Problem 10-50 Comprehensive Profit Plan [LO 10-4] Spring Manufacturing Company makes two components identified as C12 and D57. Selected budgetary data for 2019 follow: Finished C nents C12 D57 Requirements for each finished component: RM 1 RM 2 RM 3 Direct labor 10 pounds 8 pounds 4 pounds 1 pound 3 hours 2 pounds 2 hours Product information: Sales price Sales (units) Estimated beginning inventory (units) Desired ending inventory (units) $160 12,000 400 300 $250 12,000 200 200 Direct Materials Information RM2 RM1 RM3 Cost per pound Estimated beginning inventory in pounds Desired ending inventory in pounds 3,500 4,100 6 4.50 0.50 500 2,000 1,200 1,400 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 Factory Overhead Information 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 $ 15,000 5, 400 45,000 120,000 260,000 18,000 10,050 71,340 43,400 11,000 $599,190 Total Selling and Administrative Expense Information Advertisino Sales salaries Travel and entertainment Depreciation-warehouse Office salaries Executive salaries Supplies Depreciation-office $61,000 240,000 55,000 4,900 60,000 300,000 3,800 6,300 $ 731,000 Total The effective income tax rate for the company is 50%. The effective income tax rate for the company is 50%. Required: 1. Prepare the Sales budget for 2019 2. Prepare the Production budget for 2019. 3. Prepare the Direct materials purchases budget (units and dollars) for 2019. 4. Prepare the Direct labor budget for 2019. 5. Prepare the Factory overhead budget for 2019. 6. Prepare the Cost of goods sold and ending finished goods inventory budgets for 2019. 7. Prepare the Selling and administrative expense budget, broken down into two components: Selling Expenses, and Administrative Expenses for 2019. 8. Prepare the Budgeted income statement, the last item of which is labeled After-tax Operating Income for 2019. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare the Sales budget for 2019. SPRING MANUFACTURING COMPANY Sales Budget For the Year 2019 C12 D57 Total Sales (in units) Selling price per unit Total sales revenue Required 1Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare the Production budget for 2019. SPRING MANUFACTURING COMPANY Production Budget For the Year 2019 C12 D57 Budgeted sales (in units) Total units needed Budgeted production (in units) Required 1 Required 2 Required 3Required 4 Required 5 Required 6 Required 7 Required 8 Prepare the Direct materials purchases budget (units and dollars) for 2019. (Round "Cost per pound" to 2 SPRING MANUFACTURING COMPANY Direct Materials Purchases Budget (units and dollars) For the Year 2019 C12 D57 Total Raw material (RM) 1 Budgeted production RM 1 needed for production Total RM 1 needed (Ibs.) Required purchases of RM 1 (lbs.) Budgeted purchases, RM 1 Raw material (RM) 2: Budgeted production RM 2 needed for production Total RM 2 needed (lbs.) Required purchases of RM 2 (Ibs.) Budgeted purchases, RM 2 Raw material (RM) 3: Budgeted production RM 3 needed for production Total RM 3 needed (lbs.) Required purchases of RM 3 (bs.) Budgeted purchases, RM 3 KRequired 2 Required 4 Complete this question by entering yur answers in the tabs below Required 1 Required 2 Required 3 Required 4Required 5 Required 6Required 7 Required 8 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 Budgeted direct labor costs Required 1 Required 2 Required 3 Required 4Required 5 Required 6Required 7 Required 8 Prepare the Factory overhead budget for 2019 SPRING MANUFACTURING COMPANY Factory Overhead Budget For the Year 2019 Variable factory overhead: Fixed factory overhead Total cash fixed factory overhead Total budgeted factory overhead Required 1 Required 2 Required 3 Required 4 Required 5Required 6 Required 7 Required 8 dswaand ending finished goods in entry budge to 2 decimal places.) SPRING MANUFACTURING COMPANY Ending Finished Goods Inventory and Budgeted CGS For the Year 2019 C12 D57 Total Sales volume 24,000 Cost of goods sold Ending finished goods inventory Budgeted ending inventories KRequired 5 Required 7> Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7Required 8 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 Administrative expenses Total selling and administrative expenses Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 - 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