Please fill in answers in the excel below templates Please provide with explanation for each question French Colas bottles two soft drinks under license from Cadbury Schweppes at its Lyon Plant Bottling at this plant is a highly repetitive, automated process Empty bottles are removed from their carton, placed on a conveyor, and cleaned, rinsed, dried, filled, capped, and heated (to reduce condensation) All inventory is indirect materials and finished goods at the end of each working day There is no work in process inventory The two soft drinks bottled by French Colas are Orange and diet Orange The syrup for both soft drinks is purchased from Cadbury Schweppes Syrup for the regular brand contains higher sugar content than that for the diet brand French Colas uses a lot size of 1,000 cases as the unit of analysis in its budgeting (Each case contains 24 bottles) Direct materials are expressed in terms of lots, where one lot of direct materials is the input necessary to yield one lot (1000 cases) of beverage In 2020, the following purchase prices are forecast for direct materials Orange Diet Orange Syrup $1,200 per lot $1,100 per lot Containers (bottles, caps, etc) $1,000 per lot $1,000 per lot Packaging $ 800 per lot $ 800 per lot The two soft drinks are bottled using the same equipment The equipment is sanitized daily, but it is only rinsed when a switch is made during the day between diet orange and orange Diet orange is always bottled first each day to reduce risk of sugar contamination The only difference in the bottling process for the two soft drinks is the syrup Summary data used in developing budgets for 2020 are as follows SALES Orange 1,080 lots at $9,000 selling price per lot Diet Orange 540 lots at $8,500 selling price per lot 2 BEGINNING INVENTORY OF RAW MATERIALS (January 1, 2020) Syrup for Orange 80 lots for $1,100 purchase price per lot Syrup for Diet Orange 70 lots for $1,000 purchase price per lot Containers 200 lots for $950 purchase price per lot Packaging 400 lots for $900 purchase price per lot 3 BEGINNING INVENTORY OF FINISHED GOODS (January 1, 2020) Orange 100 lots at $5,300 per lot Diet Orange 50 lots at $5,200 per lot TARGET ENDING INVENTORY OF RAW MATERIALS (December 31, 2020) Syrup for Orange, 30 lots b Syrup for Diet Orange, 20 lots Containers, 100 lots Packaging, 200 lots 4 TARGET ENDING INVENTORY OF FINISHED GOODS (December 31, 2020) a Orange, 20 lots b Diet Orange, 10 lots Each lot requires 20 direct manufacturing labor hours at the 2019 budgeted rate of $25 per hour Indirect manufacturing labor costs are included in the manufacturing overhead forecast (a) Variable manufacturing overhead is forecast to be $600 per hour of bottling time bottling time is the time the filling equipment is in operation It takes 2 hours to bottle one lot of orange and 2 hours to bottle one lot of diet orange b Fixed manufacturing overhead is forecast at $1,200,000 for 2020 c Hours of budgeting bottling time is the sole allocation base for all fixed manufacturing overhead d Administration costs are forecast to be 10 of the cost of goods manufactured for 2020 Marketing costs are forecasted at 12 of dollar sales for 2020 Distribution costs are forecast at 8 of dollar sales for 2020 REQUIRED Sales Revenue budget (in dollars) Production budget (in units) Direct Material Usage Budget (in units and dollars) Direct Materials Purchases Budget (in units and dollars) Direct manufacturing labor Budget (in