I really need help with the questions on sheets 3,4,5, and 6. I've attached the project below for the problems. Thank you so much!

CS1207 I SEE THE LIGHT www.cybertext.com, The Book List, Building Blocks of Accounting--A Managerial Perspective, Enter password, Upload Your Excel File. Cody, when you are ready to have your work graded you will upload this file to the same screen that the project was downloaded from: Keep two copies of your spreadsheet in two separate places in case one of Big Al's competitors sends someone to destroy your work or it is lost in transmission. You may find it easier to work on this project if you print a hard copy of all the pages. There are alternative methods of solving problems. To insure similar answers and to guarantee that you are graded correctly please follow the instructions as to rounding. NOTE: If there are any questions about the project e-mail markfriedman@miami.edu or call 305.284.6296. Grade will be based upon answers entered into the shaded boxes. L813 150219 CS1207.xls or CS1207.xlsx Elf Village Productions 50 Sheet Legal Pad Building Blocks of Accounting .. A Financial Perspective Page 1 FAQ FAQ 01 My file used to upload, why is it not uploading? Answer: Sometimes we unknowing add items to a workbook that inhibits the upload process. The conversion to an earlier version Somehow clean the files and they then upload without problem. If the problem continue simple send your file as an attachment with your username and password...friedman@cybertext.com Windows Operating System Select File Select Save As Select Save As Type: Select Microsoft 5.0/95 Workbook (*.xls) Select Save Select Continue or Yes if prompted or if it indicates that there is limited memory. Select Select Select Select Select Select File Close File Open and open the .xls file Save As Save As Type: Excel Workbook (*.xlsx) Save Upload the file at cybertext.com Apple Operating System Select File Select Save As Select Format: Select Microsoft 5.0/95 Workbook (*.xls) Select Save Select Continue or Yes if prompted or if it indicates that there is limited memory. Select Select Select Select Select Select MF1234.xlsx File Close File Open and open the .xls file Save As Format: Excel Workbook (*.xlsx) Save Excel 5.0/95 Workbook (.xls) Upload the file at cybertext.com Elf Village Productions 50 Sheet Legal Pad Building Blocks of Accounting .. A Financial Perspective FAQ FAQ 02 Answer: 1 2 What is the difference between rounding a number and rounding up a number? B C D E F Cost of a Taxi $ 100.00 Number of Passengers 3 Page 2 3 4 5 6 7 Cost per Passenger Without rounding 33.333333 =F1/F2 Rounding to two decimals 33.33 =ROUND(F1/F2,2) Roundup to two decimals 33.34 =ROUNDUP(F1/F2,2) FAQ 03 When I upload it, the results show that I have an answer wrong, yet that answer is needed for another question which is marked correct. Answer: The computer is giving you part credit. Given: Width 10 ft Length 12 ft Cost per sq. ft. $6 Find {1.1} Area ----- 100 sq ft (wrong) {1.2} Cost ---- $600 correct based on the wrong area. Note if the area is corrected,120 sq ft, the cost would be wrong. FIRST Cody LAST Sanchez number 1207 File CS1207 I SEE THE LIGHT Background Information I SEE THE LIGHT (ISTL) is a subchapter S corporation that manufactures children's lampsightlights for use in bedrooms. These lamps are sold nationwide through a group of independent sales representatives who have an exclusive sales region. The business is in its tenth year and has asked you to assist in planning for next year's operations. The lamps are ceramic figurines of animals, boats, boys and girls playing and singing, all in delightful colors. The owner of the business, Big Al, creates a drawing for the figurine and faxes it to a plant in China where a mold is created and a sample produced and hand painted. If the mold meets the expectations of Big Al an order of 500 pieces is placed. There are presently 10 different figurines that come in six different colors; 60 models. The lamp shades and the electrical parts are supplied from domestic manufacturers. There are presently 10 workers in the plant. They are responsible for receiving the raw material, manufacturing the product, packing and shipping. In addition to Big Al there are two office workers who are responsible for all administrative duties. Big Al had his accountant prepare the Projected Income Statement and Balance Sheet presented on page two. Big Al heard about your skills in managerial accounting and would like your assistance in the following areas: Part 1 Part 2 Part 3 Fixed and Variable Cost Determinations - Unit Cost Calculations Cost Volume Relationships - Profit Planning Budgets To upload your work to Big Al the file without changing the name. Pay attention to the specific location that Excel saves the file. Return to the bottom of the page that you downloaded the file from; Cybertext.com, The Book List, Building Blocks of Accounting--A Managerial Perspective, Enter password, Upload Your Excel File. If you upload an old version of the file the results will not update. Keep two copies of your spreadsheet in two separate places in case one of Big Al's competitors sends someone to destroy your work or it is lost in transmission. You may find it easier to work on this project if you print a hard copy of all the pages. NOTE: If there are any questions about the project e-mail markfriedman@miami.edu or call 305.284.6296. Grade will be based upon answers entered into the shaded boxes. I See The Light Projected Income Statement For the Period Ending December 