ONLY NEED YELLOW SPOTS FOR QUESTIONS 7(BUDGETED INCOME) AND 8( CASH BUDGET)

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9 Notes for Budgeting The company wants to maintain the same number of units in the beginning and ending inventories of 57 work-in-process, and electrical parts while increasing the figurines inventory to 700 pieces and 581 decreasing the finished goods by 20% 60 Complete the following budgets 67 68 69 Planned Sales Desired Ending Inventory of Finished Goods 41000 Total Needed Less: Beginning Inventory Total Production 75 76 40,400 units701 78 79 85 86 4 5 6 7 8 9 10 11 12 13 14 15 16 7 18 Present v. O Type here to search X 40400 54 801 Desired Ending Inv Total Needed 00 units urits Less: Beginning invento Cost per piece Cost of Purchases (Round to two places, S####) 40 400 units Needed for Production Desired Ending Inventory Total Needed 8.06) 500 units 40.400 unit 1.31000000 53 025 0 Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, S####) 18.07) Lamp Shades Needed for Production Desired Ending Inventory Total Needed 40 400 units 40.400 units 40.400 units Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places. S## ##) (8.08) 8 9 10 11 12 13 14 15 16 17 18 Present V Type here to search 55 Less: Beginning inventory Cost per piece Cost of Purchases (Round to two places, s####) 56 57 Total Purchases 40 400 units 64 65 67 3 Direct Labor Budget 2.3900000 40,400 uruts $96,354.00 74 : Labor Cost Per Lamp 75 76 Production - TotalLabor Cost (Round to two places, s####) 809 78 84 854 86 87 ad B Variable Factory Overhead: Variable Factory Overhead Cost Per Unit Number of Units to be Produced 02400000 40,400 units 95 96 97 98 $9499.05 81 Total Variable Factory Overhead (Round to two places, S####) Fixed Factory Overhead 285 000 Total Factory Overhead (Round to two places. S####) 100 101 102 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1 17 18 Present Van O type here to search 585 A B 4 Factory Overhead Budget Overhead Allocation rate based on: 1. Number of Units Total Factory Overhead /Number of Units $14.1089109 19.01 2. Direct Labor Hours Total Factory Overhead/Direct Labor Hours Number of lamps to be Produced Number of lamps per hour Number of Direct Labor Hours $56.4356436 19.02 3. Direct Labor Cost Total Factory Overhead /Direct Labor Cost (Round to four places,% is two of those places ####96) 591.57%) {9.03} 5 Selling and Admin Budget 3 4 5 6789 1011 12 13 14 15 16 17 18 Presentv O Type here to search oo e A B 5 Selling and Admin. Budget Fixed Selling Variable Selling (Round to two places, $####) Fixed Administrative Variable Administrative (Round to two places S# ##) Total Selling and Administrative (Round to two places, $#### $233,204.56 190 4 Cost of Goods First-Out) and overhead is applied based on the number of units to be produced Beginning Inventory, Finished Goods Sold Budget - Assume FIFO (First-In Round dollars to two places. S#### 8679000 905 2Production Costs: Materials Figurines Beginning Inventory Purchased Available for Use Ending Inventory of Figurines Figurines Used In Production 390,264.00 19.06 Electrical Parts Beginning Inventory 3A011213 14516 1718 Present V 14 56 8 9 0 Type here to search Clipboard 85 A B DIE Beginning Inventory Purchased Available for Use Ending Inventory of Figurines Figurines Used In Production $390,264.0019.06 Electrical Parts Beginning Inventory Purchased Available for Use Ending Inventory of Electrical Parts Electrical Parts Used In Production 52,924.00 9.07 Lamp Shades 19.08 697,708.00 9.0g) 96,354.00 19.10 Lamp Shades Used In Production $254,520.00 19.08 6 Total Materials: 7 Labor 8 Overhead 9 Cost of Goods Available 96,354.00 9.10 570,000.00 9.11 $ 1.4 {9.12) Less: Ending Inventory, Finished Goods 8 107,736.53 9.13 1,558,558.53 9.14 1 Cost of Goods Sold 3 4 5678 910 11 1213 14 15 1617 18 Present v... 0 Type here to search Page 10 Cost Net Income (10011 Assume actual cash receipts and disbursements will follow the pattern below. (Note: Receivables and Payables of 12/31/x1 will have a cash impact in 20x2.) 1. 1800% of sales for the year are made in November and December. Since our customers have 60 day terms those funds will be collected be collected in January and Februany 2 8600% of material purchases will be paidduring the year, there 3. All other and operating costs are paid for when incurred an ng portion will be paid in Januay or February y 4 The budgeted depreciation expense is equal to 0.6% of the fixed manufacturing, seling and administrative expenses 5. Minimum Cash Balance needed for 20x2, $175,000 I See The Light Projocted Cash Budget For the Year Ending Decomber 31, 20x2 Round dollars to two Beginning Cash Balance Cash Infilows Sales Collections Account Receivable (Sales last year not collected) Sales made and collected in 20x2 Cash Available 10.02) 10.03 (1004) Cash Outflows: 10.05) Accounts Payable (Purchases last year) Purchases made and paid for in 20x2 Other Manufacturing Costs Direct Labor Total Manufacturing Overhead (10.06) (10.07) Selling and Administrative Less: Depreciation Total Cash Outflows Budgeted Cash Balance before financing Needed Minimum