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Posted on Jul 30, 2024

I See The Light Projected Income Statement For the Period Ending December 31, 20x1 $ 1,125,000.00 723,250.00 $ 401,750.00 Sales 25,000 lamps @ $45.00 Cost

I See The Light Projected Income Statement For the Period Ending December 31, 20x1 $ 1,125,000.00 723,250.00 $ 401,750.00 Sales 25,000 lamps @ $45.00 Cost of Goods Sold @ $28.93 Gross Profit Selling Expenses: Fored Variable (Commission per unit) @ $3.15 Administrative Expenses Total Selling and Administrative Expenses: Net Profit $ 23,000.00 78,750.00 $ 101,750.00 40.750.00 142,500.00 $ 259, 250.00 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 Figurines Electrical Sets Work in Process Finished Goods Total Current Assets 4.600.00 625.00 500 @ $9.20 500 @ $1.25 0 3000 @ $28.9250 86.775.00 194.210.00 $ Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets $ 20,000.00 6,800.00 13.200.00 $ 207 410.00 54,000.00 54,000.00 Cument Llabetes Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Eamings Total Stockholder's Equity Total Liabilitios and Stockholder's Equity $ 12,000.00 141,410.00 153,410.00 207 410.00 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 Figurines $9.2000000' per lamp 12 Electrical Sets 1.2500000 per lamp 13 Lamp Shade 6.0000000 per lamp 20 Direct Labor: 2.2500000 per lamp (4 lamps/hr.) 21 Variable Overhead: 0.2250000 per lamp 22 Fixed Overhead: 10.0000000 per lamp (based on normal capacity of 25,000 lamps) 23 24 Cost per lamp $28.9250000 per lamp 31 32 Expected increases for 20x2 33 When calculating projected increases round to SEVEN decimal places, $0.0000000 34 35 42 43 44 45 46 53 54 55 56 57 64 65 66 67 68 75 76 77 78 79 1. Material Costs are expected to increase by 3.50% 2. Labor Costs are expected to increase by 3.00% 3. Variable Overhead is expected to increase by 2.00%. 4. Fixed Overhead is expected to increase to $270,000. 5. Fixed selling expenses are expected to be $29,000 in 20x2. 6. Variable seling expenses (measured on a per lamp basis) are expected to increase by 2.50% 7 Fixed Administrative expenses are expected to increase by $4,000. The total administrative expenses for 20x0 were $40,625.00, when 22,500 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 2.50%. The total administrative expenses for 20x0 were $40.625.00, when 22.500 units were sold. Use the High-Low method to calitate 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 2.50%. The total administrative expenses for 20x0 were $40,625.00, when 22,500 units were sold. Use the High-Low method to calculate the variable administrative axpense 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. I See The Light, Inc Schedule of Projected Costs Variable Manufacturing Unit Cost 20x1 Cost 20x2 Cost Rounded to 7 Decimal Places 9.2 1.25 Figurines Electrical Sets Lamp Shade Labor Variable Overhead Projected Porcent Increase 3.50% 3.50% 3.50% 3.00% 2.00% 6 $9.5220000 $1.2937500 $6.2100000 $2.3175000 $0.2295000 [4.01) (4.02) (4.03) (4.04) (4.05) 2.25 0.225 Projected Variable Manufacturing Cost Per Unit 18.925 $19.5727500 [4.06) Total Variable Cost Per Unit 20x1 Cost 20x2 Cost Rounded to 7 Decimal Places Projected Percent Increase 2.50% 2.50% 3.2287500 Variable Selling 2 Variable Administrative 20x1 Variable Administrative 20x2 3.15 0.0400000 (4.07) {4.08) {4.09) 1 2 Projected Variable Manufacturing Unit Cost 3 Projected Total Variable Cost Per Unit -4 2 [4.06) [4.10) 73 74 Schedule of Fixed Costs 20x1 Cost Projected Increase 2012 Cost Rounded to 2 Decimal Places 270,000.00 (4.11) lamps @) 29,000.00 75 76 Fixed Overhead 84 (normal capacity of 85 Fixed Selling 86 Food Administrative 20x1 87 Fixed Administrative 20x2 88 Projected Total Fixed Costs 96 97 (4.12) (4.13) (4.14) (4.15) B G H D E F 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. 