Mastery Problem: Budgeting Salou Budgol Production Budges Di Material Purchases Budget Leamco LeamCo manufactures and sell one product, an abacus for classroom uso, with two models, the Basic model and the Deluxe model. The company began operations on January 20Y1, and is planning for 2012, its second year of operations, by preparing budgets from its master budget The company is trying to decide how many units to manufacturo, how much it might spend en direct materials and direct labor, and what their factory overhead expenses might bit. In addition, the company is interested in budgeting for selling and administrative costs, and in creating a budgeted income statement showing a prediction of natliecame tar 2012 You have been asked to assist the controller of Learno in preparing the 20Y2 budgets. Sales Budget Production Budget Direct Material Purge ud Sales Budget Shaded our loodback The sales de often uses the prior year's sales as a starting point, and the sales quantities are revised for various factors such as planned advertising and promotion, projected pricing changes, and expected industry and general concerti conditions. Learno has completed reviewing its prior your's sale and has prepared the following sale budget Alur reviewing Lawnco se budpet you note that the numbers have been cominee. The coas controller has told you that the ones noted for the enter and Culture models are expected to be the same. Fill in the missing amounts Leamco Sales Budget For the Year Ending December 31, 2012 Product Unit Sales Volume Unit Selling Price Total Sales $8.00 Basic Abacus $218 000 Deluxe Abacus 504,000 Totals 72.000 $720,000 ola Laamco Production Budget Shaded calls have tochack 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 estimate the number of units to be manufactured to meet budgeted sales and desired Inventory levels You note that Learco has omitted a numbers from the following production budget and tut in the missing amount. You may need to use numbers from the sales budget you prepared Learno Production Budget For the Year Ending December 31, 2012 Units Basic Unit Deluxe Expected units to be sold (from Sales Budget) 1.000 3,000 Desired ending inventory. December 31, 2012 Total units available 12.100) Estimated beginning inventory, January 1, 2012 (1.050) Total units to be produced Points 010