Robinson Inc. has gathered the following budgeting information for next year and has asked you to prepare their master budget. a. Sales for the final quarter of the prior year total 2,500 units. Expected sales (in units) for the current year are:2,250 (Quarter 1),1,500 (Quarter 2), 2,000 (Quarter 3), and 2,000 (Quarter 4).Sales for the first quarter of the following year total 3,000 units.The selling price is $580 per unit in the first three quarters of the year, and $610 per unit in the final quarter. b. Company policy calls for a given quarter's ending finished goods inventory to equal 70%of the next quarter's expected unit sales. The finished goods inventory at the end of the prior year is 1,575 units, which complies withthe policy.The product's manufacturing costis $215 per unit, including per unit costs of $90 for materials (6 lbs. at $15 per lb.),$88 for direct labor (4 hours $22 direct labor rate per hour),$25 for variableoverhead, and $12 for fixed overhead. Annual fixed overhead consists, incurredevenly throughout the year, consist of depreciation on production equipment, $39,700;factory utilities,$49,700, and other factory overhead of $9,900. c. Company policy also calls for a given quarter's ending raw materials inventory to equal60% of next quarter's expected materials needed for production. The prior year-end inventory is 6,210 lbs of materials, which complies with the policy.The company expects to have 10,800 lbs. of materials in inventory at year-end.The company has no work in process inventory at the end of any quarter. d. Sales representatives' commissions are 18% of sales and are paid in the quarter of thesales. The sales manager's quarterly salary will be $160,000 in the first three quarters of the year, and $170,000 in the final quarter. e. Quarterly general and administrative expenses include $68,000 administrative salaries,rent expense of $41,000per quarter,insurance expense of $33,000 per quarter, straight-linedepreciation of $33,000 per quarter,and 1% monthly interest on the $200,000 long-term note payable (12% annually). f.Income taxes will be assessed at 35%, and are paid in the quarter incurred.

Sales Production Direct Mtls Direct Lbr Factory OH |Selling Exp Admin Exp Cost of Income Budget Budget Budget Budget Budget Budget Budget Goods Sold |Statement Requirement: Prepare the Sales Budget for Robinson Inc.. Sales for the final quarter of the prior year total 2,500 units. Expected sales (in units) for the current year are: 2,250 (Quarter 1), 1,500 (Quarter 2), 2,000 (Quarter 3), and 2,000 (Quarter 4). Sales for the first quarter of the following year total 3,000 units. The selling price is $580 per unit in the first three quarters of the year, and $610 per unit in the final quarter. Show less A Robinson Inc. Sales Budget 2018 First Qtr. Second Qtr. Third Qtr. Fourth Qtr. Total Budgeted sales (units) 2,250 1,500 2,000 2,000 Selling price per unit 69 580 580 $ 580 610 Total budgeted sales (dollars) 1,305,000 $ 870,000 1,160,000 1,220,000 $ 69 $ $ 4,555,000 Sales Production Direct Mtls Direct Lbr Factory OH |Selling Exp Cost of Income Budget Budget Budget Budget Budget Budget Admin Exp Budget Goods Sold |Statement Requirement: Prepare the production budget for Robinson Inc.. Company policy calls for a given quarter's ending finished goods inventory to equal 70% of the next quarter's expected unit sales. The finished goods inventory at the end of the prior year is 1,575 units, which complies with the policy. Expected sales (in units) for the current year are: 2,250 (Quarter 1), 1,500 (Quarter 2), 2,000 (Quarter 3), and 2,000 (Quarter 4). Sales for the first quarter of the following year total 3,000 units. Show less A Robinson Inc. Production Budget For the year ended December 31, 2018 First Qtr. Second Qtr. Third Qtr. Fourth Qtr. Total Next qtr's budgeted sales (units) 3.000 Ratio of inventory to future sales 70% 70% 70% 70% Budgeted ending inventory (units) Budgeted sales (units) 2,250 1,500 2,000 2,000 Required units of available production Budgeted beginning inventory (units) 1,575 1,050 1,400 1,400 Units to be produced Sales Production Direct Mtls Direct Lbr Factory OH |Selling Exp Admin Exp Cost of Income Budget Budget Budget Budget Budget Budget Budget Goods Sold |Statement Requirement Prepare the Direct Materials Budget for Robinson Inc. Company. Company policy calls for a given quarter's ending raw materials inventory to equal 60% of next quarter's expected materials needed for production. The prior year-end inventory is 6,210 Ibs of materials, which complies with the policy. The company expects to have 10,800 Ibs. of materials in inventory at year-end. The product's