(rest of DMP budget is next picture)

this is where i need help. Wasnt sure if above info was needed but put in here anyway.

Mastery Problem: Budgeting LearnCo LearnCo manufactures and sells one product, an abacus for classroom use, with two models, the Basic model and the Deluxe model. The company began operations on January 1, 2001, and is planning for 2012, its second year of operations, by preparing budgets from its master budget. The company is trying to decide how many units to manufacture, how much it might spend on direct materials and direct labor, and what their factory overhead expenses might be. In addition, the company is interested in budgeting for selling and administrative costs, and in creating a budgeted income statement showing a prediction of net income for 2012. You have been asked to assist the controller of LearnCo in preparing the 2012 budgets. Sales Budget The sales budget often uses the prior year's sales as a starting point, and then sales quantities are revised for various factors such as planned advertising and promotion, projected pricing changes, and expected industry and general economic conditions. LearnCo has completed reviewing its prior year's sales and has prepared the following sales budget. After reviewing Learn Co's sales budget, you note that three numbers have been omitted. The company's controlle has told you that the units sold for the Basic and Deluxe models are expected to be the same. Fill in the missing amounts. LearnCo Sales Budget For the Year Ending December 31, 20Y2 Unit Sales Unit Selling Product Volume Price Total Sales $7 Basic Abacus 36,000 $252,000 Deluxe Abacus 36,000 13 468,000 Totals 72,000 $720,000 Production Budget The production budget should be integrated with the sales budget to ensure that production and sales are kept in balance during the year. The production budget estimates the number of units to be manufactured to meet budgeted sales and desired inventory levels. You note that LearnCo has omitted six numbers from the following production budget and fill in the missing amounts. You may need to use numbers from the sales budget you prepared Learn Co Production Budget For the Year Ending December 31, 2012 Units Basic Units Deluxe 36,000 36,000 Expected units to be sold (from Sales Budget) Desired ending inventory, December 31, 20Y2 Total units available Estimated beginning inventory, January 1, 20Y2 Total units to be produced 1,000 37,000 3,000 39,000 (2,100) 36,900 (1,050) 35,950 Feedback Direct Materials Purchases Budget The direct materials purchases budget should be integrated with the production budget to ensure that production is not interrupted during the year. Before you make any changes to the budget, you review the information on the following Direct Materials Data Table and enter the units to be produced from the Production Budget. After scanning the direct materials purchases budget (which follows the Direct Materials Data Table), you observe that LearnCo has omitted quite a few numbers from the budget. Fill in the missing amounts. You may need to use numbers from the Direct Materials Data Table, or from the sales budget and production budget you prepared. When required, rund your answers to the nearest dollar. Direct Materials Data Table Direct Materials Purchases Budget The direct materials purchases budget should be integrated with the production budget to ensure that production is not interrupted during the year. Before you make any changes to the budget, you review the information on the following Direct Materials Data Table and enter the units to be produced from the Production Budget. After scanning the direct materials purchases budget (which follows the Direct Materials Data Table), you observe that LearnCo has omitted quite a few numbers from the budget. Fill in the missing amounts. You may need to use numbers from the Direct Materials Data Table, or from the sales budget and production budget you prepared. When required, round your answers to the nearest dollar. Direct Materials Data Table Wood Pieces Beads 1 2 2 3 Packages required per unit: Basic abacus Deluxe abacus Cost per package Wood pieces Beads Units to be produced (from Production Budget): Basic abacus $0.20 $0.20 35,950 Deluxe abacus 73,800 X LearnCo Direct Materials Purchases Budget For the Year Ending December 31, 20Y2 Direct Materials Wood Pieces Beads Packages required for production: Basic abacus 35,950 71,900 Total 4 Deluxe abacus 73,800 110,700 LearnCo Direct Materials Purchases Budget For the Year Ending December 31, 2012 Direct Materials Wood Pieces Beads Packages required for production: Basic abacus 35,950 71,900 Total 73,800 110,700 Deluxe abacus Desired inventory, December 