LearnCo Sales Budget Production Budget D HI III LearnCo LearnCo manufactures and sells one product, an abacus for classroom use, with two models, the Basic model and the Deluxe model. The company began operations on January 1, 2011, and is planning for 20Y2, its second year of operations, by preparing budgets from its master budget. The company is trying to decide how many units to manufacture, how much it might spend on direct materials and direct labor, and what their factory overhead expenses might be. In addition, the company is interested in budgeting for selling and administrative costs, and in creating a budgeted Income statement showing a prediction of net income for 20Y2. You have been asked to assist the controller of LearnCo in preparing the 20Y2 budgets. Sales Budget Shaded cells have feedback. The sales budget often uses the prilor year's sales as a starting point, and then sales quantities are revised for various factors such as planned advertising and promotion, projected pricing changes, and expected industry and general economic conditions. LearnCo has completed reviewing its prior year's sales and has prepared the following sales budget. After reviewing LearnCo's sales budget, you note that three numbers have been omitted. The company's controller has told you that the units sold for the Basic and Deluxe models are expected to be the same. FW in the missing amounts. Sales Budget Shaded cells have feedback. The sales budget often uses the prior year's sales as a starting point, and then sales quantities are revised for various factors such as planned advertising and promotion, projected pricing changes, and expected industry and general economic conditions. LeamCo has completed reviewing its prior year's sales and has prepared the following sales budget. After reviewing LearnCo's sales budget, you note that three numbers have been omitted. The company's controller has told you that the units sold for the Basic and Deluxe models are expected to be the same. Fill in the missing amounts. LearnCo Sales Budget For the Year Ending December 31, 2012 Product Unit Sales Volume Total Sales Unit Selling Price 36,000 Basic Abacus $216,000 $6.00 36,000V 14.00 504,000 Deluxe Abacus $720,000 Totals 72,000 Points 3/3 Une ed X alm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false 0 e Print Item Calculator Production Budget Shaded cells have feedback The production budget should be integrated with the sales budget to ensure that production and sales are kept in balance during the year. The production budget estimates the number of units to be manufactured to meet budgeted sales and desired Inventory levels. You note that LeamCo has omitted six numbers from the following production budget and fut in the missing amounts. You may need to use numbers from the sales budget you prepared LearnCo Production Budget For the Year Ending December 31, 20Y2 Units Basic Units Deluxe Expected units to be sold (from Sales Budget) 36.000 36,000 1,000 3,000 Desired ending inventory, December 31, 20Y2 Total units available 37,000 39,000 Estimated beginning inventory, January 1, 20Y2 (1,050) (2,100) Total units to be produced 35,950 36,900 Points 616 10:58 AN 6/5/2020 calculator Print Item The direct materials purchases budget should be integrated with the production budget to ensure that production is not interrupted during the year. This budget estimates the quantities of direct materials to be purchased to support budgeted production, along with desired Inventory levels of direct materials Before you make any changes to the budget, you review the information in the following Direct Materials Data Table and enter the units to be produced from the Production Budget panel. After scanning the direct materiais purchases budget (which follows the Direct Materials Data Table), you observe that LearnCo has omitted quite a few numbers from the budget. Fw in the missing amounts. You may need to use numbers from the Direct Materials Data Table, or from the sales budget and production budget you prepared. When required, round your answers to the nearest dollar Direct Materials Data Table Wood Pieces Beads Packages required per unit: Basic abacus 1 2 Deluxe abacus 2 3 Cost per package: Wood pieces Beads $0.25 $0.25 Units to be produced (from Production Budget): Basic abacus Deluxe abacus y/takeAssignment/take AssignmentMain.do?invoker-&takeAssignmentSession Locator=&inprogress=false Calculator Print Item R Points 072 LearnCo Direct Materials Purchases Budget For the Year Ending December 31, 20Y2 Direct Materials Wood Pieces Beads Total Packages required for production: Basic abacus Deluxe abacus Desired inventory, December 31, 20Y2 2,200 5,000 Total packages available (3,500) (4,500) Estimated inventory, January 1, 2012 Total packages to be purchased Unit price (per package) XS X Total direct materials to be purchased s $72,888 F Points: 0/12 COTT Princm Shaded cells have feedback 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 in the following Direct Labor Data Table and enter the units to be produced from the Production Budget panel Aner scanning the Direct Labor Cost Budget (which follows the Direct Labor Data Table), you observe that Leamco has omitted quite a few numbers from the budget. Fw 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 $11.00 Assembly $19.00 Units to be produced (from Production Budget): Basic abacus Deluxe abacus Points: 012 VUORELLI LakeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress=false Calculator Print Item Deluxe abacus Points: LearnCo Direct Labor Cost Budget For the Year Ending December 31, 20Y2 Gluing Assembly Total Hours required for production: Basic abacus Deluxe abacus Total Hourly rate XS CO Total direct labor cost s $288,660 Points: 0 Feedback Check My Work Review an example of the direct labor cost budget, and the computations for each part of the budget. You will need to use the information the Direct Labor Data Table in your computations Factory Overhead Cost Budget Shaded cells have feedback. The factory overhead.cost budget should be integrated with the production budget to ensure that production is not interrupted during the year. This budget may be supported by departmental schedules, which normally separate factory overhead costs into fixed and variable costs so that department managers may monitor and evaluate costs during the year. For simplicity, LeamCo has not separated costs in this manner. After reviewing the following factory overhead cost budget, you note that LearnCo has completed the budget with the exception of one amount. Fill in the missing amount LearnCo Factory Overhead Cost Budget For the Year Ending December 31, 2012 Indirect factory wages $5,400 Power and light Depreciation of plant and equipment 1,450 Total factory overhead cost $18,100 Points: 0/1 takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator-&inprogress=false Calculator e Print Item Cost of Goods Sold Budget Shaded cells have feedback. The cost of goods sold budget integrates the direct materials purchases budget, direct labor cost budget, and factory overhead cost budget. Estimated and desired inventories for direct materials, work in process, and finished goods must also be integrated into the cost of goods sold budget. Complete the preparation of the cost of goods sold budget for Learnco, using information that follows provided by the controller, and using the previous budgets you have prepared LearnCo Cost of Goods Sold Budget For the Year Ending December 31, 20Y2 Finished goods inventory, January 1, 20Y2 $9,870 $2.010 Work in process inventory, January 1, 20Y2 Direct materials: Direct materials inventory, January 1, 20Y2 Direct materials purchases $2,000 Cost of direct materials available for use Direct materials inventory, December 31, 20Y2 (1,800) 11:01 AM 6/5/2020 O m/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false * Calculator Print Item Direct materials: Direct materials inventory, January 1, 2012 $2,000 Direct materials purchases Cost of direct materials available for use (1,800) Direct materials inventory, December 31, 20Y2 Cost of direct materials placed in production Direct labor Factory overhead Total manufacturing costs