majority of the problem is answered plaese just correct all the ones i got wrong . they are all marked with red
Mastery Problem: Budgeting LearnCo Sales Budget Production Budget Direct Materials Purchases Budget Learco LeamCo 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. 20Y1, 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 manutacture, 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 2012. You have been asked to assist the controller of Learno in preparing the 2012 budgets. Next > Check My Work 1 more Check My Work uses remaining After reviewing LearnCo's sales budget, you note that three numbers have been omitted. The company's control expected to be the same. Fill in the missing amounts. LearnCo Sales Budget For the Year Ending December 31, 20Y2 Product Unit Sales Volume Unit Selling Price Total Sales Basic Abacus 36,000 $8.00 $288,000 Deluxe Abacus 36,000 V 12.00 432,000 $720,000 72,000 Totals Feedback Chook M Wack neck My Work 1 more Check My Work uses remaining. All work saved. Calculator Production Budget Direct Materials Purchases Budget Sales Budget LearnCo Sha Production Budget 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 bu of units to be manufactured to meet budgeted sales and desired inventory levels. You note that LearnCo has omitted six numbers from the following production budget and fill in the missing amounts. You may need to use numbers from t prepared LearnCo Production Budget For the Year Ending December 31, 20Y2 Units Basic Units Deluxe 36,000 Expected units to be sold (from Sales Budget) 36,000 3,000 1,000 Desired ending inventory, December 31, 20Y2 37,000 39,000 Total units available (1,050) (2.100) Estimated beginning inventory, January 1, 20Y2 35,950 36,900 Total units to be produced Shaded cells have feedba Direct Materials Purchases Budget 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 Budge panel. Afler scanning the direct materials purchases budget (which follows the Direct Materials Data Table) you observe that LeamCo has omitted quite a few numbers from the budget. Fill 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 requ round your answers to the nearest dollar Direct Materials Data Table - Wood Pieces Beads Packages required per unit: Basic abacus Deluxe abacus Cost per package: Wood pieces $0.30 $0.30 Beads Units to be produced (from Production Budget): Basic abacus Deluxe abacus 35.950 73,800 X LearnCo Direct Materials Purchases Budget For the Year Ending December 31, 20Y2 Direct Materials Wood Pieces Beads Total Packages required for production: Basic abacus 35,950 71,900 Deluxe abacus 73,800 110,700 Desired inventory, December 31, 20Y2 2,200 5,000 Total packages available 111,950 187,600 Estimated inventory, January 1, 20Y2 (3,500) (4,500) Total packages to be purchased 108,450 183,100 Unit price (per package) $0.30 $0.30 Total direct materials to be purchased $32,535 $54,930 $87,465 LeamCo Sales Budget Production Budget Direct Materials Purchases Budget Direct Labor Cost Budget Shaded cells have feedback Direct labor needs from the direct labor coal 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 After scanning the Direct Labor Cost Budget (which follows the Direct Labor Data Table you observe that Learno has omitted quite a frumbers from the budget. Fill in the maing 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 dolar Direct Labor Data Table Gluing Assembly Hours required per unit Basic abacus Deluxe abacus Labor hourly rate 0.10 0.10 0.10 0.20 Gluing Assembly Units to be produced (from Production Budget): $11.00 $17.00 Basebacus Deluxe bacus Next Mastery Problem: Budgeting LearnCo Sales Budget Production Budget Direct Materials Purchases Budget Direct Labor Cost Budget Shaded cellsh Basic abacus 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 3,595 3,690 V 7,285 $11.00 3,595 7,380 10,075 $17.00 Total Hourly rato Total direct labor cost $80,135 $186,675 $266,710 Points: Feedback Check My Work Check My Work 1 more Check My Work uses remaining. All work saved Save and Exit LearnCo Factory Overhead Cost Budget For the Year Ending December 31, 20Y2 Indirect factory wages $5,400 Power and light 11,250 Depreciation of plant and equipment 1,450 Total factory overhead cost $18,100 Check My Work 1 more Check My Work uses remaining. Mastery Problem: Budgeting Production Budget Direct Materials Purchases Budget Cost of Goods Sold Budget Shade och The cost of goods sold budget integrates the direct material 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 poode so budget for LeamCousing information that follows provided by the controller and using the previous budgets you have prepared Learno Cost of Goods Sold Budget For the Year Ending December 31, 2012 $9,870 Finished goods inventory, January 1, 2012 Work in process inventory, January 1, 2012 $2,010 Direct materials: Direct materials invertory, January 1, 2012 $2400 Direct materials purchases Check My Work 1 more Check My Work uses remaining. Next > ItakeAssignment/takeAssignmentMain.do?invoker-&takeAssignmentSessionLocator &inprogress-false Calculator Mastery Problem: Budgeting LearnCo Sales Budget Production Budget Direct Materials Purchases Budget Shaded cells hav Cost of Goods Sold Budget Direct materials: Direct materials inventory, January 1, 2012 $2,400 Direct materials purchases 87,465 Cost of direct materials available for use 89,865 Direct materials inventory, December 31, 20Y2 (2,160) Cost of direct materials placed in production 87,705 Direct labor 266,710 M Factory overhead 18,100 Total manufacturing costs 372,515 Total work in process during period 