Expected sales for next year are 195,000 textbooks at an estimated production cost of $32.00 pertextbook and an estimated seling price of $40.00 per textbook Beginning inventories Rawmaterials per 25,000 yards @ $299 per yard Plastic 8,000 pounds@$549 per pound Work-in-process 928 textbooks @$28.93 per textbook Finished goods 2,500 textbooks@$32.00 per textbook Desired ending inventories Rawmaterials Paper 30,000 yards$299 per yard Plastic 11,000 pounds $5.49 per pound Work-in-process 762 textbooks27.29 per texbook Finished goods 25,000 textbooks@$3200 per textbook Direct materials needed Paper 35 yards per textbook Plastic 0.6 pounds per textbook Direct labor time needed 0.33 hours per textbook $18.50 per diredt labor hour Variable manufacturing overheads Indiredt materials and supplies $0.33 per texibook Materials handling $0.45 per textbook Other indirect labor $0.12 per textbook Fixed manufacturin overheads Supervisory labor $98,000 Maintenance and repairs $53,000 Plant administration $72000 Utities $36,000 Depreciation $128,000 Insurance $30,000 Property taxes $54,000 Other $13,000 Variable markeling costs Sales commission $250 per texibook Other markeling $0.89 per textbook Fixed markeling costs. Sales salaries $150,000 Adverlising $253,000 Other $98,000 Administrative costs Administrative salaries $220,000 Legal and accounting staff $80,000 Data processing services $65,000 Outside professional services $52,000 Depreciation-building, furniture, and equipment $19,,000 Interest expense $6,000 Property taxes $76,000 Other $24,000 ncorme tax rate: 35% REQUIRED: Production Budget Direct Materials Budget Direct Labor Budget Manufacturing Overhead Budqet Cost of Goods Sold Budget Seling, General, and Administrative Budget Budgeted Income Statement Budgeted Statement of Cost of Goods Sold For the Budpet Year Ended December 31 Beginning WIP inwentory Add: Marufacturing costs Direct materials Beginning inventory Purchases Materials available for maufacturing Less: Ending inventory Total direct materials costs Direct labor Manufacturing overhead Total manufacturing costs Less: Ending WP inventory Cost of goods manufactured Add: Beginning finished goods inwentory $ Less: Ending finished goods inventory Cost of goods sold Schedule of Budgeted Seling, General and Adninistrative Expenses For the Budet Year Ended December 31 Budgeted Sales Revenues per textbook textbooks Budgeted price perunit Budgeted sales volume Less: Budgeted Cost of Goods Sold Budgeted Gross Profit Less: BudgetedSelling, General, and Administrative Expenses Budgeted Operating Profit Less: IrcomTe taxes tax rate Budgeted profit after taxes Direct labor Budget For the Budget Year Ended Decenber 31 Units to be produced texthooks Labor required for production Direct labor time per unit hours per textbook Direct labor cost per hour per hour hours) Total direct labor hours Direct Materials Budget For the Budget Year Ended December 31 Units to be produced textbooks Materials required for production Plastic per Direct materials needed per unit Cost per material pounds per textbook per pound yards pertextbook per yard (S) fyards) (pounds) Total production needs Add: Desired ending inventory Total direct materials needs Less: Beginning inventory of materials Direct materials to be purchased Sum of materials to be purchased Production Budget For the Budget Year Ended Decenber 31 Estimated production cost per unit pertextbook ftextbooks) Expected finished goods to be sold Add: Desired ending inventory of finished goods Total production needed Less: Beginning inwentory of finished goods Units to be produced Schedule of Budgeted Seling, General and Adninistrative Expenses For the Budget Year Ended Decenber 31 Units to be sold textbooks Tolal Producion Vaiable SGRA Variable Marketing costs Sales commission pertextbook Other marketing per textbook Total variable marketing costs Fixed Marketing costs Sales salaries Advertising Other Total fixed marketing costs Total marketing ocosts Administrative costs Administrative salaries Legal and accounting staff Data processing services Outside professional services Depreciation-building, furniture, and equipment Interest expense Property taxes Other Total administrative costs Total budgeted selling, general, and administrative costs Schedule of Budgeted Manufacturing Overhead For the BudgetYear Ended Decenber 31 Units to be produced textbooks Tolal Producion Variable Overhead Variable Manufacturing Overhead Indirect materials and supplies per textbook Materials handling pertextbook Other indirect labor pertextbook Total variable manufacturing overhead Fixed Mannufacturing Overhead Supervisory labor Maintenance ard repairs Plant administration Utilities Depreciation Insurance Property taxes Other Total fixed manufacturing overhead Total manufacturing overhead