Need a little help with the Cost of Finished Goods Available for sale, and the less finished goods inventory.

Genuine Spice Inc. began operations on January 1 of the current year. The company produces eight-ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $100 per case. There is a selling commission of S20 per case. The January direct materials, direct labor, and factory overhead costs are as follows: DIRECT MATERIALS Cost Behavior Units per Case Cost per Unit Cost per Case Cream base Variable 100 oz. S0.02 $ 2.00 Natural oils Variable 30 oz. 0.30 9.00 Bottle (8-oz.) Variable 12 bottles 0.50 6.00 $17.00 DIRECT LABOR Department Cost Behavior Time per Case Labor Rate per Hour Cost per Case Mixing Variable 20 min. $18.00 $6.00 Filling Variable 14.40 1.20 25 min. $7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed $800 Facility lease Fixed 14,000 Equipment depreciation Fixed 4.300 Supplies Fixed ] $19,580 Part A-Break-Even Analysis The management of Genuine Spice Inc. wants to determine the number of cases required to break even per month. The utilities cost, which is part of factory overhead, is a mixed cost. The following information was gathered from the first six months of operation regarding this cost: Utility Total Cost $600 January February Case Production 500 800 1.200 1.100 March 740 April May 950 June 1.025 Required-Part A: 1. Determine the fixed and variable portion of the utility cost using the high-low method 2. Determine the contribution margin per case 3. Determine the fixed costs per month, including the utility fixed cost from part (1). 4. Determine the break-even number of cases per month Part B-August Budgets During July of the current year, the management of Genuine Spice Inc. asked the controller to prepare August manufacturing and income statement budgets. Demand was expected to be 1.500 cases at $100 per case for August Inventory planning information is provided as follows: Finished Goods Inventory: Estimated finished goods inventory, August 1 Desired finished goods inventory. August 31 Cases 3 00 175 Cost $12,000 ,000 7 Materials Inventory: Cream Base (oz.) 250 1 .000 Oils (oz.) 290 360 Bottles (bottles) 600 240 Estimated materials inventory. August 1 Desired materials inventory. August 31 There was negligible work in process inventory assumed for either the beginning or end of the month; thus, none was assumed. In addition, there was no change in the cost per unit or estimated units per case operating data from January Required-Part B: 5. Prepare the August production budget * 6. Prepare the August direct materials purchases budget.* 7. Prepare the August direct labor cost budget. Round the hours required for production to the nearest hour 8. Prepare the August factory overhead cost budget an amount box does not require an entry, leave it blank (Entries of zero (O) will be cleared automatically by CNOW.)* 2. Prepare the August budgeted income statement, including selling expenses. NOTE: Because you are not required to prepare a cost of goods sold budget, the cost of goods sold calculations will be part of the budgeted income statement." "Enter all amounts as positive numbers. 9. Prepare the August budgeted income statement, including selling expenses. Enter all amounts as positive numbers. NOTE: Because you are not required to prepare a cost of goods sold budget, the cost of goods sold calculations will be part of the budgeted income statement Genuine Spice Inc. Budgeted Income Statement For the Month Ended August 31 Revenue from sales $137,500 Finished goods inventory, August 1 $12,000 Direct materials: Direct materials inventory, August 1 $392 Direct materials purchases 23,231 Cost of direct materials available for use $23,623 Less direct materials inventory. August 31 248 Cost of direct materials placed in production $23,375 Direct labor 9.900 Factory overhead 19,735 Cost of goods manufactured Cost of finished goods available for sale Less finished goods inventory, August 31 7,000 Cost of goods sold 58,010 Gross profit $79,490 Selling expenses 27,500 Income before income tax $51,990