I need help with the I See The Light Managerial Accounting Project Please!!
I See The Light, Inc Schedule of Projected Costs Variable Manufacturing Unit Cost 20x1 Cost Projected Percent Increase 20x2 Cost Rounded to 2 Decimal Places Lamp Kit Labor Variable Overhead $16.88 $2.11 $2.13 {4.01) {4.02) {4.03) Projected Variable Manufacturing Cost Per Unit $21.12 {4.04 Total Variable Cost Per Unit 20x1 Cost Projected Percent Increase 20x2 Cost Rounded to 2 Decimal Places Variable Selling Variable Administrative Projected Variable Manufacturing Unit Cost 1.07 1.04 {4.05) {4.06) {4.04) Projected Total Variable Cost Per Unit 23.23 4.07) Schedule of Fixed Costs 20x1 Cost 20x2 Cost Projected Percent Increase $ 275,000.00 {4.08; lamps @_) Fixed Overhead (normal capacity of _ Fixed Selling Fixed Administrative 23,000.00 44,000.00 $ {4.09) {4.10) Projected Total Fixed Costs $ 342,000.00 {4.113 I See The Light Projected Income Statement For the Period Ending December 31, 20x1 $ 1,125,000.00 750,000.00 375,000.00 $ Sales 25,000 lamps @ $45.00 Cost of Goods Sold @ $30.00 Gross Profit Selling Expenses: Fixed Variable (Commission per unit) $3.00 Administrative Expenses: Fixed Variable @ $2.00 Total Selling and Administrative Expenses: Net Profit $ 23,000.00 75,000.00 $ 98,000.00 $ 42,000.00 50,000.00 92,000.00 190,000.00 185,000.00 $ I See The Light Projected Balance Sheet As of December 31, 20x1 $ 34,710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets 500 @ $16.00 8,000.00 3000 @ $30.00 $ 90,000.00 200,210.00 $ Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 20,000.00 6,800.00 13,200.00 213,410.00 $ $ 54,000.00 54,000.00 $ Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 147,410.00 159.410.00 213,410.00 $ A B E E 4 PART 1 Fixed and Variable Cost Determinations Unit Cost Calculations UI U 3 The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are: Lamp Kit: Direct Labor: Variable Overhead: Fixed Overhead: $16.0000000 per lamp 2.0000000 per lamp (4 lamps/hr.) 2.0000000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps) Cost per lamp: $30.0000000 per lamp 5 26 Expected increases for 20x2 7 When calculating projected increases round to TWO ($0.00) decimal places. = 1. Material Costs are expected to increase by 5.50%. 2. Labor Costs are expected to increase by 5.50%. 3. Variable Overhead is expected to increase by 6.50%. OO 4. Fixed Overhead is expected to increase to $275,000. 5. Fixed Administrative expenses are expected to increase to $44,000. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 6.50%. 7. Fixed selling expenses are expected to be $23,000 in 20x2. 00OGFO V 8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 3.50%. 19 On the following schedule develop the following figures: 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 2- 20x2 Projected Variable Unit Cost per lamp. 5 NOG 3- 20x2 Projected Fixed Costs. C D 4 PART 3 Budgets 15 Division N has decided to develop its budget based upon projected sales of 25,000 lamps at 16 $55.00 per lamp. 17 The company has requested that you prepare a master budget for the year. This budget is to be used 25 for planning and control of operations and should be composed of: 26 27 1. Production Budget 2. Materials Budget 38 3. Direct Labor Budget 40 4. Factory Overhead Budget 49 5. Selling and Administrative Budget 51 6. Cost of Goods Sold Budget 53 7. Budgeted Income Statement 61 62 8. Cash Budget 63 64 Notes for Budgeting: 65 73 74 The company wants to maintain the same number of units in the beginning and ending inventories of 75 work-in-process, and electrical parts while increasing the inventory of Lamp Kits to 525 pieces and 76 decreasing the finished goods by 20%. 