Need answers to questions 8.1 through 9.12 solved.

PART 3
	Budgets
Keep in mind that the budget section builds on work from the previous parts, including Part I as well as the Background Information (tabs 1-4). You should continue to use the same file with your previously submitted answers.
Division N has decided to develop its budget based upon projected sales of 37,000 lamps at
$52.00 per lamp.
The company has requested that you prepare a master budget for the year. This budget is to be used
for planning and control of operations and should be composed of:
1. Production Budget
2. Materials Budget
3. Direct Labor Budget
4. Factory Overhead Budget
5. Selling and Administrative Budget
6. Cost of Goods Sold Budget
7. Budgeted Income Statement
8. Cash Budget
Notes for Budgeting:
The company wants to maintain the same number of units in the beginning and ending inventories of
work-in-process, and electrical parts while increasing the figurines inventory to 625 pieces and
increasing the finished goods by 24.00% .
Complete the following budgets
1	Production Budget
	Planned Sales			37000
	Desired Ending Inventory of Finished Goods (roundup to the next unit)			3720
	Total Needed			40720
	Less: Beginning Inventory			3000
	Total Production			37,720 units	{7.01}

2

Materials Budget

Figurines

Needed for Production

37,720 units

{8.01}

Desired Ending Inventory

625 units

{8.02}

Total Needed

38,345 units

Less: Beginning Inventory

500 units

{8.03}

Total Purchases

37,845 units

{8.04}

Cost per piece

9.43

Cost of Purchases (Round to two places, $##.##)

$356,878.35

{8.05}

Electrical Parts

Needed for Production

Desired Ending Inventory

Total Needed

{8.06}

Less: Beginning Inventory

Total Purchases

Cost per piece

Cost of Purchases (Round to two places, $##.##)

{8.07}

Lamp Shades - not inventoried they arrive from the shop next door Just-in-time.

Needed for Production

Desired Ending Inventory

Total Needed

Less: Beginning Inventory

Total Purchases

Cost per piece

Cost of Purchases (Round to two places, $##.##)

{8.08}

3

Direct Labor Budget

Labor Cost Per Lamp

2.35125

Production

37720

Total Labor Cost (Round to two places, $##.##)

$88,689.15

{8.09}

4

Factory Overhead Budget

Variable Factory Overhead:

Variable Factory Overhead Cost Per Unit

Number of Units to be Produced

Total Variable Factory Overhead (Round to two places, $##.##)

{8.10}

Fixed Factory Overhead

Total Factory Overhead (Round to two places, $##.##)

{8.11}

Predetermined Factory Overhead Rate based upon the budgeted

total factory OH, divided by the budgeted number of units to be produced, and then rounded to seven places, $##.#######)

Cost of making one unit next year						Round dollars to seven places, $##.#######
	Material cost per unit
	Labor Cost Per Lamp
	Factory overhead per unit
	Total cost of one unit						{9.02}
	(Round to seven places, $##.#######)
						Round dollars to two places, $##.##
Beginning Inventory, Finished Goods						$86,775.00	{9.03}
Production Costs:
Materials:
Figurines:
Beginning Inventory
Purchased
Available for Use
Ending Inventory of Figurines
Figurines Used In Production							{9.04}
Electrical Parts
Beginning Inventory
Purchased
Available for Use
Ending Inventory of Electrical Parts
Electrical Parts Used In Production							{9.05}
Lamp Shades:
Lamp Shades Used In Production							{9.06}
Total Materials:							{9.07}
Labor							{9.08}
Overhead							{9.09}
Cost of Goods Available							{9.10}
Less: Ending Inventory, Finished Goods							{9.11}
Cost of Goods Sold							{9.12}

{8.12}