31, 20x1 Sales 25,000 lamps @ $45.00 Cost of Goods Sold @ $28.93 Gross Profit Selling Expenses: Fixed Variable (Commission per unit) @ $3.15 Administrative Expenses Total Selling and Administrative Expenses: Net Profit $ 1,125,000.00 723,250.00 $ 401,750.00 $ 23,000.00 78,750.00 $ 101,750.00 41,250.00 $ 143,000.00 258,750.00 I See The Light Projected Balance Sheet As of December 31, 20x1 Current Assets Cash Accounts Receivable Inventory Raw Material Figurines Electrical Sets Work in Process Finished Goods Total Current Assets Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 500 @ $9.20 500 @ $1.25 0 3000 @ $28.9250 34,710.00 67,500.00 $ 4,600.00 625.00 86,775.00 194,210.00 $ 13,200.00 207,410.00 $ $ 54,000.00 54,000.00 $ 153,410.00 207,410.00 $ 20,000.00 6,800.00 $ 12,000.00 141,410.00 Cody Sanchez 1579 PART 1 Fixed and Variable Cost Determinations Unit Cost Calculations 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: Figurines Electrical Sets Lamp Shade Direct Labor: Variable Overhead: Fixed Overhead: Cost per lamp: $9.2000000 1.2500000 6.0000000 2.2500000 0.2250000 10.0000000 per lamp per lamp per lamp per lamp (4 lamps/hr.) per lamp per lamp (based on normal capacity of 25,000 lamps) $28.9250000 per lamp Expected increases for 20x2 When calculating projected increases round to SEVEN decimal places,$0.0000000. 1. Material Costs are expected to increase by 5.00% . 2. Labor Costs are expected to increase by 2.50%. 3. Variable Overhead is expected to increase by 6.50%. 4. Fixed Overhead is expected to increase to $295,000. 5. Fixed selling expenses are expected to be $39,000 in 20x2. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 4.00%. 7. Fixed Administrative expenses are expected to increase by $12,000. The total administrative expenses for 20x0 were $41,205.00, when 23,500 units were sold. Use the High-Low method to calculate the total fixed administrative expense. 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 5.50%. The total administrative expenses for 20x0 were $41,205.00, when 23,500 units were sold. Use the High-Low method to calculate the variable administrative expense per lamp. 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. 3- 20x2 Projected Fixed Costs. Cody Sanchez 1579 I See The Light, Inc Schedule of Projected Costs Variable Manufacturing Unit Cost 20x1 Cost $9.6600000 {4.01} 7 1.25 5 $1.3125000 {4.02} 6 5 $6.3000000 {4.03} 2.25 2.5 $2.3062500 {4.04} 0.225 6.5 $0.2396250 {4.05} 7 7 7 7 $19.8183750 {4.06} 7 9.2 Lamp Shade Labor Variable Overhead Projected Variable Manufacturing Cost Per Unit 20x2 Cost Rounded to 7 Decimal Places 5 Figurines Electrical Sets Projected Percent Increase 18.925 24 Total Variable Cost Per Unit 20x1 Cost Variable Selling Projected Percent Increase 3.15 20x2 Cost Rounded to 7 Decimal Places {4.07} 4 7 7 7 Variable Administrative 20x1 {4.08} Variable Administrative 20x2 {4.09} Projected Variable Manufacturing Unit Cost {4.06} Projected Total Variable Cost Per Unit {4.10} 7 {4.11} 2 Fixed Selling {4.12} Fixed Administrative 20x1 {4.13} Fixed Administrative 20x2 {4.14} Projected Total Fixed Costs {4.15} 2 7 2 2 Schedule of Fixed Costs 20x1 Cost Fixed Overhead Projected Increase 10 20x2 Cost Rounded to 2 Decimal Places (normal capacity of _________ lamps @ __ ) Cody Sanchez 1579 PART 2 Cost Volume Relationships Profit Planning Big Al is about to begin work on the budget for 20x2 and they have requested that you prepare an analysis based on the following assumptions. Note: Remember, that we cannot sell part of a lamp, therefore to find the number of units you have to round up to the next complete unit. Furthuremore, to find the required sales in dollars it may be easier to find the number of units and then multiply by the selling price per unit. 1. For 20x2 the selling price per lamp will be $45.00. What is the projected contribution margin and contribution margin ratio for each lamp sold? Contribution Margin per unit (Round to seven places, $##.#######) 7 Contribution Margin Ratio (Round to seven places,% is two of those places ##.#####%) 2. {5.01} {5.02} 7 {5.03} 0 {5.04} 0 For 20x2 the selling price per lamp will be $45.00. How many lamps must be sold to breakeven? Breakeven sales in units (Round up to zero places, ###,### units) 3. For 20x2 the selling price per lamp will be $45.00. The desired net income in 20x2 is $258,750 . What would sales in units have to be in 20x2 to reach the profit goal? Sales in units (Round up to zero places, ###,### units) Cody Sanchez 1579 4. For 20x2 the selling price per lamp will be $45.00. The company would like to have a net income equal to 29.00% of sales. If that is to be achieved, what would be the sales in units in 20x2? Sales in units (Round up to zero places, ###,### units) 5. {6.02} 2 {6.03} 0 {6.04} 2 For 20x2 the selling price per lamp will be $45.00 and the effective tax rate is 37%. How many units must be sold to generated a net income of $180,000 after taxes? Sales in units (Round up to zero places, ###,### units) 7. 0 If the company believed that it could only sell 25,000 lamps, what would the new selling price have to be so that the new contribution margin per unit is equal to last year's contribution margin per unit? New Selling Price (Round up to two places, $###,###.## ) 6. {6.01} If the company believes that the demand will be 27,500 units for the year. What selling price per lamp, rounded to two places, would generate a net income of $827,500? New selling price per lamp (Round up to two places, $###,###.