Posluszry inc. has gathered the following budgeting information for next year and has asked you to prepare theit moster budget. A. Sales for the final quarter of the prior year total 1,600 units. Expected sales (in units) for the current year are: 1,440 (Quarter 1), 960 (Quarter 2), 1,280 (Quarter 3), and 1,280 (Quarter 4). Sales for the first quarter of the following year total 1,920 units. The selling price is $490 per unit in the first three quarters of the year, and $510 per unit in the final quarter. b. Company policy calis for a given quarter's ending finished goods inventory to equal 70% of the next quarter's expected unit sales. The finished goods inventory at the end of the prior year is 1.008 units, which complies with the policy. The product's manufocturing cost is $211 per unit, including per unit costs of $84 for materials ( 6 lbs. at $14 per lb). $96 for direct labor ( 4 hours $24 direct labor rate per hour), $19 for variable overhead, and $12 for fixod overhead, Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $25,400; factory utilities, $31,800, and other factory overhead of $6,352. c. Company policy also calls for a given quarter's ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 3,312 Ibs of materiaks, which complies with the policy. The company expects to have 5,760ibs, of materiols in inventory at year-end. The company has no work in process inventory at the end of any quarter. d. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales: The sales manager's quarterly salary will be $77,000 in the first three quarters of the year, and $82,000 in the final quarter. e. Quarterly general and administrative expenses include $33,000 administrative salaries, rent expense of $20.000 per quartec, insurance expense of $16,000 per quarter, straightline depreciation of $16,000 per quarter, and 19 monthly interest on the $100,000 long-term note payable (12\% annually). t. Income taxes will be assessed at 30%, and are paid in the quarter incurred. Requirement: Prepare the Sales Budget for Posluszny Inc.. Sales for the final quarter of the prior year total 1,600 units. Expected aales (in units) for the current year are: 1,440 (Quarter 1), 960 (Quarter 2), 1,280 (Quarter 3), and 1,280 (Quarter 4). Sales for the first quarter of the following year total 1,920 units. The selling price is $490 per unit in the first three quarters of the year, and $510 per unit in the final quarter. Company policy aiso calls for a given quanter's ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior yeat-end inventory is 3,312. los of meterials, which complies with the policy. The compony expects to have 5,760 los. of materials in inventory af year-end. The company has no work in process inventory at the end of any quarter. d. Saies representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be 577,000 in the first three quarters of the year, and 582,000 in the final quarter. Quarterty general and administrative expenses include $33,000 administrative salaries, rent expense of $20,000 per quartec, insurance expense of $16.000 per quarter, straightline depreciation of $16,000 per quarter, and 1$ monthly interest on the $100,000 long-term note payable 12% annually). t. Income taxes will be assessed at 30%, and are paid in the quarter incurred. Requirement Prepare the production budget for Posluszny Inc., Company policy calls for a given quarter's ending finished goods inventory to equal 7046 of the next quarter's expected unit sales. The finished goods inventory at the end of the prior year is 1,008 units, which complies with the policy. Expected sales (In units) for the current year are: 1,440 (Quarter 1), 960 (Quarter 2), 1,280 (Quarter 3), and 1,280 (Quarter 4). Sales for the first quarter of the following year total 1,920 units. c. Company policy also calis for a given quarter's ending raw materials inventory to equal 50% of next quanter's expected moterials needed for production. The prior year-end inventory is 3,312 los of materials, which complies with the pollicy. The compeny expects to have 5,760 lbs. of materiats in inventory at year-end. The company has no work in process inventory at the end of any quarter. d. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $77,000 in the first three quarters of the year, and $82,000 in the final quarter. c. Quarterly general and administrative expenses include $33,000 administrative salaries, rent expense of $20,000 per quarter, insurance expense of $16,000 per quarter, straightline depreciation of $16,000 per quarter, and 1% monthly interest on the $100,000 long-term note payable (12\% annually). 