Coronado Industries had sales in 2021 of $5,521,600 and gross profit of $893,200. Management is considering two alternative budget plans to increase its gross profit in 2022. Plan A would increase the unit selling price from $8.00 to $8.40. Sales volume would decrease by 101,500 units from its 2021 level. Plan B would decrease the unit selling price by $0.50. The marketing department expects that the sales volume would increase by 105,560 units. At the end of 2021, Coronado has 32,480 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be 28,420 units. If Plan B is accepted, the ending inventory should be equal to 48,720 units. Each unit produced will cost $1.5 in direct labor, $1.3 in direct materials, and $1.2 in variable overhead. The fixed overhead for 2022 should be $1,538,740.

(a)

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Your answer is correct.

Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, e.g. 52.70.)

CORONADO INDUSTRIES Sales Budget choose the accounting period For the Quarter Ending December 31, 2022December 31, 2022For the Year Ending December 31, 2022
		Plan A		Plan B
select a sales budget item Direct LaborDirect MaterialsExpected Unit SalesProduction UnitsTotal SalesUnit Selling Price		enter a number of units		enter a number of units
select a sales budget item Direct LaborDirect MaterialsExpected Unit SalesProduction UnitsTotal SalesUnit Selling Price		$enter a dollar amount rounded to 2 decimal places		$enter a dollar amount rounded to 2 decimal places
select a closing sales budget item Direct LaborDirect MaterialsExpected Unit SalesProduction UnitsTotal SalesUnit Selling Price		$enter a total dollar amount		$enter a total dollar amount

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(b)

Prepare a production budget for 2022 under each plan.

CORONADO INDUSTRIES Production Budget choose the accounting period For the Quarter Ending December 31, 2022December 31, 2022For the Year Ending December 31, 2022
		Plan A		Plan B
select an opening production budget item Total Materials RequiredExpected Unit SalesBeginning Finished Goods UnitsTotal Pounds Needed for ProductionTotal Required UnitsDirect Materials PurchasesDesired Ending Finished Goods UnitsRequired Production UnitsDirect Materials per UnitDesired Ending Direct MaterialsBeginning Direct Materials		enter a number of units		enter a number of units
select between addition and deduction AddLess: select a production budget item Total Pounds Needed for ProductionTotal Materials RequiredExpected Unit SalesDirect Materials per UnitRequired Production UnitsDesired Ending Direct MaterialsBeginning Direct MaterialsDirect Materials PurchasesDesired Ending Finished Goods UnitsTotal Required UnitsBeginning Finished Goods Units		enter a number of units		enter a number of units
select a summarizing line for the first part Total Materials RequiredDesired Ending Finished Goods UnitsDirect Materials per UnitBeginning Direct MaterialsExpected Unit SalesDirect Materials PurchasesTotal Pounds Needed for ProductionBeginning Finished Goods UnitsRequired Production UnitsTotal Required UnitsDesired Ending Direct Materials		enter a total number of units for the first part		enter a total number of units for the first part
select between addition and deduction AddLess: select a production budget item Direct Materials PurchasesRequired Production UnitsDesired Ending Direct MaterialsDesired Ending Finished Goods UnitsTotal Materials RequiredTotal Pounds Needed for ProductionDirect Materials per UnitBeginning Direct MaterialsBeginning Finished Goods UnitsTotal Required UnitsExpected Unit Sales		enter a number of units		enter a number of units
select a closing production budget item Total Materials RequiredDesired Ending Finished Goods UnitsRequired Production UnitsDirect Materials PurchasesTotal Required UnitsBeginning Direct MaterialsDirect Materials per UnitTotal Pounds Needed for ProductionExpected Unit SalesDesired Ending Direct MaterialsBeginning Finished Goods Units		enter a total number of units		enter a total number of units

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