Intermediate Learning Sales Budget For the Year Ended December 31, 2021 First Second Third Quarter Quarter Quarter Fourth Quarter Total Budgeted tablets to be sold 550 2,850 850 200 700 200 140.000 $ 750 200ls 200 Sales price per unit $ 110.000 $ 170,000 $ 150,000 $ 570.000 Total sales Intermediate Learning Production Budget For the Year Ended December 31, 2021 First Second Third Quarter Quarter Quarter Fourth Quarter Total Budgeted tablets to be sold 2.850 160 Plus: Desired tablets in ending inventory Total tablets needed 910 Less: Tablets in beginning inventory 3,010 300 2.710 710 780 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 Budgeted tablets to be produced 420 710 2.710 Direct materials (pounds) per tablet Direct materials needed for production 4,100 2,100 820 3.800 3,550 760 13.550 1.752 710 Plus: Desired direct materials in ending inventory (pounds) Total direct materials needed 4,310 2,920 1,500 4,810 820 1.752 5,552 760 15,302 1,500 710 1,420 3,990 3,600 4,792 13.802 Less: Direct materials in beginning inventory (pounds) Budgeted purchases of direct materials Direct materials cost per pound Budgeted cost of direct materials purchases 75 106,500 $ 299,250 $ 270,000 350.400 $ 1,035,150 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 420 820 710 760 2,710 Direct labor hours per unit Direct labor hours needed for production 2,840 10,840 Direct labor cost per hour 1,880 12$ 20,160 $ 3.280 12 $ 39,380 $ 3.040 12 $ 38.480 $ 34,080 $ 130,080 Budgeted direct labor cost Intermediate Learning Manufacturing Overhead Budget For the Year Ended December 31, 2021 First Second Third Quarter Quarter Quarter Fourth Quarter Total Budgeted tablets to be produced 420 760 820 40$ 710 40 2.710 40 VOH cost per tablet Budgeted VOH Budgeted FOH 16,800 $ 32,800 $ 28,400 $ 30,400 $ 108,400 Depreciation 5,000 49,200 20,000 198,800 Utilities, insurance, property taxes Total budgeted FOH 5,000 49,200 54,200 71,000$ 5,000 49,200 54,200 87,000 $ 5,000 49,200 54,200 82,600 $ 54,200 84,600 $ 216,800 325,200 Budgeted manufacturing overhead costs 1,680 3.280 - 2,840|| 3,040 Direct labor hours Budgeted manufacturing overhead costs 10,840 325,200 $ Predetermined overhead allocation rate Intermediate Learning Cost of Goods Sold Budget For the Year Ended December 31, 2021 First Second Third Quarter Quarter Quarter Fourth Quarter Total Beginning inventory Tablets produced and sold in 2021 69,000 135,750 $ 204,750 $ 461,550 $ 481,550 $ 380,100 $ 380,100 $ 89,000 407,250 1,384,850 407,250 $ 1,453,650 Total budgeted cost of goods sold Total Intermediate Learning Selling and Administrative Expense Budget For the Year Ended December 31, 2021 First Second | Third Fourth Quarter Quarter Quarter Quarter 27,000 $ 27,000 $ 27,000 $ 27,000 $ 20,000 20.000 20,000 20,000 2,200 2.200 2,200 2,200 1,700 1.700 1,700 1,700 1,100 1.700 1,400 1,500 Salaries Expense Rent Expense Insurance Expense 108,000 80,000 8,800 6,800 5,700 Depreciation Expense Supplies Expense 52,000 $ 52,600 52,300 $ 52,400 $ 209,300 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 For the Year Ended December 31, 2021 First Second Third Quarter Quarter Quarter Fourth Quarter Budgeted tablets to be sold Sales price per unit Total sales Requirement 1b. Revise the production budget. Intermediate Learning Production Budget For the Year Ended December 31, 2021 First Second | Third Quarter Quarter Quarter Fourth 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 y 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 fixed 