financial statements

part1,2,5 (please show calculations)

I See The Light Projected Income Statement For the Period Ending December 31, 20x1 $1,125,000.00 723,250.00 $ 401,750.00 Sales 25,000 lamps @ $45.00 Cost of Goods Sold @ $28.93 Gross Profit Selling Expenses: Fixed Variable (Commission per unit) @ $3.15 Administrative Expenses Total Selling and Administrative Expenses: Net Profit $ 23,000.00 78,750.00 $ 101,750.00 41,250.00 143,000.00 $ 258,750.00 I See The Light Projected Balance Sheet As of December 31, 20x1 34,710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Figurines Electrical Sets Work in Process Finished Goods Total Current Assets 500 @ $9.20 500 @ $1.25 0 3000 @ $28.9250 4,600.00 625.00 86,775.00 $ 194,210.00 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets $ 20,000.00 6,800.00 13,200.00 $207,410.00 $ 54,000.00 54,000.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 141,410.00 153.410.00 $ 207 410.00 Introduction FAQ 2 3 5 6 7 8 9 10 11 18 19 20 21 3. The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are: 0 11 Figurines $9.2000000 per lamp 12 Electrical Sets 1.2500000 per lamp 16 Lamp Shade 6.0000000 per lamp 17 Direct Labor 2 2500000 per lamp (4 lamps/hr.) 18 Variable Overhead: 0.2250000 per lamp 19 Fixed Overhead 10.0000000 per lamp (based on normal capacity of 25,000 lamps) 20 24 Cost per lamp $28.9250000 per lamp 25 26 Expected increases for 20x2 27 When calculating projected increases round to SEVEN decimal places, 80.0000000 28 32 1. Material Costs are expected to increase by 2.50% 33 34 2. Labor Costs are expected to increase by 5.50%. 35 36 3. Variable Overhead is expected to increase by 6.00% 40 41 4. Fixed Overhead is expected to increase to $300,000 42 43 5. Fixed selling expenses are expected to be $35,000 in 202 48 6. Variable selling expenses (measured on a per lamp basis) are expected to increase 49 by 3.00% 50 51 7. Fixed Administrative expenses are expected to increase by $10,000. 52 The total administrative expenses for 20x0 were 541,205.00, when 56 23,500 units were sold. Use the High-Low method to calculate 57 the total fixed administrative expense. 58 59 8. Variable administrative expenses (measured on a per lamp basis) are expected to 60 increase by 6.50%. The total administrative expenses for 20x0 were 64 $41,205.00, when 23,500 units were sold Use the High-Low method to calculate 65 the variable administrative expense per lamp 66 67 On the following schedule develop the following figures: 68 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 72 73 2- 20X2 Projected Variable Unit Cost per lamp 74 75 3- 20/2 Projected Fixed Costs. 44 76 B D E F H 1 Cost Volume Relationships - 2 Profit Planning 3 Big Al is about to begin work on the budget for 20x2 and they have requested that you prepare an analysis based on the following assumptions. 0 Note: Remember, that we cannot sell part of a lamp, therefore to find the number of units you have to round 1 up to the next complete unit. Furthuremore, to find the required sales in dollars it may be easier to find the 2 number of units and then multiply by the selling price per unit. 3 4 For 20x2 the selling price per lamp will be $45.00 What is the projected contribution margin and contribution El margin ratio for each lamp sold? 1 2 13 34 10 11 12 23 4. Contribution Margin perunik (Round to seven places, $2884388) 50 511 Contribution Margin Ratio (Round to seven places.. is two of those places ## *#**XL 2 53 54 For 202 the seling price per lamp will be $45.00. How many lamps must be sold to breakeven? BO 61 62 63 64 70 71 72 15.07 15.023 73 15.03 74 80 Breakeven Nesin units Round up to zero places, www.units) 81 82 83 84 90 For 20K2 the selling price perlamp will be 145.00. The desired operating income in 2012 is 271250. What 91 would sales inunishwe to be in 202 to reach the profit goal? 92 93 94 95 96 97 98 99 100 101 102 103. Sales nuits (Round up to zero places, **. nk) 1704 105 108 15.04 ### eep records of the actual cost of a special order job, a Job Order Cost System has been developed 29 Overhead is applied at the rate of 50% of the direct labor cost. 30 31 32 33 Job Order Costing Section 42 43 On January 1, 20x2, Division S began Job 2407 for the Client, THE BIG CHILDREN STORE. The 44 job called for 4,000 customized lamps. The following set of transactions occurred from 45 January 5 until the job was completed: 46 55 5-Jan Purchased 4,150 figurines @ $9.75 per figurine. 56 6-Jan Purchased 4, 175 sets of electical components @ $1.25 per set 57 7-Jan Purchased 4,000 lamp shades @ $6.60 per set 58 8-Jan 4,150 figurines were requisitioned. 59 9-Jan 4,150 sets of electrical components were requisitioned. 68 17-Jan Payroll of 620 Direct Labor Hours @ $9.80 per hour. 69 28-Jan 3,990 lamp shades were requisitioned 70 30-Jan Payroll of 670 Direct Labor Hours @ $10.05 per hour. 71 30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were 72 used or scrapped, and are a cost of normal processing. 81 Month End Overhead Information 82 Actual Variable Manufacturing Overhead $ 1,212.60 83 Actual Fixed Manufacturing Overhead 84 85 94 Round to six places 95 S###***** 96 Cost of Direct Material incurred in Manufacturing Job 2407 98 107 108 109 110 Cost of Direct Labor incurred in Manufacturing Job 2407 111 120 121 122 Cost of Manufacturing Overhead Applied to Job 2407 124 125 126 127 128 Cost of manufacturing one lamp 129 130 131 132 Introduction FAQ 4 1 | 2 | 3 9 5 67 97 (18.01) (18.02) 123 (18.03) [18.04) 8 10 11 18 19