PART 1 Fixed and Variable Cost Determinations Unit Cost Calculations The projected cost of a tamp is calculated based upon the projected increases of decreases to current costs. The present costs to manufacture one lamp are Lamp Kit $16,0000000 per lamp Direct Labor 20000000 per lamp (4 lampah Variable Overhead 20000000 perlamp Fwd Overhead 10.0000000 per lamp based on normal capacity of 25.000 lamps) Cost per lamp $30.0000000 perlamp Expected increases for 2012 When calculating projected increases round to TWO (50.00) decimal places 1. Material Costs are expected to increase by 3 50% 2 Labor Costs are expected to increase by 4 50% 3. Variable Overhead is expected to increase by 2 50% 4. Fued Overhead is expected to increase to $270,000 5. Fixed Administrative expenses are expected to increase to $60,000 16 17 16 Prese ESTE C AG 6. Variable selling expenses (measured on a perlamp basis) are expected to increase by 6 50% 9 10 11 12 13 14 15 7 All % Salon 0 : Qii 5 Budgets D UN 6 7 8 Division N has decided to develop its budget based upon projected sales of 41000 lamps 9$5500 per lamp 13 The company has requested that you prepare a master budget for the year. The budget is to be used 14 for planning and control of operations and should be composed of 15 16 1 Production Budget 17 21 2 Materials Budget 22 23 3 Direct Labor Budget 24 25 4. Factory Overhead Budget 29 30 5. Selling and Administrative Budget 31 32 6. Cost of Goods Sold Budget 33 7 7 Budgeted Income Statement 8 9 8 Cash Budget 0 1 Notes for Budgeting, re 15 3 The company wants to maintain the same number of units in the beginning and ending inventores of work incess and electrical nate whilencreasing the cake tancant 7 10 17 Rii S. Save 33 B 37 7 Budgeted Income Statement 38 39 8. Cash Budget 40 41 Notes for Budgeting 45 46 47. The company wants to maintain the same number of units in the beginning and ending inventions of 48 work-in-process, and electrical parts while increasing the nvertory of Lamp Kts to 850 pieces and 49 decreasing the finished goods by 20% 53 54 Complete the following budgets 55 56 1 Production Budget 57 61 Planned Sales 62 Desired Ending Inventory of Finished Goods 63 Total Needed 64 Less: Beginning Inventory 65 69 Total Production 70 71 72 73 77 78 79 1100 3430 17 16 15 80 10 11 12 3 2 Materials Budget Lamp Kits Needed for Production Desired Ending Inventory Total Needed Less Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, S####) 09 2011 1.038 08.03 18041 1556 18051 1805) 3 Direct Labor Budget Labor Cost Per Lamp Production Total Labor Cost (Round to two places, S##*) 209 ca. 9443600 19.081 4 Factory Overhead Budger Variable Factory Overhead Variable Factory Overhead Cost Per Unit Number of Units to be produced Total Variable Factory Overhead (Round to two places, S##) Fixed Factory Overhead 18091 18.10 $ 270.000.00 18.111 Total Factory Overhead (Round to two places, S.## 5 8 4 Factory Overhead Bucket Overhead Allocation rate based on 1. Number of Units Total Factory Overhead / Number of Units (Round to two places, S.) 10 11 17 5 Cost of making one will next year 18 Cost of one Lamp KA 19 Labor Cost Per Lamp 20 Factory overhead per unit 21 27 Total cost of one unit 28 (Round to two places, $44) 29 40 41 6 Selling and Admin Bucket 47 48 Foxed Selling 49 Variable Selling (Round to two places, Site) 50 Fixed Administrative 51 Variable Administrative (Round to two places, S) 57 Total Selling and Administrative (Round to two places, S## ##) 58 LU Goods 7 Sold 9 00 Round dollars to two places Budget Beginning inventory, Finished Goods Durante 15 16 17 15 9 10 12 11 6. Selling and Admin Buda 11 D E F 41 47 48 49 50 51 57 58 Fixed Selling Variable Selling (Round to two places, S) Fixed Administrative Variable Administrative (Round to two places, S) Total Selling and Administrative (Round to two places Site) LAS Goods 7 Sold 59 60 61 67 68 69 70 71 77 78 79 37 88 29 30 01 2 03 Budget Beginning Inventory, Finished Goods Production Costs Materials Lamp Kits Beginning Inventory Purchased Available for Use Ending Inventory of Lamp Kits Lamp Kits Used In Production 0 Total Materials Labor Overhead Cost of Goods Available Less Ending Inventory Finished Goods Cost of Goods Sold 1 16 17 1 9 10 1 . H 4 5 6 7 8 9 10 7 Budgeted Income Statement Sales Cost of Goods Sold Gross Profit Selling Expenses & Admin Expenses Net Income 12 0001 19 220 21 22 23 30 31 8 Cash Budget 12 3. Assume actual cash receipts and disbursements will follow the pattern below (Note Receivables d 4 Payables of 12/31/x1 will have a cash impact in 20x2) 1 21 21.00% of sales for the year are made in November and December. Since our customers are 60 day toms 3 those funds will be collected be collected in January and February 2 83.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February 5.3. All other manufacturing and operating costs are paid for when incurred 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. $140.000 I See The Light Projected Cash Budget For the Year Ending December 31, 20x2 Te 15 17 36 8 9 10 DO 56 GH Projected Cash Badget For the Year Ending December 31, 2022 Round das Beginning Cash Balance Cash Inflows Sales Collections Account Receivable (Sales last year not collected) Sales made and collected in 20x2 Cash Available 63 64 65 66 67 74 75 16 77 28 15 6 7 8 9 100 0100 1100 (1006 Cash Outflows Purchases Accounts Payable (Purchases last year) Purchases made and paid for in 20x2 Other Manufacturing Costs Direct Labor Total Manufacturing Overhead Selling and Administrative Less: Depreciation Total Cash Outflows I 1000) 100 Budgeted Cash Balance before financing Needed Minimum Balance 100 Amount to be borrowed (if any) (1018 Budgeted Cash Balance 17 Prede 15 15 14 12:13