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 Quarter Quarter Quarter Fourth Quarter Total Budgeted tablets to be sold 550 2,850 850 200 700 200 140.000 $ 750 200ls 200 Sales price per unit $ 110.000 $ 170,000 $ 150,000 $ 570.000 Total sales Intermediate Learning Production Budget For the Year Ended December 31, 2021 First Second Third Quarter Quarter Quarter Fourth Quarter Total Budgeted tablets to be sold 2.850 160 Plus: Desired tablets in ending inventory Total tablets needed 910 Less: Tablets in beginning inventory 3,010 300 2.710 710 780 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 Budgeted tablets to be produced 420 710 2.710 Direct materials (pounds) per tablet Direct materials needed for production 4,100 2,100 820 3.800 3,550 760 13.550 1.752 710 Plus: Desired direct materials in ending inventory (pounds) Total direct materials needed 4,310 2,920 1,500 4,810 820 1.752 5,552 760 15,302 1,500 710 1,420 3,990 3,600 4,792 13.802 Less: Direct materials in beginning inventory (pounds) Budgeted purchases of direct materials Direct materials cost per pound Budgeted cost of direct materials purchases 75 106,500 $ 299,250 $ 270,000 350.400 $ 1,035,150 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 420 820 710 760 2,710 Direct labor hours per unit Direct labor hours needed for production 2,840 10,840 Direct labor cost per hour 1,880 12$ 20,160 $ 3.280 12 $ 39,380 $ 3.040 12 $ 38.480 $ 34,080 $ 130,080 Budgeted direct labor cost Intermediate Learning Manufacturing Overhead Budget For the Year Ended December 31, 2021 First Second Third Quarter Quarter Quarter Fourth Quarter Total Budgeted tablets to be produced 420 760 820 40$ 710 40 2.710 40 VOH cost per tablet Budgeted VOH Budgeted FOH 16,800 $ 32,800 $ 28,400 $ 30,400 $ 108,400 Depreciation 5,000 49,200 20,000 198,800 Utilities, insurance, property taxes Total budgeted FOH 5,000 49,200 54,200 71,000$ 5,000 49,200 54,200 87,000 $ 5,000 49,200 54,200 82,600 $ 54,200 84,600 $ 216,800 325,200 Budgeted manufacturing overhead costs 1,680 3.280 - 2,840|| 3,040 Direct labor hours Budgeted manufacturing overhead costs 10,840 325,200 $ Predetermined overhead allocation rate Intermediate Learning Cost of Goods Sold Budget For the Year Ended December 31, 2021 First Second Third Quarter Quarter Quarter Fourth Quarter Total Beginning inventory Tablets produced and sold in 2021 69,000 135,750 $ 204,750 $ 461,550 $ 481,550 $ 380,100 $ 380,100 $ 89,000 407,250 1,384,850 407,250 $ 1,453,650 Total budgeted cost of goods sold Total Intermediate Learning Selling and Administrative Expense Budget For the Year Ended December 31, 2021 First Second | Third Fourth Quarter Quarter Quarter Quarter 27,000 $ 27,000 $ 27,000 $ 27,000 $ 20,000 20.000 20,000 20,000 2,200 2.200 2,200 2,200 1,700 1.700 1,700 1,700 1,100 1.700 1,400 1,500 Salaries Expense Rent Expense Insurance Expense 108,000 80,000 8,800 6,800 5,700 Depreciation Expense Supplies Expense 52,000 $ 52,600 52,300 $ 52,400 $ 209,300 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 For the Year Ended December 31, 2021 First Second Third Quarter Quarter Quarter Fourth Quarter Budgeted tablets to be sold Sales price per unit Total sales Requirement 1b. Revise the production budget. Intermediate Learning Production Budget For the Year Ended December 31, 2021 First Second | Third Quarter Quarter Quarter Fourth 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 y 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 fixed 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