Chec 12 Required information (The following information applies to the questions displayed below. 10 points Spring Manufacturing Company makes two components identified as C12 and D57. Selected budgetary data for 2022 follow: Finished Components D57 eBook C12 Print 10 pounds 0 0 2 pounds 2 hours 8 pounds 4 pounds 1 pound 3 hours References Requirements for each finished component: RM 1 RM 2 RM 3 Direct labor Product information: Sales price Sales (units) Estimated beginning inventory (units) Desired ending inventory (units) $ 180 12,000 440 300 $ 250 10,000 190 200 Cost per pound Estimated beginning inventory in pounds Desired ending inventory in pounds Direct Materials Information RM1 RM2 RM3 $ 6 $ 3.50 $ 0.50 2,700 1,500 500 4,200 1,200 1,800 The firm expects the average wage rate to be $30 per hour in 2022. Spring Manufacturing uses direct labor hours to apply overhead. Each year the firm determines the overhead application rate for the year based on budgeted direct labor hours for the year. The firm maintains negligible Work-in-Process Inventory and expects the cost per unit for both beginning and ending inventories of finished products to be identical. 12 10 points Indirect materials-variable Miscellaneous supplies and tools-variable Indirect labor-variable Supervision-fixed Payroll taxes and fringe benefits-variable Maintenance costs-fixed Maintenance costs-variable Depreciation-fixed Heat, light, and power-fixed Heat, light, and power-variable Total Factory Overhead Information $ 8,000 5, 200 44,000 140,000 290,000 16,000 10,030 71,310 43,390 15,000 $ 642,930 eBook Print References Advertising Sales salaries Travel and entertainment Depreciation-warehouse Office salaries Executive salaries Supplies Depreciation-office Total Selling and Administrative Expense Information $ 59,000 150,000 64,000 4,500 62,000 240,000 3,500 6,400 $ 589, 400 The effective income tax rate for the company is 30%. 12 Spring Manufacturing Company has had a continuous improvement (kaizen) program for the last two years. According to the kaizen program, the firm is expected to manufacture C12 and D57 with the following specifications: 10 Cost Element Raw material 1 Raw material 2 Raw material 3 Direct labor c12 9 pounds 0 1.8 pounds 1.5 hours D57 7 pounds 3.6 pounds 0.8 pound 2.0 hours points eBook Print The company specifies that the variable factory overhead is to decrease by 10% while the fixed factory overhead is to decrease by 5%, except for depreciation expenses. The company does not expect the price of the raw materials to change. However, the hourly wage rate is likely to be $30. References Required: Assume the firm can attain the expected operating level as prescribed by the kaizen program: 1-a. Prepare the Sales budget for 2022. 1-b. Prepare the Production budget for 2022. 1-c. Prepare the Direct materials purchases budget (units and dollars) for 2022. 1-d. Prepare the Direct labor budget for 2022. 1-e. Prepare the Factory overhead budget for 2022. 1-f. Prepare the Cost of goods sold and ending finished goods inventory budgets for 2022. 1-g. Prepare the Selling and administrative expense budget for 2022. 1-h. Prepare the income statement, the last item of which is labeled After-tax Operating Income for 2022. 12 Required information 10 points Reg 1A Reg 1B Req 1C Req 1D Req 1E Req 1F Reg 16 Req 1H Prepare the cost of goods sold and ending finished goods inventory budgets for 2022. (Do not round intermediate calculations. Round "Cost per unit" to 5 decimal places.) eBook Print SPRING MANUFACTURING COMPANY Ending Finished Goods Inventory and Budgeted CGS For the Year 2022 References C12 D57 Total 12,000 10,000 22,000 Sales volume Cost per unit Cost of goods sold $ 144.92298 $ 0 $ 1,449,230 $ 1,449,230 300 200 Ending finished goods inventory Cost per unit Budgeted ending inventories $ 144.92298 28,985 $ $ 0 $ 28,985 Camilate this.notion ku antavine va... RALATALI #Atha kalau 12 Required information Req 1A Req 1B Req 1C Req 1D Req 1E Req 1F Req 1G Req 1H 10 points Prepare the Selling and administrative expense budget, broken down into two components: Selling Expenses, and Administrative Expenses for 2022. eBook SPRING MANUFACTURING COMPANY Selling and Administrative Expense Budget For the Year 2022 Print References Selling expenses: $ 0 Administrative expenses: 0 $ $ Total selling and administrative expenses 0 Calata SLi -..nti.-L. antai- 12 Required information Req 1A Reg 1B Reg 1c Reg 1D Reg 1E Req 1F Reg 1G Reg 1H 10 points Prepare the Budgeted income statement, the last item of which is labeled After-tax Operating Income for 2022. (Round "Cost per unit" to 5 decimal places. Do not round any other intermediate calculations. Round your answers to the nearest whole dollar.) eBook Print SPRING MANUFACTURING COMPANY Budget Income Statement For the Year 2022 C12 References D57 Total Sales $ 0 0 $ 0 $ 0 $ 0 Cost of goods sold Gross profit Selling and administrative expenses Pre-tax operating income Income taxes After-tax operating income $ 0 $ 0