I see the light project based on first 3 pages solve last 2 pages

I SEE THE LIGHT DO 10 11 12 13 14 15 16 17 18 19 20 21 Background Information I SEE THE LIGHT (ISTL) is a subchapter S corporation that manufactures children's lampsinightlights for use in bedrooms. These lamps are sold nationwide through a group of independent sales representati -- who have an exclusive sales region. The business is in its tenth year and has asked you to assist in pleing 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 lamp parts is placed. Each lamp kit consists of the parts required to complete one lamp: a figurine, a lamp shade and the required electrical components. There are presently 10 different figurines that come in six different colors; 60 models. 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 22 areas: 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Part 1 Fixed and Variable Cost Determinations - Unit Cost Calculations Part 2 Cost Volume Relationships - Profit Planning Part 3 Budgets Part 4 Process Costing Part 5 Job Order Costing Part 6 Standard Costing - Variance Analysis Part 7 Capital Decision Making 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. 40 NOTE: H K B D E 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 Seling Expenses: Fixed Variable (Commission per unit) $3.00 Administrative Expenses Fixed Variable $2.00 Total Selling and Administrative Expenses: Not 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 8,000.00 500 @ $16.00 0 3000 @ $30.00 90,000.00 $ 200,210.00 $ 20,000.00 6,800.00 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 13,200.00 $ 213.410.00 54,000.00 54,000.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Eamings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 147.410.00 159.410.00 $ 213,410,00 G H D B E 3 4 PART 1 5 Fixed and Variable Cost Determinations Unit Cost Calculations 6 O- 42 8 The projected cost of a lamp is calculated based upon the projected increases or decreases to 9 current costs. The present costs to manufacture one lamp are: 10 11 Lamp Kit: $16.0000000 per lamp 19 Direct Labor 2.0000000 per lamp (4 lamps/hr.) 20 Variable Overhead: 2.0000000 per lamp 21 Fixed Overhead 10.0000000 per lamp (based on normal capacity of 25,000 lamps) 22 28 Cost per lamp: $30.0000000 per lamp 29 30 Expected increases for 20x2 31 When calculating projected increases round to TWO ($0.00) decimal places. 32 38 1. Material Costs are expected to increase by 3.50%. 39 40 2. Labor Costs are expected to increase by 4.00% 41 3. Variable Overhead is expected to increase by 2.00%. 48 49 4. Fixed Overhead is expected to increase to $285,000 50 51 5. Fixed Administrative expenses are expected to increase to $62.000. 52 58 6. Variable selling expenses (measured on a per lamp basis) are expected to increase 59 by 6.50%. 61 7. Fixed selling expenses are expected to be $39,000 in 20x2. 62 68 8. Variable administrative expenses (measured a per lamp basis) are expected to 69 Increase by 4.00%. 70 71 On the following schedule develop the following figures: 72 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 78 79 2- 20x2 Projected Variable Unit Cost per lamp. 80 81 3. 20x2 Projected Fixed Costs. 82 88 60 LO D E 4 B I See The Light, Inc Schedule of Projected Costs 5 7 8 9 Variable Manufacturing Unit Cost 20x1 Cost Projected Percent Increase 20x2 Cost Rounded to 2 Decimal Places 16 10 11 Lamp Kit 12 Labor 2 3.50% 4% 2% $16.56 $2.08 $2.04 {4.01) {4.02) (4.03) 13. Variable Overhead 2 20 {4.04) 21 Projected Variable Manufacturing Cost Per Unit 22 23 24 31 Total Variable Cost Per Unit 20x1 Cost Projected Percent increase 20x2 Cost Rounded to 2 Decimal Places 32 33 Variable Selling 34 Variable Administrative 35 Projected Variable Manufacturing Unit Cost (4.05) (4.06) (4.04) 42 43 44 Projected Total Variable Cost Per Unit (4.07) 45 46 53 54 Schedule of Fixed Coats 20x1 Cost 20x2 Cost Projected Percent increase & (4.08) lamps @_) 55 56 Fixed Overhead 57 (normal capacity of 84 Fixed Selling 65 Fixed Administrativo 66 67 Projected Total Fixed Costs 08 (4.09) {4.10) (4.11) 75 D F H B C E G COST vorume Relationsmps - 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 easler to find the number of units and then multiply by the selling price per unit. 8 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? {5.01) {5.02) 38 39 10 18 49 50 51 52 Contribution Margin per unit (Round to two places, S####) 60 81 Contribution Margin Ratio (Round to four places. % is two of those places 3.02%) 62 63 54 2 For 20x2 the selling price per lamp will be $45.00. The desired net income in 20x2 is $195,000. What 72 would sales in units have to be in 20x2 to reach the profit goal? 73 74 75 76 84 85 86 87 88 96 Breakeven sales in units (Since we cannot sell part of a unit round up to the ned until needed) 97 98 99 100 TO 3 For 20x2 the selling price per lamp will be $45.00. If the fixed cost increase by $45,000.00 how many lamps 109 must be sold to breakeven? 110 111 112 113 114 115 116 117 18 {5.03) 119 120 121 122 Breakeven sales in units (Since we cannot sell part of a unit round up to the returneeded (5.04) 123