I need help with #40, specifically b&c but it requires info from problem 39, so I have attached that problem and answers for reference.

This is the template/format:

#39 for reference:

40. Selling and Administrative Budget and Budgeted Income Statement. (The previous problem must be completed before working this problem.) Sports Bars, Inc., produces energy bars. Management estimates all selling and administrative costs are fixed. Quarterly selling and administrative cost estimates for the coming year follow. Salaries $170,000 Rent $ 65,000 Advertising $120,000 Depreciation $ 75,000 Other $ 36,000 Required: Use the information presented previously to prepare a selling and administrative budget. Refer to the format shown in Figure 9.8. b. Use the information from the previous problem and from requirement a of this problem to prepare a budgeted income statement. Refer to the format shown in Figure 9.9. How will management use the information presented in the budgeted income statement? a. c. 40. Selling and Administrative Budget and Budgeted Income Statement a. Selling and administrative budget Sports Bars, Inc. Selling and Administrative Budget Year Ending December 31 Salaries Rent Advertising Depreciation Other Total selling and administrative costs Deduct depreciation Cash payments for selling and administrative $170,000 65.000 120,000 75.000 36,000 $466,000 75,000 $391,000 Quarter 2 3 $170,000 $170,000 65.000 65,000 120,000 120,000 75.000 75,000 36,000 36,000 $466.000 $466,000 75,000 75,000 $391,000 $391,000 4 $170,000 65,000 120,000 75,000 36,000 $466,000 75,000 $391,000 Year $ 680,000 260,000 480,000 300,000 144.000 $1,864,000 300,000 $1,564,000 PROBLEMS (continued) 40. Selling and Administrative Budget and Budgeted Income Statement (continued) b. Budgeted income statement Sports Bars, Inc. Budgeted Income Statement Year Ending December 31 Quarter 2 Sales (from sales budget) Deduct cost of goods sold Gross margin Deduct selling and administrative costs Net income (loss) 3 Year $2,024,200 Year Per unit cost of goods sold calculation: Direct materials (from direct materials purchases budget) Direct labor (from direct labor budget) Manufacturing overhead (from manufacturing overhead budget) Total cost of goods sold per unit c. Provide your answer in the text box below: 39. Budgeting for Sales, Production, Direct Materials, Direct Labor, and Manufacturing Overhead. Sports Bars, Inc., produces energy bars and sells them by the case (1 unit = 1 case). Information to be used for the operating budget this coming year follows: Average sales price for each case is estimated to be $25. Unit sales for this coming year, ending December 31, are expected to be as follows: First quarter 80,000 Second quarter 84,000 Third quarter 88,000 Fourth quarter 97,000 Finished goods inventory is maintained at a level equal to 15 percent of the next quarter's sales. Finished goods inventory at the end of the fourth quarter budget period is estimated to be 13,000 units. Each unit of product requires 5 pounds of direct materials, at a cost of $3 per pound. Management prefers to maintain ending raw materials inventory equal to 10 percent of next quarter's materials needed in production. Raw materials inventory at the end of the fourth quarter budget period is estimated to be 43,000 pounds. Each unit of product requires 0.10 direct labor hours at a cost of $14 per hour. Variable manufacturing overhead costs are Indirect materials $0.20 per unit Indirect labor $0.15 per unit Other $0.10 per unit Fixed manufacturing overhead costs per quarter are Salaries $80,000 Other $70,000 Depreciation $55,625 Required: a. Prepare a sales budget using the format shown in Figure 9-3. b. Prepare a production budget using the format shown in Figure 9.4. c. Prepare a direct materials purchases budget using the format shown in Figure 9-5. d. Prepare a direct labor budget using the format shown in Figure 9.6. e. Prepare a manufacturing overhead budget using the format shown in Figure 9.7. Round to the nearest dollar. f Aothonraduation monocor what concerns fon do vou basa obeut nraduation