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 548 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: New Product Assumptoins Variable (per Fixed (total) Rural region 5,000 Manufacturing costs: Direct materials: Urban region Budgeted Sales 6.000 Selling price Beginning product inventory Desired ending inventory 12.6 93 75 4,000 Direct Materials Requirements 7.650 4.500 28.800 22,950 4 lbs 2 lbs 3.15 0.75 4.65 Direct labor Manufacturing overhead: Depreciation Factory supplies Supervisory salaries Other Operating expenses: Selling Advertising Sales salaries and commissions Other Administrative Omice salaries Supplies Other *Varies porn not per un produced Direct material Arequired/unit Direct material required/unit Price/lb direct material A Price/lb direct material B Beginning material inventory A Beginning material inventory B Ending material inventory A Ending material inventory B 22.500 15,000 3.000 0 lbs o lhs 4000 lbs 6000 lbs 0.9 0.15 2,700 1,050 1.950 Direct Labor Requirements Per-unit direct labor Hourly rate Income tax rate OP 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 1. Total sales 2. Production 3. Material purchases cost 4. Direct labor costs 5. Manufacturing overhead costs 6. Selling and administrative expenses Using data generated in requirement (a), prepare a budgeted income statement for the calendar quarter. Assume an overall effective income tax rate of 30%. Total Sales Unit Sales Volume Unit Sales Price Revenue Budgeted sales: Urban region Rural region Total Try again Try again Try again Try again Try again Try again Try again Try again Budgeted production (in units): Units required for sales Units for ending inventory Total units to be available Less: Beginning inventory Unit production required Try again Try again Try again Correct Try again 3. Budgeted material purchases: Material Required finished goods production (see part (2) Per-unit requirements (lbs.) Total required for production (lbs.) Desired ending materials inventory Total to be available (lbs.) Less: Beginning materials inventory Total material to be purchased (lbs) Unit purchase price Total material purchases Try again Try again Try again Try again Try again Correct Try again Try again Try again Try again Try again Try again Try again Try again Correct Try again Try again Try again Budgeted direct labor cost: Units to be produced (see part (2) Per-unit direct labor requirement Direct labor hours to be scheduled Direct labor hourly rate Total direct labor cost Try again Try again Try again Try again Try again Budgeted manufacturing overhead: Depreciation Factory supplies Supervisory salaries Other Total budgeted manufacturing overhead Try again Try again Try again Try again Correct Try again Correct Try again Try again Try again Try again Try again Try again Fixed Variable Budgeted selling and administrative expenses Selling expenses Advertising Sales salaries and commissions Other (S0.90 variable cost per unit sold) Total budgeted selling expenses Try again Try again Try again Correct Try again Try again Try again Try again Try again Try again Try again Total budgeted selling expenses Administrative expenses: Office salaries Try again Supplies (50.15 x 15,000) Try again Other (S0.08 x 15,000) Try again Total budgeted administrative expenses Total budgeted selling and administrative expenses Correct Try again Try again Try again Try again Try again Try again Try again Try again 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 Correct Material Purchases Try again Material Available Try again Less: Ending Inventory - Material Try again Direct Material Try again Direct Labor Try again Manufacturing Overhead Try again Total Manufacturing Cost Try again Cost of Goods Available for Sale Try again Less: Ending Inventory - Finished Goods Try again Cost of Goods Sold Gross Profit Operating Expenses Selling Expenses Try again Administrative Expenses Try again Total Operating Expenses Try again Try again Try again Clinton Corporation Budgeted Income Statement For the Quarter Ended March 31, 2019 Sales Try again Correct Correct Try again Try again Try again Try again Try again Try again Cost of Goods Sold: Beginning Inventory - Finished Goods Material: Beginning Inventory - Material Material Purchases Material Available Less: Ending Inventory - Material Direct Material Direct Labor Manufacturing Overhead Total Manufacturing Cost Cost of Goods Available for Sale Less: 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 (30%) Net Income Try again Try again Try again Try again Try again Try again Try again Try again Try again Try again Try again Score Percentage 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 cach of the following operating factors: 1. Total sales 2. Production 3. Material purchases cost 4. Direct labor costs 5. Manufacturing overhead costs 6. Selling and administrative expenses Using data generated in requirement (a), prepare a budgeted income statement for the calendar quarter. Assume an overall effective income tax rate of 30%. Unit Total Sales Unit Sales Volume Sales Price Revenue Budgeted sales: Urban region Rural region Total Try again Try again Try again Try again Try again Try again Try again Try again Budgeted production (in units): Units required for sales Units for ending inventory Total units to be available Less: Beginning inventory Unit production required Try again Try again Try again Correct Try again 3. Budgeted material purchases: Material