L M A B C D E F G H I J K Preparation of Individual Budgets During the first calendar quarter of 2019, Clinton Corporation is planning to manufacture a new product and introduce it in two regions Market research indicates that sales will be 6,000 units in the urban region at a unit price of 553 and 5,000 units in the rural region at S48 cach. Because the sales manager expects the product to catch on, he has asked for production sufficient to generate a 4,000 unit ending inventory. The production manager has furnished the following estimates related to manufacturing costs and operating expenses Variable (per unit) Fixed rotat 12.50 090 Manufacturing costs: Direct materials A (4 lbs $3.15/ib. B12 ios $4.65/b.) Direa tabor (0.5 hrs/unit Manufacturing overhead Depreciation Factory supplies Supervisory salaries Other Operating expenses Selling Advertising Sales salaries and commissions Other Administrative Office salaries Supplies other "Va per un sold, not per un produced 7,650 4.500 28 300 22.950 0.75 150 22 50 15,000 25.000 0.90 2.700 1.950 Assuming that the desired ending inventories of materials A and B are 4,000 and 6,000 pounds respectively, and that work-in-process inventories are immaterial, prepare budgets for the calendar quarter in which the new product will be introduced for each of the following operating 1 Total sales 2 Production 3. Material purchases cost 4 Direct labor costs 5 Manufacturing head costs 6. Sen and administrative expenses Using data generated in requirement is prepare a budgeted income statement for the calendar Quarter Assume an overall effective income tax rate of SON Unit Sales Volume Unit Sales Price Total Sales Revenue Budgeted sales Urban region Rural region Total Budgeted production (in units): Units required for sales Units for ending inventory Total units to be available Less: Beginning inventory Unit production required Budgeted material purchases Material Required finished goods production (see part (2) Per-unit requirements (lbs.) Total required for production (lbs) Desired ending materials inventory Total to be available (lbs.) Less: Beginning materials inventory Total material to be purchased (lbs.) Unit purchase price Total material purchases Budgeted direct labor cost Units to be produced (see part 2) Per-unit direct labor requirement Direct labor hours to be scheduled Direct labor hourly rate Total direct labor cost Variable Budgeted manufacturing overhead: Depreciation Factory supplies Supervisory salaries Other Total budgeted manufacturing overhead Variable inlllml Budgeted selling and administrative experFixed Selling expenses: Advertising Sales salaries and commissions Other ($0.90 variable cost per unit sold) Total budgeted selling expenses Administrative expenses: Office salaries Supplies (S0 15 x 15,000) Other (50.08 x 15,000) Total budgeted administrative expenses Total budgeted selling and administrative expenses mamm Clinton Corporation Budgeted Income Statement For the Quarter Ended March 31, 2019 Sales Cost of Goods Sold Beginning Inventory - Finished Goods Material Beginning Inventory - Material Material Purchases Material Available Less: Ending Inventory - Material Direct Material Direct Labor Manufacturing Overhead Total Manufacturing Cost Cost of Goods Available for Sale Less Ending Inventory. Finished Goods Cost of Goods Sold Gross Profit Operating Expenses Selling Expenses Administrative Expenses Total Operating Expenses Income before Income Taxes Income Tax Expense (30%) Net Income