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. 13 To keep records of the actual cost of a special order job, a Job Order Cost System has been developed. 14 Overhead is applied at the rate of 50% of the direct labor cost. 16 28 17 18 19 Job Order Costing Section 20 22 On January 1, 20x2, Division S began Job 2407 for the Client, THE BIG CHILDREN STORE. The 23 job called for 4,000 customized lamps. The following set of transactions occurred from 24 January 5 until the job was completed: 25 26 5-Jan Purchased 4,100 figurines @ $9.40 per figurine. 6-Jan Purchased 4,150 sets of electical components @ $1.25 per set. 7-Jan Purchased 4,000 lamp shades @ $6.35 per set. 30 8-Jan 4,100 figurines were requisitioned. 9-Jan 4,125 sets of electrical components were requisitioned. 32 17-Jan Payroll of 560 Direct Labor Hours @ $9.55 per hour. 28-Jan 3,990 lamp shades were requisitioned 30-Jan Payroll of 610 Direct Labor Hours @ $9.80 per hour. 30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were used or scrapped, and are a cost of normal processing. Month End Overhead Information Actual Variable Manufacturing Overhead $ 1,099.80 Actual Fixed Manufacturing Overhead $ 39,373.45 29 31 34 36 Round to six places, $##.###### 47 Cost of Direct Material incurred in Manufacturing Job 2407 {18.01) Cost of Direct Labor Incurred in Manufacturing Job 2407 (18.02} Round to six places, $##.###### Cost of Direct Material incurred in Manufacturing Job 2407 {18.01) Cost of Direct Labor incurred in Manufacturing Job 2407 {18.02) Cost of Manufacturing Overhead Applied to Job 2407 {18.03) Cost of manufacturing one lamp {18.04)
