PART 3 2 Materals Budget Budgets Lamp Kits Needed for Production (8.01 Division N bas decided to develop s budget based upon paiected sales of 25,000 bmps at $49.00 par kp The company has quested that you prepare a master budget Sor the yeur This budge is to be used for pbnning and control of eperstions and should be composed of Desired Ending Inventory Total Noeded Less: Beginning Inventory Total Purchases (8.02) (8.03 8.04 1. Prodestion Budget Cost per piece Cost of Purchases (Round to two places, Sat.tu) (8.05 (8.06 2. Maeias Budge 3. Dirct Labor Budgct 4. Factory Overhod Budget 3 Direct Labor Budget S. Selling and Adninistacive Bodger Labor Cost Per Lamp (8.07 6. Cost of Goods Sold Badget Production , Budgead Ineom Stalennt Total Labor Cost (Round to two places, $##) (8.08 . Cash Budget Notes for Badgeting 4 Factory Ovehead Budget The company was to maisin the sane number ofunits in the beginning and ending inventories of wokin pmcess, and electrinl pans while increesing the inventory of Lamp Kits to 700 pieces md dewing the inished goeds by 20% Variable Factory Overhead: Variable Factory Ovehead Cost Per Unit Number of Units to be Produced Coplete the following budgets Total Variable Factory Overhead (Round to two placas, S### ) (8.09 (8.10 Pannod Sales Fixed Factory Overthead Desind Ending hventeey of Fiaished Goods Total Needed Less: Beginning Invemtory Total Factory Overhead Round to two places, S## 8.11 4 Eact Oerhead Rde 7 Audeaet came Staemon Overhead Alocation rate based on Number of Units Sales Cost af Goads Sald Tetal Factory Overhead/Number of Units Gross Profit Selling Expenses & Admin. Expenses Net ncome (Round to two places, Sp 10.01 Cast afakig oe uit etvear Cost ofone Lame Ki Labor Cost Por Lamp Factory overhead per unit 8 Cash Judgo Assume actual cash eceipts and disbumements will ollow the pattem below: CNote: Receivables and Payables of 12/31/x1 will have a cash impact in 20x2.) Toml cost of one unit (Reund to two places, Sap) 1, 17.00% of sales for the year are made in November and December Since our customers have 60 day terms those Sands will be collected be collected in January and February 2. 89.00% of material purchases will be paid during the yer, the remain ing potion will be paid in Januay or February 3. All other mnu facturing and operating costs ar paid for when incumed 4. The budgeted depreciation expense is equal to 0.6% of the fixed manufhctuaring. selling and administrative expenses Minimm Cash Balance needed for 20x2, S165,000 6 Seilae and Adeis Budee Fixed Seling Variable Seling (Round to two paces, S ISee The Light rjected Cash Budget For the Year Ending December 31, 20x2 Fixed Administrative Varible Adminirative (Round so two placos, Sw. Total Selling and Adminisrstive (Round to twe places, SW.ev) Round dollars so twor places, Sme Beginning Cash Balance Cash InBaws: Gionds 7 Sold Budac Beginning Imvemory, Finished Goods Round dollars to two places, S Sales Collections: Account Recelvable (Sales last year not collected) Sales made and collected in 20x2 10.02) 10.03) 10.04 Cash Available Production Costs Materials Lamp Kits Beginnina Invenory Cash Cutflows: pwle (Puchases last year) Purchased Avaable for Use Purchases made and paid or in 20x25 Other Manaacturing Costs 10.05 Diect Labor. Ending Invensory of Lamp Kis Lamp Kits Used In Production Total Maaufacturing Overhead Selling and Ad ministrative Less: Deprociation Total Cash Outflows 10.06) Toml Materials 10.07 Labor Budgeted Cash Balance before financing Needed Minimam Balance (10.08 Overhead Cost of Goods Available Less: Ending Inventory, Finished Goods Cost of Goods Sold Amaunt to he bomwed (if any) 10.09 Budgeted Cash Balance (10.10) PART 