FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements. of Bo Direct material required per 100 boxes Paperboard ($0.32 per pound) Corrugating medium ($0.16 per pound) Direct labor required per 100 boxes ($16.00 per hour) 75 pounds 35 pounds 35 pounds 25 pounds 0.20 hour 0.40 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 480,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours. Indirect material $14,550 81,530 49,500 33,000 26,000 57,500 Indirect labor Utilities Property taxes Insurance Depreciation $262,080 Total The following selling and administrative expenses are anticipated for the next year. Salaries and fringe benefits of sales personnel Advertising Management salaries and fringe benefits Clerical wages and fringe benefits Miscellaneous administrative expenses $139,500 31,500 153,000 48,000 7,800 $379,800 Total The sales forecast for the next year is as follows: Sales Volume Sales Price x type C x type $125.00 per hundred boxes 485,000 boxes 485,000 boxes 185.00 per hundred boxes The following inventory information is available for the next year. The unit production costs for each product are expected to be the same this year and next year. Desired Ending Expected Inventory January 1 Inventory December 31 Finished goods: 12,500 boxes 22,500 boxes x type x type 17,500 boxes 27,500 boxes Raw material: 7,000 pounds 13,000 pounds Paperboard Corrugating medium 17,000 pounds 8,000 pounds 7. Prepare the budgeted income statement for the next year. (Do not round intermediate calculations.) Sales revenue $ 1,503,500 Less: Cost of goods sold Gross margin Selling and administrative expenses 379,800 Income before taxes Income tax expense Net income 1. Prepare the sales budget for the next year. (Round "Sales price per unit" to 2 decimal places.) x Total Sales (in units) 485,000 485,000 Sales price per unit $ $ 1.25 1.85 $1,503,500 $ $ Sales revenue 606,250 897,250 2. Prepare the production budget for the next year. x x Sales 485,000 485,000 Add: Desired ending inventory 12,500 22,500 Total units needed 497,500 507,500 Less: Beginning inventory 17,500 27,500 Production requirements 480,000 480,000 Paperboard x Total 480,000 480,000 Production requirement (number of boxes) Raw material required per box (pounds) 0.35 0.75 168,000 360,000 Raw material required for production (pounds) 528,000 Add: Desired ending raw-material inventory 7,000 Total raw-material needs 535,000 Less: Beginning raw-material inventory 17,000 Raw material to be purchased 518,000 Price (per pound) 0.32 $ 165,760 Cost of purchases (paperboard) 4. Prepare the direct-labor budget for the next year. (Do not round intermediate calculations. Round "Direct labor required per box (hours)" to 4 decimal places.) x x Total Production requirements (number of boxes) 480,000 480,000 Direct labor required per box (hours) 0.0020 0.0040 Direct labor required for production (hours) 960 1,920 2,880 $ Direct-labor rate 16 $ 46,080 Total direct-labor cost 5. Prepare the production-overhead budget for the next year. Depreciation 57,500 Indirect labor 81,530 Indirect material 14,550 Utilities 49,500 Insurance 26,000 Property taxes 33,000 $ 262,080 Total production overhead FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements. of Bo Direct material required per 100 boxes Paperboard ($0.32 per pound) Corrugating medium ($0.16 per pound) Direct labor required per 100 boxes ($16.00 per hour) 75 pounds 35 pounds 35 pounds 25 pounds 0.20 hour 0.40 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 480,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours. Indirect material $14,550 81,530 49,500 33,000 26,000 57,500 Indirect labor Utilities Property taxes Insurance Depreciation $262,080 Total The following selling and administrative expenses are anticipated for the next year. Salaries and fringe benefits of sales personnel Advertising Management salaries and fringe benefits Clerical wages and fringe benefits Miscellaneous administrative expenses $139,500 31,500 153,000 48,000 7,800 $379,800 Total The sales forecast for the next year is as follows: Sales Volume Sales Price x type C x type $125.00 per hundred boxes 485,000 boxes 485,000 boxes 185.00 per hundred boxes The following inventory information is available for the next year. The unit production costs for each product are expected to be the same this year and next year. Desired Ending Expected Inventory January 1 Inventory December 31 Finished goods: 12,500 boxes 22,500 boxes x type x type 17,500 boxes 27,500 boxes Raw material: 7,000 pounds 13,000 pounds Paperboard Corrugating medium 17,000 pounds 8,000 pounds 7. Prepare the budgeted income statement for the next year. (Do not round intermediate calculations.) Sales revenue $ 1,503,500 Less: Cost of goods sold Gross margin Selling and administrative expenses 379,800 Income before taxes Income tax expense Net income 1. Prepare the sales budget for the next year. (Round "Sales price per unit" to 2 decimal places.) x Total Sales (in units) 485,000 485,000 Sales price per unit $ $ 1.25 1.85 $1,503,500 $ $ Sales revenue 606,250 897,250 2. Prepare the production budget for the next year. x x Sales 485,000 485,000 Add: Desired ending inventory 12,500 22,500 Total units needed 497,500 507,500 Less: Beginning inventory 17,500 27,500 Production requirements 480,000 480,000 Paperboard x Total 480,000 480,000 Production requirement (number of boxes) Raw material required per box (pounds) 0.35 0.75 168,000 360,000 Raw material required for production (pounds) 528,000 Add: Desired ending raw-material inventory 7,000 Total raw-material needs 535,000 Less: Beginning raw-material inventory 17,000 Raw material to be purchased 518,000 Price (per pound) 0.32 $ 165,760 Cost of purchases (paperboard) 4. Prepare the direct-labor budget for the next year. (Do not round intermediate calculations. Round "Direct labor required per box (hours)" to 4 decimal places.) x x Total Production requirements (number of boxes) 480,000 480,000 Direct labor required per box (hours) 0.0020 0.0040 Direct labor required for production (hours) 960 1,920 2,880 $ Direct-labor rate 16 $ 46,080 Total direct-labor cost 5. Prepare the production-overhead budget for the next year. Depreciation 57,500 Indirect labor 81,530 Indirect material 14,550 Utilities 49,500 Insurance 26,000 Property taxes 33,000 $ 262,080 Total production overhead