Projected Income Statement For the Period Ending December 31, 20x1 $45.00 $28.93 $ 1,125,000.00 723,250.00 $ 401,750.00 Sales 25,000 lamps @ Cost of Goods Sold @ Gross Profit Selling Expenses: Fixed Variable (Commission per unit) Administrative Expenses Total Selling and Administrative Expenses: Net Profit $3.15 $ 23,000.00 78,750.00 $ 101,750.00 41,250.00 143,000.00 258,750.00 I See The Light Projected Balance Sheet As of December 31, 20x1 $ 34,710.00 67,500.00 Ourrent Assets Cash Accounts Receivable Inventory Raw Material Figurines Electrical Sets Work in Process Finished Goods Total Current Assets 500 @ 500 @ $9.20 $1.25 4,600.00 625.00 3000 @ $28.9250 $ 86,775.00 194,210.00 $ Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 20,000.00 6,800.00 13,200.00 207,410.00 $ Current Liabilities Accounts Payable Total Liabilities $ $ 54,000.00 54,000.00 34,710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Figurines Electrical Sets Work in Process Finished Goods Total Current Assets 500 @ 500 @ 0 3000 @ $9.20 $1.25 4,600.00 625.00 $28.9250 $ 86,775,00 194,210.00 $ Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 20,000.00 6,800.00 $ 13.200.00 207.410.00 $ $ 54,000.00 54,000.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 141,410.00 $ 153,410.00 207,410.00 ---------- - - - - - - - - - - - - The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are: Figurines Electrical Sets Lamp Shade Direct Labor: Variable Overhead: Fixed Overhead: $9.2000000 per lamp 1.2500000 per lamp 6.0000000 per lamp 2.2500000 per lamp (4 lamps/hr.) 0.2250000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps) Cost per lamp: $28.9250000 per lamp Expected increases for 20x2 When calculating projected increases round to SEVEN decimal places,$0.0000000. 1. Material Costs are expected to increase by 2.50%. 2. Labor Costs are expected to increase by 2.50%. 3. Variable Overhead is expected to increase by 3.50%. 4. Fixed Overhead is expected to increase to $295,000. 5. Fixed selling expenses are expected to be $31,000 in 20x2. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 3.50%. 7. Fixed Administrative expenses are expected to increase by $2,000. The total administrative expenses for 20x0 were $41,205.00, when 23,500 units were sold. Use the High-Low method to calculate the total fixed administrative expense. 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 3.50%. The total administrative expenses for 20x0 were $41,205.00, when 23,500 units were sold. Use the High-Low method to calculate the variable administrative expense per lamp. On the following schedule develop the following figures: 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 2- 20x2 Projected Variable Unit Cost per lamp. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 3.50%. 7. Fixed Administrative expenses are expected to increase by $2,000. The total administrative expenses for 20x0 were $41,205.00, when 23,500 units were sold. Use the High-Low method to calculate the total fixed administrative expense. 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 3.50%. The total administrative expenses for 20x0 were $41,205.00, when 23,500 units were sold. Use the High-Low method to calculate the variable administrative expense per lamp. On the following schedule develop the following figures: 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 2- 20x2 Projected Variable Unit Cost per lamp. 3- 20x2 Projected Fixed Costs. 14 Division N has decided to develop its budget based upon projected sales of 25,000 lamps at 15 $49.00 per lamp. 16 The company has requested that you prepare a master budget for the year. This budget is to be used 17 for planning and control of operations and should be composed of: 18 25 1. Production Budget 26 27 2. Materials Budget 28 3. Direct Labor Budget 29 36 37 4. Factory Overhead Budget 38 39 5. Selling and Administrative Budget 47 6. Cost of Goods Sold Budget 49 7. Budgeted Income Statement 50 51 8. Cash Budget 58 59 Notes for Budgeting: 61 62. The company wants to maintain the same number of units in the beginning and ending inventories of 69 work-in-process, and electrical parts while increasing the figurines inventory to 625 pieces and 70 increasing the finished goods by 23.00% 71 72 Complete the following budgets 73 80 1 Production Budget 83 Planned Sales Desired Ending Inventory of Finished Goods (roundup to the next unit) Total Needed Less: Beginning Inventory 91 92 93 Total Production 37,720 units! {7.01} 94 2 Materials Budget {8.01) (8.02) Figurines Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, $##.##) (8.03) {8.04) (8.05) (8.06) Electrical Parts Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, $##.