3 2 Materals Budget Budgets Lamp Kits Needed for Production (8.01 Division N bas decided to develop s budget based upon paiected sales of 25,000 bmps at $49.00 par kp The company has quested that you prepare a master budget Sor the yeur This budge is to be used for pbnning and control of eperstions and should be composed of Desired Ending Inventory Total Noeded Less: Beginning Inventory Total Purchases (8.02) (8.03 8.04 1. Prodestion Budget Cost per piece Cost of Purchases (Round to two places, Sat.tu) (8.05 (8.06 2. Maeias Budge 3. Dirct Labor Budgct 4. Factory Overhod Budget 3 Direct Labor Budget S. Selling and Adninistacive Bodger Labor Cost Per Lamp (8.07 6. Cost of Goods Sold Badget Production , Budgead Ineom Stalennt Total Labor Cost (Round to two places, $##) (8.08 . Cash Budget Notes for Badgeting 4 Factory Ovehead Budget The company was to maisin the sane number ofunits in the beginning and ending inventories of wokin pmcess, and electrinl pans while increesing the inventory of Lamp Kits to 700 pieces md dewing the inished goeds by 20% Variable Factory Overhead: Variable Factory Ovehead Cost Per Unit Number of Units to be Produced Coplete the following budgets Total Variable Factory Overhead (Round to two placas, S### ) (8.09 (8.10 Pannod Sales Fixed Factory Overthead Desind Ending hventeey of Fiaished Goods Total Needed Less: Beginning Invemtory Total Factory Overhead Round to two places, S## 8.11 4 Eact Oerhead Rde 7 Audeaet came Staemon Overhead Alocation rate based on Number of Units Sales Cost af Goads Sald Tetal Factory Overhead/Number of Units Gross Profit Selling Expenses & Admin. Expenses Net ncome (Round to two places, Sp 10.01 Cast afakig oe uit etvear Cost ofone Lame Ki Labor Cost Por Lamp Factory overhead per unit 8 Cash Judgo Assume actual cash eceipts and disbumements will ollow the pattem below: CNote: Receivables and Payables of 12/31/x1 will have a cash impact in 20x2.) Toml cost of one unit (Reund to two places, Sap) 1, 17.00% of sales for the year are made in November and December Since our customers have 60 day terms those Sands will be collected be collected in January and February 2. 89.00% of material purchases will be paid during the yer, the remain ing potion will be paid in Januay or February 3. All other mnu facturing and operating costs ar paid for when incumed 4. The budgeted depreciation expense is equal to 0.6% of the fixed manufhctuaring. selling and administrative expenses Minimm Cash Balance needed for 20x2, S165,000 6 Seilae and Adeis Budee Fixed Seling Variable Seling (Round to two paces, S ISee The Light rjected Cash Budget For the Year Ending December 31, 20x2 Fixed Administrative Varible Adminirative (Round so two placos, Sw. Total Selling and Adminisrstive (Round to twe places, SW.ev) Round dollars so twor places, Sme Beginning Cash Balance Cash InBaws: Gionds 7 Sold Budac Beginning Imvemory, Finished Goods Round dollars to two places, S Sales Collections: Account Recelvable (Sales last year not collected) Sales made and collected in 20x2 10.02) 10.03) 10.04 Cash Available Production Costs Materials Lamp Kits Beginnina Invenory Cash Cutflows: pwle (Puchases last year) Purchased Avaable for Use Purchases made and paid or in 20x25 Other Manaacturing Costs 10.05 Diect Labor. Ending Invensory of Lamp Kis Lamp Kits Used In Production Total Maaufacturing Overhead Selling and Ad ministrative Less: Deprociation Total Cash Outflows 10.06) Toml Materials 10.07 Labor Budgeted Cash Balance before financing Needed Minimam Balance (10.08 Overhead Cost of Goods Available Less: Ending Inventory, Finished Goods Cost of Goods Sold Amaunt to he bomwed (if any) 10.09 Budgeted Cash Balance (10.10)