havir Szirl 2 3 Sudsy Days sold 7000 Soap jugs in 2019, and its actual operating income was as follows: 4 5 Sudsy Days 6 Balance Sheet 7 December 31, 2019 8 9 Net Sales Revenue $ 630,000 10 Cost of Goods Sold: 11 Variable $ 94,890 12 Fixed 36,540 131,430 13 Gross Profit 498,570 14 Selling & Admin Expenses: 15 Variable 12,600 16 Fixed 61,400 74,000 17 Operating Income 424,570 18 Other income and (Expenses): 19 Interest Expense (425) 20 Income Before Income Taxes 424,145 21 Income Tax Expense 22,000 22 Net Income $ 402,145 23 24 25 2a. Prepare a flexible budget performance report through operating income for 2019. Show product costs 26 separately from selling and administrative costs. To simplify the calculations due to sets in beginning inventory 27 having a different cost than those produced and sold in 2019, assume the following product costs: 28 29 30 Variable Fixed Total 31 Static Budget 84,240 38,340 122,580 32 Flexible Budget 93,940 38,340 132,280 33 34 F o 2b. W 24 25 2a. Prepare a flexible budget performance report through operating income for 2019. Show product costs 26 separately from selling and administrative costs. To simplify the calculations due to sets in beginning inventory 27 having a different cost than those produced and sold in 2019, assume the following product costs: 28 35 2b. 29 30 Variable Fixed Total 31 Static Budget 84,240 38,340 122,580 32 Flexible Budget 93,940 38,340 132,280 33 34 What was the effect on Sudsy's operating income of selling 7000 jugs more than the static budget 36 level of sales? 37 2c. Explain why the flexible budget performance report provides more useful information to Sudsy's 38 managers than the static budget performance report. What insights can Sudsy's managers draw 39 from this performance report? 40 41 Note that you will need to refer to information from Req1 to complete this problem. 42 43 44 A5 T U K L M N S 2a. Prepare a flexible budget performance report through operating income for 2019. Show product costs separately from selling and administrative costs. To simplify the calculations due to sets in beginning inventory having a different cost than those produced and sold in 2019. Sudsy Days Soap Company Flexible Budget Performance Report For the Year Ended December 31, 2019 Budget Amounts Flexible Budget Variance Sales Volume Variance Static Budget per unit Actual Results 7000 $ 630,000 Flexible Budget 7000 $ 630,000 Units Net Sales Revenue Variable Costs: Product Costs S&A Costs Contribution Margin Fixed Costs: Product Costs S&A Costs Operating Income Sales Vol. Variance Flexible Budget Variance ntory Static Budget Variance 2b. What was the effect on Sudsy's operating income of selling 7000 jugs more than the static budget level of sales? budget udsy's s draw 2c. Explain why the flexible budget performance report provides more useful information to Sudsy's managers than the static budget performance report. What insights can Sudsy's managers draw from this performance report? 24 25 Sudsy Days 26 Balance Sheet 27 December 31, 2018 28 29 Assets 30 Current Assets: 31 Cash $ 58,000 32 A/R 22,000 33 Raw Materials Inventory 1,200 34 Finished Goods Inventory 5,400 35 Total Current Assets $ 86,600 36 Plant Property & Equipment: 37 Equipment 142,000 38 Less: Accumulated Depreciation (47,000) 95,000 39 Total Assets 181,600 40 41 Liabilities 42 Current Liabilities: 43 Accounts Payable 8,000 44 45 Stockholders' Equity 46 Common Stock, no par $ 120,000 47 Retained Earnings 53,600 48 Total stockholders' equity 173,600 49 Total Liabilities and Stockholders' Equity $ 181,600 50 51 52 Additional Information 53 a. Budgeted sales are 1,400 soap jugs for the first quarter and are expected to increase by 150 jugs per quarter. 54 Cash sales are expected to make up 30% of total sales, the remainder will be on account. The expected sales 55 price per soap jug is $90. 56 b. Finished goods inventory on December 31, 2018, consists of 200 soap jugs at $27 each. 57c. Desired ending finished goods inventory is 40% of the next quarter's sales; first-quarter sales for 2020 are 58 expected to be 2,000 soap jugs; FIFO inventory costing is used. 59 d. Raw Materials Inventory on December 31, 2018, consists of 600 gallons of the required components used to 60 manufacture the soap. 61 e. Direct materials requirements are 3 gallons of material per soap jug. The cost of each gallon is $2. 62 f. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; 63 desired ending Inventory for December 31, 2019, is 600 gallons; indirect materials are insignificant and not Read Student a Dos havir Szirl 2 3 Sudsy Days sold 7000 Soap jugs in 2019, and its actual operating income was as follows: 4 5 Sudsy Days 6 Balance Sheet 7 December 31, 2019 8 9 Net Sales Revenue $ 630,000 10 Cost of Goods Sold: 11 Variable $ 94,890 12 Fixed 36,540 131,430 13 Gross Profit 498,570 14 Selling & Admin Expenses: 15 Variable 12,600 16 Fixed 61,400 74,000 17 Operating Income 424,570 18 Other income and (Expenses): 19 Interest Expense (425) 20 Income Before Income Taxes 424,145 21 Income Tax Expense 22,000 22 Net Income $ 402,145 23 24 25 2a. Prepare a flexible budget performance report through operating income for 2019. Show product costs 26 separately from selling and administrative costs. To simplify the calculations due to sets in beginning inventory 27 having a different cost than those produced and sold in 2019, assume the following product costs: 28 29 30 Variable Fixed Total 31 Static Budget 84,240 38,340 122,580 32 Flexible Budget 93,940 38,340 132,280 33 34 F o 2b. W 24 25 2a. Prepare a flexible budget performance report through operating income for 2019. Show product costs 26 separately from selling and administrative costs. To simplify the calculations due to sets in beginning inventory 27 having a different cost than those produced and sold in 2019, assume the following product costs: 28 35 2b. 29 30 Variable Fixed Total 31 Static Budget 84,240 38,340 122,580 32 Flexible Budget 93,940 38,340 132,280 33 34 What was the effect on Sudsy's operating income of selling 7000 jugs more than the static budget 36 level of sales? 37 2c. Explain why the flexible budget performance report provides more useful information to Sudsy's 38 managers than the static budget performance report. What insights can Sudsy's managers draw 39 from this performance report? 40 41 Note that you will need to refer to information from Req1 to complete this problem. 42 43 44 A5 T U K L M N S 2a. Prepare a flexible budget performance report through operating income for 2019. Show product costs separately from selling and administrative costs. To simplify the calculations due to sets in beginning inventory having a different cost than those produced and sold in 2019. Sudsy Days Soap Company Flexible Budget Performance Report For the Year Ended December 31, 2019 Budget Amounts Flexible Budget Variance Sales Volume Variance Static Budget per unit Actual Results 7000 $ 630,000 Flexible Budget 7000 $ 630,000 Units Net Sales Revenue Variable Costs: Product Costs S&A Costs Contribution Margin Fixed Costs: Product Costs S&A Costs Operating Income Sales Vol. Variance Flexible Budget Variance ntory Static Budget Variance 2b. What was the effect on Sudsy's operating income of selling 7000 jugs more than the static budget level of sales? budget udsy's s draw 2c. Explain why the flexible budget performance report provides more useful information to Sudsy's managers than the static budget performance report. What insights can Sudsy's managers draw from this performance report? 24 25 Sudsy Days 26 Balance Sheet 27 December 31, 2018 28 29 Assets 30 Current Assets: 31 Cash $ 58,000 32 A/R 22,000 33 Raw Materials Inventory 1,200 34 Finished Goods Inventory 5,400 35 Total Current Assets $ 86,600 36 Plant Property & Equipment: 37 Equipment 142,000 38 Less: Accumulated Depreciation (47,000) 95,000 39 Total Assets 181,600 40 41 Liabilities 42 Current Liabilities: 43 Accounts Payable 8,000 44 45 Stockholders' Equity 46 Common Stock, no par $ 120,000 47 Retained Earnings 53,600 48 Total stockholders' equity 173,600 49 Total Liabilities and Stockholders' Equity $ 181,600 50 51 52 Additional Information 53 a. Budgeted sales are 1,400 soap jugs for the first quarter and are expected to increase by 150 jugs per quarter. 54 Cash sales are expected to make up 30% of total sales, the remainder will be on account. The expected sales 55 price per soap jug is $90. 56 b. Finished goods inventory on December 31, 2018, consists of 200 soap jugs at $27 each. 57c. Desired ending finished goods inventory is 40% of the next quarter's sales; first-quarter sales for 2020 are 58 expected to be 2,000 soap jugs; FIFO inventory costing is used. 59 d. Raw Materials Inventory on December 31, 2018, consists of 600 gallons of the required components used to 60 manufacture the soap. 61 e. Direct materials requirements are 3 gallons of material per soap jug. The cost of each gallon is $2. 62 f. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; 63 desired ending Inventory for December 31, 2019, is 600 gallons; indirect materials are insignificant and not Read Student a Dos