I'm working on the I See The Light project and I'm not really sure how to go about this question and need help filling out the boxes, thanks!
UV Paste 4 PART 3 Budgets 8 Division N has decided to develop its budget based upon projected sales of 27,000 lamps at 9 $47.00 per lamp 10 The company has requested that you prepare a master budget for the year. This budget is to be used 11 for planning and control of operations and should be composed of: 12 17 1. Production Budget 19 2. Materials Budget 21 3. Direct Labor Budget 27 4. Factory Overhead Budget 29 5. Seling and Administrative Budget 35 6. Cost of Goods Sold Budget 37 7. Budgeted Income Statement 39 8. Cash Budget 45 Notes for Budgeting: 48 The company wants to maintain the same number of units in the beginning and ending inventories of 53 work-in-process, and electrical parts while increasing the inventory of Lamp Kits to 525 pieces and 54 decreasing the finished goods by 20% 56 Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods Total Needed Less: Beginning Inventory Total Production 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 3000 @ $30.00 8,000.00 90,000.00 $ 200,210.00 Fixed Assets Equipment Accumulated Depreciation Total Ficed 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 Eamings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12.000.00 147.410.00 159.410.00 213.410.00 A2 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: 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 Expected increases for 20x2 When calculating projected increases round to TWO ($0.00) decimal glaces. 1. Material Costs are expected to increase by 4.50% 2. Labor Costs are expected to increase by 4.00% 3. Variable Overhead is expected to increase by 2.00% 4. Fixed Overhead is expected to increase to $295,000. 5. Fixed Administrative expenses are expected to increase to $46,000 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 2.50% 7. Fixed seling expenses are expected to be $23,000 in 20x2. 8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 5.00% 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