dollars) Manufacturing Overhead Costs Budget (in dollars) Ending Finished Goods Inventory Budget (in dollars) Cost of Goods Sold Budget (in dollars) Marketing Costs Budget (in dollars) Distribution Costs Budget (in dollars) Administration Costs Budget (in dollars) Budgeted Income Statement (in dollars) Original Fi ill out the below sheet Sales Budget (Lots $$) Production Budget in Lots Product of Lots Price pLot Revenue Orange D Orange Beg FG Inv Sales 10 points Clg FG Inv Production 10 points Raw Materials Usage Budget (Lots) Raw Materials Purchases Budget (Lots) Orange D Orange Orange Srp Orange D Orange Production Q Beg RM Inv RM per lot RM Used RM Usage Qty Clg RM Inv Syrup Purch 10 point Raw Material Prices pLot ($$) Raw Materials Purchases Budget (Lots) PurchsePrpLot OPGInvCst Containers All OJ Packin All OJ Orange Syrup Beg RM Inv D Orange Syrup RM Used Container Clg RM Inv Packaging Cntnr Purch 10 points Raw Materials Usage Budget ($$) Raw Materials Purchases Budget ($$) Orange D Orange All OJ Syrup $ Syrup Containers $ Containers Packaging $ Packaging RM Used Cost $ RM PurchCst 10 points Direct Labor Budget (Hrs $$) Variable Manufacturing Overhead ($$) Product Lots Prodced Labor Hrs Labor Cost Product BottleHrs pLOT TotlBtl Hrs VMOH $$ Orange Orange D Orange 10 points D Orange 10 points Labor Rate p Hr Cost of Good Manufactured VMOH Rate Labor Hrs p Lot Orange Diet Orange RM Used FixedMOH (in $$) DL Cost Admin Market Distribte Budgets ($$) Product FMOH $$ VMOH Admin Orange FMOH Marketing D Orange COGM Distribution TOTAL 10 points Allocable FMOH (2K ) INCOME STATEMENT (Proforma, full) COST OF GOOD SOLD STATEMENT (proforma, full) for the year ended December 2019, budgeted figures for the year ended December 2019, budgeted figures Sales Revenue COGM COGS OpFGInvOJ Gross Profit OpFGInvDOJ Admin Exp ClgFGInvOJ Marketing Exp ClgFGInvDOJ Distribute Exp COGSold 10 points Net Profit 10 points (7K ) (7K ) WHAT IF Fill out the below sheet Sales Budget (Lots $$) Production Budget in Lots Product of Lots Price pLot Revenue Orange D Orange Orange Beg FG Inv Diet Orange Sales Total Srev Clg FG Inv Production Raw Materials Usage Budget (Lots) Raw Materials Purchases Budget (Lots) Orange D Orange Orange Srp Orange D Orange Production Q Beg RM Inv RM per lot RM Used RM Usage Qty Clg RM Inv Syrup Purch Raw Material Prices pLot ($$) Raw Materials Purchases Budget (Lots) PurchsePrpLot OPGInvCst Containers All OJ Packin All OJ Orange Syrup Beg RM Inv D Orange Syrup RM Used Container Clg RM Inv Packaging Cntnr Purch Raw Materials Usage Budget ($$) Raw Materials Purchases Budget ($$) Orange D Orange All OJ Syrup $ Syrup Containers $ Containers Packaging $ Packaging RM Used Cost $ RM PurchCst Direct Labor Budget (Hrs $$) Variable Manufacturing Overhead ($$) Product Lots Prodced Labor Hrs Labor Cost Product BottleHrs pLOT TotlBtl Hrs VMOH $$ Orange Orange D Orange D Orange Labor Rate p Hr Cost of Good Manufactured VMOH Rate Labor Hrs p Lot Orange Diet Orange RM Used FixedMOH (in $$) DL Cost Admin Market Distribte Budgets ($$) Product FMOH $$ VMOH Admin Orange FMOH Marketing D Orange COGM Distribution TOTAL Allocable FMOH INCOME STATEMENT (Proforma, full) COST OF GOOD SOLD STATEMENT (proforma, full) for the year ended December 2019, budgeted figures for the year ended December 2019, budgeted figures Sales Revenue COGM COGS OpFGInvOJ Gross Profit OpFGInvDOJ Admin Exp ClgFGInvOJ Marketing Exp ClgFGInvDOJ Distribute Exp COGSold Net Profit

