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One Device makes universal remote controls and expects to sell 500 units in January, 750 in February, 450 in March, 550 in April, and 600 in May. The required ending inventory is 20% of the next month's sales. Prepare a production budget for the first four months of the year. One Device Production Budget For the Four Months Ending April 30, 20XX January February March Expected Sales April Total Required Units Required Production Total Lens Junction sells lenses for $45 each and is estimating sales of 16,000 units in January and 19,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 45 minutes of direct laborat a labor rate of $22 per hour. Desired inventory levels are: Jan. 31 Feb. 28 Mar. 31 Beginning inventory Finished goods Direct materials: silicon 4,700 4,800 4,800 8,300 9,200 9,400 Direct materials: solution 11,200 11,900 13,200 Prepare a sales budget. Lens Junction Sales Budget For the Two Months Ending February 28, 20XX January February Expected Sales (Units) Sales Price per Unit $ Total Sales Revenue $ Total $ Prepare a production budget. Lens Junction Production Budget For the Two Months Ending February 28, 20xx January February Expected Sales Total Required Units Required Production Total Prepare direct materials budget for silicon. Lens Junction Direct Materials Budget for Silicon For the Two Months Ending February 28, 20xx January February Units to be Produced Direct Material per Unit Total Ounces Needed for Production Total Material Required Ounces of Direct Material Purchase Requirements Cost per Ounce $ Total Cost of Direct Material Purchase Total Direct Materials Silicon for Two Months Ending February 28, 20XX Prepare direct materials budget for solution. Lens Junction Direct Materials Budget for Solution For the Two Months Ending February 28, 20xx January February Units to be produced Direct Material per Unit Total Ounces Needed for Production Total Material Required Ounces of Direct Material Purchase Requirements Cost per Ounce Total Cost of Direct Material Purchase Total Direct Materials Solution for Two Months Ending February 28, 20XX Prepare a direct labor budget. Lens Junction Direct Labor Budget For the Two Months Ending February 28, 20xx January February Units to be produced Direct Labor Hours per Unit Total Required Direct Labor Hours Labor Cost per Hour Total Direct Labor Cost $ Total Direct Labor Budget For Two Months Ending February 28, 20XX $ The data shown were obtained from the financial records of Italian Exports, Inc., for March: Estimated Sales $600,000 Sales 567,929 Purchases 294,815 Ending Inventory* 10% Administrative Salaries 50,280 Marketing Expense** 5% Sales Commissions 2% Rent Expense 7,600 Depreciation Expense 1,100 Utilities 2,600 Taxes ** 15% *of next month's sales **of estimated sales ***of income before taxes Sales are expect to increase each month by 10%. Prepare a budgeted income statement. Round your answers to the nearest dollar. Italian Exports, Inc. Budgeted Income Statement For the Month Ending Mar. 31, 2020 Cost of Goods Sold Operating Expenses DODI QUIlI0000 Total Operating Expenses $ Titanium Blades refines titanium for use in all brands of razor blades. It prepared a static budget for the sales of 4,000 units. The following variances were observed: Actual Results Variances Units Sales $125,000 $25,000 Favorable Variable Expenses 59,800 11,800 Unfavorable Fixed Expenses 60,300 300 Unfavorable Net Income (loss) $4,900 $12,900 Unfavorable Determine the static budget and use the information to prepare a flexible budget and analysis for the 5,000 units actually sold. If no effect, select "No Effect" and leave the amount boxes blank. For those boxes in which you must enter negative numbers use a minus sign. (Example: -300). Static budget Flexible budget Actual Results Variances Units Sales $ $ $ $ Variable Expenses Fixed Expenses Net Income (Loss)
