1. 			FMI
   			Sales Budget
   			For year ending December 31, 2019
   			Quarter
   	1	2		3	4	Year
   2018 Sales Units
   Forecast Multiplicative factor
   2019 Expected sales units
   Unit selling price
   Expected total sales
   			FMI
   			Production Budget
   			For year ending December 31, 2019
   			Quarter
   	1	2		3	4	Year
   Expected unit sales
   Add: Desired finished goods units
   Total required units
   Less: Beginning finished goods units
   Required production units
   			FMI
   			FMI Direct Materials Budget
   			For year ending December 31, 2019
   			Quarter
   	1	2		3	4	Year
   Units to be produced
   Direct materials (kilograms per unit)
   Kilograms needed for production
   Add: ending direct materials needed
   Total: kilos of materials needed
   Less: beginning direct materials
   Direct materials purchases (kilos)
   Cost per kilogram ($1.50)
   Total cost of direct materials purchases
   			FMI
   			Direct Labor Budget
   			For year ending December 31, 2019
   			Quarter
   	1	2		3	4	Year
   Units to be produced
   Direct labor hours per unit
   Total required direct labor hours
   Direct labor cost per hour
   Total direct labor cost
   			FMI
   			Manufacturing Overhead Budget
   			For year ending December 31, 2019
   			Quarter
   	1	2		3	4	Year
   Variable Overhead Costs:
   Base: direct labor hours
   Indirect materials (0.1 per hour)
   Indirect labor (0.2 per hour)
   Maintenance (0.5 per hour)
   Total variable 0verhead Cost
   Fixed Overhead Costs:
   Supervisory Salaries
   Maintenance
   Depreciation
   Total Fixed Overhead Costs
   Total Manufacturing Overhead
   Also mention the currency units (US dollars)
   For example state that prices, revenues, or costs are in US dollars
   if they are used in a given budget

   

Managerial accountants and the budget committee for the FMI corporation is meeting in November to prepare the 2019 budget. Your task, as a member of the budget committee, is to prepare the 2019 budget given the following data Sales: The company expects to sell 40% more units in 2019 than in each quarter of 2018, During 2018, sales were Q1: 40,000; Q2: 30,000; 03: 60,000 and Q4: 50,000 units. The selling price per unit is expected to be $50 in the first three quarters, but only $40 per unit in Q4 because substantial competition is expected beginning in Q4 of 2019. Sales are expected to 40,00 units in Q1 of 2020 The company wants to maintain ending finished goods inventory at 25% of the next quarter's expected unit sales. Assume that this will hold to start Q1 of 2019 so that beginning finished goods inventory is (.25) (40,000) 1.4) (.25)(56,000)-14,000 units Each unit of final goods produced requires 1.5 hours of direct labor time at $12 per hour Variable overhead costs are calculated per unit of direct labor hours as follows: indirect labor $0.2, indirect materials $0.1, maintenance $0.5. ANNUAL fixed overhead costs are: supervisory salaries $200,000, maintenance $60,000, depreciation 80,000. They are allocated equally across quarters Direct raw material requirements are 5 kilograms per unit of output produced and the cost is $1.5 per kilogram of materials. At the end of each quarter, the company maintains enough raw materials to produce 10,000 units for the next quarter Instructions: Prepare the following budgets by quarter for the year 2019 (also show the cumulative or annual totals) [Use the format shown in the textbook to prepare each quarter's budget. Your work and calculations MUST be done using an Microsoft excel spreadsheet.] (a) Sales budget (b) Production budget (c) Direct materials budget (d) Direct labor budget (e) Manufacturing overhead budget The marking scheme: Sales budget Production budget Direct material budget Direct labor budget Manufacturing overhead budget Correct and well-organized budget structure Complete and clear column and row labels including the accumulated column entitled "Year" Project individually uploaded to Blackboard Managerial accountants and the budget committee for the FMI corporation is meeting in November to prepare the 2019 budget. Your task, as a member of the budget committee, is to prepare the 2019 budget given the following data Sales: The company expects to sell 40% more units in 2019 than in each quarter of 2018, During 2018, sales were Q1: 40,000; Q2: 30,000; 03: 60,000 and Q4: 50,000 units. The selling price per unit is expected to be $50 in the first three quarters, but only $40 per unit in Q4 because substantial competition is expected beginning in Q4 of 2019. Sales are expected to 40,00 units in Q1 of 2020 The company wants to maintain ending finished goods inventory at 25% of the next quarter's expected unit sales. Assume that this will hold to start Q1 of 2019 so that beginning finished goods inventory is (.25) (40,000) 1.4) (.25)(56,000)-14,000 units Each unit of final goods produced requires 1.5 hours of direct labor time at $12 per hour Variable overhead costs are calculated per unit of direct labor hours as follows: indirect labor $0.2, indirect materials $0.1, maintenance $0.5. ANNUAL fixed overhead costs are: supervisory salaries $200,000, maintenance $60,000, depreciation 80,000. They are allocated equally across quarters Direct raw material requirements are 5 kilograms per unit of output produced and the cost is $1.5 per kilogram of materials. At the end of each quarter, the company maintains enough raw materials to produce 10,000 units for the next quarter Instructions: Prepare the following budgets by quarter for the year 2019 (also show the cumulative or annual totals) [Use the format shown in the textbook to prepare each quarter's budget. Your work and calculations MUST be done using an Microsoft excel spreadsheet.] (a) Sales budget (b) Production budget (c) Direct materials budget (d) Direct labor budget (e) Manufacturing overhead budget The marking scheme: Sales budget Production budget Direct material budget Direct labor budget Manufacturing overhead budget Correct and well-organized budget structure Complete and clear column and row labels including the accumulated column entitled "Year" Project individually uploaded to Blackboard