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) Contribution Margin per unit (Round to soven places, $###****##) Contribution Margin Ratio (Round to seven places, % is two of those places ##.#####%) (5.02) 2. For 20x2 the selling price per lamp will be $45.00. How many lamps must be sold to breakeven? 2 3 Breakeven sales in units (Round up to zero places, ##.### units) 16 05 05 (5.03) B m G H 001 07 08 093. For 2012 the selling price per lamp will be $45.00. The desired operating income in 2012 is $284,250. What 18 would sales in units have to be in 2012 to reach the profit goal? 19 20 21 22 23 24 125 26 127 28 129 130 131 132 Sales in unles (Round up to zero places, tinta, *#*# units) (5.04) 123 4. For 20x2 the selling price per lamp will be $45.00. The company would like to have a operating income equal to 26.00% 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. 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. For 20x2 the selling price per lamp will be $45.00 and the effective tax rate is 39%. How many units must be sold to generated a operating income of $200,000 after taxes? 9 00 01 32 03 Sales in units (Round up to zero places, ###,### units) (6.0 B D E F G H If the company believes that the demand will be 27,500 units for the year. What selling price per lamp, founded to two places, would generate a operating income of $818,500? New Seling price per lamp (Round up to two places, $###,#####) (6.04) Job Order Costing 6 7 8 10 11 12 3. To keep records of the actual cost of a special order job, a Job Order Cost System has been developed 4 Overhead is applied at the rate of 50% of the direct labor cost 6 7 8 9 Job Order Costing Section 0 2 on January 1, 20x2, Division S began Job 2407 for the Cient, THE BIG CHILDREN STORE. The 3 job called for 4,000 customized lamps. The following set of transactions occurred from 4 January 5 until the job was completed: 5 8 00 1 22 5-Jan Purchased 4,075 figurines @ $9.30 per figurine. 6-Jan Purchased 4.100 sets of electical components @ $1.35 per set. 7-Jan Purchased 4,000 lamp shades @ $6.40 per set. 8-Jan 4,075 figurines were requisitioned. 9-Jan 4,075 sets of electrical components were requisitioned. 17-Jan Payroll of 570 Direct Labor Hours @ $9.40 per hour. 28-Jan 3,990 lamp shades were requisitioned 30-Jan Payroll of 620 Direct Labor Hours @ $9.65 per hour. 30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were used or scrapped, and are a cost of normal processing. Month End Overhead Information Actual Variable Manufacturing Overhead $ 1,213.80 Actual Fixed Manufacturing Overhead $ 39,623.45 5 Round to six places, $####### Cost of Direct Material incurred in Manufacturing Job 2407 (18.01) Cost of Direct Labor incurred in Manufacturing Job 2407 (18.02) Cost of Manufacturing Overhead Applied to Job 2407 (18.03) Cost of manufacturing one lamp (18.04) I See The Light ed Income Statement Ending December 31, 20x1 1,125,000 723,250 401,750 Sales 25,000 lamps 45 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 23,000 78,750 101.750 40.750 142,500 259 250 I See The Light cted Balance Sheet December 31, 20x1 34.710 67,500 Current Assets Cash Accounts Receivable Inventory Raw Material Figurines Electrical Sets Work in Process Finished Goods Total Current Assets 500 9.2 500 1.25 0 3000 28.925 4,600 625 0 86,775 194,210 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 20,000 6,800 13,200 207,410 54,000 54,000 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity 12,000 141,410 153,410 207,410 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 $9.2000000 per lamp Electrical Sets 1.25 per lamp Lamp Shade 6 per lamp Direct Labor: 2.25 per lamp (4 lamps/hr.) Variable Overhead: 0.225 per lamp Fixed Overhead: 10 per lamp (based on normal capacity of 25,000 lamps) Cost per lamp: $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 3.50% 2. Labor Costs are expected to increase by 3.00%. 