31, 20Y2 2,200 5,000 111,950 187,600 (4,500) Total packages available Estimated inventory, January 1, 20Y2 Total packages to be purchased Unit price (per package) (3,500) 108,450 183,100 w 0.20 x $ 0.20 Total direct materials to be purchased 21,690 $ 36,620 $58,310 Feedback Direct Labor Cost Budget Direct labor needs from the direct labor cost budget should be coordinated between the production and personne departments so that there will be enough labor available for production. Before you make any changes to the budget, you review the information on the following Direct Labor Data Table and enter the units to be produced from the Production Budget. After scanning the Direct Labor Cost Budget (which follows the Direct Labor Data Table), you observe that LearnCo has omitted quite a few numbers from the budget. Fill in the missing amounts. You may need to use numbers from the Direct Labor Data Table, or from the sales budget, production budget, and direct materials purchases budget you prepared. When required, round you answers to the nearest dollar Direct Labor Data Table Gluing Assembly Hours required per unit: Basic abacus Deluxe abacus 0.10 0.10 0.10 0.20 Labor hourly rate: $17 Gluing $12 Assembly Units to be produced (from Production Budget): Basic abacus Deluxe abacus LearnCo Direct Labor Cost Budget For the Year Ending December 31, 20Y2 Gluing Assembly Hours required for production: Basic abacus Total 00 Deluxe abacus Total X $ Hourly rate $1 $273,995 Total direct labor cost Feedback > Cost of Goods Sold Budget The cost of goods sold budget integrates the direct materials purchases budget, direct labor cost budget, and factory overhead cost budget. Estimated and desired inventories for direct materials, work in process, and finished goods must also be integrated into the cost of goods sold budget. Complete the preparation of the cost of goods sold budget for LearnCo, using information that follows provided by the controller, and using the previous budgets you have prepared LearnCo Cost of Goods Sold Budget For the Year Ending December 31, 20Y2 Finished goods inventory, January 1, 20Y2 $9,870 Work in process inventory, January 1, 20Y2 $2,010 Direct materials: Direct materials inventory, January 1, 20Y2 $1,600 Direct materials purchases Cost of direct materials available for use Direct materials inventory, December 31, 20Y2 (1,440) Cost of direct materials placed in production > 00:00 Direct labor Factory overhead Total manufacturing costs Total work in process during period (1,250) Work in process inventory, December 31, 20Y2 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, December 31, 2012 Cost of goods sold (1,500) Selling/Admin. Expenses Budget The sales budget is often used as the starting point for the selling and administrative expenses budget. For example, a budgeted increase in sales may require more advertising expenses. LearnCo has prepared its selling and administrative expenses budget as follows. This budget is merely reviewed by you for use on the budgeted income statement LearnCo Selling and Administrative Expenses Budget For the Year Ending December 31, 20Y2 Selling expenses: Sales salaries expense $45,000 Advertising expense 15,000 Travel expense 5,400 Total selling expenses $65,400 Administrative expenses: Officers' salaries expense $85,000 Office salaries expense 35,000 Office rent expense 26,000 Office supplies expense 6,400 Miscellaneous administrative expenses 1,600 Total administrative expenses 154,000 Total selling and administrative expenses $219,400 Budgeted Income Statement 1 The budgeted income statement is prepared by integrating the sales budget, cost of goods sold budget, and selling and administrative expenses budget. Additional information that may be helpful in preparing the budgeted income statement are on the following Budgeted Income Statement Data Table. Review the Budgeted Income Statement Data Table, then complete the budgeted income statement that follows the table. Round the computed amount for income tax to the nearest whole dollar Budgeted Income Statement Data Table Interest revenue for the year $2,000 Interest expense for the year $1,500 LearnCo's income tax rate 40% LearnCo Budgeted Income Statement For the Year Ending December 31, 20Y2 Revenue from sales Cost of goods sold Gross profit Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses JUNI JULIJ DIO Operating income Other revenue and expense: Interest revenue Interest expense Income before income tax Income tax Net income 4. Learn Co's controller believes that the company can decrease its selling expenses by 10% and its administrative expenses by 15%. How much would income before income tax increase if these expense cuts are