## ) Cody Sanchez 1579 PART 3 Budgets Division N has decided to develop its budget based upon projected sales of 35,000 lamps at $50.00 per lamp. The company has requested that you prepare a master budget for the year. This budget is to be used for planning and control of operations and should be composed of: 1. Production Budget 2. Materials Budget 3. Direct Labor Budget 4. Factory Overhead Budget 5. Selling and Administrative Budget 6. Cost of Goods Sold Budget 7. Budgeted Income Statement 8. Cash Budget Notes for Budgeting: The company wants to maintain the same number of units in the beginning and ending inventories of work-in-process, and electrical parts while increasing the figurines inventory to 725 pieces and increasing the finished goods by 23.00% . Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods (roundup to the next unit) Total Needed Less: Beginning Inventory Total Production {7.01} 0 Cody Sanchez 1579 2 Materials Budget Figurines Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, $##.##) {8.01} {8.02} 0 0 {8.03} {8.04} 0 0 {8.05} 2 Electrical Parts Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, $##.##) {8.06} 0 {8.07} 2 Lamp Shades Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, $##.##) {8.08} 2 {8.09} 2 {8.10} 2 Total Factory Overhead (Round to two places, $##.##) {8.11} 2 Predetermined Factory Overhead Rate based upon the budgeted number of units to be produced (Round to seven places, $##.#######) {8.12} 7 3 Direct Labor Budget Labor Cost Per Lamp Production Total Labor Cost (Round to two places, $##.##) $ 1.00 4 Factory Overhead Budget Variable Factory Overhead: Variable Factory Overhead Cost Per Unit Number of Units to be Produced Total Variable Factory Overhead (Round to two places, $##.##) Fixed Factory Overhead Cody Sanchez 1579 5 Selling and Admin. Budget Fixed Selling Variable Selling (Round to two places, $##.##) Fixed Administrative Variable Administrative (Round to two places, $##.##) Total Selling and Administrative (Round to two places, $##.##) 6 ### 2 ### 7 ### 2 ### 2 ### 2 ### ### ### ### ### ### ### 2 2 2 2 2 2 2 Cost of Goods Sold Budget - Assume FIFO (First-In, First-Out) and overhead is applied based on the number of units to be produced. Cost of making one unit next year Material cost per unit Labor Cost Per Lamp Factory overhead per unit Round dollars to seven places, $##.####### Total cost of one unit (Round to seven places, $##.#######) Round dollars to two places, $##.## Beginning Inventory, Finished Goods Production Costs: Materials: Figurines: Beginning Inventory Purchased Available for Use Ending Inventory of Figurines Figurines Used In Production Electrical Parts Beginning Inventory Purchased Available for Use Ending Inventory of Electrical Parts Electrical Parts Used In Production Lamp Shades: Lamp Shades Used In Production Total Materials: Labor Overhead Cost of Goods Available Less: Ending Inventory, Finished Goods Cost of Goods Sold Cody Sanchez 1579 7 Budgeted Income Statement Sales Cost of Goods Sold Gross Profit Selling Expenses & Admin. Expenses Net Operating Income ### 2 CS1207 I SEE THE LIGHT www.cybertext.com, The Book List, Building Blocks of Accounting--A Managerial Perspective, Enter password, Upload Your Excel File. Cody, when you are ready to have your work graded you will upload this file to the same screen that the project was downloaded from: Keep two copies of your spreadsheet in two separate places in case one of Big Al's competitors sends someone to destroy your work or it is lost in transmission. You may find it easier to work on this project if you print a hard copy of all the pages. There are alternative methods of solving problems. To insure similar answers and to guarantee that you are graded correctly please follow the instructions as to rounding. NOTE: If there are any questions about the project e-mail markfriedman@miami.edu or call 305.284.6296. Grade will be based upon answers entered into the shaded boxes. L813 150219 CS1207.xls or CS1207.xlsx Elf Village Productions 50 Sheet Legal Pad Building Blocks of Accounting .. A Financial Perspective Page 1 FAQ FAQ 01 My file used to upload, why is it not uploading? Answer: Sometimes we unknowing add items to a workbook that inhibits the upload process. The conversion to an earlier version Somehow clean the files and they then upload without problem. If the problem continue simple send your file as an attachment with your username and password...friedman@cybertext.com Windows Operating System Select File Select Save As Select Save As Type: Select Microsoft 5.0/95 Workbook (*.xls) Select Save Select Continue or Yes if prompted or if it indicates that there is limited memory. Select Select Select Select Select Select File Close File Open and open the .xls file Save As Save As Type: Excel Workbook (*.xlsx) Save Upload the file at cybertext.com Apple Operating System Select File Select Save As Select Format: Select Microsoft 5.0/95 Workbook (*.xls) Select Save Select Continue or Yes if prompted or if it indicates that there is limited memory. Select Select Select Select Select Select MF1234.xlsx File Close File Open and open the .xls file Save As Format: Excel Workbook (*.xlsx) Save Excel 5.0/95 Workbook (.xls) Upload the file at cybertext.com Elf Village Productions 50 Sheet Legal Pad Building Blocks of Accounting .. A Financial Perspective FAQ FAQ 02 Answer: 1 2 What is the difference between rounding a number and rounding up a number? B C D E F Cost of a Taxi $ 100.00 Number of Passengers 3 Page 2 3 4 5 6 7 Cost per Passenger Without rounding 33.333333 =F1/F2 Rounding to two decimals 33.33 =ROUND(F1/F2,2) Roundup to two decimals 33.34 =ROUNDUP(F1/F2,2) FAQ 03 When I upload it, the results show that I have an answer wrong, yet that answer is needed for another question which is marked correct. Answer: The computer is giving you part credit. Given: Width 10 ft Length 12 ft Cost per sq. ft. $6 Find {1.1} Area ----- 100 sq ft (wrong) {1.2} Cost ---- $600 correct based on the wrong area. Note if the area is corrected,120 sq ft, the cost would be wrong. FIRST Cody LAST Sanchez number 1207 File CS1207 I SEE THE LIGHT Background Information I SEE THE LIGHT (ISTL) is a subchapter S corporation that manufactures children's lampsightlights for use in bedrooms. These lamps are sold nationwide through a group of independent sales representatives who have an exclusive sales region. The business is in its tenth year and has asked you to assist in planning for next year's operations. The lamps are ceramic figurines of animals, boats, boys and girls playing and singing, all in delightful colors. The owner of the business, Big Al, creates a drawing for the figurine and faxes it to a plant in China where a mold is created and a sample produced and hand painted. If the mold meets the expectations of Big Al an order of 500 pieces is placed. There are presently 10 different figurines that come in six different colors; 60 models. The lamp shades and the electrical parts are supplied from domestic manufacturers. There are presently 10 workers in the plant. They are responsible for receiving the raw material, manufacturing the product, packing and shipping. In addition to Big Al there are two office workers who are responsible for all administrative duties. Big Al had his accountant prepare the Projected Income Statement and Balance Sheet presented on page two. Big Al heard about your skills in managerial accounting and would like your assistance in the following areas: Part 1 Part 2 Part 3 Fixed and Variable Cost Determinations - Unit Cost Calculations Cost Volume Relationships - Profit Planning Budgets To upload your work to Big Al the file without changing the name. Pay attention to the specific location that Excel saves the file. Return to the bottom of the page that you downloaded the file from; Cybertext.com, The Book List, Building Blocks of Accounting--A Managerial Perspective, Enter password, Upload Your Excel File. If you upload an old version of the file the results will not update. Keep two copies of your spreadsheet in two separate places in case one of Big Al's competitors sends someone to destroy your work or it is lost in transmission. You may find it easier to work on this project if you print a hard copy of all the pages. NOTE: If there are any questions about the project e-mail markfriedman@miami.edu or call 305.284.6296. Grade will be based upon answers entered into the shaded boxes. I See The Light Projected Income Statement For the Period Ending December 31, 20x1 Sales 25,000 lamps @ $45.00 Cost of Goods Sold @ $28.93 Gross Profit Selling Expenses: Fixed Variable (Commission per unit) @ $3.15 Administrative Expenses Total Selling and Administrative Expenses: Net Profit $ 1,125,000.00 723,250.00 $ 401,750.00 $ 23,000.00 78,750.00 $ 101,750.00 41,250.00 $ 143,000.00 258,750.00 I See The Light Projected Balance Sheet As of December 31, 20x1 Current Assets Cash Accounts Receivable Inventory Raw Material Figurines Electrical Sets Work in Process Finished Goods Total Current Assets Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 500 @ $9.20 500 @ $1.25 0 3000 @ $28.9250 34,710.00 67,500.00 $ 4,600.00 625.00 86,775.00 194,210.00 $ 13,200.00 207,410.00 $ $ 54,000.00 54,000.00 $ 153,410.00 207,410.00 $ 20,000.00 6,800.00 $ 12,000.00 141,410.00 Cody Sanchez 1579 PART 1 Fixed and Variable Cost Determinations Unit Cost Calculations 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: Figurines Electrical Sets Lamp Shade Direct Labor: Variable Overhead: Fixed Overhead: Cost per lamp: $9.2000000 1.2500000 6.0000000 2.2500000 0.2250000 10.0000000 per lamp per lamp per lamp per lamp (4 lamps/hr.) per lamp per lamp (based on normal capacity of 25,000 lamps) $28.9250000 per lamp Expected increases for 20x2 When calculating projected increases round to SEVEN decimal places,$0.0000000. 1. Material Costs are expected to increase by 5.00% . 2. Labor Costs are expected to increase by 2.50%. 3. Variable Overhead is expected to increase by 6.50%. 4. Fixed Overhead is expected to increase to $295,000. 5. Fixed selling expenses are expected to be $39,000 in 20x2. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 4.00%. 7. Fixed Administrative expenses are expected to increase by $12,000. The total administrative expenses for 20x0 were $41,205.00, when 23,500 units were sold. Use the High-Low method to calculate the total fixed administrative expense. 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 5.50%. The total administrative expenses for 20x0 were $41,205.00, when 23,500 units were sold. Use the High-Low method to calculate the variable administrative expense per lamp. 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. 