1. Income taxes will be assessed at 30%, and are paid in the quarter incurred. Requirement Prepare the Direct Materials Budget for Posluszny Inc. Company. Company policy calls for a given quarter's ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 3,312 Ibs of materials, which complies with the policy. The company expects to have 5,760lbs. of materials in inventory at year-end. The product's manufacturing cost is $211 per unit, Including per unit costs of $84 for materials ( 6 lbs, at $14 per lb.), $96 for direct labor ( 4 hours $24 direct labor rate per hour), $19 for variable overhead, and $12 for fixed overhead. fixed overhedd corsists, incurred evenly throughout the year, consist of depreciation on production equipment, $25,400, factory utilities, $31,800, and other factory overhead of 56,352. c. Company policy also calls for a given quanter's ending raw materiais ifventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 3,312 Ibs of materiais, which complies with the policy. The company expects to have 5,760 fos, of materials in inventory at year-end. The company has no work in process inventory at the end of any quarter. d. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $77,000 in the first three quarters of the year, and $82,000 in the final quarter. e. Quarterly general and administrative expenses include $33,000 administrative salaries, rent expense of $20,000 per quarter, insurance expense of $16,000 per quarter, straightline depreciation of $16,000 per quarter, and 1% monthly interest on the $100,000 long-term note poyable (12\% annually). 1. Income toxes will be assessed at 30%, and are paid in the quarter incurred. Requirement Prepare the Direct Labor Budget for Posluszny Inc.. The product's manufacturing cost is $211 per unit, Incluc variable overhead, and $12 for fixed overhead. Company policy also calls for a given quarter's ending raw materiais imventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 3,312 tos of materials, which complies with the policy. The company expects to have 5,760 los, of materials in inventory at year-end. The compony has no work in process inventory at the end of any quafter. d. Saies representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $77,000 in the first three quarters of the yeor, and $82,000 in the final quarter. e. Quanterty general and administrative expenses include $33,000 administrative salaries, rent expense of $20,000 per quarter, insurance expense of $16,000 per quarter, straightline depreciation of $16,000 per quarter, and 1$ monthly interest on the $100,000 long-term note payable (12\% annually). f. Income taxes will be assessed at 30%, and are paid in the quarter incurred, Requirement Prepare the Factory Overhead Budget for Posluszny Inc.. The product's manufacturing cost is $211 per unit, Including per unit costs of $84 for materials ( 6 lbs. at $14 per lb.), $96 for direct labor. ( 4 hours $24 direct jabor rate per hour), $19 for variable overhead, and $12 for fixed overhead. Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $25,400; factory utilities, $31,800, and other factory overhead of $6,352. c. Company policy aiso calis for a given quarter's ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 3,312 los of materials, which complies with the policy. The company expects to have 5,760lbs, of materials in inventory at year-end. The company has no work in process inventony at the end of any quartet, d. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $77,000 in the first three quarters of the year, and \$B2,000 in the final quarter. e. Quarterly general and administrative expenses include $33,000 administrative salaries, rent. expense of $20,000 per quarter, insurance expense of $16,000 per quarter, straightline depreciation of $16,000 per quartet, and 1% monthly interest on the $100,000 long-term note payable (12\% annually). f. Income taxes will be assessed at 30%, and are paid in the quarter incurred. Requirement Prepare the selling expense budget for the Posluszny Inc.. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarte calary will be $77,000 in the first three quarters of the year, and $82,000 in the final quarter. $24 direct labor rate per hour, $19 for variable overhead, and \$12 for fired overhead Annual fixed overhead consists, incurred evenly throughout the yeat, consist of depreciation on production equipment, $25,400, factory utitities, $31,800, and other factory overhead of $6,352. c. Company policy also calis for a given quarter's ending raw materials inventory to equal 50% of next quarter's expected materiais needed for production. The prior year-end inventory is 3,312 Ibs of materiak, which complies with the policy. The company expects to have 5,760 los of materials in inventory at yest-end. The company has no work in process inventory at the end of any quartet. d. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $77,000 in the first three quarters of the yeac, and $82,000 in the final quarter. e. Quarterly general and administrative expenses include $33,000 administrative salaries, rent expense of $20,000 per quartet, insurance expense of $16,000 per quarter, straightline depreciation of $16,000 per quarter, and 18 monthly interest on the $100,000 long-term note poyable (12\% annually). t. Income taxes will be assessed at 30%, and are paid in the quarter incurred. Requirement Prepare the Administrative Expense Budget for Posluszny Inc. Quarteriy general and administrative expenses include $33,000 administrative salaries, rent expense of $20,000 per quarter, Insurance expense of $16,000 per quarter, straight-line depreciation of $16,000 per quarter, and 1% monthly interest on the $100,000 tong-term note payable (3\% quarterly). fined overhend consists, incurred evenly throughout the yeac, consist of depreciation on production equipment, $25,400, factory utilities, $31,800, and other factory overnead of $6,352. Company policy aiso calis for a given quanters ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 3,312 tos of materials, which complies with the policy. The company expects to have 5,760 los. of materials in inventory at year-end. The company has no work in process inventory at the end of any quarter. d. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $77.000 in the first three quarters of the year, and $82,000 in the final quarter. e. Quarterly general and administrative expenses include $33,000 administrative salarles, rent expense of $20,000 per quarter, insurance expense of $16,000 per quarter, straightline depreciation of $16,000 per quarter, and 15 monthly interest on the $100,000 fong-term note payable (12% annually). t. Income taxes will be assessed at 30%, and are paid in the quarter incurred. Requirement Using information from the sales budget and the following Information, calculate the budgeted cost of goods sold for Poslusmy Ine. The product's manufacturing cost is $211 per unit, Including per unit costs of $84 for materials ( 6ibs, at $14 per tb.), $96 for direct labor ( 4 hours $24 direct labor rate per hour), $19 for variable overhead, and $12 for fixed overhead. Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $25,400; factory utilities, $31,800, and other factory overhead of $6,352. c. Company policy also calis for a given quarter's ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 3,312 lbs of materials, which complies with the policy. The company expects to have 5,760lbs. of materials in inventory at year-end. The company has no work in process inventory at the end of any quarter. d. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $77,000 in the first three quarters of the year, and $82,000 in the final quarter. e. Quarterly general and administrative expenses include $33,000 administrative salaries, rent expense of $20,000 per quarter, insurance expense of $16,000 per quarter, straightline depreciation of $16,000 per quarter, and 1% monthly interest on the $100,000 long-term note payable (12% annually). f. Income taxes will be assessed at 30%, and are paid in the quarter incurred. Requirement Prepare the Budgeted Income Statement for the year for Posiuszny Inc. Interest on the $100,000 tong-term note payable is 1% per month ( 12% annually). Income taxes will be assessed at 30%, and are pald in the quarter incurred. Posluszry inc. has gathered the following budgeting information for next year and has asked you to prepare theit moster budget. A. Sales for the final quarter of the prior year total 1,600 units. Expected sales (in units) for the current year are: 1,440 (Quarter 1), 960 (Quarter 2), 1,280 (Quarter 3), and 1,280 (Quarter 4). Sales for the first quarter of the following year total 1,920 units. The selling price is $490 per unit in the first three quarters of the year, and $510 per unit in the final quarter. b. Company policy calis for a given quarter's ending finished goods inventory to equal 70% of the next quarter's expected unit sales. The finished goods inventory at the end of the prior year is 1.008 units, which complies with the policy. The product's manufocturing cost is $211 per unit, including per unit costs of $84 for materials ( 6 lbs. at $14 per lb). $96 for direct labor ( 4 hours $24 direct labor rate per hour), $19 for variable overhead, and $12 for fixod overhead, Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $25,400; factory utilities, $31,800, and other factory overhead of $6,352. c. Company policy also calls for a given quarter's ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 3,312 Ibs of materiaks, which complies with the policy. The company expects to have 5,760ibs, of materiols in inventory at year-end. The company has no work in process inventory at the end of any quarter. d. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales: The sales manager's quarterly salary will be $77,000 in the first three quarters of the year, and $82,000 in the final quarter. e. Quarterly general and administrative expenses include $33,000 administrative salaries, rent expense of $20.000 per quartec, insurance expense of $16,000 per quarter, straightline depreciation of $16,000 per quarter, and 19 monthly interest on the $100,000 long-term note payable (12\% annually). t. Income taxes will be assessed at 30%, and are paid in the quarter incurred. Requirement: Prepare the Sales Budget for Posluszny Inc.. Sales for the final quarter of the prior year total 1,600 units. Expected aales (in units) for the current year are: 1,440 (Quarter 1), 960 (Quarter 2), 1,280 (Quarter 3), and 1,280 (Quarter 4). Sales for the first quarter of the following year total 1,920 units. The selling price is $490 per unit in the first three quarters of the year, and $510 per unit in the final quarter. Company policy aiso calls for a given quanter's ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior yeat-end inventory is 3,312. los of meterials, which complies with the policy. The