PART 3 Budgets Division N has decided to develop its budget based upon projected sales of 43,000 lamps at 54 00 per lamp The company has requested that you prepare a master budget for the year This budget is to be used or planning and control of operations and should be composed of 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 8 Cash Budget The company wants to maintain the same number of units in the beginning and ending inventories of vork in process, and electrical parts while increasing the inventory of Lamp Kits to 650 pieces and decreasing the finished goods by 20 Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods Total Needed Less Beginning Inventory 43000 2400 45400 3000 Total Production 42,400 units 7 01 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, $ ) 42,400 units 650 units 43,050 units 500 units 8 01 8 02 8 03 8 04 $ 16 72 711,436 00 8 05 8 06 $ 3 Direct Labor Budget $ 2 10 8 07 Labor Cost Per Lamp Production Total Labor Cost (Round to two places, $ ) 42,400 units 89,040 00 $ 8 08 4 Factory Overhead Budget $ Variable Factory Overhead Variable Factory Overhead Cost Per Unit Number of Units to be produced Total Variable Factory Overhead (Round to two places, $ ) Fixed Factory Overhead 2 1300000 42,400 units 90,312 00 300,000 00 $ 8 09 8 10 $ Total Factory Overhead (Round to two places, $ ) $ 390,312 00 8 11 4 Factory Overhead Budget Overhead Allocation rate based on 1 Number of Units Total Factory Overhead Number of Units (Round to two places, $ ) 42400 390312 $9 21 9 01 5 Cost of making one unit next year Cost of one Lamp Kit Labor Cost Per Lamp Factory overhead per unit 16 72 $2 10 9 02 9 03 Total cost of one unit (Round to two places, $ ) 6 Selling and Admin Budget 9 04 Fixed Selling Variable Selling (Round to two places, $ ) Fixed Administrative Variable Administrative (Round to two places, $ ) Total Selling and Administrative (Round to two places, $ ) 33000 $136,740 00 62000 91,590 00 323,330 00 $ 9 05 9 06 Round dollars to two places, $ $ 90,000 00 9 07 to be produce d 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 9 08 Total Materials Labor Overhead Cost of Goods Available Less Ending Inventory, Finished Goods Cost of Goods Sold 9 09 9 10 9 11 9 12 9 13 9 14 7 Budgeted Income Statement Sales Cost of Goods Sold Gross Profit Selling Expenses Admin Expenses Net Income 10 01 8 Cash Budget 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 20 00 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 February 2 85 00 of material purchases will be paid during the year, the remaining portion will be paid in Januay or February 3 All other manufacturing and operating costs are paid for when incurred 1 The budgeted depreciation expense is equal to 0 6 of the fixed manufacturing, selling and administrative expenses 5 Minimum Cash Balance needed for 20x2, $195,000 places, $ $ 34,710 000 Beginning Cash Balance Cash Inflows Sales Collections Account Receivable (Sales last year not collected) Sales made and collected in 20x2 Cash Available $ 67,500 00 10 02 10 03 10 04 $ 54,000 000 10 05 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 10 06 10 07 Budgeted Cash Balance before financing Needed Minimum Balance 10 08 Amount to be borrowed (if any) $ 10 09 Budgeted Cash Balance 10 10 PART 3 Budgets Division N has decided to develop its budget based upon projected sales of 43,000 lamps at 54 00 per lamp The company has requested that you prepare a master budget for the year This budget is to be used or planning and control of operations and should be composed of 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 8 Cash Budget The company wants to maintain the same number of units in the beginning and ending inventories of vork in process, and electrical parts while increasing the inventory of Lamp Kits to 650 pieces and decreasing the finished goods by 20 Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods Total Needed Less Beginning Inventory 43000 2400 45400 3000 Total Production 42,400 units 7 01 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, $ ) 42,400 units 650 units 43,050 units 500 units 8 01 8 02 8 03 8 04 $ 16 72 711,436 00 8 05 8 06 $ 3 Direct Labor Budget $ 2 10 8 07 Labor Cost Per Lamp Production Total Labor Cost (Round to two places, $ ) 42,400 units 89,040 00 $ 8 08 4 Factory Overhead Budget $ Variable Factory Overhead Variable Factory Overhead Cost Per Unit Number of Units to be produced Total Variable Factory Overhead (Round to two places, $ ) Fixed Factory Overhead 2 1300000 42,400 units 90,312 00 300,000 00 $ 8 09 8 10 $ Total Factory Overhead (Round to two places, $ ) $ 390,312 00 8 11 4 Factory Overhead Budget Overhead Allocation rate based on 1 Number of Units Total Factory Overhead Number of Units (Round to two places, $ ) 42400 390312 $9 21 9 01 5 Cost of making one unit next year Cost of one Lamp Kit Labor Cost Per Lamp Factory overhead per unit 16 72 $2 10 9 02 9 03 Total cost of one unit (Round to two places, $ ) 6 Selling and Admin Budget 9 04 Fixed Selling Variable Selling (Round to two places, $ ) Fixed Administrative Variable Administrative (Round to two places, $ ) Total Selling and Administrative (Round to two places, $ ) 33000 $136,740 00 62000 91,590 00 323,330 00 $ 9 05 9 06 Round dollars to two places, $ $ 90,000 00 9 07 to be produce d 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 9 08 Total Materials Labor Overhead Cost of Goods Available Less Ending Inventory, Finished Goods Cost of Goods Sold 9 09 9 10 9 11 9 12 9 13 9 14 7 Budgeted Income Statement Sales Cost of Goods Sold Gross Profit Selling Expenses Admin Expenses Net Income 10 01 8 Cash Budget 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 20 00 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 February 2 85 00 of material purchases will be paid during the year, the remaining portion will be paid in Januay or February 3 All other manufacturing and operating costs are paid for when incurred 1 The budgeted depreciation expense is equal to 0 6 of the fixed manufacturing, selling and administrative expenses 5 Minimum Cash Balance needed for 20x2, $195,000 places, $ $ 34,710 000 Beginning Cash Balance Cash Inflows Sales Collections Account Receivable (Sales last year not collected) Sales made and collected in 20x2 Cash Available $ 67,500 00 10 02 10 03 10 04 $ 54,000 000 10 05 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 10 06 10 07 Budgeted Cash Balance before financing Needed Minimum Balance 10 08 Amount to be borrowed (if any) $ 10 09 Budgeted Cash Balance 10 10