##) {8.07) Lamp Shades - no inventoried they arrive from the shop next door Just in time Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, $####) {8.08) 3 Direct Labor Budget Labor Cost Per Lamp Production Total Labor Cost (Round to two places, $##.##) $ 1.00 {8.09) Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, $##.##) {8.08) 3 Direct Labor Budget Labor Cost Per Lamp Production Total Labor Cost (Round to two places, $##.##) $ 1.00 {8.09) 4 Factory Overhead Budget Variable Factory Overhead: Variable Factory Overhead Cost Per Unit Number of Units to be produced Total Variable Factory Overhead (Round to two places, $##.##) Fixed Factory Overhead {8.10) Total Factory Overhead (Round to two places, $##.##) {8.11) Predetermined Factory Overhead Rate based upon the budgeted total factory OH, divided by the budgeted number of units to be produced, and then rounded to seven places, S#.#######) {8.12} 5 Selling and Admin. Budget Fixed Selling Variable Selling (Round to two places, $##.##) Fixed Administrative Variable Administrative (Round to two places, $##.##) Total Selling and Administrative (Round to two places, $##.##) {9.01) le Cost of Goods Sold Budant - Assume FIFO (First-In, First-Out) and overhead is applied based on the number of units to be produced. Round dollars to seven places, $##.####### Cost of making one unit next year Material cost per unit Labor Cost Per Lamp Factory overhead per unit {9.02) Total cost of one unit (Round to seven places, $##.#######) Round dollars to two places, $#### {9.03) Beginning Inventory, Finished Goods Production Costs: Materials: Figurines: Beginning Inventory Purchased Available for Use Ending Inventory of Figurines Figurines Used In Production Electrical Parts Beginning Inventory Purchased Available for Use Ending Inventory of Electrical Parts Electrical Parts Used In Production Lamp Shades: 19.04) {9.05) noun uols LU two places, $##.## {9.03) 19.04 Beginning Inventory, Finished Goods Production Costs: Materials: Figurines: Beginning Inventory Purchased Available for Use Ending Inventory of Figurines Figurines Used In Production Electrical Parts Beginning Inventory Purchased Available for Use Ending Inventory of Electrical Parts Electrical Parts Used In Production Lamp Shades: Lamp Shades Used In Production Total Materials: Labor Overhead Cost of Goods Available Less: Ending Inventory, Finished Goods Cost of Goods Sold {9.05) {9.06) {9.07) {9.08) {9.09) {9.10) {9.11) {9.12) Projected Income Statement For the Period Ending December 31, 20x1 $45.00 $28.93 $ 1,125,000.00 723,250.00 $ 401,750.00 Sales 25,000 lamps @ Cost of Goods Sold @ Gross Profit Selling Expenses: Fixed Variable (Commission per unit) Administrative Expenses Total Selling and Administrative Expenses: Net Profit $3.15 $ 23,000.00 78,750.00 $ 101,750.00 41,250.00 143,000.00 258,750.00 I See The Light Projected Balance Sheet As of December 31, 20x1 $ 34,710.00 67,500.00 Ourrent Assets Cash Accounts Receivable Inventory Raw Material Figurines Electrical Sets Work in Process Finished Goods Total Current Assets 500 @ 500 @ $9.20 $1.25 4,600.00 625.00 3000 @ $28.9250 $ 86,775.00 194,210.00 $ Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 20,000.00 6,800.00 13,200.00 207,410.00 $ Current Liabilities Accounts Payable Total Liabilities $ $ 54,000.00 54,000.00 34,710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Figurines Electrical Sets Work in Process Finished Goods Total Current Assets 500 @ 500 @ 0 3000 @ $9.20 $1.25 4,600.00 625.00 $28.9250 $ 86,775,00 194,210.00 $ Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 20,000.00 6,800.00 $ 13.200.00 207.410.00 $ $ 54,000.00 54,000.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 141,410.00 $ 153,410.00 207,410.00 ---------- - - - - - - - - - - - - The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are: Figurines Electrical Sets Lamp Shade Direct Labor: Variable Overhead: Fixed Overhead: $9.2000000 per lamp 1.2500000 per lamp 6.0000000 per lamp 2.2500000 per lamp (4 lamps/hr.) 0.2250000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps) Cost per lamp: $28.9250000 per lamp Expected increases for 20x2 When calculating projected increases round to SEVEN decimal places,$0.0000000. 1. Material Costs are expected to increase by 2.50%. 2. Labor Costs are expected to increase by 2.50%. 3. Variable Overhead is expected to increase by 3.50%. 4. Fixed Overhead is expected to increase to $295,000. 5. Fixed selling expenses are expected to be $31,000 in 20x2. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 3.50%. 7. Fixed Administrative expenses are expected to increase by $2,000. The total administrative expenses for 20x0 were $41,205.00, when 23,500 units were sold. Use the High-Low method to calculate the total fixed administrative expense. 