3. Variable Overhead is expected to increase by 2.00% 4. Fixed Overhead is expected to increase to $270,000 5. Fixed selling expenses are expected to be $29,000 in 20x2. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 2.50% 7. Fixed Administrative expenses are expected to increase by $4,000. The total administrative expenses for 20x0 were $40,625.00, when 22,500 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 2.50%. The total administrative expenses for 20x0 were $40.625.00, when 22,500 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. I See The Light, Inc Schedule of Projected Costs Variable Manufacturing Unit Cost 20x1 Cost 9.2 Figurines Electrical Sets Lamp Shade Labor Variable Overhead Projected Percent 20x2 Cost Rounded to 7 Increase Decimal Places 3.50% $9.5220000 3.50% $1.2937500 3.50% $6.2100000 3.00% $2.3175000 2.00% $0.2295000 $4.01) $4.02) $4.03) 1.25 6 225 0.225 14.05 Projected Variable Manufacturing Cost Per Unit 18.925 $19.5727500 14.06) Total Variable Cost Per Unit 20x1 Cost Projected Percent 20x2 Cost Rounded to 7 Increase Decimal Places 2.50% 3.2287500 2.50% Variable Selling Variable Administrative 20x1 Variable Administrative 20x2 3.15 0.2295000 14.07 (4.08 14.09 Projected Variable Manufacturing Unit Cost Projected Total Variable Cost Per Unit 19.57275 22.8527500 (4.06 {4.10) Schedule of Fixed Costs 20x1 Cost Projected Increase 20x2 Cost Rounded to 2 Decimal Places 270.000 lamps @ ) 29,000 14.12) Fixed Overhead (normal capacity of Fixed Selling Fixed Administrative 20x1 Fixed Administrative 20x2 Projected Total Fixed Costs 342,500 (4.15) I See The Light Projected Income Statement For the Period Ending December 31, 20x1 $ 1,125,000.00 723,250.00 $ 401,750.00 Sales 25,000 lamps @ $45.00 Cost of Goods Sold @ $28.93 Gross Profit Selling Expenses: Fored Variable (Commission per unit) @ $3.15 Administrative Expenses Total Selling and Administrative Expenses: Net Profit $ 23,000.00 78,750.00 $ 101,750.00 40.750.00 142,500.00 $ 259, 250.00 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 Figurines Electrical Sets Work in Process Finished Goods Total Current Assets 4.600.00 625.00 500 @ $9.20 500 @ $1.25 0 3000 @ $28.9250 86.775.00 194.210.00 $ Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets $ 20,000.00 6,800.00 13.200.00 $ 207 410.00 54,000.00 54,000.00 Cument Llabetes Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Eamings Total Stockholder's Equity Total Liabilitios and Stockholder's Equity $ 12,000.00 141,410.00 153,410.00 207 410.00 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 Figurines $9.2000000' per lamp 12 Electrical Sets 1.2500000 per lamp 13 Lamp Shade 6.0000000 per lamp 20 Direct Labor: 2.2500000 per lamp (4 lamps/hr.) 21 Variable Overhead: 0.2250000 per lamp 22 Fixed Overhead: 10.0000000 per lamp (based on normal capacity of 25,000 lamps) 23 24 Cost per lamp $28.9250000 per lamp 31 32 Expected increases for 20x2 33 When calculating projected increases round to SEVEN decimal places, $0.0000000 34 35 42 43 44 45 46 53 54 55 56 57 64 65 66 67 68 75 76 77 78 79 1. Material Costs are expected to increase by 3.50% 2. Labor Costs are expected to increase by 3.00% 3. Variable Overhead is expected to increase by 2.00%. 4. Fixed Overhead is expected to increase to $270,000. 5. Fixed selling expenses are expected to be $29,000 in 20x2. 