85 Complete the following budgets 1 Production Budget 88 89 25000 97 98 99 Planned Sales Desired Ending Inventory of Finished Goods Total Needed Less: Beginning Inventory 100 Total Production {7.01) 101 109 110 111 I See The Light, Inc Schedule of Projected Costs Variable Manufacturing Unit Cost 20x1 Cost Projected Percent Increase 20x2 Cost Rounded to 2 Decimal Places Lamp Kit Labor Variable Overhead $16.88 $2.11 $2.13 {4.01) {4.02) {4.03) Projected Variable Manufacturing Cost Per Unit $21.12 {4.04 Total Variable Cost Per Unit 20x1 Cost Projected Percent Increase 20x2 Cost Rounded to 2 Decimal Places Variable Selling Variable Administrative Projected Variable Manufacturing Unit Cost 1.07 1.04 {4.05) {4.06) {4.04) Projected Total Variable Cost Per Unit 23.23 4.07) Schedule of Fixed Costs 20x1 Cost 20x2 Cost Projected Percent Increase $ 275,000.00 {4.08; lamps @_) Fixed Overhead (normal capacity of _ Fixed Selling Fixed Administrative 23,000.00 44,000.00 $ {4.09) {4.10) Projected Total Fixed Costs $ 342,000.00 {4.113 I See The Light Projected Income Statement For the Period Ending December 31, 20x1 $ 1,125,000.00 750,000.00 375,000.00 $ Sales 25,000 lamps @ $45.00 Cost of Goods Sold @ $30.00 Gross Profit Selling Expenses: Fixed Variable (Commission per unit) $3.00 Administrative Expenses: Fixed Variable @ $2.00 Total Selling and Administrative Expenses: Net Profit $ 23,000.00 75,000.00 $ 98,000.00 $ 42,000.00 50,000.00 92,000.00 190,000.00 185,000.00 $ I See The Light Projected Balance Sheet As of December 31, 20x1 $ 34,710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets 500 @ $16.00 8,000.00 3000 @ $30.00 $ 90,000.00 200,210.00 $ Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 20,000.00 6,800.00 13,200.00 213,410.00 $ $ 54,000.00 54,000.00 $ Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 147,410.00 159.410.00 213,410.00 $ A B E E 4 PART 1 Fixed and Variable Cost Determinations Unit Cost Calculations UI U 3 The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are: Lamp Kit: Direct Labor: Variable Overhead: Fixed Overhead: $16.0000000 per lamp 2.0000000 per lamp (4 lamps/hr.) 2.0000000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps) Cost per lamp: $30.0000000 per lamp 5 26 Expected increases for 20x2 7 When calculating projected increases round to TWO ($0.00) decimal places. = 1. Material Costs are expected to increase by 5.50%. 2. Labor Costs are expected to increase by 5.50%. 3. Variable Overhead is expected to increase by 6.50%. OO 4. Fixed Overhead is expected to increase to $275,000. 5. Fixed Administrative expenses are expected to increase to $44,000. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 6.50%. 7. Fixed selling expenses are expected to be $23,000 in 20x2. 00OGFO V 8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 3.50%. 19 On the following schedule develop the following figures: 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 2- 20x2 Projected Variable Unit Cost per lamp. 5 NOG 3- 20x2 Projected Fixed Costs. C D 4 PART 3 Budgets 15 Division N has decided to develop its budget based upon projected sales of 25,000 lamps at 16 $55.00 per lamp. 17 The company has requested that you prepare a master budget for the year. This budget is to be used 25 for planning and control of operations and should be composed of: 26 27 1. Production Budget 2. Materials Budget 38 3. Direct Labor Budget 40 4. Factory Overhead Budget 49 5. Selling and Administrative Budget 51 6. Cost of Goods Sold Budget 53 7. Budgeted Income Statement 61 62 8. Cash Budget 63 64 Notes for Budgeting: 65 73 74 The company wants to maintain the same number of units in the beginning and ending inventories of 75 work-in-process, and electrical parts while increasing the inventory of Lamp Kits to 525 pieces and 76 decreasing the finished goods by 20%. 85 Complete the following budgets 1 Production Budget 88 89 25000 97 98 99 Planned Sales Desired Ending Inventory of Finished Goods Total Needed Less: Beginning Inventory 100 Total Production {7.01) 101 109 110 111
