Intermediate Learning Sales Budget For the Year Ended December 31, 2021 First Second Third Fourth Quarter Quarter Quarter | Quarter 850 700 750 200 $ 200 $ 200 $ 200 $ 110,000 $ 170.000 S 140,000 $ 150,000 $ Total Budgeted tablets to be sold 550 Sales price per unit 2,850 200 570,000 Total sales Intermediate Learning Production Budget For the Year Ended December 31, 2021 First Third Fourth Second Quarter Quarter Quarter Quarter Total 2,850 160 170 Budgeted tablets to be sold Plus: Desired tablets in ending inventory Total tablets needed Less: Tablets in beginning inventory 3,010 300 Less Tablets in beginning inventory 300_ 420 170_ 820 140|_ 710 150||__ 760 300 2,710 Budgeted tablets to be produced Intermediate Learning Direct Materials Budget For the Year Ended December 31, 2021 First Second Quarter Quarter Third Fourth Quarter Quarter Total 2,710 Budgeted tablets to be produced Direct materials (pounds) per tablet Direct materials needed for production Plus: Desired direct materials in ending inventory (pounds) Total direct materials needed 3.550 2.100 820 4,100 710 2.920 1,500 Less: Direct materials in beginning inventory (pounds) Budgeted purchases of direct materials 4.810 820 3.900 3,800 13,550 1,752 1,752 5,552 15,302 760 1,500 4,792 13,802 75 75 359,400 $ 1,035,150 4,310 710 3.800 75 270,000 S 1.420 75 Direct materials cost per pound 108,500 $ 299.250 $ Budgeted cost of direct materials purchases Intermediate Learning Direct Labor Budget For the Year Ended December 31, 2021 First Second Third Quarter Quarter Quarter Fourth Quarter Total Budgeted tablets to be produced 760 2,710 Direct labor hours per unit Direct labor hours needed for production 1.680 2||$ 3,280 12 Direct labor cost per hour 2.840 $ 34,080 $ 3,040 12$ 36,480 $ 10.840 12 130,080 Budgeted direct labor cost $ 20,160 $ 39,360 $ Intermediate Learning Manufacturing Overhead Budget For the Year Ended December 31, 2021 First Second Third Quarter Quarter Quarter Fourth Quarter Total 710 760 Budgeted tablets to be produced VOH cost per tablet 2.710 40 on Annul e Ann Ann. 16,800 $ 32,800 $ 28.400 $ 30.400 $ 108,400 Budgeted VOH Budgeted FOH Depreciation 5,000 49,200 Utilities, insurance, property taxes 5,000 49,200 54,200 87,000 $ 54,200 5.000 49,200 54,200 82,600 $ 5.000 49,200 54,200 84,800 $ 20,000 198,800 216,800 325,200 Total budgeted FOH 71.000 $ Budgeted manufacturing overhead costs 1.680 3,280 2,840 3.040 Direct labor hours Budgeted manufacturing overhead costs $ 10,840 325,200 30 Predetermined overhead allocation rate Intermediate Learning Cost of Goods Sold Budget For the Year Ended December 31, 2021 Second Third Quarter Quarter Quarter First Fourth Quarter Total $ $ Beginning inventory Tablets produced and sold in 2021 69,000 135,750 $ 89,000 1,384,650 461,550 $ 380,100 $ 407,250 First Third Fourth Second Quarter Quarter Quarter Quarter Total Beginning inventory Tablets produced and sold in 2021 Total budgeted cost of goods sold 89,000 135,750 $ 204,750 $ 461,550 $ 461,550 $ 380,100 $ 380,100 $ 69,000 407,250 1,384,650 407,250 $ 1,453,650 $ Intermediate Learning Selling and Administrative Expense Budget For the Year Ended December 31, 2021 First Second Third Quarter Quarter Quarter Total $ Salaries Expense Rent Expense Insurance Expense Depreciation Expense 27.000 $ 20.000 2.200 27,000 $ 20,000 2,200 1,700 1,700 27.000 20.000 2200 1.700 1.400 52,300 Fourth Quarter 27,000 $ 20.000 2,200 1.700 1.500 52,400 $ 108.000 80.000 8.800 8.800 5.700 209,300 1.700 1.100 Supplies Expense* 52.000 52.600 $ Total budgeted selling and administrative expense * Supplies expense is 1% of sales revenue. Intermediate Learning prepared the following budgets: (Click the icon to view the budgets.) Intermediate Learning has decided to revise its budget to show fourth quarter sales of 950 tablets due to the expectation of increased holiday sales. First quarter sales for the following year are expected to be 800. The company desires to have an ending Finished Goods Inventory each quarter equal to 20% of the next quarter's sales. Read the requirements. Requirement 1a. Revise the sales budget Intermediate Learning Sales Budget 0 Requirements - X For the Year Ended