PLEASE!!!!!!!!! I NEED HELP!

You are going to assume that you work for a technology company that makes all sorts of gadgets. You come up with a brilliant idea and propose it to your boss

You want to start competing in the computer mouse industry against Logitech and Microsoft. You tell your boss that the personnel in production are a little slow and they are looking to do some more work.

Your proposal is as follows:

We can produce 62,000 mice in the first quarter of the year and add $1,550,000 in revenue!

Your boss is fascinated and says she want to move forward but she wants to make sure this is really going to be a profitable venture and asks you the following:

1. What is the number of mice we would need to produce to meet the sales projections?
2. What about material costs? What are the raw materials needed? How much of the raw materials do we need to produce one mouse? How much of the raw materials do we need to meet the sales projections?
3. What about labor costs? How many mice can the production department produce per hour and what do we pay personnel in the production department per hour?

Well, you say to your boss, hmmm I didnt figure that part out. Your boss tells you to work up all the costs and give him the bottom line.

This is where you must go to the drawing board to figure out the amount.

Using the attached Excel spreadsheet, you are to fill out the amount for the Production, Direct Materials, and Direct Labor costs. All assumptions are provided on the Excel spreadsheet.

Please I need your help so much!

I appreciate your work!

Your company is competing for business in the computer mouse industry Prepare a sales, production, direct materials, and direct labor budget based on the following assumptions Assumptions 7. Material Needs 1. Sales Projections 0.05 Lb. per unit of plastic Q1 10,000 Q2 15,000 Q4 17,000 Q4 25,000 8. Material Costs 2 per pound of plastic 2. Sales Price per Unit $25.00 9. Material Desired Ending Inventory 5% of next months Sales lbs. 5. Desired Ending Inventory 10. Material Beginning Inventory The same as the previous quarters ending inventory. lbs. 5% of next quarters sales 6. Beginning Inventory The same as the prior quarters ending inventory. 11. Labor Costs $20 per hour 12. Time to produce one mouse 0.25 hour Sales Budget Expected Sales in Units Q1 02 03 Q4 Units Sales Price Total Sales $0 $0 $0 $0 Production Budget Expected number of goods to be produced to meet the sales projection What you need: Sales Forecast - data from the Sales Budget Ending Inventory - inventory left over from the previous time period Beginning Inventory - what is left over from the previous reporting period Q1 Q2 Q3 Q4 Planned Sales (in units) Desired Ending Inventory (in units) Needed Inventory (in units) Less Beginning Inventory Units to be produced 1,100 1,100 0 1,100 To meet the sales projection, how many mice do you have to produce? Direct Material Budget Expected material that will be needed for production What you need: Units to be produced - taken from Production Budget Materials needed to produce each unit (an assumption) Desired ending inventory of materials (an assumption) Beginning inventory of materials (an assumption) Unit price per lb. (an assumption) Q1 Q2 R Q3 Q4 Planned Production Needs (in units) Materials needed to produce a unit (assumption) Production Needs (lbs) Desired Ending Inventory of materials (lbs) Total Needs (lbs) 55 55 55 Less: Beginning Inv of materials (lbs) Needed Materials (lbs) Cost of materials to produce one unit Cost of Materials to Produce Required Units based on Sales Projection $ S $ $ What will it cost you in Q1 for material? Direct Labor Budget Expected costs to produce required products What you need: Units to be produced - taken from Production Budget Direct labor hours required to produce one unit (an assumption) Cost of labor per hour (an assumption) Q1 Q2 Q3 04 Required Units to be Produced (taken from Production Budget) Direct Labor Hours required to produce one unit Production Needs Cost of Labor per hour Total Cost of Labor to Produce Required Units to Meet Sales Budget What is it going to cost you in labor to produce the number of mice required to meet revenue projections? Is it Worth It? Projected Sales (Revenue) Q1 $250,000 Q2 $375,000 Q3 $425,000 Q4 $625,000 Cost of Goods Sold - Material Costs - Labor Costs Gross Profit Calculation Projected Revenue - Projected Cost of Goods Sold $250,000 $375,000 $425,000 $625,000 Gross Profit Margin Calculation (Revenue - COGS) / Revenue *100 100% 100% 100% 100% Your company is competing for business in the computer mouse industry Prepare a sales, production, direct materials, and direct labor budget based on the following assumptions Assumptions 7. Material Needs 1. Sales Projections 0.05 Lb. per unit of plastic Q1 10,000 Q2 15,000 Q4 17,000 Q4 25,000 8. Material Costs 2 per pound of plastic 2. Sales Price per Unit $25.00 9. Material Desired Ending Inventory 5% of next months Sales lbs. 5. Desired Ending Inventory 10. Material Beginning Inventory The same as the previous quarters ending inventory. lbs. 5% of next quarters sales 6. Beginning Inventory The same as the prior quarters ending inventory. 11. Labor Costs $20 per hour 12. Time to produce one mouse 0.25 hour Sales Budget Expected Sales in Units Q1 02 03 Q4 Units Sales Price Total Sales $0 $0 $0 $0 Production Budget Expected number of goods to be produced to meet the sales projection What you need: Sales Forecast - data from the Sales Budget Ending Inventory - inventory left over from the previous time period Beginning Inventory - what is left over from the previous reporting period Q1 Q2 Q3 Q4 Planned Sales (in units) Desired Ending Inventory (in units) Needed Inventory (in units) Less Beginning Inventory Units to be produced 1,100 1,100 0 1,100 To meet the sales projection, how many mice do you have to produce? Direct Material Budget Expected material that will be needed for production What you need: Units to be produced - taken from Production Budget Materials needed to produce each unit (an assumption) Desired ending inventory of materials (an assumption) Beginning inventory of materials (an assumption) Unit price per lb. (an assumption) Q1 Q2 R Q3 Q4 Planned Production Needs (in units) Materials needed to produce a unit (assumption) Production Needs (lbs) Desired Ending Inventory of materials (lbs) Total Needs (lbs) 55 55 55 Less: Beginning Inv of materials (lbs) Needed Materials (lbs) Cost of materials to produce one unit Cost of Materials to Produce Required Units based on Sales Projection $ S $ $ What will it cost you in Q1 for material? Direct Labor Budget Expected costs to produce required products What you need: Units to be produced - taken from Production Budget Direct labor hours required to produce one unit (an assumption) Cost of labor per hour (an assumption) Q1 Q2 Q3 04 Required Units to be Produced (taken from Production Budget) Direct Labor Hours required to produce one unit Production Needs Cost of Labor per hour Total Cost of Labor to Produce Required Units to Meet Sales Budget What is it going to cost you in labor to produce the number of mice required to meet revenue projections? Is it Worth It? Projected Sales (Revenue) Q1 $250,000 Q2 $375,000 Q3 $425,000 Q4 $625,000 Cost of Goods Sold - Material Costs - Labor Costs Gross Profit Calculation Projected Revenue - Projected Cost of Goods Sold $250,000 $375,000 $425,000 $625,000 Gross Profit Margin Calculation (Revenue - COGS) / Revenue *100 100% 100% 100% 100%