LearnCo

Sales Budget

LearnCo Sales Budget For the Year Ending December 31, 20Y2
Product	Unit Sales Volume	Unit Selling Price	Total Sales
Basic Abacus	36000	$8	$288,000
Deluxe Abacus	36000	12	432,000
Totals	72,000		$720,000

Production Budget

LearnCo Production Budget For the Year Ending December 31, 20Y2
	Units Basic	Units Deluxe
Expected units to be sold (from Sales Budget)	36000	36000
Desired ending inventory, December 31, 20Y2	1,000	3,000
Total units available	37000	39000
Estimated beginning inventory, January 1, 20Y2	(1,050)	(2,100)
Total units to be produced	35950	36900

Direct Materials Purchases Budget

Direct Materials Data Table
	Wood Pieces	Beads
Packages required per unit:
Basic abacus	1	2
Deluxe abacus	2	3
Cost per package:
Wood pieces	$0.20
Beads	$0.20
Units to be produced (from Production Budget):
Basic abacus	35950
Deluxe abacus	36900

LearnCo Direct Materials Purchases Budget For the Year Ending December 31, 20Y2
	Direct Materials
	Wood Pieces	Beads	Total
Packages required for production:	35950	71900
Basic abacus	73800	110700
Deluxe abacus
Desired inventory, December 31, 20Y2	2,200	5,000
Total packages available	111950	187600
Estimated inventory, January 1, 20Y2	(3,500)	(4,500)
Total packages to be purchased	108450	183100
Unit price (per package)	× $ .20	× $ .20
Total direct materials to be purchased	$ 21690	$ 36620	$58,310

Direct Labor Cost Budget

Direct labor needs from the direct labor cost budget should be coordinated between the production and personnel departments so that there will be enough labor available for production.

Before you make any changes to the budget, you review the information on the following Direct Labor Data Table and enter the units to be produced from the Production Budget. After scanning the Direct Labor Cost Budget (which follows the Direct Labor Data Table), you observe that LearnCo has omitted quite a few numbers from the budget. Fill in the missing amounts. You may need to use numbers from the Direct Labor Data Table, or from the sales budget, production budget, and direct materials purchases budget you prepared. When required, round your answers to the nearest dollar.

Direct Labor Data Table
	Gluing	Assembly
Hours required per unit:
Basic abacus	0.10	0.10
Deluxe abacus	0.10	0.20
Labor hourly rate:
Gluing	$12
Assembly	$17
Units to be produced (from Production Budget):
Basic abacus	35950
Deluxe abacus	36900

LearnCo Direct Labor Cost Budget For the Year Ending December 31, 20Y2
	Gluing	Assembly	Total
Hours required for production:
Basic abacus	3595	3595
Deluxe abacus	3690	7380
Total	7285	10975
Hourly rate	× $12	× $17
Total direct labor cost	$87420	$186575	$273,995

Factory Overhead Cost Budget

LearnCo Factory Overhead Cost Budget For the Year Ending December 31, 20Y2
Indirect factory wages	$5,400
Power and light	11250
Depreciation of plant and equipment	1,450
Total factory overhead cost	$18,100

Cost of Goods Sold Budget- I need help with this one!

LearnCo Cost of Goods Sold Budget For the Year Ending December 31, 20Y2
Finished goods inventory, January 1, 20Y2			$9,870
Work in process inventory, January 1, 20Y2		$2,010
Direct materials:
Direct materials inventory, January 1, 20Y2	$1,600
Direct materials purchases
Cost of direct materials available for use	$
Direct materials inventory, December 31, 20Y2	(1,440)
Cost of direct materials placed in production	$
Direct labor
Factory overhead
Total manufacturing costs
Total work in process during period		$
Work in process inventory, December 31, 20Y2		(1,250)
Cost of goods manufactured
Cost of finished goods available for sale			$
Finished goods inventory, December 31, 20Y2			(1,500)
Cost of goods sold			$

Selling/Admin. Expenses Budget- I need help with this one!

LearnCo Selling and Administrative Expenses Budget For the Year Ending December 31, 20Y2
Selling expenses:
Sales salaries expense	$45,000
Advertising expense	15,000
Travel expense	5,400
Total selling expenses		$65,400
Administrative expenses:
Officers' salaries expense	$85,000
Office salaries expense	35,000
Office rent expense	26,000
Office supplies expense	6,400
Miscellaneous administrative expenses	1,600
Total administrative expenses		154,000
Total selling and administrative expenses		$219,400

Budgeted Income Statement-I need help with this one!

Budgeted Income Statement Data Table
Interest revenue for the year	$2,000
Interest expense for the year	$1,500
LearnCo’s income tax rate	40%

LearnCo Budgeted Income Statement For the Year Ending December 31, 20Y2
Revenue from sales		$
Cost of goods sold
Gross profit		$
Selling and administrative expenses:
Selling expenses	$
Administrative expenses
Total selling and administrative expenses
Operating income		$
Other revenue and expense:
Interest revenue	$
Interest expense
Income before income tax		$
Income tax
Net income		$