How to do number 5 i), ii), iii), iv), prepare a budgeted income statement, using information from parts 1-4

5) Prepare a Budgeted Income Statement for 2021. (use format Exhibit 8, text pg. 212). Additional Budget Assumptions: 1) 1) 1) iv Use product units and Sales Revenue from your Sales Revenue Budget (step 1). Use Average Variable Cost per product unit from step 4 above. Determine fixed Selling and Admin cost for 2021. Please budget a Net Income (profit) for 2021. No losses, please. 6) CVP Analysis; Use your Income Statement from Part 5 to calculate: a) Break-even Sales Units (round to nearest unit). b) Break-even Sales Revenue (round to nearest $). c) Margin of Safety percentage at your Budget Net Income. d) How many units need to be produced and sold to achieve a Net Income that is 50% higher than your budgeted Net Income? 7) Make up some actual product variable costs incurred in 2021 with details. (ist me know if you need help with this) >Suggestion: Make actual product units produced equal your Sales Budget units. >Example; actual cost details for 12,000 actual product units (DO NOT USE THESE NUMBERS): Total Variable Cost >DM used (total) 3,120,000 kg x DM cost per kg: $1.08 $3,369,600 >DL used (total): 14,600 hours x DL cost per hour: $21.10 308,060 >Variable FO cost incurred (total) 222,340 >Total Variable Cost $3,900,000 actual variable cost per product unit ($3,900,000/12,000): $325 Use budget data and actual cost data (step 7) to calculate variances (variance analysis): (show all calculations and indicate "F" favorable or "U" unfavorable with your answers) a) DM price variance b) DM quantity variance c) DM cost variance d) DL rate variance e) DL time variance 1) DL cost variance e) Total variable FO variance Briefly explain how the variance analysis (step 8) above can be used to manage your company's manufacturing operations and control its costs. 9) Part 1: Sales Budget - ABC Corporation Particulars Product A Expected unit sales 60,000 Unit selling price 165 Budgeted Sales Revenue ( Sales units x Selling price) 99,00,000 Part 2: Production Budget - ABC Corporation Particulars Product A Expected unit sales 60,000 Add: Closing inventory of finished goods (in units) 25,000 Total units required to be manufactured 85,000 Less: Beginning finished goods units (20,000) Budgeted production units 65,000 4 kg Part 3 : It is assumed raw material "X" is requred to manufacture Product A Raw Material Purchase Budget - ABC Corporation Particulars Units/Amt Budgeted production units 65,000 Material needed for per unit of A: X Quantitty of Material X required to produce Product A 2,60,000 Add: Closing inventory of X as on 31st Dec 36,000 Total needs 2,96,000 Less: Beginning inventory of X as on 1st Jan (32,000) Budgeted purchase units of materials 2,64,000 Cost per kg $ Budgeted cost of raw material purchases (budgeted purchase units x cost per kg) 31,68,000 12.00 Part 4: Average Budgeted Total Variable cost - ABC Corporation Particulars Amount Direct Material cost per unit (4kg x $12) 48.00 Direct Labour (2 hours x $20 per hour) 40.00 Factory overhead per unit 30.00 Total Production cost 118.00 en ons 5) Prepare a Budgeted Income Statement for 2021. (use format Exhibit 8, text pg. 212). Additional Budget Assumptions: 1) 1) 1) iv Use product units and Sales Revenue from your Sales Revenue Budget (step 1). Use Average Variable Cost per product unit from step 4 above. Determine fixed Selling and Admin cost for 2021. Please budget a Net Income (profit) for 2021. No losses, please. 6) CVP Analysis; Use your Income Statement from Part 5 to calculate: a) Break-even Sales Units (round to nearest unit). b) Break-even Sales Revenue (round to nearest $). c) Margin of Safety percentage at your Budget Net Income. d) How many units need to be produced and sold to achieve a Net Income that is 50% higher than your budgeted Net Income? 7) Make up some actual product variable costs incurred in 2021 with details. (ist me know if you need help with this) >Suggestion: Make actual product units produced equal your Sales Budget units. >Example; actual cost details for 12,000 actual product units (DO NOT USE THESE NUMBERS): Total Variable Cost >DM used (total) 3,120,000 kg x DM cost per kg: $1.08 $3,369,600 >DL used (total): 14,600 hours x DL cost per hour: $21.10 308,060 >Variable FO cost incurred (total) 222,340 >Total Variable Cost $3,900,000 actual variable cost per product unit ($3,900,000/12,000): $325 Use budget data and actual cost data (step 7) to calculate variances (variance analysis): (show all calculations and indicate "F" favorable or "U" unfavorable with your answers) a) DM price variance b) DM quantity variance c) DM cost variance d) DL rate variance e) DL time variance 1) DL cost variance e) Total variable FO variance Briefly explain how the variance analysis (step 8) above can be used to manage your company's manufacturing operations and control its costs. 9) Part 1: Sales Budget - ABC Corporation Particulars Product A Expected unit sales 60,000 Unit selling price 165 Budgeted Sales Revenue ( Sales units x Selling price) 99,00,000 Part 2: Production Budget - ABC Corporation Particulars Product A Expected unit sales 60,000 Add: Closing inventory of finished goods (in units) 25,000 Total units required to be manufactured 85,000 Less: Beginning finished goods units (20,000) Budgeted production units 65,000 4 kg Part 3 : It is assumed raw material "X" is requred to manufacture Product A Raw Material Purchase Budget - ABC Corporation Particulars Units/Amt Budgeted production units 65,000 Material needed for per unit of A: X Quantitty of Material X required to produce Product A 2,60,000 Add: Closing inventory of X as on 31st Dec 36,000 Total needs 2,96,000 Less: Beginning inventory of X as on 1st Jan (32,000) Budgeted purchase units of materials 2,64,000 Cost per kg $ Budgeted cost of raw material purchases (budgeted purchase units x cost per kg) 31,68,000 12.00 Part 4: Average Budgeted Total Variable cost - ABC Corporation Particulars Amount Direct Material cost per unit (4kg x $12) 48.00 Direct Labour (2 hours x $20 per hour) 40.00 Factory overhead per unit 30.00 Total Production cost 118.00 en ons