Problem 13-2 (Part Level Submission) Bridgeport Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below. Product JB 50 Product JB 60 402,600 $23 201,800 $27 28,700 34,800 19,900 14,100 3 Sales budget: Anticipated volume in units Unit selling price Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound Direct labor budget: Direct labor time per unit Direct labor rate per hour Budgeted income statement: Total unit cost 2 34,800 43,300 $3 19,900 12,700 $3 0.6 0.4 $12 $12 $12 $22 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $661,000 for product JB 50 and $365,000 for product JB 60, and administrative expenses of $544,000 for product JB 50 and $345,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%. (a) Your answer is correct. Prepare the sales budget for the year. BRIDGEPORT INC. Sales Budget For the Year Ending December 31, 2017 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $661,000 for product JB 50 and $365,000 for product JB 60, and administrative expenses of $544,000 for product JB 50 and $345,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%. (a) Your answer is correct. Prepare the sales budget for the year. BRIDGEPORT INC. Sales Budget For the Year Ending December 31, 2017 JB 50 JB 60 Total Expected unit sales 402,600 201,800 Unit selling price 23 27 Total sales ,800 5,448,600 14,708,400 LINK TO TEXT LINK TO TEXT Attempts: 1 of 10 used (b) Your answer is correct. Prepare the production budget for the year. BRIDGEPORT INC. Production Budget For the Year Ending December 31, 2017 (b) Your answer is correct. Prepare the production budget for the year. BRIDGEPORT INC. Production Budget For the Year Ending December 31, 2017 JB 50 JB 60 Expected Unit Sales 402600 201800 Add Desired Ending Finished Goods Units 28700 19900 Total Required Units 431300 221700 Less Beginning Finished Goods Units 34800 14100 Required Production Units 396500 207600 LINK TO TEXT LINK TO TEXT Attempts: 1 of 10 used (c) Your answer is correct. Prepare the direct materials budget for the year. BRIDGEPORT INC. Direct Materials Budget For the Year Ending December 31, 2017 in ro un ro (c) Your answer is correct. Prepare the direct materials budget for the year. BRIDGEPORT INC. Direct Materials Budget For the Year Ending December 31, 2017 JB 50 JB 60 Total Units to be produced 396500 207600 Direct Materials per Unit Total Pounds Needed for Production 793000 622800 Add Desired Ending Direct Materials 34800 19900 Total Materials Required 827800 642700 Less Beginning Direct Materials 43300 12700 1 Direct Materials Purchases 784500 630000 Cost per Pound Total Cost of Direct Materials Purchases 2353500 1890000 4243500 LINK TO TEXT LINK TO TEXT Attempts: 1 of 10 used (d) Your answer is correct. Prepare the direct labor budget for the year. (Round Direct labor time per unit answers to 1 decimal place, e.g. 52.7.) BRIDGEPORT INC. Direct Labor Budget For the Year Ending December 31, 2017 JB 50 JB 60 Total Units to be Produced 396500 207600 Direct Labor Time per Unit 0.4 0.6 Total Required Direct Labor Hours 158600 124560 Direct Labor Cost per Hour 12 12 Total Direct Labor Cost 1903200 1494720 3397920 LINK TO TEXT LINK TO TEXT Attempts: 2 of 10 used (e) Your answer is partially correct. Try again. Prepare the budgeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products). BRIDGEPORT INC. Budgeted Income Statement Prepare the budgeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products). BRIDGEPORT INC. Budgeted Income Statement For the Year Ending December 31, 2017 JB 50 JB 60 Total Sales 9259800 5448600 14708400 $ X! Cost of Goods Sold 4831200 4439600 4831200 Gross Profit 4428600 1009000 9877200 Operating Expenses Selling Expenses 661000 365000 1026000 Administrative Expenses 544000 345000 889000 Total Operating Expenses 1205000 710000 1915000 Operating Expenses 3223600 299000 3522600 Interest Expense 150000 Income before Income Taxes 3372600 Income Tax Expense 1011780 Net Income / (Loss) 2360820 SHOW SOLUTION ITV TO TEYT 1