CH 8 Mastery

Direct labor needs from the direct labor cost budget should be coordinated between the production and personnel departments so that there will be enough labor avaliable for production. 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 Productio Budget. After scanning the Direct Labor Cost Budget (which follows the Direct Labor Dsta Table), you observe that LeamCo has omitted quite a few numbers from the budget. Fill in the missing amounts. You may need to use numbers from the Direct Labor Data Table, or from the sales budget, production budget, and direct materials purchases budget you prepared. When required, round your answers to the nearest dollar: LearnCo Direct Labor Cost Budget For the Year Ending December 31,20Y2 Feettion * Check Me Wok Review an evample of the ditect labor cost hudget, and the computations for each part of the budget. You will need to use the information on the Direct Labor Dath Table in your computations. Factory Overhead Cost Budget The factory overhead cost budget should be integrated with the production budget to enwre that production is not interrupted during the year. This budget may the wpported by departmentai schedules, which normally separate factory overhed costs into fixed and variable costs so that department managers may monitor and evaluate costs during the year. For Nmplicity. Leamco has not separated costs in this manner: The factory cverhead cost budget should be integrated with the production budget to ensure that production is not interrupted during the year. This budget may be supported by departmental schedules, which normally separate factory overhead costs into fixed and variable costs so that department managers may monitor and evaluate costs during the year. For simplicity, Learnco has not separated costs in this manner: After reviewing the following factory overhead cost budget, you note that Learnco has completed the budget with the exception of one amount. Fill in the missing amount. Frestisen "Check. Wy Wos You can "back into" the missing number by computing from the total along with the other two values. Cost of Goods sold budget The cost of goods sold budget integrates the direct materibis purchases budget, direct labor cost budget, and factory overhead cost budget. Estimated and desired inventones for direct materials, work in process, and finished goods must also be integrated into the cost of goods sold budget: Complete the preparation of the cost of goods sold budget for Learnco, using informution that follows provided by the contralle, and using the previsus budgets you have prepared. v crech My Wom Review the format and the flow of the cost of goods sold budget. In particular, note amounts that come from priar budgets that have been prepared. Selling/Admin. txpenses judget The sales budget is often used as the starting point for the selling and administrative expenses budget. For example, a budgeted increase in sales may require more advertiting expenses. Learnco has prepared las selling and administrative expenses budget as followi. This budget is merely reviewed by you for use on the budgeted income statement. The sales budget is often used as the starting point for the selling and administrative expenses budget. For example, a budgeted increase in sales may require more advertising expenses. Leamco has prepared its seliling and administrative expenses budget as follows. This budget is merely reviewed by you for use on the budgete income statement. The budgeted income statement is prepared by integrating the sales budget, cost of goods sold budget, and seling and administrative expenses budget. Additional Gformation that may be helpful in preparing the budgeted income statement are on the following budgeted tncome 5 tatement Data Table. Review the Budgeted Income 5 tatement Data Toble, then complete the budgeted income statement that follows the table. Round the computed amount for income tax to. the nearest whole dollar. " Clais My wost Put together infermation from the Dudgeted Income Statement Data Table, along with data from ali the pricr bucgets that nuve beth ereated: Dont forget to round the income tax amount to the nearest dollae. Final Questions Eudgeting affects the pianting, directing, and controlling functions of management. LeamCo wishes to determine the sensitivity of some of its budget values to changes in the economy Using the information on the completed budgets, answer the foligning questions, Consider each questiod separately, assuming that all other data remains the same, Including the level of production of each model. Direct labor needs from the direct labor cost budget should be coordinated between the production and personnel departments so that there will be enough labor avaliable for production. 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 Productio Budget. After scanning the Direct Labor Cost Budget (which follows the Direct Labor Dsta Table), you observe that LeamCo has omitted quite a few numbers from the budget. Fill in the missing amounts. You may need to use numbers from the Direct Labor Data Table, or from the sales budget, production budget, and direct materials purchases budget you prepared. When required, round your answers to the nearest dollar: LearnCo Direct Labor Cost Budget For the Year Ending December 31,20Y2 Feettion * Check Me Wok Review an evample of the ditect labor cost hudget, and the computations for each part of the budget. You will need to use the information on the Direct Labor Dath Table in your computations. Factory Overhead Cost Budget The factory overhead cost budget should be integrated with the production budget to enwre that production is not interrupted during the year. This budget may the wpported by departmentai schedules, which normally separate factory overhed costs into fixed and variable costs so that department managers may monitor and evaluate costs during the year. For Nmplicity. Leamco has not separated costs in this manner: The factory cverhead cost budget should be integrated with the production budget to ensure that production is not interrupted during the year. This budget may be supported by departmental schedules, which normally separate factory overhead costs into fixed and variable costs so that department managers may monitor and evaluate costs during the year. For simplicity, Learnco has not separated costs in this manner: After reviewing the following factory overhead cost budget, you note that Learnco has completed the budget with the exception of one amount. Fill in the missing amount. Frestisen "Check. Wy Wos You can "back into" the missing number by computing from the total along with the other two values. Cost of Goods sold budget The cost of goods sold budget integrates the direct materibis purchases budget, direct labor cost budget, and factory overhead cost budget. Estimated and desired inventones for direct materials, work in process, and finished goods must also be integrated into the cost of goods sold budget: Complete the preparation of the cost of goods sold budget for Learnco, using informution that follows provided by the contralle, and using the previsus budgets you have prepared. v crech My Wom Review the format and the flow of the cost of goods sold budget. In particular, note amounts that come from priar budgets that have been prepared. Selling/Admin. txpenses judget The sales budget is often used as the starting point for the selling and administrative expenses budget. For example, a budgeted increase in sales may require more advertiting expenses. Learnco has prepared las selling and administrative expenses budget as followi. This budget is merely reviewed by you for use on the budgeted income statement. The sales budget is often used as the starting point for the selling and administrative expenses budget. For example, a budgeted increase in sales may require more advertising expenses. Leamco has prepared its seliling and administrative expenses budget as follows. This budget is merely reviewed by you for use on the budgete income statement. The budgeted income statement is prepared by integrating the sales budget, cost of goods sold budget, and seling and administrative expenses budget. Additional Gformation that may be helpful in preparing the budgeted income statement are on the following budgeted tncome 5 tatement Data Table. Review the Budgeted Income 5 tatement Data Toble, then complete the budgeted income statement that follows the table. Round the computed amount for income tax to. the nearest whole dollar. " Clais My wost Put together infermation from the Dudgeted Income Statement Data Table, along with data from ali the pricr bucgets that nuve beth ereated: Dont forget to round the income tax amount to the nearest dollae. Final Questions Eudgeting affects the pianting, directing, and controlling functions of management. LeamCo wishes to determine the sensitivity of some of its budget values to changes in the economy Using the information on the completed budgets, answer the foligning questions, Consider each questiod separately, assuming that all other data remains the same, Including the level of production of each model