December 31, 2021 First Second Third Quarter Quarter Quarter Fourth Quarter Total Budgeted tablets to be sold Sales price per unit Total sales 1. Revise the following budgets: a. Sales budget b. Production budget 2. Describe how the following budgets will be affected (without revising the budgets): a. Direct materials budget b. Direct labor budget c. Manufacturing overhead budget d. Cost of goods sold budget e. Selling and administrative expense budget Requirement 1b. Revise the production budget. Intermediate Learning Production Budget For the Year Ended December 31, 2021 First Second Third Quarter Quarter Quarter Fourth Print Done Quarter Total First Secona inira Fourt Quarter Quarter Quarter Quarter Total Plus: Total tablets needed Less: Budgeted tablets to be produced Requirement 2. Describe how the following budgets will be affected (without revising the budgets) a. Direct materials budget: Since production will the amount of direct materials required will therefore purchases of materials will be required. b. Direct labor budget. The change in production will the amount of labor required; therefore, direct labor costs will c. Manufacturing overhead budget: The change in production will the amount of variable manufacturing overhead; therefore, variable manufacturing overhead costs will Fixed costs will the change in production takes Intermediate Learning out of its relevant range . The change in production will have a effect on production d. Cost of goods sold budget The change in production will costs because fixed manufacturing overhead costs are a the production cost per unit because the foxed costs will be distributed among portion of the total production cost. Therefore, total cost of goods sold will units. In other words, the predetermined overhead allocation rate will due to the increase in units sold. e. Selling and administrative expense budget: Fixed selling and administrative costs will the increase in sales takes Intermediate Learning out of its relevant range. The variable selling and administrative cost, Supplies, will with the change in sales. Intermediate Learning Sales Budget For the Year Ended December 31, 2021 First Second Third Fourth Quarter Quarter Quarter | Quarter 850 700 750 200 $ 200 $ 200 $ 200 $ 110,000 $ 170.000 S 140,000 $ 150,000 $ Total Budgeted tablets to be sold 550 Sales price per unit 2,850 200 570,000 Total sales Intermediate Learning Production Budget For the Year Ended December 31, 2021 First Third Fourth Second Quarter Quarter Quarter Quarter Total 2,850 160 170 Budgeted tablets to be sold Plus: Desired tablets in ending inventory Total tablets needed Less: Tablets in beginning inventory 3,010 300 Less Tablets in beginning inventory 300_ 420 170_ 820 140|_ 710 150||__ 760 300 2,710 Budgeted tablets to be produced Intermediate Learning Direct Materials Budget For the Year Ended December 31, 2021 First Second Quarter Quarter Third Fourth Quarter Quarter Total 2,710 Budgeted tablets to be produced Direct materials (pounds) per tablet Direct materials needed for production Plus: Desired direct materials in ending inventory (pounds) Total direct materials needed 3.550 2.100 820 4,100 710 2.920 1,500 Less: Direct materials in beginning inventory (pounds) Budgeted purchases of direct materials 4.810 820 3.900 3,800 13,550 1,752 1,752 5,552 15,302 760 1,500 4,792 13,802 75 75 359,400 $ 1,035,150 4,310 710 3.800 75 270,000 S 1.420 75 Direct materials cost per pound 108,500 $ 299.250 $ Budgeted cost of direct materials purchases Intermediate Learning Direct Labor Budget For the Year Ended December 31, 2021 First Second Third Quarter Quarter Quarter Fourth Quarter Total Budgeted tablets to be produced 760 2,710 Direct labor hours per unit Direct labor hours needed for production 1.680 2||$ 3,280 12 Direct labor cost per hour 2.840 $ 34,080 $ 3,040 12$ 36,480 $ 10.840 12 130,080 Budgeted direct labor cost $ 20,160 $ 39,360 $ Intermediate Learning Manufacturing Overhead Budget For the Year Ended December 31, 2021 First Second Third Quarter Quarter Quarter Fourth Quarter Total 710 760 Budgeted tablets to be produced VOH cost per tablet 2.710 40 on Annul e Ann Ann. 16,800 $ 32,800 $ 28.400 $ 30.400 $ 108,400 Budgeted VOH Budgeted FOH Depreciation 5,000 49,200 Utilities, insurance, property taxes 5,000 49,200 54,200 87,000 $ 54,200 5.000 49,200 54,200 82,600 $ 5.000 49,200 54,200 84,800 $ 20,000 198,800 216,800 325,200 Total budgeted FOH 71.000 $ Budgeted manufacturing overhead costs 1.680 3,280 2,840 3.040 Direct labor hours Budgeted manufacturing overhead costs $ 10,840 325,200 30 Predetermined overhead allocation rate Intermediate Learning Cost of Goods Sold Budget For the Year Ended December 31, 2021 Second Third Quarter Quarter Quarter First Fourth Quarter Total $ $ Beginning inventory Tablets produced and sold in 2021 69,000 135,750 $ 89,000 1,384,650 461,550 $ 380,100 $ 407,250 First Third Fourth Second Quarter Quarter Quarter Quarter Total Beginning inventory Tablets produced and sold in 2021 Total budgeted cost of goods sold 89,000 135,750 $ 204,750 $ 461,550 $ 461,550 $ 380,100 $ 380,100 $ 69,000 407,250 1,384,650 407,250 $ 1,453,650 $ Intermediate Learning Selling and Administrative Expense Budget For the Year Ended December 31, 2021 First Second Third Quarter Quarter Quarter Total $ Salaries Expense Rent Expense Insurance Expense Depreciation Expense 27.000 $ 20.000 2.200 27,000 $ 20,000 2,200 1,700 1,700 27.000 20.000 2200 1.700 1.400 52,300 Fourth Quarter 27,000 $ 20.000 2,200 1.700 1.500 52,400 $ 108.000 80.000 8.800 8.800 5.700 209,300 1.700 1.100 Supplies Expense* 52.000 52.600 $ Total budgeted selling and administrative expense * Supplies expense is 1% of sales revenue. Intermediate Learning prepared the following budgets: (Click the icon to view the budgets.) Intermediate Learning has decided to revise its budget to show fourth quarter sales of 950 tablets due to the expectation of increased holiday sales. First quarter sales for the following year are expected to be 800. The company desires to have an ending Finished Goods Inventory each quarter equal to 20% of the next quarter's sales. Read the requirements. Requirement 1a. Revise the sales budget Intermediate Learning Sales Budget 0 Requirements - X For the Year Ended December 31, 2021 First Second Third Quarter Quarter Quarter Fourth Quarter Total Budgeted tablets to be sold Sales price per unit Total sales 1. Revise the following budgets: a. Sales budget b. Production budget 2. Describe how the following budgets will be affected (without revising the budgets): a. Direct materials budget b. Direct labor budget c. Manufacturing overhead budget d. Cost of goods sold budget e. Selling and administrative expense budget Requirement 1b. Revise the production budget. Intermediate Learning Production Budget For the Year Ended December 31, 2021 First Second Third Quarter Quarter Quarter Fourth Print Done Quarter Total First Secona inira Fourt Quarter Quarter Quarter Quarter Total Plus: Total tablets needed Less: Budgeted tablets to be produced Requirement 2. Describe how the following budgets will be affected (without revising the budgets) a. Direct materials budget: Since production will the amount of direct materials required will therefore purchases of materials will be required. b. Direct labor budget. The change in production will the amount of labor required; therefore, direct labor costs will c. Manufacturing overhead budget: The change in production will the amount of variable manufacturing overhead; therefore, variable manufacturing overhead costs will Fixed costs will the change in production takes Intermediate Learning out of its relevant range . The change in production will have a effect on production d. Cost of goods sold budget The change in production will costs because fixed manufacturing overhead costs are a the production cost per unit because the foxed costs will be distributed among portion of the total production cost. Therefore, total cost of goods sold will units. In other words, the predetermined overhead allocation rate will due to the increase in units sold. e. Selling and administrative expense budget: Fixed selling and administrative costs will the increase in sales takes Intermediate Learning out of its relevant range. The variable selling and administrative cost, Supplies, will with the change in sales