Given financial information, prepare Coopie Awards' master budget. Notice, you will prepare a different budget on each tab of the spreadsheet. The last tab in the spreadsheet you will complete for the discussion forum.

Coopie Awards sold 43,000 brass plaques for the current year with the following results. In the discussion forum comment on Coopie Awards results.

Hint: Preparing a flexible budget will help in analyzing the results. Please show the flexible budget on this tab.

Actual Results

Budget based on 45000 unis

Variance

Sales Revenue

$ 1,548,000

$ 1,575,000

$27,000

Unfavorable

Direct Materials costs

498000

518400

$20,400

Favorable

Direct Labor Costs

94800

99000

$4,200

Favorable

Overhead Costs

126000

126,000

$0

total dierct costs

$ 718,800

$ 743,400

$24,600

Favorable

Selling and administrative cost

700000

729550

$29,550

Favorable

operating income

$ 129,200

$ 102,050

($27,150)

Favorable

Coopie Awards pays 40% in income taxes.

Requirement: Prepare Coopie Awards' budgeted income statement

Coopie Awards

Budgeted Income Statement

For the current year

Sales Revenue

$0

Cost of Goods sold

0

Gross Profit

$0

Selling and administrative expenses

0

Income from operations

$0

Income Tax

0

Net Income

$0

The following are date for the sales and administrative budget for Coopie Awards:
Sales Commissions	7% of sales
Advertising Expense	18% of sales
Misc. selling expense	$1,750 plus 4% of sales
Office salaries expense	$12,000 per month
office supplies expense	5% of sales
Misc administrative expense	$1,400 per month plus 2% of sales
Requirement: Prepare the selling and admin budget for Coopie Awards
Coopie Awards
Selling and Administrative Budget
For the current Year
Selling Expenses:
Sales commissions
Advertising expenses
Miscellaneous selling expenses
Total selling expenses
Administrative expenses:
Office salaries
Office supplies
Miscellaneous administrative expenses
Total administrative expenses
Total selling and administrative expenses

Assume the estimated January 1 inventory for finished goods and work in process were $54,000 and $47,000 respectively. Also assume the desired December 31 inventories for

finished goods and work in process were $50,000 and $49,000 respectively. Factory overhead was budgeted for $126,000.

Using the information on the previous tabs, prepare a cost of goods sold budget for Coopie Awards for the current year.

Coopie Awards

Budgeted Cost of Goods Sold

For the current year

Work in process Inventory January 1

Direct Materials:

Direct materials inventory January 1 (Note a)

Direct materials purchases

Cost of direct materials available for sale

Less direct materials December 31 (note b)

Cost of direct materials used in production

Direct labor

Factory Overhead

Cost of goods added to production

Cost of goods available

Less work in process December 31 inventory

Cost of goods manufactured

Plus Finished goods January 1

Less finished goods December 31

Cost of goods sold

Note a: 240000 X $0.12

Note b: 200000X.12