Question

PART 3 Budgets Division N has decided to develop its budget based upon projected sales of 43,000 lamps at  54 00 per lamp  The company has requested that you prepare a master budget for the year  This budget is to be used or planning and control of operations and should be composed of  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 8  Cash Budget The company wants to maintain the same number of units in the beginning and ending inventories of vork in process, and electrical parts while increasing the inventory of Lamp Kits to 650 pieces and decreasing the finished goods by 20   Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods Total Needed Less  Beginning Inventory 43000 2400 45400 3000 Total Production 42,400 units  7 01  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, $     ) 42,400 units 650 units 43,050 units 500 units  8 01   8 02   8 03   8 04  $ 16 72 711,436 00  8 05   8 06  $ 3 Direct Labor Budget $ 2 10  8 07  Labor Cost Per Lamp Production Total Labor Cost (Round to two places, $     ) 42,400 units 89,040 00 $  8 08  4 Factory Overhead Budget $ Variable Factory Overhead  Variable Factory Overhead Cost Per Unit Number of Units to be produced Total Variable Factory Overhead (Round to two places, $     ) Fixed Factory Overhead 2 1300000 42,400 units 90,312 00 300,000 00 $  8 09   8 10  $ Total Factory Overhead (Round to two places, $     ) $ 390,312 00  8 11  4 Factory Overhead Budget Overhead Allocation rate based on  1  Number of Units Total Factory Overhead   Number of Units (Round to two places, $     ) 42400 390312 $9 21  9 01  5 Cost of making one unit next year Cost of one Lamp Kit Labor Cost Per Lamp Factory overhead per unit 16 72 $2 10  9 02   9 03  Total cost of one unit (Round to two places, $     ) 6 Selling and Admin  Budget  9 04  Fixed Selling Variable Selling (Round to two places, $     ) Fixed Administrative Variable Administrative (Round to two places, $     ) Total Selling and Administrative (Round to two places, $     ) 33000 $136,740 00 62000 91,590 00 323,330 00 $  9 05   9 06  Round dollars to two places, $      $ 90,000 00  9 07  to be produce d  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  9 08  Total Materials  Labor Overhead Cost of Goods Available Less  Ending Inventory, Finished Goods Cost of Goods Sold  9 09   9 10   9 11   9 12   9 13   9 14  7 Budgeted Income Statement Sales Cost of Goods Sold Gross Profit Selling Expenses   Admin  Expenses Net Income  10 01  8 Cash Budget 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  20 00  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 February  2  85 00  of material purchases will be paid during the year, the remaining portion will be paid in Januay or February  3  All other manufacturing and operating costs are paid for when incurred  1  The budgeted depreciation expense is equal to 0 6  of the fixed manufacturing, selling and administrative expenses  5  Minimum Cash Balance needed for 20x2, $195,000  places, $      $ 34,710 000 Beginning Cash Balance Cash Inflows  Sales Collections  Account Receivable (Sales last year not collected) Sales made and collected in 20x2 Cash Available $ 67,500 00  10 02   10 03   10 04  $ 54,000 000  10 05  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  10 06   10 07  Budgeted Cash Balance before financing Needed Minimum Balance  10 08  Amount to be borrowed (if any) $  10 09  Budgeted Cash Balance  10 10  PART 3 Budgets Division N has decided to develop its budget based upon projected sales of 43,000 lamps at  54 00 per lamp  The company has requested that you prepare a master