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 3.50%. The total administrative expenses for 20x0 were $41,205.00, when 23,500 units were sold. Use the High-Low method to calculate the variable administrative expense per lamp. On the following schedule develop the following figures: 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 2- 20x2 Projected Variable Unit Cost per lamp. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 3.50%. 7. Fixed Administrative expenses are expected to increase by $2,000. The total administrative expenses for 20x0 were $41,205.00, when 23,500 units were sold. Use the High-Low method to calculate the total fixed administrative expense. 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 3.50%. The total administrative expenses for 20x0 were $41,205.00, when 23,500 units were sold. Use the High-Low method to calculate the variable administrative expense per lamp. On the following schedule develop the following figures: 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 2- 20x2 Projected Variable Unit Cost per lamp. 3- 20x2 Projected Fixed Costs. 14 Division N has decided to develop its budget based upon projected sales of 25,000 lamps at 15 $49.00 per lamp. 16 The company has requested that you prepare a master budget for the year. This budget is to be used 17 for planning and control of operations and should be composed of: 18 25 1. Production Budget 26 27 2. Materials Budget 28 3. Direct Labor Budget 29 36 37 4. Factory Overhead Budget 38 39 5. Selling and Administrative Budget 47 6. Cost of Goods Sold Budget 49 7. Budgeted Income Statement 50 51 8. Cash Budget 58 59 Notes for Budgeting: 61 62. The company wants to maintain the same number of units in the beginning and ending inventories of 69 work-in-process, and electrical parts while increasing the figurines inventory to 625 pieces and 70 increasing the finished goods by 23.00% 71 72 Complete the following budgets 73 80 1 Production Budget 83 Planned Sales Desired Ending Inventory of Finished Goods (roundup to the next unit) Total Needed Less: Beginning Inventory 91 92 93 Total Production 37,720 units! {7.01} 94 2 Materials Budget {8.01) (8.02) Figurines Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, $##.##) (8.03) {8.04) (8.05) (8.06) Electrical Parts Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, $##.##) {8.07) Lamp Shades - no inventoried they arrive from the shop next door Just in time Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, $####) {8.08) 3 Direct Labor Budget Labor Cost Per Lamp Production Total Labor Cost (Round to two places, $##.##) $ 1.00 {8.09) Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, $##.##) {8.08) 3 Direct Labor Budget Labor Cost Per Lamp Production Total Labor Cost (Round to two places, $##.##) $ 1.00 {8.09) 4 Factory Overhead Budget Variable Factory Overhead: Variable Factory Overhead Cost Per Unit Number of Units to be produced Total Variable Factory Overhead (Round to two places, $##.##) Fixed Factory Overhead {8.10) Total Factory Overhead (Round to two places, $##.##) {8.11) Predetermined Factory Overhead Rate based upon the budgeted total factory OH, divided by the budgeted number of units to be produced, and then rounded to seven places, S#.#######) {8.12} 5 Selling and Admin. Budget Fixed Selling Variable Selling (Round to two places, $##.##) Fixed Administrative Variable Administrative (Round to two places, $##.##) Total Selling and Administrative (Round to two places, $##.##) {9.01) le Cost of Goods Sold Budant - Assume FIFO (First-In, First-Out) and overhead is applied based on the number of units to be produced. Round dollars to seven places, $##.####### Cost of making one unit next year Material cost per unit Labor Cost Per Lamp Factory overhead per unit {9.02) Total cost of one unit (Round to seven places, $##.#######) Round dollars to two places, $#### {9.03) Beginning Inventory, Finished Goods Production Costs: Materials: Figurines: Beginning Inventory Purchased Available for Use Ending Inventory of Figurines Figurines Used In Production Electrical Parts Beginning Inventory Purchased Available for Use Ending Inventory of Electrical Parts Electrical Parts Used In Production Lamp Shades: 19.04) {9.05) noun uols LU two places, $##.## {9.03) 19.04 Beginning Inventory, Finished Goods Production Costs: Materials: Figurines: Beginning Inventory Purchased Available for Use Ending Inventory of Figurines Figurines Used In Production Electrical Parts Beginning Inventory Purchased Available for Use Ending Inventory of Electrical Parts Electrical Parts Used In Production Lamp Shades: Lamp Shades Used In Production Total Materials: Labor Overhead Cost of Goods Available Less: Ending Inventory, Finished Goods Cost of Goods Sold {9.05) {9.06) {9.07) {9.08) {9.09) {9.10) {9.11) {9.12)