compony expects to have 5,760 los. of materials in inventory af year-end. The company has no work in process inventory at the end of any quarter. d. Saies representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be 577,000 in the first three quarters of the year, and 582,000 in the final quarter. Quarterty general and administrative expenses include $33,000 administrative salaries, rent expense of $20,000 per quartec, insurance expense of $16.000 per quarter, straightline depreciation of $16,000 per quarter, and 1$ monthly interest on the $100,000 long-term note payable 12% annually). t. Income taxes will be assessed at 30%, and are paid in the quarter incurred. Requirement Prepare the production budget for Posluszny Inc., Company policy calls for a given quarter's ending finished goods inventory to equal 7046 of the next quarter's expected unit sales. The finished goods inventory at the end of the prior year is 1,008 units, which complies with the policy. Expected sales (In units) for the current year are: 1,440 (Quarter 1), 960 (Quarter 2), 1,280 (Quarter 3), and 1,280 (Quarter 4). Sales for the first quarter of the following year total 1,920 units. c. Company policy also calis for a given quarter's ending raw materials inventory to equal 50% of next quanter's expected moterials needed for production. The prior year-end inventory is 3,312 los of materials, which complies with the pollicy. The compeny expects to have 5,760 lbs. of materiats in inventory at year-end. The company has no work in process inventory at the end of any quarter. d. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $77,000 in the first three quarters of the year, and $82,000 in the final quarter. c. Quarterly general and administrative expenses include $33,000 administrative salaries, rent expense of $20,000 per quarter, insurance expense of $16,000 per quarter, straightline depreciation of $16,000 per quarter, and 1% monthly interest on the $100,000 long-term note payable (12\% annually). 1. Income taxes will be assessed at 30%, and are paid in the quarter incurred. Requirement Prepare the Direct Materials Budget for Posluszny Inc. Company. Company policy calls for a given quarter's ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 3,312 Ibs of materials, which complies with the policy. The company expects to have 5,760lbs. of materials in inventory at year-end. The product's manufacturing cost is $211 per unit, Including per unit costs of $84 for materials ( 6 lbs, at $14 per lb.), $96 for direct labor ( 4 hours $24 direct labor rate per hour), $19 for variable overhead, and $12 for fixed overhead. fixed overhedd corsists, incurred evenly throughout the year, consist of depreciation on production equipment, $25,400, factory utilities, $31,800, and other factory overhead of 56,352. c. Company policy also calls for a given quanter's ending raw materiais ifventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 3,312 Ibs of materiais, which complies with the policy. The company expects to have 5,760 fos, of materials in inventory at year-end. The company has no work in process inventory at the end of any quarter. d. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $77,000 in the first three quarters of the year, and $82,000 in the final quarter. e. Quarterly general and administrative expenses include $33,000 administrative salaries, rent expense of $20,000 per quarter, insurance expense of $16,000 per quarter, straightline depreciation of $16,000 per quarter, and 1% monthly interest on the $100,000 long-term note poyable (12\% annually). 1. Income toxes will be assessed at 30%, and are paid in the quarter incurred. Requirement Prepare the Direct Labor Budget for Posluszny Inc.. The product's manufacturing cost is $211 per unit, Incluc variable overhead, and $12 for fixed overhead. Company policy also calls for a given quarter's ending raw materiais imventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 3,312 tos of materials, which complies with the policy. The company expects to have 5,760 los, of materials in inventory at year-end. The compony has no work in process inventory at the end of any quafter. d. Saies representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $77,000 in the first three quarters of the yeor, and $82,000 in the final quarter. e. Quanterty general and administrative expenses include $33,000 administrative salaries, rent expense of $20,000 per quarter, insurance expense of $16,000 per quarter, straightline depreciation of $16,000 per quarter, and 1$ monthly interest on the $100,000 long-term note payable (12\% annually). f. Income taxes will be assessed at 30%, and are paid in the quarter incurred, Requirement Prepare the Factory Overhead Budget for Posluszny Inc.. The product's manufacturing cost is $211 per unit, Including per unit costs of $84 for materials ( 6 lbs. at $14 per lb.), $96 for direct labor. ( 4 hours $24 direct jabor rate per hour), $19 for variable overhead, and $12 for fixed overhead. Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $25,400; factory utilities, $31,800, and other factory overhead of $6,352. c. Company policy aiso calis for a given quarter's ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 3,312 los of materials, which complies with the policy. The company expects to have 5,760lbs, of materials in inventory at year-end. The company has no work in process inventony at the end of any quartet, d. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $77,000 in the first three quarters of the year, and \$B2,000 in the final quarter. e. Quarterly general and administrative expenses include $33,000 administrative salaries, rent. expense of $20,000 per quarter, insurance expense of $16,000 per quarter, straightline depreciation of $16,000 per quartet, and 1% monthly interest on the $100,000 long-term note payable (12\% annually). f. Income taxes will be assessed at 30%, and are paid in the quarter incurred. Requirement Prepare the selling expense budget for the Posluszny Inc.. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarte calary will be $77,000 in the first three quarters of the year, and $82,000 in the final quarter. $24 direct labor rate per hour, $19 for variable overhead, and \$12 for fired overhead Annual fixed overhead consists, incurred evenly throughout the yeat, consist of depreciation on production equipment, $25,400, factory utitities, $31,800, and other factory overhead of $6,352. c. Company policy also calis for a given quarter's ending raw materials inventory to equal 50% of next quarter's expected materiais needed for production. The prior year-end inventory is 3,312 Ibs of materiak, which complies with the policy. The company expects to have 5,760 los of materials in inventory at yest-end. The company has no work in process inventory at the end of any quartet. d. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $77,000 in the first three quarters of the yeac, and $82,000 in the final quarter. e. Quarterly general and administrative expenses include $33,000 administrative salaries, rent expense of $20,000 per quartet, insurance expense of $16,000 per quarter, straightline depreciation of $16,000 per quarter, and 18 monthly interest on the $100,000 long-term note poyable (12\% annually). t. Income taxes will be assessed at 30%, and are paid in the quarter incurred. Requirement Prepare the Administrative Expense Budget for Posluszny Inc. Quarteriy general and administrative expenses include $33,000 administrative salaries, rent expense of $20,000 per quarter, Insurance expense of $16,000 per quarter, straight-line depreciation of $16,000 per quarter, and 1% monthly interest on the $100,000 tong-term note payable (3\% quarterly). fined overhend consists, incurred evenly throughout the yeac, consist of depreciation on production equipment, $25,400, factory utilities, $31,800, and other factory overnead of $6,352. Company policy aiso calis for a given quanters ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 3,312 tos of materials, which complies with the policy. The company expects to have 5,760 los. of materials in inventory at year-end. The company has no work in process inventory at the end of any quarter. d. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $77.000 in the first three quarters of the year, and $82,000 in the final quarter. e. Quarterly general and administrative expenses include $33,000 administrative salarles, rent expense of $20,000 per quarter, insurance expense of $16,000 per quarter, straightline depreciation of $16,000 per quarter, and 15 monthly interest on the $100,000 fong-term note payable (12% annually). t. Income taxes will be assessed at 30%, and are paid in the quarter incurred. Requirement Using information from the sales budget and the following Information, calculate the budgeted cost of goods sold for Poslusmy Ine. The product's manufacturing cost is $211 per unit, Including per unit costs of $84 for materials ( 6ibs, at $14 per tb.), $96 for direct labor ( 4 hours $24 direct labor rate per hour), $19 for variable overhead, and $12 for fixed overhead. Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $25,400; factory utilities, $31,800, and other factory overhead of $6,352. c. Company policy also calis for a given quarter's ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 3,312 lbs of materials, which complies with the policy. The company expects to have 5,760lbs. of materials in inventory at year-end. The company has no work in process inventory at the end of any quarter. d. Sales representatives' commissions are 16% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $77,000 in the first three quarters of the year, and $82,000 in the final quarter. e. Quarterly general and administrative expenses include $33,000 administrative salaries, rent expense of $20,000 per quarter, insurance expense of $16,000 per quarter, straightline depreciation of $16,000 per quarter, and 1% monthly interest on the $100,000 long-term note payable (12% annually). f. Income taxes will be assessed at 30%, and are paid in the quarter incurred. Requirement Prepare the Budgeted Income Statement for the year for Posiuszny Inc. Interest on the $100,000 tong-term note payable is 1% per month ( 12% annually). Income taxes will be assessed at 30%, and are pald in the quarter incurred