budget for the year  This budget is to be used or planning and control of operations and should be composed of  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 8  Cash Budget The company wants to maintain the same number of units in the beginning and ending inventories of vork in process, and electrical parts while increasing the inventory of Lamp Kits to 650 pieces and decreasing the finished goods by 20   Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods Total Needed Less  Beginning Inventory 43000 2400 45400 3000 Total Production 42,400 units  7 01  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, $     ) 42,400 units 650 units 43,050 units 500 units  8 01   8 02   8 03   8 04  $ 16 72 711,436 00  8 05   8 06  $ 3 Direct Labor Budget $ 2 10  8 07  Labor Cost Per Lamp Production Total Labor Cost (Round to two places, $     ) 42,400 units 89,040 00 $  8 08  4 Factory Overhead Budget $ Variable Factory Overhead  Variable Factory Overhead Cost Per Unit Number of Units to be produced Total Variable Factory Overhead (Round to two places, $     ) Fixed Factory Overhead 2 1300000 42,400 units 90,312 00 300,000 00 $  8 09   8 10  $ Total Factory Overhead (Round to two places, $     ) $ 390,312 00  8 11  4 Factory Overhead Budget Overhead Allocation rate based on  1  Number of Units Total Factory Overhead   Number of Units (Round to two places, $     ) 42400 390312 $9 21  9 01  5 Cost of making one unit next year Cost of one Lamp Kit Labor Cost Per Lamp Factory overhead per unit 16 72 $2 10  9 02   9 03  Total cost of one unit (Round to two places, $     ) 6 Selling and Admin  Budget  9 04  Fixed Selling Variable Selling (Round to two places, $     ) Fixed Administrative Variable Administrative (Round to two places, $     ) Total Selling and Administrative (Round to two places, $     ) 33000 $136,740 00 62000 91,590 00 323,330 00 $  9 05   9 06  Round dollars to two places, $      $ 90,000 00  9 07  to be produce d  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  9 08  Total Materials  Labor Overhead Cost of Goods Available Less  Ending Inventory, Finished Goods Cost of Goods Sold  9 09   9 10   9 11   9 12   9 13   9 14  7 Budgeted Income Statement Sales Cost of Goods Sold Gross Profit Selling Expenses   Admin  Expenses Net Income  10 01  8 Cash Budget 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  20 00  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 February  2  85 00  of material purchases will be paid during the year, the remaining portion will be paid in Januay or February  3  All other manufacturing and operating costs are paid for when incurred  1  The budgeted depreciation expense is equal to 0 6  of the fixed manufacturing, selling and administrative expenses  5  Minimum Cash Balance needed for 20x2, $195,000  places, $      $ 34,710 000 Beginning Cash Balance Cash Inflows  Sales Collections  Account Receivable (Sales last year not collected) Sales made and collected in 20x2 Cash Available $ 67,500 00  10 02   10 03   10 04  $ 54,000 000  10 05  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  10 06   10 07  Budgeted Cash Balance before financing Needed Minimum Balance  10 08  Amount to be borrowed (if any) $  10 09  Budgeted Cash Balance  10 10

Accepted Answer

The Answer is in the image, click to view ...

Question

PART 3 Budgets Division N has decided to develop its budget based upon projected sales of 43,000 lamps at -54.00 per lamp. The company has

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Intermediate Accounting Volume 1

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question