need help with part E
Question 1 Bramble Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below. Product Product 1! 50 ll 50 Sales budget: Anticipated volume in units 401,100 202,100 Unit selling price 523 :27 Production budget: Desired ending nished goods units 26,100 19,800 Beginning finished goods units 31,000 14,200 Direct materials budget: Direct materials per unit (pounds) 2 2 Desired ending direct materials pounds 33,000 10,000 Beginning direct materials pounds 41,000 14,400 Cost per pound 53 53 Direct labor budget: Direct labor time per unit 0.4 0.5 Direct labor rate per hour $12 $12 Budgeted income statement: Total unit cost $12 $12 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $652,000 for product 15 so and $363,000 for product 10 50, and administrative expenses or $544,000 for product 15 50 and $342,000 for product 1a 60. interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%. v (a) '/ Vour answer is correct. Prepare the sales budget for the year. BRAMBLE INC. Sales Budget | For the Vear Endlng December 31, 2017 s} 1! so I! so Tot-I Expected unit sales 401mg 202.100 Unit selling pride m Totalsales sm 5456700 $ 14682000 V 0!) Your answer is correct. Prepare the production budget for the year. 3 RAMB LE INC. Production Budget I For the Year Ending December 31, 2017 l Expected Unit Sales H l Total Required Units :1 l Required Production Units I 395400 207700 o LINK TO TEXT LINK TO TEXT V (C) Your answer is correct. Prepare the direct materials budget for the year. BRAMBLE INC. Direct Materials Budget i For the Year Ending December 31, 2017 JD 50 JB 60 Total ./ .1 l Units to be Produced V Direct Materials per Unit 0 395400 207700 V o 2 Z .1 790800 J .1 . Desired Ending Direct Materials 1 . 1. Beginning Direct Materials 1 _ .1 415400 J 18000 ./ 43 3400 l Total Pounds Needed for Production 0 l K E! o o l Total Materials Required .r l Direct Materials Purchases I J E Cost per Pound . . Ev l Total Cost of Direct Materials Purchases H $ 2350300 $ 1257000 $ 3607300 5 ill m o o o o V (d) Your answer is correct. Prepare the direct labor budget for the year. (Round Direct labor time per unit answers to 1 decimal place, e.g. 52.7. ) BRAMBLE INC. Direct Labor Budget I For the Year Ending December 31, 2017 'l JB 50 JB 50 Total " i Units to be Produced l 395400 207700 Direct Labor Time per Unit I - o o \" i Total Required Direct Labor Hours H 158160 124620 I 0 Direct Labor Cost per Hour o $ - V i Total Direct Labor Cost ] $ 1897920 $ 1495440 $ 3393360 LINK TO TEXT LINK TO TEXT o V (e) Prepare the budgeted multiple~step income statement for the year. (Note: income taxes are not allocated to the products). BRAM BLE INC. Budgeted Income Statement For the Year Ending December 31, 2017 6 JB 50 JD 60 Total 9 5 $ $ Sales Cost of Goods Sold 0 Gross Prot 0 0 Operating Expenses Selling Expenses o 0 Administrative Expenses 1 Total Operating Expenses Income before Income Taxes 0 +5 +5 0 Income Tax Expense Income before Income Taxes 6 0 Income Tax Expense Net Income / (Loss) 0 \
