INPUT
Manufacturing overhead
Finished goods inventory budget
Cost of goods sold budget
Inputs (Assumptions) for the Profit Planning Year Jan. 1 to Dec. 31, 2021 MyArmor, Inc. Set Input Values Back to Original Amounts As of Dec. 31 2020 Applies to All Qtrs. in 2021 Fix the Format of All Yellow Cells Quarter in the 2021 Planning Year 2nd 3rd 1st Quarter of 2022 1st 4th Sales Budget Sales in Units Average Selling Price per Unit Cash Collection Pattern for Sales in the 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 10,000 units $30 per unit 60% 18,000 units $34 per unit 12,000 units $28 per unit 10% 40% 18,000 units $34 per unit Remainder Remainder 70% Remainder 80% Remainder 3,000 units Production Budget Finished Units in Inventory - as of 12/31/2020 (the prior year) Forecasted Sales in Units - 1st Quarter of 2022 (next year) % of the Next Qtr.'s Sales in Units to Have in This Qtr.'s Ending Inventory 16,000 units 30% 10 oz 20% 30% 30% 20% 15,000 oz Raw Materials Budget Ounces of Plastic Steel Powder (PSP) Required per Finished Unit % of Next Qtr.'s "Ounces of Psp Required to have in This atr's Ending Inventory Ounces of Psp in Raw Materials Inventory - as of 12/31/2020 (the prior year) Forecasted Ounces of PsP Required in the 1st Qtr of 2022 (next year) Cost of Psp per Ounce Cash Payment Pattern for Psp Purchased in the 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 130,000 oz $1.20 per az 40% $1.20 per oz $1.10 per oz 30% 50% $1.10 per oz Remainder 30% 80% Remainder Remainder 70% Remainder Direct Labor Budget Direct Labor Hours (hrs) per Finished Unit Average Cost of a Direct Labor Hour 0.20 hrs $18 per hour $18 per hour $20 per hour $20 per hour Manufacturing Overhead Budget Variable Overhead Cost Rate per Direct Labor Hour (DLH) Total Fixed Manufacturing Overhead Cost per Quarter Depreciation per Quarter Included in Fixed Manufacturing Overhead $8 per DLH $50,000 $ $9,000 Finished Goods Inventory Budget No Required Input Data Inputs (Assumptions) for the Profit Planning Year Jan. 1 to Dec. 31, 2021 MyArmor, Inc. Set Input Values Back to Original Amounts As of Dec. 31 2020 Applies to All Qtrs. in 2021 Fix the Format of All Yellow Cells Quarter in the 2021 Planning Year 2nd 3rd 1st Quarter of 2022 1st 4th Cost of Goods Sold Budget Only Required Input Data is on the Prior Year Balance Sheet below $6 per unit Selling, General and Administrative (SG&A) Budget Variable SG&A Cost per Unit Sold Advertising Fixed Cost Salary Fixed Cost Mall Kiosk Rental Fixed Cost Utilities Fixed Cost Property Taxes Depreciation $5,000 $40,000 $1,000 $1,000 $0 $12,000 $5,000 $40,000 $1,000 $1,000 $12,000 $12,000 $15,000 $45,000 $2.000 $2,000 $0 $13,000 $15,000 $45,000 $2,000 $2,000 $12,000 $14,000 $0 $0 $10,000 $10,000 Cash Budget Equipment Purchases Dividends per Quarter Annual Interest Rate Charged by the Bank on the Bank Loan $15,000 6% Income Statement No Required Input Data Prior Year Balance Sheet as of Dec. 31, 2020 Cash Accounts Receivable Raw Material Inventory Finished Goods Inventory Property, Plant & Equipment, gross Accumulated Depreciation Total Assets $ $24,000 $125,000 $18,000 $60.000 $723,000 (S260,000) $690,000 Accounts Payable Bank Loan Common Stock Retained Earnings Total Liabilities & Equity $28,000 $60,000 $160,000 $442,000 $690.000 Manufacturing Overhead Budget - for the Profit Planning Year Jan. 1 to Dec. 31, 2021 MyArmor, Inc. Test My Budget Full Year Quarter in the 2021 Planning Year 2nd 3rd 1st 4th Total Total Direct Labor Hours (from Direct Labor Budget) times Variable Overhead Cost Rate per Direct Labor Hour (DLH) equals Total Variable Manufacturing Overhead Cost plus Total Fixed Manufacturing Overhead Cost Total Manufacturing Overhead Cost Check Amount $73,360 Check Amount $302,080 Full Year Total 3rd Otr 4th Otr Calculation of Cash Payments for Manufacturing Overhead - for the Cash Budget 1st Otr 2nd Otr Total Manufacturing Overhead Cost (per above) less Depreciation Included in Manufacturing Overhead() Total Cash Payments for Manufacturing Overhead Check Amounts $64,360 $63,080 $69,800 $68,840 Fix the Format Restore the For Calculation of the Predetermined Overhead Rate - for