Part 1

Part 2

Part 3

Part 4

Part 5

Part 6

Thanks so much for your help!

showing a prediction of net income for 20Y2. You have been asked to assist the controller of LearnCo in preparing the 20Y2 budgets. Sales Budget prepared the following sales budget. Production Budget You note that LearnCo has omitted six numbers from the following production budget and fill in the missing amounts. You may need to use numbers from the sales budget you prepared. Direct Materials Purchases Budget The direct materials purchases budget should be integrated with the production budget to ensure that production is not interrupted during the year: Direct Labor Cost Budget Direct Labor Data Table \begin{tabular}{lcc} \hline & Gluing & Assembly \\ \hline Hours required per unit: & & \\ Basic abacus & 0.10 & 0.10 \\ Deluxe abacus & 0.10 & 0.20 \end{tabular} Labor hourly rate: Gluing $11 Assembly $19 Units to be produced (from Production Budget): Basic abacus Deluxe abacus LearnCo Direct Labor Cost Budget For the Year Ending December 31, 20 Y2 \begin{tabular}{|c|c|c|c|} \hline & Gluing & Assembly & Total \\ \hline \multicolumn{4}{|c|}{ Hours required for production: } \\ \hline Basic abacus & & & \\ \hline Deluxe abacus & & & \\ \hline Total & & & \\ \hline Hourly rate & & x & \\ \hline Total direct labor cost & $ & $ & $288,660 \\ \hline \end{tabular} Complete the preparation of the cost of goods sold budget for LearnCo, using information that follows provided by the controller, and using the previous budgets you have prepared. Selling/Admin. Expenses Budget Learnco Selling and Administrative Expenses Budget For the Year Ending December 31, 20Y2 Selling expenses: \begin{tabular}{|c|c|c|} \hline Sales salaries expense & $45,000 & \\ \hline Advertising expense & 15,000 & \\ \hline Travel expense & 5,400 & \\ \hline Total selling expenses & & $65,400 \\ \hline \multicolumn{3}{|l|}{ Administrative expenses: } \\ \hline orricers' salaries expense & $85,000 & \\ \hline orrice salaries expense & 35,000 & \\ \hline orrice rent expense & 26,000 & \\ \hline orrice supplies expense & 6,400 & \\ \hline Miscellaneous administrative expenses & 1,600 & \\ \hline Total administrative expenses & & 154,000 \\ \hline Total selling and administrative expenses & & $219,400 \\ \hline \end{tabular} Budgeted Income Statement Budgeted Income Statement Data Table \begin{tabular}{lr} \hline Interest revenue for the year & $2,000 \\ Interest expense for the year & $1,500 \\ LeamCo's income tax rate & 40% \end{tabular} Budgeted Income Statement For the Year Ending December 31, 20Y2 Revenue from sales Cost of goods sold Gross profit Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Operating income Other revenue and expense: Interest revenue Interest expense Income before income tax Income tax Net income a. If LeamCo sells zero Deluxe Abacus units in 20Y2, it will break even (i.e., the company will have zero income before income tax). b. LearnCo will have a net loss before income tax if it sells zero Deluxe Abacus units in 20Y2. c. LearnCo will still have positive income before income tax if it sells zero Deluxe Abacus units in 20 Y2. 2. LeamCo's vendor for bead packages is expected to double its price per package of beads. If this occurs, what will be the effect on LeamCo's income before income tax? a. If the price for bead packages doubles, LearnCo will break even (i.e., the company will have zero income before income tax). b. Learnco will have a loss before income tax if the price for bead packages doubles. c. LearnCo will still have positive income before income tax if the price for bead packages doubles. a. LeamCo will still have positive income before income tax if Gluing labor costs increase to $15.00 per hour. b. If Gluing labor costs increase to $15.00 per hour, LearnCo will break even (i.e., the company will have zero income before income tax). c. LearnCo will have a loss before income tax if Gluing labor costs increase to $15.00 per hour. 4