Preparation of Individual Budgets

During the first calendar quarter of 2019, Clinton Corporation is planning to manufacture a new product and introduce it in two regions. Market research indicates that sales will be 6,000 units in the urban region at a unit price of $53 and 5,000 units in the rural region at $48 each. Because the sales manager expects the product to catch on, he has asked for production sufficient to generate a 4,000-unit ending inventory. The production manager has furnished the following estimates related to manufacturing costs and operating expenses:

			Variable		Fixed
			(per unit)		(total)
Manufacturing costs:
Direct materials
A (4 lb. @ $3.15/lb.)			$12.60		-
B (2 lb. @ $4.65/lb.)			9.30		-
Direct labor (0.5 hours per unit)			7.50		-
Manufacturing overhead:
Depreciation			-		$7,650
Factory supplies			0.90		4,500
Supervisory salaries			-		28,800
Other			0.75		22,950
Operating expenses:
Selling:
Advertising			-		22,500
Sales salaries& commissions*			1.50		15,000
Other*			0.90		3,000
Administrative:
Office salaries			-		2,700
Supplies			0.15		1,050
Other			0.08		1,950

*Varies per unit sold, not per unit produced.

a. Assuming that the desired ending inventories of materials A and B are 4,000 and 6,000 pounds, respectively, and that work-in-process inventories are immaterial, prepare budgets for the calendar quarter in which the new product will be introduced for each of the following operating factors:

Do not use negative signs with any of your answers below.

1. Total sales

($Answer)

2. Production

(Answer units)

3. Material purchase cost

				Material A	Material B
Total pounds (lbs.) required for production				-	-
Desired ending materials inventory				-	-
Total pounds to be available				-	-
Beginning materials inventory				-	-
Total material to be purchased (lbs.)				-	-
Total material purchases ($)				-	-

4. Direct labor costs

($Answer)

5. Manufacturing overhead costs

			Fixed	Variable	Total
Depreciation			-	-	-
Factory supplies			-	-	-
Supervisory salaries			-	-	-
Other			-	-	-
Total manufacturing overhead					-

6. Selling and administrative expenses

			Fixed	Variable	Total
Selling expenses:
Advertising			-	-	-
Sales salaries and commissions			-	-	-
Other			-	-	-
Total selling expenses					-
Administrative expenses:
Office salaries			-	-	-
Supplies			-	-	-
Other			-	-	-
Total administrative expenses					-
Total selling and administrative expenses					-

b. Using data generated in requirement (a), prepare a budgeted income statement for the calendar quarter. Assume an overall effective income tax rate of 30%.

Round answers to the nearest whole number. Do not use negative signs with your answers.

Clinton Corporation Budgeted Income Statement For the Quarter Ended March 31, 2019
Sales					-
Cost of Goods Sold:				-
Beginning Inventory - Finished Goods			-
Material:			-
Beginning Inventory - Material			-
Material Purchases			-
Material Available			-
Ending Inventory - Material			-
Direct Material			-
Direct Labor			-
Manufacturing Overhead			-
Total Manufacturing Cost				-
Cost of Goods Available for Sale				-
Ending Inventory - Finished Goods				-
Cost of Goods Sold					-
Gross Profit					-
Operating Expenses:
Selling Expenses				-
Administrative Expenses				-
Total Operating Expenses					-
Income before Income Taxes					-
Income Tax Expense					-
Net Income					-

the spots with a( - ) in the boxes (not including the ones in the top box with the numbers). or the word Answer (question 1,2,4) is what I need help figuring out can you plans include how you got the answers like the steps to get the answers so I can know how to solve future problems