the Finished Goods Ending Inventory Budget Full Year Total Manufacturing Overhead Cost divided by Full Year Total Direct Labor Hours $0 per DLH TA equals Predetermined Overhead Rate per Direct Labor Hour (DLH) Check Amount $24 Multiple Choice Questions Answer: 1. Using the data in the simple example on Pg. 3 of the Manufacturing Overhead Budget.pdf document, what would be Total Manufacturing Overhead Cost if Total Direct Labor Hours were 200 rather than 100? A. $400 B. $600 C. $450 D. $650 Answer 2. Which one of the following statements is correct? A Total Variable Overhead Cost does not change when the level of manufacturing activity changes. B. Total Manufacturing Overhead Cost is an input to the Cash Budget. C. Total Fixed Overhead Cost does not change when the level of manufacturing activity changes. D. Total Cash Payments for Manufacturing Overhead is an input to the Cost of Goods Sold Budget. Finished Goods Inventory Budget - for the Profit Planning Year Jan. 1 to Dec. 31, 2021 My Armor, Inc. Test My Budget Calculation of 4th Quarter Production Cost per Finished Unit A Total Cost Quantity Required per Finished Unit 4th Qtr. Cost per Finished Unit = | PSP (Raw Materials) Direct Labor Manufacturing Overhead (applied based on Direct Labor Hours) = 4th Qtr. Production Cost per Finished Unit Check Amount $20.80 Calculation of Finished Goods Inventory (FIFO) as of Dec. 31, 2021 Units in 4th Qtr. Finished Goods Ending Inventory (from Production Budget) times 4th Qtr. Production Cost per Finished Unit Finished Goods Inventory as of Dec. 31, 2021 Check Amount $99,840 Fix the Format of All White Cells Multiple Choice Questions 1. Using the data in the simple example on Pg. 1 of the Finished Goods Inventory Budget.pdf Answer: document, what would be the value of the 100 Finished Units if 4th qtr. cost of an hour of Direct Labor was $8 rather than $10? A. $8,400 B. $7,600 C. $6,800 D. $6,000 Answer: 2. Which one of the following statements is correct? A. Finished Goods Inventory as of Dec. 31, 2021 is an input the Cost of Goods Sold Budget. B. Finished Goods Inventory as of Dec. 31, 2021 is an input to the Raw Materials Budget. C. Finished Goods Inventory as of Dec. 31, 2021 is an input to the Cash Budget. D. None of the above statements are correct. Cost of Goods Sold Budget - for the Profit Planning Year Jan. 1 to Dec. 31, 2021 MyArmor, Inc. Test My Budget Raw Materials Inventory Raw Materials Inventory as of January 1, 2021 plus Total Cost of Psp Purchases for 2021 (from Raw Materials Budget) less Raw Materials Inventory as of December 31, 2021 (from Raw Materials Budget) equals Cost of Raw Materials Transferred to Work-in-Process Inventory Work-in-Process Inventory (WIP) $0 Fix the Format of All White Cells and Restore the Zeros in Cells D14 and Work-in-Process Inventory as of January 1, 2021 plus Cost of Raw Materials Transferred to Work-in-Process Inventory plus Total Direct Labor $'s for 2021 (from Direct Labor Budget) plus Total Manufacturing Overhead Cost for 2021 (from Manufacturing Overhead Budget) less Work-in-Process Inventory as of December 31, 2021 () equals Cost of Work-in-Process Transferred to Finished Goods Inventory (0) Finished Goods Inventory and Cost of Goods Sold Finished Goods Inventory as of January 1, 2021 plus Cost of Work-in-Process Transferred to Finished Goods Inventory less Finished Goods Inventory as of Dec. 31, 2021 (from Finished Goods Inventory Budget) () Cost of Goods Sold Check Amount $1,237,420 Multiple Choice Questions 1. Using the data in the simple example on Pg. 1 of the Cost of Goods Sold Budget.pdf Answer: document, what would be cost of Goods Sold if Raw Materials Inventory as of December 31, 2021 was $$25 rather than $20? A. $1,005 B. $1,000 C. $995 D. $990 Answer: 2. Which one of the following statements is correct? A. Cost of Goods Sold, on the Cost of Goods Sold Budget, is an input to the Forecasted Balance Sheet. B. Cost of Goods Sold, on the Cost of Goods Sold Budget, is an input to the Forecasted Income Statement. C. Cost of Goods Sold, on the Cost of Goods Sold Budget, is an input to the Cash Budget. D. None of the above statements are correct