3- 20x2 Projected Fixed Costs. Cody Sanchez 1579 I See The Light, Inc Schedule of Projected Costs Variable Manufacturing Unit Cost 20x1 Cost $9.6600000 {4.01} 7 1.25 5 $1.3125000 {4.02} 6 5 $6.3000000 {4.03} 2.25 2.5 $2.3062500 {4.04} 0.225 6.5 $0.2396250 {4.05} 7 7 7 7 $19.8183750 {4.06} 7 9.2 Lamp Shade Labor Variable Overhead Projected Variable Manufacturing Cost Per Unit 20x2 Cost Rounded to 7 Decimal Places 5 Figurines Electrical Sets Projected Percent Increase 18.925 24 Total Variable Cost Per Unit 20x1 Cost Variable Selling Variable Administrative 20x1 3.15 0.0300000 Projected Percent Increase 20x2 Cost Rounded to 7 Decimal Places 3.2760000 {4.07} 4 {4.08} 5.50% 0.0316500 {4.09} Variable Administrative 20x2 Projected Variable Manufacturing Unit Cost Projected Total Variable Cost Per Unit 18.925 $19.8183750 {4.06} 22.1050000 23.1260250 {4.10} 7 7 7 7 Schedule of Fixed Costs 20x1 Cost Fixed Overhead Projected Increase 20x2 Cost Rounded to 2 Decimal Places $ 295,000.00 {4.11} 2 $ 250000 39,000.00 {4.12} 2 7 2 2 (normal capacity of _________ lamps @ __ ) Fixed Selling Fixed Administrative 20x1 {4.13} 40,500.00 Fixed Administrative 20x2 $ 52,500.00 {4.14} Projected Total Fixed Costs $ 386,500.00 {4.15} Cody Sanchez 1579 PART 2 Cost Volume Relationships Profit Planning Big Al is about to begin work on the budget for 20x2 and they have requested that you prepare an analysis based on the following assumptions. Note: Remember, that we cannot sell part of a lamp, therefore to find the number of units you have to round up to the next complete unit. Furthuremore, to find the required sales in dollars it may be easier to find the number of units and then multiply by the selling price per unit. 1. For 20x2 the selling price per lamp will be $45.00. What is the projected contribution margin and contribution margin ratio for each lamp sold? Selling price Total variable cost per unit Contribution Margin per unit (Round to seven places, $##.#######) Contribution Margin Ratio (Round to seven places,% is two of those places ##.#####%) 2. 23.126025 $21.8739750 {5.01} 7 48.60883% {5.02} 7 {5.03} 0 {5.04} 0 For 20x2 the selling price per lamp will be $45.00. How many lamps must be sold to breakeven? Projected fixed costs total Contribution margin per unit Breakeven sales in units (Round up to zero places, ###,### units) 3. 45 386500 $21.8739750 17,670 units For 20x2 the selling price per lamp will be $45.00. The desired net income in 20x2 is $258,750 . What would sales in units have to be in 20x2 to reach the profit goal? 258750 Desired net income $21.8739750 Contribution margin per unit 11829.1257076046 Sales in units 17669.3993661417 Add breakeven sales in units Sales in units (Round up to zero places, ###,### units) 29,499 units Cody Sanchez 1579 4. For 20x2 the selling price per lamp will be $45.00. The company would like to have a net income equal to 29.00% of sales. If that is to be achieved, what would be the sales in units in 20x2? Contribution margin rati Desired profit margin Percentage for fixed cost (CM ratio - desired PM) Projected fixed costs Sales in $ (Projected fixed costs / percentage) Sales price 49% 29% 20% 386500 1971050.7970134 45 43,802 units Sales in units (Round up to zero places, ###,### units) 5. New Selling Price (Round up to two places, $###,###.## ) {6.02} 2 {6.03} 0 {6.04} 2 22.895 23.126025 $ 46.03 For 20x2 the selling price per lamp will be $45.00 and the effective tax rate is 37%. How many units must be sold to generated a net income of $180,000 after taxes? 180000 Desired net income after tax 285714.28571429 Desired net income before tax 21.873975 CM per unit 13061.836530136 Sales in units 17669.399366142 Add breakeven sales 30,732 units Sales in units (Round up to zero places, ###,### units) 7. 0 If the company believed that it could only sell 25,000 lamps, what would the new selling price have to be so that the new contribution margin per unit is equal to last year's contribution margin per unit? Last year's contribution margin per unit This year's variable cost 6. {6.01} If the company believes that the demand will be 27,500 units for the year. What selling price per lamp, rounded to two places, would generate a net income of $827,500? Desired net income Fixed costs Desired CM Demand in units VC per unit Total variable cost Total sales New selling price per lamp (Round up to two places, $###,###.## ) 827500 386500 1214000 27500 23.126025 635965.6875 1849965.6875 $ 67.28 Cody Sanchez 1579 PART 3 Budgets Division N has decided to develop its budget based upon projected sales of 35,000 lamps at $50.00 per lamp. The company has requested that you prepare a master budget for the year. This budget is to be used for planning and control of operations and should be composed of: 1. Production Budget 2. Materials Budget 3. Direct Labor Budget 4. Factory Overhead Budget 5. Selling and Administrative Budget 6. Cost of Goods Sold Budget 7. Budgeted Income Statement 8. Cash Budget Notes for Budgeting: The company wants to maintain the same number of units in the beginning and ending inventories of work-in-process, and electrical parts while increasing the figurines inventory to 725 pieces and increasing the finished goods by 23.00% . Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods (roundup to the next unit) Total Needed Less: Beginning Inventory Total Production {7.01} 0 Cody Sanchez 1579 2 Materials Budget Figurines Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, $##.##) {8.01} {8.02} 0 0 {8.03} {8.04} 0 0 {8.05} 2 Electrical Parts Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, $##.##) {8.06} 0 {8.07} 2 Lamp Shades Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, $##.##) {8.08} 2 {8.09} 2 {8.10} 2 Total Factory Overhead (Round to two places, $##.##) {8.11} 2 Predetermined Factory Overhead Rate based upon the budgeted number of units to be produced (Round to seven places, $##.#######) {8.12} 7 3 Direct Labor Budget Labor Cost Per Lamp Production Total Labor Cost (Round to two places, $##.