need help with this budget

G Sundancer Boats, Inc. manufactupaddle boats in various colors for Star Resorts Management is preparing the budget for 2022 and has asked for the accountants help. Last year was a tough year with price increases and a decrease in unitasies 1. Prepare the 2022 budget based on the information provided. 2. Use the Actual 2021 Standard Costs as a starting point for the predetermined costs for the 2022 budget. Sales in 2021 were 625 units. The company worked hard to bring on some new customers in 2022. Overall, they are expecting only a 15% increase in units overall from 2021. Management will keep the increase of the selling price of the boats at $4.500 Sundancer, Inc Sales Budget For the Year Ended December 31, 2022 1 13 Expected sales 14 Unit selling price 15 Total sales 16 17 At the end of 2021, there were 50 boats left in inventory to sell in 2022. They will be so budget to end 2022 with 16 completed and finished units 19 Sundancer, lne. Production Budget For the Year Ended December 31, 2022 24 Expected sales uit 25 Addi Desired ending finished goods units (ending balance 2022) 26 Total required units 27 Leso: Beginning ished goods units (ending balance 2021) 28. Required production units 29 30 Management ended 2021 with some direct materials and wants to end 2022 with son as well Pounds Expected 2022 Per Unit Cos Pound Encing Balance 2021 Ending Balance 2022 Plastic Parts Direct materials Metal Parts Direct matelas Paint and Stickers Direct materials 2.000 3.000 50 1,000 1,500 25 HORSES Sundancer, le Direct Materials Budget For the Year Ended December 31 2022 Required production units Pantic Parts Direct materais pounds per unit produced Totalpos needed for production Ade Deswedencing direct materials in dundslending bace 20221 25 Tathi materials fored Les Baling dieet matin pound ending balance 2021) Direct main purchases Cobet boed Tot Lost Of Pisu Pats direct materials Purch Arial 12 A A Copy Pasto B U Format 1 X 433 Xfx A c E G Required production unit MAI Parts Direct materiais pound per un produced Total poundeeded for production Add: Desired ending direct materiale in pounde (ending balance 2032) Total materiais required Les Beginning direct materiale in pounde (ending balance 2021) Direct materials purchase Cost per pound Total cost of Metal Parts direct materials purchases Required production units Paint and Stickers Direct materiale pounds per unit produced Total pounds needed for production Add: Desired ending direct materiale in pounde (ending balance 2017 Total material required Lou Beginning direct materials in pounde (ending balance 2021) Direet materials purchases Cost per pound Total cost of Paint and Stickers direct materials purchases 0 Total cost of ALL direct materials purchases gement expect that will be o hours of direct laboraldiarek bel Oit laboris billedet 25 hour 16 18 9 Sundance of Direct Labor Odur Fer the Year Ended December 31, 2072 Units to be product Diret labor Line Thour per Tod direction Director outper bour Tatal director Overhead for the company anly exists of the age It will take 40 machine honda beat and the cost 512 Sundancer, Manufacturin Ohes Budget For the Year Ended December 31, 2012 be priduced Machine per un Tatuired hine how Me per how macht Manam RROMOS I following fixed costs, Bomanticipated change from last year: din and menterio Cena Center Wir Saladet SSKO $16.00 $150.000 $350,000 Sundancerine Selling and Administrativa en Buda For the Year Er December 2012 ACCTG 23 Home Page Layout Formulas Data Review View Insert X cut Copy Arial 12 A A 5 Wrap Tex Paste T U A A Mergo & Format HB3 Ax v fx CD E F M Management se anticipates the following fixed costs, some anticipated changes from last year ding and Equipment Depreciation Company insurance Company Advertising Selling and Administrative Salaries and benefits $55,00 $10.000 $150,000 $350,000 Sundancer, in Selling and Administrative Expense Budget For the Year Ended December 31, 2022 00 10 11 Feedespena 12 Building and Equipment Depreciation Company trance 10 Company Advertising 15 Seling and administrative salaries and benefits 16 Total selling and administrative pas Management had to borrow some money from the bank to start a business five years ago. As a result, they still have some rest expensei 510,000 To per year. Management antioles a 21 tax rate for 2002 110 Sundance.lee Budget Income tamen For the Year Ended December 21, 2022 Sales 126 Cost of goods sold 27 Gross profil 13 Selling and strative bene come from operis 10 Impen l income before income con tax expense 131 Net Incom Lintut Tot supplement Schedule COGS Coupe Cool Clean Plastic Parts Direct materials Metal Parts Direct materiale Paint and chars Director Director Manufacture overhead machine hours Total COB Dodot per Ull Quantity pou unde pounds bour Trour Budget Reflection 5 Points Write a short reflection about the changes from the 2021 Budget and how these compare to 2021 Actual results to create the 2021 Income Statemem Write a short statement of what had to be changed in the 2022 Master Budget to help the business work towards being profitable M D E G H Sundancer Boats, Inc. manufactures paddle boats in various colors for 5-Star Resorts. Management is preparing the budget 2021 and has asked for the accountants help. Sales in 2020 were 500 units. They are bringing on a new customer and management is expecting a 35% Increase in 2021. They will increase the selling price to $3,500 this year to account for anticipated rising costs. 