6. Variable seling expenses (measured on a per lamp basis) are expected to increase by 2.50% 7 Fixed Administrative expenses are expected to increase by $4,000. The total administrative expenses for 20x0 were $40,625.00, when 22,500 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 2.50%. The total administrative expenses for 20x0 were $40.625.00, when 22.500 units were sold. Use the High-Low method to calitate 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 2.50%. The total administrative expenses for 20x0 were $40,625.00, when 22,500 units were sold. Use the High-Low method to calculate the variable administrative axpense 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. I See The Light, Inc Schedule of Projected Costs Variable Manufacturing Unit Cost 20x1 Cost 20x2 Cost Rounded to 7 Decimal Places 9.2 1.25 Figurines Electrical Sets Lamp Shade Labor Variable Overhead Projected Porcent Increase 3.50% 3.50% 3.50% 3.00% 2.00% 6 $9.5220000 $1.2937500 $6.2100000 $2.3175000 $0.2295000 [4.01) (4.02) (4.03) (4.04) (4.05) 2.25 0.225 Projected Variable Manufacturing Cost Per Unit 18.925 $19.5727500 [4.06) Total Variable Cost Per Unit 20x1 Cost 20x2 Cost Rounded to 7 Decimal Places Projected Percent Increase 2.50% 2.50% 3.2287500 Variable Selling 2 Variable Administrative 20x1 Variable Administrative 20x2 3.15 0.0400000 (4.07) {4.08) {4.09) 1 2 Projected Variable Manufacturing Unit Cost 3 Projected Total Variable Cost Per Unit -4 2 [4.06) [4.10) 73 74 Schedule of Fixed Costs 20x1 Cost Projected Increase 2012 Cost Rounded to 2 Decimal Places 270,000.00 (4.11) lamps @) 29,000.00 75 76 Fixed Overhead 84 (normal capacity of 85 Fixed Selling 86 Food Administrative 20x1 87 Fixed Administrative 20x2 88 Projected Total Fixed Costs 96 97 (4.12) (4.13) (4.14) (4.15) B G H D E F 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. 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) Contribution Margin per unit (Round to soven places, $###****##) Contribution Margin Ratio (Round to seven places, % is two of those places ##.#####%) (5.02) 2. For 20x2 the selling price per lamp will be $45.00. How many lamps must be sold to breakeven? 2 3 Breakeven sales in units (Round up to zero places, ##.### units) 16 05 05 (5.03) B m G H 001 07 08 093. For 2012 the selling price per lamp will be $45.00. The desired operating income in 2012 is $284,250. What 18 would sales in units have to be in 2012 to reach the profit goal? 19 20 21 22 23 24 125 26 127 28 129 130 131 132 Sales in unles (Round up to zero places, tinta, *#*# units) (5.04) 123 4. For 20x2 the selling price per lamp will be $45.00. The company would like to have a operating income equal to 26.00% 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. 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. For 20x2 the selling price per lamp will be $45.00 and the effective tax rate is 39%. How many units must be sold to generated a operating income of $200,000 after taxes? 9 00 01 32 03 Sales in units (Round up to zero places, ###,### units) (6.0 B D E F G H If the company believes that the demand will be 27,500 units for the year. What selling price per lamp, founded to two places, would generate a operating income of $818,500? New Seling price per lamp (Round up to two places, $###,#####) (6.04) Job Order Costing 6 7 8 10 11 12 3. To keep records of the actual cost of a special order job, a Job Order Cost System has been developed 4 Overhead is applied at the rate of 50% of the direct labor cost 6 7 8 9 Job Order Costing Section 0 2 on January 1, 20x2, Division S began Job 2407 for the Cient, THE BIG CHILDREN STORE. The 3 job called for 4,000 customized lamps. The following set of transactions occurred from 4 January 5 until the job was completed: 5 8 00 1 22 5-Jan Purchased 4,075 figurines @ $9.30 per figurine. 