For raw material, the liquid is .20 per pound (20 cents). For the pigment, it should be .10 cents per pound (10 cents).

81. Sales Budget: Type N Total 10 Sales (in units) 11 Sales price per unit 12 Sales revenue 13 15 2. Production Budget (in units): 16 17 Sales 18 Add: Desired ending inventory 19 Total units needed 20 Deduct: Beginning inventory Type N 24 3. Raw material budget: 25 26 Liquid Medium Total 28 29 Production requirements 30 Raw material required per 100 bottles (pounds) 31 Raw material required for production (pounds) 32 Add: Desired ending raw-material inventory 33 Total raw-material needs 34 Deduct: Beginning raw-material inventory 35 Raw material to be purchase 36 Price (per pound) 37 Cost of purchases (Liquid Medium) 38 39 Pigment A 41 Type N Total 43 Raw material required per 100 bottles (pounds) 44 Raw material required for production (pounds) 45 Add: Desired ending raw-material inventory 46 Total raw-material needs 47 Deduct: Beginning raw-material inventory 48 Raw material to be purchased 49 Price (per pound) 50 Cost of purchases (Pigment A) 51 52 Total cost of raw-material purchases 645. Production overhead budget: 65 Indirect material 66 Indirect labor 67 Utilities 68 Property taxes 70 Depreciation 71 Total overhead 72 73 74 6. Selling and administrative expense budget: 75 Salaries and fringe benefits of sales personnel 76 Advertising 77 Management salaries and fringe benefits 78 Clerical wages and fringe benefits 79 Miscellaneous administrative expenses 80 Total selling and administrative expenses 81 82 83 7. Budgeted income statement: 84 Sales revenue 85 Less: Cost of goods sold: 86 TypeN 87 TypeS 88 Gross margin 89 Selling and administrative expenses 90 Income before taxes 91 Income tax expense 92Net income 93 94 *Calculation of cost of goods sold: 95 (a) Predetermined overhead rate 96 Budgeted manufacturing overhead rate 97 Volume of direct-labor hours 98 Rate per hour 100 (b) Calculation of manufacturing cost per unit: 101 102 Direct material 103 Liquid Paper 104 Pigment A 105 Direct labor 106 Applied manufacturing overhead 107 Manufacturing cost per unit 108 109 Type N Parsgraph sayles Edlting The following inventory information is available. The unit production costs for each product are expected to be the same this year and the tollowing year Acomparry manufactures to types of makeup foundation Type S is for sensitive skin and type N Is for non-sensltive skdn. The products have the following materials and labor requircments Expected Inventory January sired Ending Inventory Dcmber 31 Finished Goods Type N Type S Type N Type S 0,000 bottles 20,000 baltks 000 bottles 15,000 battles Direct materials required per 100 bottles Liquid medium Pigment A 30 pounds 20 pounds 25 hour 70 pounds 30 pounds 50 hour Raw Matrrial Pigment A 15,000 5,000 pounds Direct labor required per 100 bottles S12hour) Liquid 5000 pounds nedium 10,000 pounds The following production-overhead costs are anticipated for the next year. The Required: d overhead rate is based on the production volume of 495,000 botles Prepare a master budget for the companyl Inc., for the next year. Assume an incoma ax rale of 40 percent.Include the fullowing clion overhead is applied on the basis of direct-labor hours. direct material Indirect labor Utlities Praperty laxes Insuranc $10,500 9,000 1. Sales budget 2. Production budget 3. Direct-material budget 4 Dirc labor budgr 16,000 18,000 30,000 6. Selling and administrative expense budget Budgeted income statement 7 Total S140, The fallowing selling and administrative axpensns are anticipated for the next year alaries and ringe benelils af sales persornnel S80 tising Management salaries and linge benes Clericall wages and fringe benetfits 15 85 25,00 otal $210 The sales Iorecas is as folows Sales Volume Sales Price ype N Type S Activate Window Go to Settings to activa 500,000 bottles 390 per hundred bottles 130 per hundred bottles 500,000 bottles Page 2 ot 2 291 words