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

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 28, 2024

Please fill in answers in the excel below templates. Please provide with explanation for each question. French Colas bottles two soft drinks under license from

Please fill in answers in the excel below templates. Please provide with explanation for each question.

French Colas bottles two soft drinks under license from Cadbury Schweppes at its Lyon Plant. Bottling at this plant is a highly repetitive, automated process. Empty bottles are removed from their carton, placed on a conveyor, and cleaned, rinsed, dried, filled, capped, and heated (to reduce condensation). All inventory is indirect materials and finished goods at the end of each working day. There is no work-in process inventory.

The two soft drinks bottled by French Colas are Orange and diet Orange. The syrup for both soft drinks is purchased from Cadbury Schweppes. Syrup for the regular brand contains higher sugar content than that for the diet brand.

French Colas uses a lot size of 1,000 cases as the unit of analysis in its budgeting. (Each case contains 24 bottles). Direct materials are expressed in terms of lots, where one lot of direct materials is the input necessary to yield one lot (1000 cases) of beverage. In 2020, the following purchase prices are forecast for direct materials:

Orange Diet Orange

Syrup $1,200 per lot $1,100 per lot

Containers (bottles, caps, etc) $1,000 per lot $1,000 per lot

Packaging $ 800 per lot $ 800 per lot

The two soft drinks are bottled using the same equipment. The equipment is sanitized daily, but it is only rinsed when a switch is made during the day between diet orange and orange. Diet orange is always bottled first each day to reduce risk of sugar contamination. The only difference in the bottling process for the two soft drinks is the syrup.

Summary data used in developing budgets for 2020 are as follows:

SALES
1. Orange: 1,080 lots at $9,000 selling price per lot.
2. Diet Orange: 540 lots at $8,500 selling price per lot.

2. BEGINNING INVENTORY OF RAW MATERIALS (January 1, 2020)

Syrup for Orange: 80 lots for $1,100 purchase price per lot
Syrup for Diet Orange: 70 lots for $1,000 purchase price per lot
Containers: 200 lots for $950 purchase price per lot
Packaging: 400 lots for $900 purchase price per lot

3. BEGINNING INVENTORY OF FINISHED GOODS (January 1, 2020)

Orange: 100 lots at $5,300 per lot
Diet Orange: 50 lots at $5,200 per lot
TARGET ENDING INVENTORY OF RAW MATERIALS (December 31, 2020)
1. Syrup for Orange, 30 lots

b. Syrup for Diet Orange, 20 lots

Containers, 100 lots
Packaging, 200 lots

4. TARGET ENDING INVENTORY OF FINISHED GOODS (December 31, 2020) a. Orange, 20 lots

b. Diet Orange, 10 lots

Each lot requires 20 direct manufacturing labor-hours at the 2019 budgeted rate of $25 per hour. Indirect manufacturing labor costs are included in the manufacturing overhead forecast.

(a) Variable manufacturing overhead is forecast to be $600 per hour of bottling time; bottling time is the time the filling equipment is in operation. It takes 2 hours to bottle one lot of orange and 2 hours to bottle one lot of diet orange.

b.Fixed manufacturing overhead is forecast at $1,200,000 for 2020.

c.Hours of budgeting bottling time is the sole allocation base for all fixed manufacturing overhead.

d. Administration costs are forecast to be 10% of the cost of goods manufactured for 2020. Marketing costs are forecasted at 12% of dollar sales for 2020. Distribution costs are forecast at 8% of dollar sales for 2020.

REQUIRED:

Sales Revenue budget (in dollars)
Production budget (in units)
Direct Material Usage Budget (in units and dollars)
Direct Materials Purchases Budget (in units and dollars)
Direct manufacturing labor Budget (in dollars)
Manufacturing Overhead Costs Budget (in dollars)
Ending Finished Goods Inventory Budget (in dollars)
Cost of Goods Sold Budget (in dollars)
Marketing Costs Budget (in dollars)
Distribution Costs Budget (in dollars)
Administration Costs Budget (in dollars)
Budgeted Income Statement (in dollars)

Original Fi ill out the below sheet;

	Sales Budget (Lots & $$)				Production Budget in Lots
Product	# of Lots	Price pLot	Revenue			Orange		D.Orange
					Beg. FG Inv
					Sales
				10 points	Clg. FG Inv
					Production				10 points

Raw Materials Usage Budget (Lots)					Raw Materials Purchases Budget (Lots)
	Orange		D. Orange		Orange Srp	Orange		D.Orange
Production Q					Beg. RM Inv
RM per lot					RM Used
RM Usage Qty					Clg. RM Inv
					Syrup Purch				10 point
Raw Material Prices pLot ($$)					Raw Materials Purchases Budget (Lots)
	PurchsePrpLot	OPGInvCst			Containers	All OJ	Packin	All OJ
Orange Syrup					Beg. RM Inv
D.Orange Syrup					RM Used
Container					Clg. RM Inv
Packaging					Cntnr Purch				10 points