Balance Amount to be borrowed (if any) Budgeted Cash Balance 10.10) 9 Notes for Budgeting The company wants to maintain the same number of units in the beginning and ending inventories of 57 work-in-process, and electrical parts while increasing the figurines inventory to 700 pieces and 581 decreasing the finished goods by 20% 60 Complete the following budgets 67 68 69 Planned Sales Desired Ending Inventory of Finished Goods 41000 Total Needed Less: Beginning Inventory Total Production 75 76 40,400 units701 78 79 85 86 4 5 6 7 8 9 10 11 12 13 14 15 16 7 18 Present v. O Type here to search X 40400 54 801 Desired Ending Inv Total Needed 00 units urits Less: Beginning invento Cost per piece Cost of Purchases (Round to two places, S####) 40 400 units Needed for Production Desired Ending Inventory Total Needed 8.06) 500 units 40.400 unit 1.31000000 53 025 0 Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, S####) 18.07) Lamp Shades Needed for Production Desired Ending Inventory Total Needed 40 400 units 40.400 units 40.400 units Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places. S## ##) (8.08) 8 9 10 11 12 13 14 15 16 17 18 Present V Type here to search 55 Less: Beginning inventory Cost per piece Cost of Purchases (Round to two places, s####) 56 57 Total Purchases 40 400 units 64 65 67 3 Direct Labor Budget 2.3900000 40,400 uruts $96,354.00 74 : Labor Cost Per Lamp 75 76 Production - TotalLabor Cost (Round to two places, s####) 809 78 84 854 86 87 ad B Variable Factory Overhead: Variable Factory Overhead Cost Per Unit Number of Units to be Produced 02400000 40,400 units 95 96 97 98 $9499.05 81 Total Variable Factory Overhead (Round to two places, S####) Fixed Factory Overhead 285 000 Total Factory Overhead (Round to two places. S####) 100 101 102 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1 17 18 Present Van O type here to search 585 A B 4 Factory Overhead Budget Overhead Allocation rate based on: 1. Number of Units Total Factory Overhead /Number of Units $14.1089109 19.01 2. Direct Labor Hours Total Factory Overhead/Direct Labor Hours Number of lamps to be Produced Number of lamps per hour Number of Direct Labor Hours $56.4356436 19.02 3. Direct Labor Cost Total Factory Overhead /Direct Labor Cost (Round to four places,% is two of those places ####96) 591.57%) {9.03} 5 Selling and Admin Budget 3 4 5 6789 1011 12 13 14 15 16 17 18 Presentv O Type here to search oo e A B 5 Selling and Admin. Budget Fixed Selling Variable Selling (Round to two places, $####) Fixed Administrative Variable Administrative (Round to two places S# ##) Total Selling and Administrative (Round to two places, $#### $233,204.56 190 4 Cost of Goods First-Out) and overhead is applied based on the number of units to be produced Beginning Inventory, Finished Goods Sold Budget - Assume FIFO (First-In Round dollars to two places. S#### 8679000 905 2Production Costs: Materials Figurines Beginning Inventory Purchased Available for Use Ending Inventory of Figurines Figurines Used In Production 390,264.00 19.06 Electrical Parts Beginning Inventory 3A011213 14516 1718 Present V 14 56 8 9 0 Type here to search Clipboard 85 A B DIE Beginning Inventory Purchased Available for Use Ending Inventory of Figurines Figurines Used In Production $390,264.0019.06 Electrical Parts Beginning Inventory Purchased Available for Use Ending Inventory of Electrical Parts Electrical Parts Used In Production 52,924.00 9.07 Lamp Shades 19.08 697,708.00 9.0g) 96,354.00 19.10 Lamp Shades Used In Production $254,520.00 19.08 6 Total Materials: 7 Labor 8 Overhead 9 Cost of Goods Available 96,354.00 9.10 570,000.00 9.11 $ 1.4 {9.12) Less: Ending Inventory, Finished Goods 8 107,736.53 9.13 1,558,558.53 9.14 1 Cost of Goods Sold 3 4 5678 910 11 1213 14 15 1617 18 Present v... 0 Type here to search Page 10 Cost Net Income (10011 Assume actual cash receipts and disbursements will follow the pattern below. (Note: Receivables and Payables of 12/31/x1 will have a cash impact in 20x2.) 1. 1800% of sales for the year are made in November and December. Since our customers have 60 day terms those funds will be collected be collected in January and Februany 2 8600% of material purchases will be paidduring the year, there 3. All other and operating costs are paid for when incurred an ng portion will be paid in Januay or February y 4 The budgeted depreciation expense is equal to 0.6% of the fixed manufacturing, seling and administrative expenses 5. Minimum Cash Balance needed for 20x2, $175,000 I See The Light Projocted Cash Budget For the Year Ending Decomber 31, 20x2 Round dollars to two Beginning Cash Balance Cash Infilows Sales Collections Account Receivable (Sales last year not collected) Sales made and collected in 20x2 Cash Available 10.02) 10.03 (1004) Cash Outflows: 10.05) Accounts Payable (Purchases last year) Purchases made and paid for in 20x2 Other Manufacturing Costs Direct Labor Total Manufacturing Overhead (10.06) (10.07) Selling and Administrative Less: Depreciation Total Cash Outflows Budgeted Cash Balance before financing Needed Minimum Balance Amount to be borrowed (if any) Budgeted Cash Balance 10.10)