Question
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
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 |
| LearnCos 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 | $ | |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started