implemented? Round your answer to the nearest dollar, Foodback Mastery Problem: Budgeting LearnCo LearnCo manufactures and sells one product, an abacus for classroom use, with two models, the Basic model and the Deluxe model. The company began operations on January 1, 2001, and is planning for 2012, its second year of operations, by preparing budgets from its master budget. The company is trying to decide how many units to manufacture, how much it might spend on direct materials and direct labor, and what their factory overhead expenses might be. In addition, the company is interested in budgeting for selling and administrative costs, and in creating a budgeted income statement showing a prediction of net income for 2012. You have been asked to assist the controller of LearnCo in preparing the 2012 budgets. Sales Budget The sales budget often uses the prior year's sales as a starting point, and then sales quantities are revised for various factors such as planned advertising and promotion, projected pricing changes, and expected industry and general economic conditions. LearnCo has completed reviewing its prior year's sales and has prepared the following sales budget. After reviewing Learn Co's sales budget, you note that three numbers have been omitted. The company's controlle has told you that the units sold for the Basic and Deluxe models are expected to be the same. Fill in the missing amounts. LearnCo Sales Budget For the Year Ending December 31, 20Y2 Unit Sales Unit Selling Product Volume Price Total Sales $7 Basic Abacus 36,000 $252,000 Deluxe Abacus 36,000 13 468,000 Totals 72,000 $720,000 Production Budget The production budget should be integrated with the sales budget to ensure that production and sales are kept in balance during the year. The production budget estimates the number of units to be manufactured to meet budgeted sales and desired inventory levels. You note that LearnCo has omitted six numbers from the following production budget and fill in the missing amounts. You may need to use numbers from the sales budget you prepared Learn Co Production Budget For the Year Ending December 31, 2012 Units Basic Units Deluxe 36,000 36,000 Expected units to be sold (from Sales Budget) Desired ending inventory, December 31, 20Y2 Total units available Estimated beginning inventory, January 1, 20Y2 Total units to be produced 1,000 37,000 3,000 39,000 (2,100) 36,900 (1,050) 35,950 Feedback Direct Materials Purchases Budget The direct materials purchases budget should be integrated with the production budget to ensure that production is not interrupted during the year. Before you make any changes to the budget, you review the information on the following Direct Materials Data Table and enter the units to be produced from the Production Budget. After scanning the direct materials purchases budget (which follows the Direct Materials Data Table), you observe that LearnCo has omitted quite a few numbers from the budget. Fill in the missing amounts. You may need to use numbers from the Direct Materials Data Table, or from the sales budget and production budget you prepared. When required, rund your answers to the nearest dollar. Direct Materials Data Table Direct Materials Purchases Budget The direct materials purchases budget should be integrated with the production budget to ensure that production is not interrupted during the year. Before you make any changes to the budget, you review the information on the following Direct Materials Data Table and enter the units to be produced from the Production Budget. After scanning the direct materials purchases budget (which follows the Direct Materials Data Table), you observe that LearnCo has omitted quite a few numbers from the budget. Fill in the missing amounts. You may need to use numbers from the Direct Materials Data Table, or from the sales budget and production budget you prepared. When required, round your answers to the nearest dollar. Direct Materials Data Table Wood Pieces Beads 1 2 2 3 Packages required per unit: Basic abacus Deluxe abacus Cost per package Wood pieces Beads Units to be produced (from Production Budget): Basic abacus $0.20 $0.20 35,950 Deluxe abacus 73,800 X LearnCo Direct Materials Purchases Budget For the Year Ending December 31, 20Y2 Direct Materials Wood Pieces Beads Packages required for production: Basic abacus 35,950 71,900 Total 4 Deluxe abacus 73,800 110,700 LearnCo Direct Materials Purchases Budget For the Year Ending December 31, 2012 Direct Materials Wood Pieces Beads Packages required for production: Basic abacus 35,950 71,900 Total 73,800 110,700 Deluxe abacus Desired inventory, December 31, 20Y2 2,200 5,000 111,950 187,600 (4,500) Total packages