Raw Materials Usage Budget ($$)					Raw Materials Purchases Budget ($$)
	Orange		D.Orange			All OJ
Syrup				$ -	Syrup
Containers				$ -	Containers
Packaging				$ -	Packaging
RM Used Cost				$ -	RM PurchCst				10 points

Direct Labor Budget (Hrs & $$)					Variable Manufacturing Overhead ($$)
Product	#Lots Prodced	Labor Hrs	Labor Cost		Product	BottleHrs pLOT	TotlBtl Hrs	VMOH $$
Orange					Orange
D.Orange				10 points	D.Orange				10 points

Labor Rate p.Hr		Cost of Good Manufactured			VMOH Rate
Labor Hrs. p.Lot			Orange	Diet Orange
		RM Used
FixedMOH (in $$)		DL Cost				Admin. Market. Distribte Budgets ($$)
Product	FMOH $$	VMOH				Admin
Orange		FMOH				Marketing
D. Orange		COGM				Distribution
						TOTAL			10 points
Allocable FMOH									(2K +/-)

INCOME STATEMENT (Proforma, full)					COST OF GOOD SOLD STATEMENT (proforma, full)
for the year ended December 2019, budgeted figures					for the year ended December 2019, budgeted figures

Sales Revenue					COGM
COGS					OpFGInvOJ
Gross Profit					OpFGInvDOJ
Admin. Exp					ClgFGInvOJ
Marketing Exp					ClgFGInvDOJ
Distribute Exp					COGSold				10 points
Net Profit				10 points					(7K +/-)
				(7K +/-)

WHAT IF: Fill out the below sheet;

	Sales Budget (Lots & $$)				Production Budget in Lots
Product	# of Lots	Price pLot	Revenue			Orange		D.Orange
Orange					Beg. FG Inv
Diet Orange					Sales
Total Srev					Clg. FG Inv
					Production

Raw Materials Usage Budget (Lots)					Raw Materials Purchases Budget (Lots)
	Orange		D. Orange		Orange Srp	Orange		D.Orange
Production Q					Beg. RM Inv
RM per lot					RM Used
RM Usage Qty					Clg. RM Inv
					Syrup Purch
Raw Material Prices pLot ($$)					Raw Materials Purchases Budget (Lots)
	PurchsePrpLot	OPGInvCst			Containers	All OJ	Packin	All OJ
Orange Syrup					Beg. RM Inv
D.Orange Syrup					RM Used
Container					Clg. RM Inv
Packaging					Cntnr Purch

Raw Materials Usage Budget ($$)					Raw Materials Purchases Budget ($$)
	Orange		D.Orange			All OJ
Syrup				$ -	Syrup
Containers				$ -	Containers
Packaging				$ -	Packaging
RM Used Cost				$ -	RM PurchCst

Direct Labor Budget (Hrs & $$)					Variable Manufacturing Overhead ($$)
Product	#Lots Prodced	Labor Hrs	Labor Cost		Product	BottleHrs pLOT	TotlBtl Hrs	VMOH $$
Orange					Orange
D.Orange					D.Orange

Labor Rate p.Hr		Cost of Good Manufactured			VMOH Rate
Labor Hrs. p.Lot			Orange	Diet Orange
		RM Used
FixedMOH (in $$)		DL Cost				Admin. Market. Distribte Budgets ($$)
Product	FMOH $$	VMOH				Admin
Orange		FMOH				Marketing
D. Orange		COGM				Distribution
						TOTAL
Allocable FMOH

INCOME STATEMENT (Proforma, full)					COST OF GOOD SOLD STATEMENT (proforma, full)
for the year ended December 2019, budgeted figures					for the year ended December 2019, budgeted figures

Sales Revenue					COGM
COGS					OpFGInvOJ
Gross Profit					OpFGInvDOJ
Admin. Exp					ClgFGInvOJ
Marketing Exp					ClgFGInvDOJ
Distribute Exp					COGSold
Net Profit