##) $ 1.00 4 Factory Overhead Budget Variable Factory Overhead: Variable Factory Overhead Cost Per Unit Number of Units to be Produced Total Variable Factory Overhead (Round to two places, $##.##) Fixed Factory Overhead Cody Sanchez 1579 5 Selling and Admin. Budget Fixed Selling Variable Selling (Round to two places, $##.##) Fixed Administrative Variable Administrative (Round to two places, $##.##) Total Selling and Administrative (Round to two places, $##.##) 6 ### 2 ### 7 ### 2 ### 2 ### 2 ### ### ### ### ### ### ### 2 2 2 2 2 2 2 Cost of Goods Sold Budget - Assume FIFO (First-In, First-Out) and overhead is applied based on the number of units to be produced. Cost of making one unit next year Material cost per unit Labor Cost Per Lamp Factory overhead per unit Round dollars to seven places, $##.####### Total cost of one unit (Round to seven places, $##.#######) Round dollars to two places, $##.## Beginning Inventory, Finished Goods Production Costs: Materials: Figurines: Beginning Inventory Purchased Available for Use Ending Inventory of Figurines Figurines Used In Production Electrical Parts Beginning Inventory Purchased Available for Use Ending Inventory of Electrical Parts Electrical Parts Used In Production Lamp Shades: Lamp Shades Used In Production Total Materials: Labor Overhead Cost of Goods Available Less: Ending Inventory, Finished Goods Cost of Goods Sold Cody Sanchez 1579 7 Budgeted Income Statement Sales Cost of Goods Sold Gross Profit Selling Expenses & Admin. Expenses Net Operating Income ### 2 CS1207 I SEE THE LIGHT www.cybertext.com, The Book List, Building Blocks of Accounting--A Managerial Perspective, Enter password, Upload Your Excel File. Cody, when you are ready to have your work graded you will upload this file to the same screen that the project was downloaded from: Keep two copies of your spreadsheet in two separate places in case one of Big Al's competitors sends someone to destroy your work or it is lost in transmission. You may find it easier to work on this project if you print a hard copy of all the pages. There are alternative methods of solving problems. To insure similar answers and to guarantee that you are graded correctly please follow the instructions as to rounding. NOTE: If there are any questions about the project e-mail markfriedman@miami.edu or call 305.284.6296. Grade will be based upon answers entered into the shaded boxes. L813 150219 CS1207.xls or CS1207.xlsx Elf Village Productions 50 Sheet Legal Pad Building Blocks of Accounting .. A Financial Perspective Page 1 FAQ FAQ 01 My file used to upload, why is it not uploading? Answer: Sometimes we unknowing add items to a workbook that inhibits the upload process. The conversion to an earlier version Somehow clean the files and they then upload without problem. If the problem continue simple send your file as an attachment with your username and password...friedman@cybertext.com Windows Operating System Select File Select Save As Select Save As Type: Select Microsoft 5.0/95 Workbook (*.xls) Select Save Select Continue or Yes if prompted or if it indicates that there is limited memory. Select Select Select Select Select Select File Close File Open and open the .xls file Save As Save As Type: Excel Workbook (*.xlsx) Save Upload the file at cybertext.com Apple Operating System Select File Select Save As Select Format: Select Microsoft 5.0/95 Workbook (*.xls) Select Save Select Continue or Yes if prompted or if it indicates that there is limited memory. Select Select Select Select Select Select MF1234.xlsx File Close File Open and open the .xls file Save As Format: Excel Workbook (*.xlsx) Save Excel 5.0/95 Workbook (.xls) Upload the file at cybertext.com Elf Village Productions 50 Sheet Legal Pad Building Blocks of Accounting .. A Financial Perspective FAQ FAQ 02 Answer: 1 2 What is the difference between rounding a number and rounding up a number? B C D E F Cost of a Taxi $ 100.00 Number of Passengers 3 Page 2 3 4 5 6 7 Cost per Passenger Without rounding 33.333333 =F1/F2 Rounding to two decimals 33.33 =ROUND(F1/F2,2) Roundup to two decimals 33.34 =ROUNDUP(F1/F2,2) FAQ 03 When I upload it, the results show that I have an answer wrong, yet that answer is needed for another question which is marked correct. Answer: The computer is giving you part credit. Given: Width 10 ft Length 12 ft Cost per sq. ft. $6 Find {1.1} Area ----- 100 sq ft (wrong) {1.2} Cost ---- $600 correct based on the wrong area. Note if the area is corrected,120 sq ft, the cost would be wrong. FIRST Cody LAST Sanchez number 1207 File CS1207 I SEE THE LIGHT Background Information I SEE THE LIGHT (ISTL) is a subchapter S corporation that manufactures children's lampsightlights for use in bedrooms. These lamps are sold nationwide through a group of independent sales representatives who have an exclusive sales region. The business is in its tenth year and has asked you to assist in planning for next year's operations. The lamps are ceramic figurines of animals, boats, boys and girls playing and singing, all in delightful colors. The owner of the business, Big Al, creates a drawing for the figurine and faxes it to a plant in China where a mold is created and a sample produced and hand painted. If the mold meets the expectations of Big Al an order of 500 pieces is placed. There are presently 10 different figurines that come in six different colors; 60 models. The lamp shades and the electrical parts are supplied from domestic manufacturers. There are presently 10 workers in the plant. They are responsible for receiving the raw material, manufacturing