budget For the Year Ending December 31, 2012 Unit Sales Unit Selling Product Volume Price Basic Abacus 36,000 50 Deluxe Abacus 36,000 12 Total 72,000 Total Sales $280,000 432.000 $720,000 Direct Materials Data Table Wood Pieces Beads Nm Packages required per unit: Basic abacus Deluxe abacus Cost per package: Wood pieces Beads Units to be produced (from Production Budget): $0.25 $0.25 Basic abacus 35,950 Deluxe abacus 36,900 LearnCo Direct Materials Purchases Budget For the Year Ending December 31, 2012 Direct Materials Wood Pieces Beads Total Packages required for production: Basic abacus 35,950 71,900 73,800 110,700 2,200 5,000 Deluxe abacus Desired inventory, December 31, 2012 Total packages available Estimated inventory, January 1, 20Y2 111,950 187,600 (3.500) (4,500) 108,450 181,100 x Total packages to be purchased Unit price (per package) 0.30 X X 0.30 X Total direct materials to be purchased 32,535 X 54,930 X $72,888 Direct Labor Cost Budget Direct labor needs from the direct tabor cost budget should be coordinated between the production and personnel departments so that there will be enough ta Before you make any changes to the budget you review the information on the following Direct Labor Data Table and enter the units to be produced from the the Direct Labor Data Table), you observe that Leamco has omitted quite a few numbers from the budget. Fill in the missing amounts. You may need to use nu budget, and direct matenals purchases budget you prepared. When required, round your answers to the nearest dollar Direct Labor Data Table Gluing Assembly Hours required per unit: Basic abacus 0.10 0.10 Deluxe abacus 0.10 0.20 Labor hourly rate: Gluing $13 Assembly $18 Units to be produced (from Production Budget): Basic abacus 35,950 Deluxe abacus 36,900 LearnCo Direct Labor Cost Budget For the Year Ending December 31, 2012 Gluing Assembly Hours required for production: Basic abacus 3,595 3,595 Total Deluxe abacus 3,690 7,380 Total 7,285 10,975 Hourly rate 11 x XS 17 X Total direct labor cost 30,135 x 186,575 X $292,255 $9,870 $2,010 Learco Cost of Goods Sold Budget For the Year Ending December 31, 2012 Finished goods inventory, January 1, 2012 Work in process inventory, January 1, 2012 Direct materiale: Direct materials inventory, January 1, 2012 $2,000 Direct materials purchases 72,888 Cost of direct materials available for use 74,888 Direct materials inventory, December 31, 2012 (1.800) Cost of direct materials placed in production 73,088 Direct labor Factory overhead 1,250 X 2,010 X (1,250) Total manufacturing costs Total work in process during period Work in process inventory, December 31, 2012 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, December 31, 2012 Cost of goods sold 7,060 X 9,870 X (1,500) 15,430 X VIDEO Budgeted Income Statement Data Table Interest revenue for the year $2.000 Interest expense for the year $1.500 LearnCo's income tax rate Learno Budgeted Income Statement For the Year Ending December 31, 2012 Revenue from sales 720,000 - 381,64: X 338,355 X 65.400 Cost of goods sold Grous proft Selling and administrative expenses Selling expenses Administrative expenses Total selling and administrative expenses Operating income Other revenue and expense: Interest revenue 154,000 -219,406 118.955 x 2.000 Interest expense -1.500 500 Income before income tax 119,455 | X Income tax 47,782 X Net income 71,673 x LearnCo Sales Budget For the Year Ending December 31, 2012 Unit Sales Volume Unit Selling Price Product Total Sales Basic Abacus 36,000 $8 $288,000 Deluxe Abacus 36,000 12 432,000 Totals 72,000 $720,000 Production Budget The production budget should be integrated with the sales budget to ensure that production and sales are kept in bala the number of units to be manufactured to meet budgeted sales and desired inventory levels. You note that LearnCo has omitted six numbers from the following production budget and fill in the missing amounts. Y you prepared. LearnCo Production Budget For the Year Ending December 31, 2012 Units Basic Units Deluxe Expected units to be sold (from Sales Budget) 36,000 36,000 1,000 3,000 Desired ending inventory, December 31, 2012 Total units available 37,000 39,000 7 Estimated beginning inventory, January 1, 20Y2 Total units to be produced (1,050) 35,950 (2,100) 36,900 Direct Materials Data Table Wood Pieces Beads Packages required per unit: Basic abacus 1 1 N Deluxe abacus N 3 Cost per package: Wood pieces $0.25 Beads $0.25 Units to be produced (from Production Budget): Basic abacus 35,950 Deluxe abacus 36,900 LearnCo Direct Materials Purchases Budget For the Year Ending December 31, 20Y2 Direct Materials Wood Pieces Beads Total Packages required for production: Basic abacus 35,950 71,900 Deluxe abacus 73,800 110,700 Desired inventory, December 31, 20Y2 2,200 5,000 Total packages available 111,950 187,600 Estimated inventory, January 1, 2012 (3,500) (4,500) Total packages to be purchased 108,450 181,100X Unit price (per package) 0.30 X X $ 0.30 X Total direct materials to be purchased 32,535 x 54,930 X $72,888 Direct Labor Data Table Gluing Assembly Hours required per unit: Basic abacus 0.10 0.10 0.10 0.20 $13 Deluxe abacus Labor hourly rate: Gluing Assembly Units to be produced (from Production Budget): Basic abacus $18 35,950 Deluxe abacus 36,900 LearnCo Direct Labor Cost Budget For the Year Ending December 31, 2012 Gluing Assembly Total Hours required for production: Basic abacus 3,595 3,595 Deluxe abacus 3,690 7,380 Total 7,285 10,975 Hourly rate 11 X X 17 x Total direct labor cost 80,135 x $ 186,575 X $292,255 Budgeted Income Statement Data Table Interest revenue for the year $2,000 $1,500 Interest expense for the year LeamCo's income tax rate 40% Leanca Budgeted Income Statement For the Year Ending December 31, 20Y2 Revenue from sales 720,000 Cost of goods sold -381,645 X Gross proft 338,355 X Selling and administrative expenses: Selling expenses 65,400 Administrative expenses 154,000 Total selling and administrative expenses -219,400 118,955 X Operating income Other revenue and expense: Interest revenue 2,000 Interest expense -1,500 500 Income before income tax $ 119,455 X Income tax -47,782 x Net income 71,673 X