374,525 Work in process inventory, December 31, 20Y2 (1,250) Cost of goods manufactured 373,275 Cost of finished goods available for sale 373,275 X Finished goods inventory, December 31, 2012 (1,500) Cost of goods sold 371,775 X Check My Work 1 more Check My Work uses remaining Selling/Admin Expenses Budget LearnCo Selling and Administrative Expenses Budget For the Year Ending December 31, 20Y2 Selling expenses: $45,000 Sales salaries expense 15,000 Advertising expense 5,400 Travel expense $65,400 ADO Total selling expenses Administrative expenses: Officers' salaries expense $85,000 Office salaries expense 35,000 26,000 Office rent expense Office supplies expense 6,400 Miscellaneous administrative expenses Total administrative expenses 154,000 $219,400 Total selling and administrative expenses Budgeted Income Statement Shaded cells have feedback. X The budgeted income statement is prepared by Integrating the sales budget, cost of goods sold budget, and selling and administrative expenses budget. Additional information that may be helpful in preparing the budgeted income statement are in the following Budgeted Income Statement Data Table Review the Budgeted Income Statement Data Table, then complete the budgeted income statement that follows the table. Round the computed amount for income tax to the nearest whole dollar. Enter al amounts as positive numbers. $2,000 Budgeted Income Statement Data Table Interest revenue for the year Interest expense for the year Learn Co's income tax rate $1,500 40% Leamco Score: 30/52 Budgeted Income Statement For the Year Ending December 31, 2042 1 Revenue from sales $720,000.00 Cost of goods sold 371,775.00 5 Gross profit $348,225.00 Budgeted Income Statement Budgeted Income Statement For the Year Ending December 31, 20Y2 1 Revenue from sales $720,000.00 2 Cost of goods sold 371,775.00 3 Gross profit $348,225.00 Selling and administrative expenses Selling expenses $65,400.00 Administrative expenses 154,000.00 Total selling and administrative expenses 219,400.00 & Income from operations $128,825.00 9 Other revenue and expense: 10 Interest revenue $2,000.00 11 Interest expense (1,500.00) 12 Income before income tax 500.00 $128,325.00 51,330.00 15 Income tax 14 Net income $76,995.00 Final Questions Shaded cells have feedback. Budgeting effects the planning, directing, and controlling functions of management. LearnCo wishes to determine the sensitivity of some of its budget values to changes in the economy Using the information on the completed budget panels, answer the following questions. Consider each question separately, assuming that all other data remains the same, including the level of production of each model. 1. Learno believes that sales of the Deluxe Abacus model may decrease in 20Y2. If Deluxe abacus sales are zero, what will be the effect on Learno's income before income tax? For simplicity, ignore any change in Cost of Goods Sold If LearnCo sells zero Deluxe Abacus units in 20Y2, will break even (le, the company will have zero income before income tax) XO LearnCo will still have postive Income before income tax if it sels zero Deluxe Abacus units in 20Y2. LearnCo will have a net loss before income tax illt sells zero Deluxe Abacus units in 20Y2. Points: 011 Feedback Check My Work Consider the change in Deluxe abacus sales and its effect on the Sales Budget, then follow that change through the budget chain to the Budgeted Income Statement Final Questions Shaded colls have feedback. 2. Learn Co's vendor for bead packages is expected to double its price per package of beads. If this occurs, what will be the effect on LearnCo's income before income tax? LearnCo will have a loss before income tax the price for bead packages doubles X If the price for bead packages doubles, LearnCo will break evene, the company will have zero income before income tax). LearnCo will still have positive income before income tax if the price for bead packages doubles. Points 0/1 Feedback Check My Work Consider the change in the cost of bead packages and its effect on the Direct Materials Purchases Budget, then follow that change through the budget chain to the Budgeted Income Statement 3. LearnCo is aware that its labor prices for the Gluing part of the manufacturing process may increase to $15.00 per hour due to changes in minimum wage laws in its state. If this occurs, what will be the effect on LeamCo's income before income tax? XO I Gluing labor costs increase to $15.00 per hour, LearnCo will break even(e, the company will have zero income before income tax). LearnCo will still have positive income before income tax i Gluing labor costs increase to $15.00 per hour. LearnCo will have a loss before income taxi Gluing labor costs increase to $15.00 per hour, Final Questions Shaded cells have feedback LeamCo will have a loss before income tax i Gluing labor costs increase to $15.00 per hour. Points: Feedback Check My Work Consider the change in the cost of gluing wages and its effect on the Direct Labor Cost Budget, then follow that change through the budget chain to the Budgeted Income Statement 4. LearnCo's controller believes that the company can decrease its selling expenses by 10% and its administrative expenses by 15%. How much would income before income tax increase if these expense cuts are implemented? Round your answer to the nearest dollar Points: Feedback Check My Work Consider the changes in selling and administrative expenses, and their effects on the Selling and Administrative Expenses Budget, then follow that change through the budget chain to the Budgeted Income Statement