available Estimated inventory, January 1, 20Y2 Total packages to be purchased Unit price (per package) (3,500) 108,450 183,100 w 0.20 x $ 0.20 Total direct materials to be purchased 21,690 $ 36,620 $58,310 Feedback Direct Labor Cost Budget Direct labor needs from the direct labor cost budget should be coordinated between the production and personne departments so that there will be enough labor available for production. Before you make any changes to the budget, you review the information on the following Direct Labor Data Table and enter the units to be produced from the Production Budget. After scanning the Direct Labor Cost Budget (which follows the Direct Labor Data Table), you observe that LearnCo has omitted quite a few numbers from the budget. Fill in the missing amounts. You may need to use numbers from the Direct Labor Data Table, or from the sales budget, production budget, and direct materials purchases budget you prepared. When required, round you answers to the nearest dollar Direct Labor Data Table Gluing Assembly Hours required per unit: Basic abacus Deluxe abacus 0.10 0.10 0.10 0.20 Labor hourly rate: $17 Gluing $12 Assembly Units to be produced (from Production Budget): Basic abacus Deluxe abacus LearnCo Direct Labor Cost Budget For the Year Ending December 31, 20Y2 Gluing Assembly Hours required for production: Basic abacus Total 00 Deluxe abacus Total X $ Hourly rate $1 $273,995 Total direct labor cost Feedback > Cost of Goods Sold Budget The cost of goods sold budget integrates the direct materials purchases budget, direct labor cost budget, and factory overhead cost budget. Estimated and desired inventories for direct materials, work in process, and finished goods must also be integrated into the cost of goods sold budget. Complete the preparation of the cost of goods sold budget for LearnCo, using information that follows provided by the controller, and using the previous budgets you have prepared LearnCo Cost of Goods Sold Budget For the Year Ending December 31, 20Y2 Finished goods inventory, January 1, 20Y2 $9,870 Work in process inventory, January 1, 20Y2 $2,010 Direct materials: Direct materials inventory, January 1, 20Y2 $1,600 Direct materials purchases Cost of direct materials available for use Direct materials inventory, December 31, 20Y2 (1,440) Cost of direct materials placed in production > 00:00 Direct labor Factory overhead Total manufacturing costs Total work in process during period (1,250) Work in process inventory, December 31, 20Y2 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, December 31, 2012 Cost of goods sold (1,500) Selling/Admin. Expenses Budget The sales budget is often used as the starting point for the selling and administrative expenses budget. For example, a budgeted increase in sales may require more advertising expenses. LearnCo has prepared its selling and administrative expenses budget as follows. This budget is merely reviewed by you for use on the budgeted income statement LearnCo Selling and Administrative Expenses Budget For the Year Ending December 31, 20Y2 Selling expenses: Sales salaries expense $45,000 Advertising expense 15,000 Travel expense 5,400 Total selling expenses $65,400 Administrative expenses: Officers' salaries expense $85,000 Office salaries expense 35,000 Office rent expense 26,000 Office supplies expense 6,400 Miscellaneous administrative expenses 1,600 Total administrative expenses 154,000 Total selling and administrative expenses $219,400 Budgeted Income Statement 1 The budgeted income statement is prepared by integrating the sales budget, cost of goods sold budget, and selling and administrative expenses budget. Additional information that may be helpful in preparing the budgeted income statement are on the following Budgeted Income Statement Data Table. Review the Budgeted Income Statement Data Table, then complete the budgeted income statement that follows the table. Round the computed amount for income tax to the nearest whole dollar Budgeted Income Statement Data Table Interest revenue for the year $2,000 Interest expense for the year $1,500 LearnCo's income tax rate 40% LearnCo Budgeted Income Statement For the Year Ending December 31, 20Y2 Revenue from sales Cost of goods sold Gross profit Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses JUNI JULIJ DIO Operating income Other revenue and expense: Interest revenue Interest expense Income before income tax Income tax Net income 4. Learn Co's controller believes that the company can decrease its selling expenses by 10% and its administrative expenses by 15%. How much would income before income tax increase if these expense cuts are implemented? Round your answer to the nearest dollar, Foodback