6-Jan Purchased 4.100 sets of electical components @ $1.35 per set. 7-Jan Purchased 4,000 lamp shades @ $6.40 per set. 8-Jan 4,075 figurines were requisitioned. 9-Jan 4,075 sets of electrical components were requisitioned. 17-Jan Payroll of 570 Direct Labor Hours @ $9.40 per hour. 28-Jan 3,990 lamp shades were requisitioned 30-Jan Payroll of 620 Direct Labor Hours @ $9.65 per hour. 30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were used or scrapped, and are a cost of normal processing. Month End Overhead Information Actual Variable Manufacturing Overhead $ 1,213.80 Actual Fixed Manufacturing Overhead $ 39,623.45 5 Round to six places, $####### Cost of Direct Material incurred in Manufacturing Job 2407 (18.01) Cost of Direct Labor incurred in Manufacturing Job 2407 (18.02) Cost of Manufacturing Overhead Applied to Job 2407 (18.03) Cost of manufacturing one lamp (18.04) I See The Light ed Income Statement Ending December 31, 20x1 1,125,000 723,250 401,750 Sales 25,000 lamps 45 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 23,000 78,750 101.750 40.750 142,500 259 250 I See The Light cted Balance Sheet December 31, 20x1 34.710 67,500 Current Assets Cash Accounts Receivable Inventory Raw Material Figurines Electrical Sets Work in Process Finished Goods Total Current Assets 500 9.2 500 1.25 0 3000 28.925 4,600 625 0 86,775 194,210 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 20,000 6,800 13,200 207,410 54,000 54,000 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity 12,000 141,410 153,410 207,410 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 $9.2000000 per lamp Electrical Sets 1.25 per lamp Lamp Shade 6 per lamp Direct Labor: 2.25 per lamp (4 lamps/hr.) Variable Overhead: 0.225 per lamp Fixed Overhead: 10 per lamp (based on normal capacity of 25,000 lamps) Cost per lamp: $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 3.50% 2. Labor Costs are expected to increase by 3.00%. 3. Variable Overhead is expected to increase by 2.00% 4. Fixed Overhead is expected to increase to $270,000 5. Fixed selling expenses are expected to be $29,000 in 20x2. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 2.50% 7. Fixed Administrative expenses are expected to increase by $4,000. The total administrative expenses for 20x0 were $40,625.00, when 22,500 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 2.50%. The total administrative expenses for 20x0 were $40.625.00, when 22,500 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. I See The Light, Inc Schedule of Projected Costs Variable Manufacturing Unit Cost 20x1 Cost 9.2 Figurines Electrical Sets Lamp Shade Labor Variable Overhead Projected Percent 20x2 Cost Rounded to 7 Increase Decimal Places 3.50% $9.5220000 3.50% $1.2937500 3.50% $6.2100000 3.00% $2.3175000 2.00% $0.2295000 $4.01) $4.02) $4.03) 1.25 6 225 0.225 14.05 Projected Variable Manufacturing Cost Per Unit 18.925 $19.5727500 14.06) Total Variable Cost Per Unit 20x1 Cost Projected Percent 20x2 Cost Rounded to 7 Increase Decimal Places 2.50% 3.2287500 2.50% Variable Selling Variable Administrative 20x1 Variable Administrative 20x2 3.15 0.2295000 14.07 (4.08 14.09 Projected Variable Manufacturing Unit Cost Projected Total Variable Cost Per Unit 19.57275 22.8527500 (4.06 {4.10) Schedule of Fixed Costs 20x1 Cost Projected Increase 20x2 Cost Rounded to 2 Decimal Places 270.000 lamps @ ) 29,000 14.12) Fixed Overhead (normal capacity of Fixed Selling Fixed Administrative 20x1 Fixed Administrative 20x2 Projected Total Fixed Costs 342,500 (4.15)