Problem 9-42 Preparation of Master Budget (LO 9-3, 9-4, 9-5) - QUESTION HAS 7 PARTS!!!! (SEVEN)

[The following information applies to the questions displayed below.] FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements.

The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 460,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours.

The following selling and administrative expenses are anticipated for the next year.

The sales forecast for the next year is as follows:

The following inventory information is available for the next year. The unit production costs for each product are expected to be the same this year and next year.

Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent.

Problem 9-42 Part 1

Required: 1. Prepare the sales budget for the next year. (Round "Sales price per unit" to 2 decimal places.)

Problem 9-42 Part 2

2. Prepare the production budget for the next year.

Problem 9-42 Part 3

3-a. Prepare the direct-material budget for paperboard. 3-b. Prepare the direct-material budget for corrugating medium.

Problem 9-42 Part 4

4. Prepare the direct-labor budget for the next year. (Do not round intermediate calculations. Round "Direct labor required per box (hours)" to 4 decimal places.)

Problem 9-42 Part 5

5. Prepare the production-overhead budget for the next year.

Problem 9-42 Part 6

6. Prepare the selling and administrative expense budget for the next year.

Problem 9-42 Part 7

7. Prepare the budgeted income statement for the next year. (Do not round intermediate calculations.)

Type of Box P Direct material required per 100 boxes: Paperboard ($0.40 per pound) Corrugating medium ($0.20 per pound) Direct labor required per 100 boxes ($20.00 per hour) 45 pounds 35 pounds 0.30 hour 85 pounds 45 pounds 0.60 hour Indirect material Indirect labor Utilities Property taxes Insurance Depreciation Total $ 13,950 88,450 43,500 29,000 22,000 51,500 $248,400 Salaries and fringe benefits of sales personnel Advertising Management salaries and fringe benefits Clerical wages and fringe benefits Miscellaneous administrative expenses Total $133,500 29,500 149,000 46,000 7,400 $365,400 Box type C Box type P Sales Volume 465,000 boxes 465,000 boxes Sales Price $135.00 per hundred boxes 195.00 per hundred boxes Finished goods: Box type c Box type P Raw material: Paperboard Corrugating medium Expected Inventory January 1 13,500 boxes 23,500 boxes Desired Ending Inventory December 31 8,500 boxes 18,500 boxes 15,000 pounds 6,000 pounds 5,000 pounds 11,000 pounds Box C Box P Total Sales (in units) Sales price per unit Sales revenue $ 0 $ 0 HA 0 Box C Box P Sales Total units needed Production requirements Req 3A Req 3B Prepare the direct-material budget for paperboard. Box P Total Paperboard Box C Production requirement (number of boxes) Raw material required per box (pounds) 0.45 Raw material required for production (pounds) 0.85 5,000 Total raw-material needs Raw material to be purchased Price (per pound) Cost of purchases (paperboard) $ 0.40 Req Req 3B Prepare the direct-material budget for corrugating medium. Box P Total Corrugating Medium Box C Production requirements (number of boxes) Raw material required per box (pounds) 0.35 Raw material required for production (pounds) 0.45 11,000 Total raw-material needs Raw material to be purchased Price (per pound) Cost of purchases (corrugating medium) 0.20 Box C Box P Total Production requirements (number of boxes) Direct labor required per box (hours) Direct labor required for production (hours) Direct-labor rate Total direct-labor cost Total production overhead Total selling and administrative expenses Type of Box P Direct material required per 100 boxes: Paperboard ($0.40 per pound) Corrugating medium ($0.20 per pound) Direct labor required per 100 boxes ($20.00 per hour) 45 pounds 35 pounds 0.30 hour 85 pounds 45 pounds 0.60 hour Indirect material Indirect labor Utilities Property taxes Insurance Depreciation Total $ 13,950 88,450 43,500 29,000 22,000 51,500 $248,400 Salaries and fringe benefits of sales personnel Advertising Management salaries and fringe benefits Clerical wages and fringe benefits Miscellaneous administrative expenses Total $133,500 29,500 149,000 46,000 7,400 $365,400 Box type C Box type P Sales Volume 465,000 boxes 465,000 boxes Sales Price $135.00 per hundred boxes 195.00 per hundred boxes Finished goods: Box type c Box type P Raw material: Paperboard Corrugating medium Expected Inventory January 1 13,500 boxes 23,500 boxes Desired Ending Inventory December 31 8,500 boxes 18,500 boxes 15,000 pounds 6,000 pounds 5,000 pounds 11,000 pounds Box C Box P Total Sales (in units) Sales price per unit Sales revenue $ 0 $ 0 HA 0 Box C Box P Sales Total units needed Production requirements Req 3A Req 3B Prepare the direct-material budget for paperboard. Box P Total Paperboard Box C Production requirement (number of boxes) Raw material required per box (pounds) 0.45 Raw material required for production (pounds) 0.85 5,000 Total raw-material needs Raw material to be purchased Price (per pound) Cost of purchases (paperboard) $ 0.40 Req Req 3B Prepare the direct-material budget for corrugating medium. Box P Total Corrugating Medium Box C Production requirements (number of boxes) Raw material required per box (pounds) 0.35 Raw material required for production (pounds) 0.45 11,000 Total raw-material needs Raw material to be purchased Price (per pound) Cost of purchases (corrugating medium) 0.20 Box C Box P Total Production requirements (number of boxes) Direct labor required per box (hours) Direct labor required for production (hours) Direct-labor rate Total direct-labor cost Total production overhead Total selling and administrative expenses