Expected sales for next year are 195,000 textbooks at an estimated production cost of $32.00 pertextbook and an estimated seling price of $40.00 per textbook Beginning inventories Rawmaterials per 25,000 yards @ $299 per yard Plastic 8,000 pounds@$549 per pound Work-in-process 928 textbooks @$28.93 per textbook Finished goods 2,500 textbooks@$32.00 per textbook Desired ending inventories Rawmaterials Paper 30,000 yards$299 per yard Plastic 11,000 pounds $5.49 per pound Work-in-process 762 textbooks27.29 per texbook Finished goods 25,000 textbooks@$3200 per textbook Direct materials needed Paper 35 yards per textbook Plastic 0.6 pounds per textbook Direct labor time needed 0.33 hours per textbook $18.50 per diredt labor hour Variable manufacturing overheads Indiredt materials and supplies $0.33 per texibook Materials handling $0.45 per textbook Other indirect labor $0.12 per textbook Fixed manufacturin overheads Supervisory labor $98,000 Maintenance and repairs $53,000 Plant administration $72000 Utities $36,000 Depreciation $128,000 Insurance $30,000 Property taxes $54,000 Other $13,000 Variable markeling costs Sales commission $250 per texibook Other markeling $0.89 per textbook Fixed markeling costs. Sales salaries $150,000 Adverlising $253,000 Other $98,000 Administrative costs Administrative salaries $220,000 Legal and accounting staff $80,000 Data processing services $65,000 Outside professional services $52,000 Depreciation-building, furniture, and equipment $19,,000 Interest expense $6,000 Property taxes $76,000 Other $24,000 ncorme tax rate: 35% REQUIRED: Production Budget Direct Materials Budget Direct Labor Budget Manufacturing Overhead Budqet Cost of Goods Sold Budget Seling, General, and Administrative Budget Budgeted Income Statement Budgeted Statement of Cost of Goods Sold For the Budpet Year Ended December 31 Beginning WIP inwentory Add: Marufacturing costs Direct materials Beginning inventory Purchases Materials available for maufacturing Less: Ending inventory Total direct materials costs Direct labor Manufacturing overhead Total manufacturing costs Less: Ending WP inventory Cost of goods manufactured Add: Beginning finished goods inwentory $ Less: Ending finished goods inventory Cost of goods sold Schedule of Budgeted Seling, General and Adninistrative Expenses For the Budet Year Ended December 31 Budgeted Sales Revenues per textbook textbooks Budgeted price perunit Budgeted sales volume Less: Budgeted Cost of Goods Sold Budgeted Gross Profit Less: BudgetedSelling, General, and Administrative Expenses Budgeted Operating Profit Less: IrcomTe taxes tax rate Budgeted profit after taxes Direct labor Budget For the Budget Year Ended Decenber 31 Units to be produced texthooks Labor required for production Direct labor time per unit hours per textbook Direct labor cost per hour per hour hours) Total direct labor hours Direct Materials Budget For the Budget Year Ended December 31 Units to be produced textbooks Materials required for production Plastic per Direct materials needed per unit Cost per material pounds per textbook per pound yards pertextbook per yard (S) fyards) (pounds) Total production needs Add: Desired ending inventory Total direct materials needs Less: Beginning inventory of materials Direct materials to be purchased Sum of materials to be purchased Production Budget For the Budget Year Ended Decenber 31 Estimated production cost per unit pertextbook ftextbooks) Expected finished goods to be sold Add: Desired ending inventory of finished goods Total production needed Less: Beginning inwentory of finished goods Units to be produced Schedule of Budgeted Seling, General and Adninistrative Expenses For the Budget Year Ended Decenber 31 Units to be sold textbooks Tolal Producion Vaiable SGRA Variable Marketing costs Sales commission pertextbook Other marketing per textbook Total variable marketing costs Fixed Marketing costs Sales salaries Advertising Other Total fixed marketing costs Total marketing ocosts Administrative costs Administrative salaries Legal and accounting staff Data processing services Outside professional services Depreciation-building, furniture, and equipment Interest expense Property taxes Other Total administrative costs Total budgeted selling, general, and administrative costs Schedule of Budgeted Manufacturing Overhead For the BudgetYear Ended Decenber 31 Units to be produced textbooks Tolal Producion Variable Overhead Variable Manufacturing Overhead Indirect materials and supplies per textbook Materials handling pertextbook Other indirect labor pertextbook Total variable manufacturing overhead Fixed Mannufacturing Overhead Supervisory labor Maintenance ard repairs Plant administration Utilities Depreciation Insurance Property taxes Other Total fixed manufacturing overhead Total manufacturing overhead