PART 3 Budgets 10 Division N has decided to develop its budget based upon projected sales of 25,000 lamps at 11 $51.00 per lamp 12. The company has requested that you prepare a master budget for the year. This budget is to be used 15 for planning and control of operations and should be composed of: 17 18 19 23 25 1. Production Budget 2. Materials Budget 3. Direct Labor Budget 4. Factory Overhead Budget 5. Selling and Administrative Budget 6. Cost of Goods Sold Budget 7. Budgeted Income Statement 31 33 8. Cash Budget 39 Notes for Budgeting: 44 The company wants to maintain the same number of units in the beginning and ending inventories of 45 work-in-process, and electrical parts while increasing the inventory of Lamp Kits to 550 pleces and 46 decreasing the finished goods by 20%. Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods Total Needed Loss: Beginning Inventory Total Production {7.01) I See The Light Projected Balance Sheet As of December 31, 20x1 34,710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets 500 @ $16.00 8,000.00 3000 @ $30.00 90,000.00 200,210.00 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 20,000.00 6,800.00 $ 13,200.00 213,410.00 $ 54,000.00 54,000.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Rotained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 147,410.00 $ 159.410.00 213.410.00 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####) {8.01) {8.02) [8.03) (8.04) (8.05) (8.06) 3 Direct Labor Budget 61 (8.07) Labor Cost Per Lamp Production Total Labor Cost (Round to two places, $ 66 (8.08) TUTTI 68 IIIIIII LILIT 4 IIIIIIIIIIIII Factory Overhead Budget 69 70 74 75 78 TIIIIIIIIIIII IIIIIIIIII TEL Variable Factory Overhead: Variable Factory Overhead Cost Per Unit Number of Units to be produced Total Variable Factory Overhead (Round to two places, Sww. Fixed Factory Overhead 78 79 80 81 (8.09) (8.10) tory Overhead Total Factory Overhead (Round to two places, S.) 18.11) B2 9 Variable Manufacturing Unit. Cost 20x1 Cost 1 Lamp KE 12 Labor 2 Variable Overhead Projected Percent IncroGSE 2.5 2.5 4.5 16 2 2 (401) 202 Cost Rounded to 2 Decimal Places $16.40 $2.50 $2.90 (4.023 (4.033 24 Projected Variable Manufacturing Cost Per Unit $21.80 (4.04 37 Total Variable Cost Per Unit 20x1 Cost Projected Percent Increase 39 Variable Selling 40 Variable Administrative 50 Projected Variable Manufacturing Unit Cost 20x2 Cost Rounded to 2 Decimal Places 3.14 2.40 21.80) (4.05} You {4.06 (4.04 53 Projected Total Variable Cost Per Unit 27.34 (4.07) 66 Schedule of Fixed Costs 20x1 Cost 20x2 Cost Projected Percent increase S 2 90,000.00 14.08) lamps @_) 68 Faxed Overhead 78 (normal capacity of 79 Fixed Selling 80 Fixed Administrative IS 25,000.00 4,000.00 4.09) 4.10 S 4 2888 88 Projected Total Fixed Costs $ 359,000.00 14.11) I See The Light Projected Balance Sheet As of December 31, 20x1 $ 34,710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets 500 @ $16.00 8,000.00 3000 @ $30.00 $ 90,000.00 200,210.00 $ Fixed Assets Equipment Accumulated Depreciation Total Fixed Asset Total Assets 20,000.00 6,800.00 $ 13,200.00 213.410.00 54,000.00 54,000.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 147.410.00 $ 159.410.00 213.410.00 1 See The Light Projected Income Statement For the Period Ending December 31, 20x1 $ 1,125,000.00 750,000.00 375,000.00 $ Sales 25,000 lamps @ $45.00 Cost of Goods Sold @ $30.00 Gross Profit Selling Expenses: Fixed Variable (Commission per unit) @ $3.00 Administrative Expenses: Fixed Variable @ $2.00 Total Selling and Administrativo Expenses: Net Profit $ 23,000.00 75,000.00 $ 98,000.00 or more comme sa o tome sono $ 42,000.00 50,000.00 92,000.00 190,000.00 185,000.00