raaniramonto for anch of the four PROBLEMS (continued) 39. Budgeting for Sales, Production, Direct Materials, Direct Labor, and Manufacturing Overhead a. Sales budget Sports Bars, Inc. Sales Budget Year Ending December 31 Quarter 1 2 3 Projected sales in units 80,000 84,000 88,000 Sales price per unit $25 $25 $25 Sales revenue $2,000,000 $2,100,000 $2,200,000 4 97,000 $25 $2,425,000 X Year 349,000 $25 $8,725,000 b. Production budget Sales in units (from sales budget) Add desired ending finished goods inventory Total finished goods inventory needed Deduct beginning finished goods inventory Units to be produced Sports Bars, Inc. Production Budget Year Ending December 31 Quarter 2 80,000 84,000 12,600 13,200 92,600 97,200 12,000 12,600 80,600 84,600 3 88,000 14,550 102,550 13,200 89,350 4 97,000 13,000 110,000 14,550 95,450 Year 349,000 13,000 362,000 12,000 350,000 3 5 39. Budgeting for Sales, Production, Direct Materials, Direct Labor, and Manufacturing Overhead (continued) Direct materials purchases budget Sports Bars, Inc. Direct Materials Purchases Budget Year Ending December 31 Quarter 2 Units to be produced (from production budget) 80,600 84,600 89,350 Materials required per unit (pounds) 5 5 Materials needed in production 403,000 423,000 446,750 Add desired ending inventory 42,300 446,750 47,725 Materials needed in inventory 445,300 467,675 494,475 Deduct beginning inventory 40,300 42,300 44,675 Direct materials to be purchased (pounds) 405,000 425,375 449,800 Cost of materials per pound $3 $3 $3 Cost of materials to be purchased $1,215,000 $1,276,125 $1,349,400 Direct materials cost per unit 4 95,450 5 477,250 43,000 520,250 47,725 472,525 $3 $1,417,575 Year 350,000 5 1,750,000 43,000 1,793,000 40,300 1,752,700 $3 $5,258.100 $15 X x X 39. Budgeting for Sales, Production, Direct Materials, Direct Labor, and Manufacturing Overhead (continued) d. Direct labor budget Sports Bars, Inc. Direct Labor Budget Year Ending December 31 3 4 Units to be produced (from production budget) Direct labor hours per unit Total direct labor hours needed in production Labor rate per hour Total direct labor cost Direct labor cost per unit 80,600 0.1 8,060 $14 Quarter 2 84,600 0.1 8,460 $14 89,350 0.1 8,935 $14 95,450 0.1 9,545 $14 Year 350,000 0.1 35,000 $14 X $112,840 $118,440 $125,090 $133,630 $490,000 $1.40 Year 350,000 95,450 39. Budgeting for Sales, Production, Direct Materials, Direct Labor, and Manufacturing Overhead (continued) e. Manufacturing overhead budget Sports Bars, Inc. Manufacturing Overhead Budget Year Ending December 31 Quarter 3 Units to be produced (from production budget) 80,600 84,600 89,350 Variable overhead costs: Indirect materials ( $0.20 per unit) $ 16,120 $ 16,920 S 17,870 Indirect labor (S0.15 per unit) 12,090 12,090 13,403 Other ($ 0.10 per unit) 8,060 8,460 8,935 Total variable overhead costs S 36,270 $ 38,070 $ 40,208 Fixed overhead costs: Salaries $ 80,000 $ 80,000 S 80.000 Other 70,000 70,000 70,000 Depreciation 55,625 55,625 55,625 Total fixed overhead costs S205,625 $205,625 $205,625 Total overhead costs $241,895 $243,695 $245,833 Deduct depreciation 55,625 55,625 55,625 Cash payments for overhead $186,270 $188,070 $190,208 Manufacturing overhead per unit $ 19,090 14,318 9,545 $ 42,953 $ 70,000 52,500 35,000 $157,500 $ 80,000 70,000 55,625 $205,625 $248,578 55,625 $192,953 $320,000 280,000 222,500 $822,500 $980,000 222,500 $757,500 $2.80 39. Budgeting for Sales, Production, Direct Materials, Direct Labor, and Manufacturing Overhe (continued) f. The production budget shows the following trend in production from one quarter to the next: First Second Third Fourth Quarter Quarter Quarter Quarter 79,400 83,400 86,650 98,550 Provide your answer for the last part off here: The main job of the production department is to guarentee that the needed units are produced on time. The production manager may not be concerned for the first three quarters, since production is increasing at a steady rate. As it gets to the 4th quarter, they may become concerned because it may be difficult to increase production by that large amount of increased units./