Prepare the Direct materials purchases budget (units and dollars) for 2019.
Spring Manufacturing Company makes two components identified as C12 and D57. Selected budgetary data for 2019 follow: Finished Components C12 D57 10 pounds 0 2 pounds 2 hours 8 pounds 4 pounds 1 pound 3 hours Requirements for each finished component: RM 1 RM 2 RM 3 Direct labor Product information: Sales price Sales (units) Estimated beginning inventory (units) Desired ending inventory (units) $ 170 12,000 410 300 $ 200 9,000 110 200 Cost per pound Estimated beginning inventory in pounds Desired ending inventory in pounds Direct Materials Information RM1 RM2 RM3 $ 2 $ 2.50 $ 0.50 2,900 1,400 700 3,900 1,500 1,800 The firm expects the average wage rate to be $25 per hour in 2019. Spring Manufacturing uses direct labor hours to apply overhead. Each year the firm determines the overhead application rate for the year based on budgeted direct labor hours for the year. The firm maintains negligible Work-in-Process Inventory and expects the cost per unit for both beginning and ending inventories of finished products to be identical. The firm expects the average wage rate to be $25 per hour in 2019. Spring Manufacturing uses direct labor hours to apply overhead. Each year the firm determines the overhead application rate for the year based on budgeted direct labor hours for the year. The firm maintains negligible Work-in-Process Inventory and expects the cost per unit for both beginning and ending inventories of finished products to be identical. Indirect materials-variable Miscellaneous supplies and tools-variable Indirect labor-variable Supervision-fixed Payroll taxes and fringe benefits-variable Maintenance costs-fixed Maintenance costs-variable Depreciation-fixed Heat, light, and power-fixed Heat, light, and power-variable Total Factory Overhead Information $ 10,000 saa A. 45,000 170,000 200,000 25,000 10, 130 71,330 43, 470 10,000 $ 589, 430 Selling and Administrative Expense Information $ 63,000 160,000 63,000 5,000 Advertising Sales salaries Travel and entertainment Depreciation-warehouse Office salaries Executive salaries Supplies Depreciation-office Total 260,000 61,000 4,000 5,900 $ 621,900 The effective income tax rate for the company is 50%. Prepare the Sales budget for 2019. SPRING MANUFACTURING COMPANY Sales Budget For the Year 2019 C12 D57 Total 12,000 9,000 Sales (in units) Selling price per unit Total sales revenue $ 0 $ 0 $ 0 Prepare the Production budget for 2019. SPRING MANUFACTURING COMPANY Production Budget For the Year 2019 C12 D57 Budgeted sales (in units) Total units needed 0 0 Budgeted production (in units) 0 0 For the Year 2019 C12 D57 Total Raw material (RM) 1: Budgeted production RM 1 needed for production 0 0 0 Total RM 1 needed (lbs.) 0 Required purchases of RM 1 (lbs.) 0 Budgeted purchases, RM 1 $ 0 Raw material (RM) 2: Budgeted production RM 2 needed for production 0 0 0 Total RM 2 needed (lbs.) 0 Required purchases of RM 2 (lbs.) 0 Budgeted purchases, RM 2 $ 0 Raw material (RM) 3: Budgeted production RM 3 needed for production 0 0 0 Total RM 3 needed (lbs.) 0 Required purchases of RM 3 (lbs.) 0 Budgeted purchases, RM 3 $ 0 Prepare the Direct labor budget for 2019. SPRING MANUFACTURING COMPANY Direct Labor Budget For the Year 2019 C12 D57 Total Budgeted production Total direct labor hours needed 0 0 0 Budgeted direct labor costs $ 0 Prepare the Factory overhead budget for 2019. SPRING MANUFACTURING COMPANY Factory Overhead Budget For the Year 2019 Variable factory overhead: $ 0 Fixed factory overhead: Total cash fixed factory overhead 0 0 Total budgeted factory overhead $ 0 Prepare the Cost of goods sold and ending finished goods inventory budgets for 2019. to 2 decimal places.) SPRING MANUFACTURING COMPANY Ending Finished Goods Inventory and Budgeted CGS For the Year 2019 C12 D57 Total Sales volume 12,000 9,000 21,000 Cost of goods sold $ 0 0 $ 0 Ending finished goods inventory Budgeted ending inventories $ 0 $ 0 0 Prepare the Selling and administrative expense budget, broken down into two components: Selling Expenses, and Administrative Expenses for 2019. SPRING MANUFACTURING COMPANY Selling and Administrative Expense Budget For the Year 2019 Selling expenses: $ 0 Administrative expenses: $ 0 Total selling and administrative expenses A 0 Prepare the Budgeted income statement, the last item of which is labeled After-tax Operating Income for 2019. (Round your intermediate calculations to 2 decimal places.) SPRING MANUFACTURING COMPANY Budget Income Statement For the Year 2019 C12 D57 Total $ 0 0 0 $ 0 $ 0 0 0