the product, packing and shipping. In addition to Big Al there are two office workers who are responsible for all administrative duties. Big Al had his accountant prepare the Projected Income Statement and Balance Sheet presented on page two. Big Al heard about your skills in managerial accounting and would like your assistance in the following areas: Part 1 Part 2 Part 3 Fixed and Variable Cost Determinations - Unit Cost Calculations Cost Volume Relationships - Profit Planning Budgets To upload your work to Big Al the file without changing the name. Pay attention to the specific location that Excel saves the file. Return to the bottom of the page that you downloaded the file from; Cybertext.com, The Book List, Building Blocks of Accounting--A Managerial Perspective, Enter password, Upload Your Excel File. If you upload an old version of the file the results will not update. Keep two copies of your spreadsheet in two separate places in case one of Big Al's competitors sends someone to destroy your work or it is lost in transmission. You may find it easier to work on this project if you print a hard copy of all the pages. NOTE: If there are any questions about the project e-mail markfriedman@miami.edu or call 305.284.6296. Grade will be based upon answers entered into the shaded boxes. I See The Light Projected Income Statement For the Period Ending December 31, 20x1 Sales 25,000 lamps @ $45.00 Cost of Goods Sold @ $28.93 Gross Profit Selling Expenses: Fixed Variable (Commission per unit) @ $3.15 Administrative Expenses Total Selling and Administrative Expenses: Net Profit $ 1,125,000.00 723,250.00 $ 401,750.00 $ 23,000.00 78,750.00 $ 101,750.00 41,250.00 $ 143,000.00 258,750.00 I See The Light Projected Balance Sheet As of December 31, 20x1 Current Assets Cash Accounts Receivable Inventory Raw Material Figurines Electrical Sets Work in Process Finished Goods Total Current Assets Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 500 @ $9.20 500 @ $1.25 0 3000 @ $28.9250 34,710.00 67,500.00 $ 4,600.00 625.00 86,775.00 194,210.00 $ 13,200.00 207,410.00 $ $ 54,000.00 54,000.00 $ 153,410.00 207,410.00 $ 20,000.00 6,800.00 $ 12,000.00 141,410.00 Cody Sanchez 1579 PART 1 Fixed and Variable Cost Determinations Unit Cost Calculations 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: Figurines Electrical Sets Lamp Shade Direct Labor: Variable Overhead: Fixed Overhead: Cost per lamp: $9.2000000 1.2500000 6.0000000 2.2500000 0.2250000 10.0000000 per lamp per lamp per lamp per lamp (4 lamps/hr.) per lamp per lamp (based on normal capacity of 25,000 lamps) $28.9250000 per lamp Expected increases for 20x2 When calculating projected increases round to SEVEN decimal places,$0.0000000. 1. Material Costs are expected to increase by 5.00% . 2. Labor Costs are expected to increase by 2.50%. 3. Variable Overhead is expected to increase by 6.50%. 4. Fixed Overhead is expected to increase to $295,000. 5. Fixed selling expenses are expected to be $39,000 in 20x2. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 4.00%. 7. Fixed Administrative expenses are expected to increase by $12,000. The total administrative expenses for 20x0 were $41,205.00, when 23,500 units were sold. Use the High-Low method to calculate the total fixed administrative expense. 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 5.50%. The total administrative expenses for 20x0 were $41,205.00, when 23,500 units were sold. Use the High-Low method to calculate the variable administrative expense per lamp. 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. 3- 20x2 Projected Fixed Costs. Cody Sanchez 1579 I See The Light, Inc Schedule of Projected Costs Variable Manufacturing Unit Cost 20x1 Cost $9.6600000 {4.01} 7 1.25 5 $1.3125000 {4.02} 6 5 $6.3000000 {4.03} 2.25 2.5 $2.3062500 {4.04} 0.225 6.5 $0.2396250 {4.05} 7 7 7 7 $19.8183750 {4.06} 7 9.2 Lamp Shade Labor Variable Overhead Projected Variable Manufacturing Cost Per Unit 20x2 Cost Rounded to 7 Decimal Places 5 Figurines Electrical Sets Projected Percent Increase 18.925 24 Total Variable Cost Per Unit 20x1 Cost Variable Selling Variable Administrative 20x1 3.15 0.0300000 Projected Percent Increase 20x2 Cost Rounded to 7 Decimal Places 3.2760000 {4.07} 4 {4.08} 5.50% 0.0316500 {4.09} Variable Administrative 20x2 Projected Variable Manufacturing Unit Cost Projected Total Variable Cost Per Unit 18.925 $19.8183750 {4.06} 22.1050000 23.1260250 {4.10} 7 7 7 7 Schedule of Fixed Costs 20x1 Cost Fixed Overhead Projected Increase 20x2 Cost Rounded to 2 Decimal Places $ 295,000.00 {4.11} 2 $ 250000 39,000.00 {4.12} 2 7 2 2 (normal capacity of _________ lamps @ __ ) Fixed Selling Fixed Administrative 20x1 {4.13} 40,500.00 Fixed Administrative 20x2 $ 52,500.00 {4.14} Projected Total Fixed Costs $ 386,500.00 {4.15} Cody Sanchez 1579 PART 2 Cost Volume Relationships Profit Planning Big Al is about to begin work on the budget for 20x2 and they have requested that you prepare an analysis based on the following assumptions. Note: Remember, that we cannot sell part of a lamp, therefore to find the number of units you have to round up to the next complete unit. Furthuremore, to find the required sales in dollars it may be easier to find the number of units and then multiply by the selling price per unit. 1. For 20x2 the selling price per lamp will be $45.00. What is the projected contribution margin and contribution margin ratio for each lamp sold? Selling price Total variable cost per unit Contribution Margin per unit (Round to seven places, $##.