5 Sundancer, Inc. > Sales Budget For the Year Ended December 31, 2021 9 80 Expected sales units 1 Unit selling price 12 Total sales 13 14 At the end of 2020, there were no boats left in Inventory to sell in 2021. Management would like to start 2022 with Inventory on hand. They would like to budget to end 2021 with 25 completed and finished units. 16 17 Sundancer, Inc. 18 Production Budget 15 For the Year Ended December 31, 2021 20 21 Expected sales units 22 Add: Desired ending finished goods units (ending balance 2021) 23 Total required units 24 Loss Beginning finished goods units (ending balance 2020) 25 Required production units 26 15 Management expects to end 2020 with some direct materials, They want to make sure that at the end of 2021, they have enough direct materials an hand to start production right away in 2022. Pounds Expected 2021 Ending Balance Ending Balance Per Unit Cost/Pound 2020 2021 Do Plastic Parts Direct materials: 400 S 2.00 800 31 Metal Parts Direct materials: 500 $ 0.50 1,000 5,000 Paint and Stickers Direct materials: 10 5 5.00 20 100 4,000 Sundancer, Inc Direct Materials Budget For the Year Ended December 31, 2021 Required production units 1 Plastic Parts Direct materials pounds per unit produced Totaldo 800 1,000 20 4,000 5,000 100 2 VUOVUT Plastic Parts Direct materials: 400 $ 2.00 1 Metal Parts Direct materials: 500 $ 0.50 2 Paint and Stickers Direct materials: 10 $ 5.00 3 4 Sundancer, Inc. 5 Direct Materials Budget 6 For the Year Ended December 31, 2021 2 - Required production units Plastic Parts Direct materials pounds per unit produced: Total pounds needed for production - Add: Desired ending direct materials in pounds (ending balance 2021) 2 Total materials required - Less: Beginning direct materials in pounds (ending balance 2020) Direct materials purchases Cost per pound 6 Total cost of Plastic Parts direct materials purchases #8 Required production units - Metal Parts Direct materials pounds per unit produced: - Total pounds needed for production - Add: Desired ending direct materials in pounds (ending balance 2021) 2 Total materials required - Less: Beginning direct materials in pounds (ending balance 2020) Direct materials purchases 5 Cost per pound 6 Total cost of Metal Parts direct materials purchases - Required production units 9 Paint and Stickers Direct materials pounds per unit produced: Total pounds needed for production Add: Desired ending direct materials in pounds (ending balance 2021) 2 Total materials required 3 Less: Beginning direct materials in pounds (ending balance 2020) Direct materials purchases 5 Cost per pound 6 Total cost of Paint and Stickers direct materials purchases 4 7 57 Management expects that it will take 25 hours of direct labor to manufacture each boat. Direct laboris billed at $20/hour. Sundancer, Inc. 5 Direct Labor Budget For the Year Ended December 31, 2021 7 Units to be produced 9 Direct labor time (hours) per unit 10 Total required direct labor hours B1 Direct labor cost per hour 2 Total direct labor cost 83 Manufacturing Overhead applied to the bonts is related to machine hours used. It will take 100 machine hours per boat and the cost in Sahour. + Sundancer, Inc. 2 Manufacturing Overhead Budget For the Year Ended December 31, 2021 30 Units to be produced 01 Machine hours per unit 32 Total required machine hours Machine cost per hour 94 Total manufacturing overhead 95 96 Management also anticipates the following fixed costs. These have increased slightly from 2020. 57 Building and Equipment Depreciation 99 Company Insurance 100 Company Advertising 101 Selling and Administrative Salaries and Benefits 100 103 104 Sundancer, Inc. 105 Selling and Administrative Expense Budget 100 For the Year Ended December 31, 2021 101 10 Fixed expenses 103 Building and Equipment Depreciation 110 Company Insurance 111 Company Advertising 112 Selling and administrative salaries and benefits u Total selling and administrative expenses 114 $60,000 $17,000 $123,000 $330,000 Buliding and Equipment Depreciation Company Insurance Company Advertising Selling and Administrative Salaries and Benefits $60,000 $17,000 $123,000 $330,000 Sundancer, Inc. Selling and Administrative Expense Budget For the Year Ended December 31, 2021 Fixed expenses Bullding and Equipment Depreciation Company Insurance 1 Company Advertising 22 Selling and administrative salaries and benefits 3 Total selling and administrative expenses 15 Management had to borrow some money from the bank to start the business five years ago. As a resulthey still have some interest expense. It is 1s $10,000 per year. Management anticipates a 21% tax rate for 2021. Sundancer, Inc Budget Income Statement For the Year Ended December 31, 2021 130 122 Sales 123 "Cost of goods sold 134 Gross profit 1 Selling and administrative expenses 126 Income from operations 127 Interest expense the income before income taxes 135 Income tax expense 10 Net Income Unit Cost Total 112 Supplemental Schedule - COGS Cost Budget per Unit 13 Cost Element 114 Plastic Parts Direct materiais 135 Metal Parts Direct materials: 16 Paint and Stickers Direct materials 17 Direct labor 18 Manufacturing overhead - Machine hours 11 Total COGS Budget per Unit Quantity pounds pounds pounds hour hour