#######) Contribution Margin Ratio (Round to seven places,% is two of those places ##.#####%) 2. 23.126025 $21.8739750 {5.01} 7 48.60883% {5.02} 7 {5.03} 0 {5.04} 0 For 20x2 the selling price per lamp will be $45.00. How many lamps must be sold to breakeven? Projected fixed costs total Contribution margin per unit Breakeven sales in units (Round up to zero places, ###,### units) 3. 45 386500 $21.8739750 17,670 units For 20x2 the selling price per lamp will be $45.00. The desired net income in 20x2 is $258,750 . What would sales in units have to be in 20x2 to reach the profit goal? 258750 Desired net income $21.8739750 Contribution margin per unit 11829.1257076046 Sales in units 17669.3993661417 Add breakeven sales in units Sales in units (Round up to zero places, ###,### units) 29,499 units Cody Sanchez 1579 4. For 20x2 the selling price per lamp will be $45.00. The company would like to have a net income equal to 29.00% of sales. If that is to be achieved, what would be the sales in units in 20x2? Contribution margin rati Desired profit margin Percentage for fixed cost (CM ratio - desired PM) Projected fixed costs Sales in $ (Projected fixed costs / percentage) Sales price 49% 29% 20% 386500 1971050.7970134 45 43,802 units Sales in units (Round up to zero places, ###,### units) 5. New Selling Price (Round up to two places, $###,###.## ) {6.02} 2 {6.03} 0 {6.04} 2 22.895 23.126025 $ 46.03 For 20x2 the selling price per lamp will be $45.00 and the effective tax rate is 37%. How many units must be sold to generated a net income of $180,000 after taxes? 180000 Desired net income after tax 285714.28571429 Desired net income before tax 21.873975 CM per unit 13061.836530136 Sales in units 17669.399366142 Add breakeven sales 30,732 units Sales in units (Round up to zero places, ###,### units) 7. 0 If the company believed that it could only sell 25,000 lamps, what would the new selling price have to be so that the new contribution margin per unit is equal to last year's contribution margin per unit? Last year's contribution margin per unit This year's variable cost 6. {6.01} If the company believes that the demand will be 27,500 units for the year. What selling price per lamp, rounded to two places, would generate a net income of $827,500? Desired net income Fixed costs Desired CM Demand in units VC per unit Total variable cost Total sales New selling price per lamp (Round up to two places, $###,###.## ) 827500 386500 1214000 27500 23.126025 635965.6875 1849965.6875 $ 67.28 Cody Sanchez 1579 PART 3 Budgets Division N has decided to develop its budget based upon projected sales of 35,000 lamps at $50.00 per lamp. The company has requested that you prepare a master budget for the year. This budget is to be used for planning and control of operations and should be composed of: 1. Production Budget 2. Materials Budget 3. Direct Labor Budget 4. Factory Overhead Budget 5. Selling and Administrative Budget 6. Cost of Goods Sold Budget 7. Budgeted Income Statement 8. Cash Budget Notes for Budgeting: The company wants to maintain the same number of units in the beginning and ending inventories of work-in-process, and electrical parts while increasing the figurines inventory to 725 pieces and increasing the finished goods by 23.00% . Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods (roundup to the next unit) Total Needed Less: Beginning Inventory Total Production {7.01} 0 Cody Sanchez 1579 2 Materials Budget Figurines Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, $##.##) {8.01} {8.02} 0 0 {8.03} {8.04} 0 0 {8.05} 2 Electrical Parts Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, $##.##) {8.06} 0 {8.07} 2 Lamp Shades Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, $##.##) {8.08} 2 {8.09} 2 {8.10} 2 Total Factory Overhead (Round to two places, $##.##) {8.11} 2 Predetermined Factory Overhead Rate based upon the budgeted number of units to be produced (Round to seven places, $##.#######) {8.12} 7 3 Direct Labor Budget Labor Cost Per Lamp Production Total Labor Cost (Round to two places, $##.##) $ 1.00 4 Factory Overhead Budget Variable Factory Overhead: Variable Factory Overhead Cost Per Unit Number of Units to be Produced Total Variable Factory Overhead (Round to two places, $##.##) Fixed Factory Overhead Cody Sanchez 1579 5 Selling and Admin. Budget Fixed Selling Variable Selling (Round to two places, $##.##) Fixed Administrative Variable Administrative (Round to two places, $##.##) Total Selling and Administrative (Round to two places, $##.##) 6 ### 2 ### 7 ### 2 ### 2 ### 2 ### ### ### ### ### ### ### 2 2 2 2 2 2 2 Cost of Goods Sold Budget - Assume FIFO (First-In, First-Out) and overhead is applied based on the number of units to be produced. Cost of making one unit next year Material cost per unit Labor Cost Per Lamp Factory overhead per unit Round dollars to seven places, $##.####### Total cost of one unit (Round to seven places, $##.#######) Round dollars to two places, $##.## Beginning Inventory, Finished Goods Production Costs: Materials: Figurines: Beginning Inventory Purchased Available for Use Ending Inventory of Figurines Figurines Used In Production Electrical Parts Beginning Inventory Purchased Available for Use Ending Inventory of Electrical Parts Electrical Parts Used In Production Lamp Shades: Lamp Shades Used In Production Total Materials: Labor Overhead Cost of Goods Available Less: Ending Inventory, Finished Goods Cost of Goods Sold Cody Sanchez 1579 7 Budgeted Income Statement Sales Cost of Goods Sold Gross Profit Selling Expenses & Admin. Expenses Net Operating Income ### 2