manufacturing cost is $215 per unit, including per unit costs of $90 for materials (6 Ibs. at $15 per Ib.), $88 for direct labor (4 hours x $22 direct labor rate per hour), $25 for variable overhead, and $12 for fixed overhead. :Show less A Robinson Inc. Direct Materials Budget For the year ended December 31, 2018 First Qtr. Second Qtr. Third Qtr. Fourth Qtr. Total Budgeted production (units) Materials requirements per unit Materials needed for production (pounds) Budgeted ending inventory (units) Total materials requirements (pounds) Budgeted beginning inventory (units) Materials to be purchased (pounds) Material price per pound $ 15.00 $ 15.00 |$ 15.00 | $ 15.00 Total cost of direct materials purchases Sales Production Direct Mtls Direct Lbr Factory OH |Selling Exp Admin Exp Cost of Income Budget Budget Budget Budget Budget Budget Budget Goods Sold |Statement Requirement Prepare the Direct Labor Budget for Robinson Inc.. The product's manufacturing cost is $215 per unit, including per unit costs of $90 for materials (6 Ibs. at $15 per Ib.), $88 for direct labor (4 hours x $22 direct labor rate per hour), $25 for variable overhead, and $12 for fixed overhead. Robinson Inc. Direct Labor Budget For the year ended December 31, 2018 First Qtr. Second Qtr. Third Qtr. Fourth Qtr. Total Budgeted production (units) Direct labor requirements per unit (hours) 4.0 4.0 4.0 4.0 Total direct labor hours needed Direct labor rate (per hour) $ 22.00 $ 22.00 22.00 $ 22.00 Total budgeted direct labor cost (dollars) 1 > Direct Mtls Budget Factory OH Budget >Sales Production Direct Mtls Direct Lbr Factory OH Selling Exp Admin Exp Cost of Income Budget Budget Budget Budget Budget Budget Budget Goods Sold |Statement Requirement Prepare the Factory Overhead Budget for Robinson Inc.. The product's manufacturing cost is $215 per unit, including per unit costs of $90 for materials (6 Ibs. at $15 per Ib.), $88 for direct labor (4 hours x $22 direct labor rate per hour), $25 for variable overhead, and $12 for fixed overhead. Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $39,700; factory utilities, $49,700, and other factory overhead of $9,900. . . . . . :Show less 4: ............ Robinson Inc. Factory Overhead Budget For the year ended December 31, 2018 First Qtr. Second Qtr. Third Qtr. Fourth Qtr. Total Budgeted production (units) Variable factory overhead rate $ 25.00 $ $ 25.00 25.00 $ 25.00 $ 25.00 Budgeted variable overhead Budgeted fixed overhead Budgeted total overhead Sales Production Direct Mtls Direct Lbr Factory OH Selling Exp Admin Exp Cost of Income Budget Budget Budget Budget Budget Budget Budget Goods Sold Statement Requirement Prepare the selling expense budget for the Robinson Inc.. Sales representatives' commissions are 18% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $160,000 in the first three quarters of the year, ear, and $170,000 in the final quarter. Robinson Inc. Selling Expense Budget For the year ended December 31, 2018 First Qtr. Second Qtr. Third Qtr. Fourth Qtr. Total $ 1,305,000 $ 870,000 $ 1, 160,000 $ 1,220,000 $ 4,555,000 Sales commissions 160,000 160,000 160,000 170,000 650,000 Total budgeted selling expenses Sales Production Direct Mtls Direct Lbr Factory:r DH Selling Exp Admin Exp Cost of Income Budget Budget Budget Budget Budget Budget Budget Goods Sold Statement Ileq uienlent Prepare the Administrative Expense Budget for Ilobinson Inc. Quarterly general and administrative expenses include $68,"!!! administrative salaries, rent expense of $11,!!!) per quarter, insurance expense of $33,\"!!! per quarter, straightne depreciation of $33,\" per quarter, and 1% monthly interest on the $201!," longterm note payable (3% quarterly). Total budgeted general and administrative expenses Sales Production Direct Mtls Direct Lbr Factory OH Selling Exp Admin Exp Cost of Income Budget Budget Budget Budget Budget Budget Budget Goods Sold |Statement Requirement Using information from the sales budget and the following information, calculate the budgeted cost of goods sold for Robinson Inc. The product's manufacturing cost is $215 per unit, including per unit costs of $90 for materials (6 lbs. at $15 per Ib.), $88 for direct labor (4 hours x $22 direct labor rate per hour), $25 for variable overhead, and $12 for fixed overhead. Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $39,700; factory utilities, $49,700, and other factory overhead of $9,900. :Show less A: Robinson Inc. Cost of Goods Sold Budget For the year ended December 31, 2018 First Qtr. Second Qtr. Third Qtr. Fourth Qtr. Total 2,250 1,500 2,000 2,000 7,750 Cost of goods sold Production Direct Mus ' Factory DH Selling Exp Admin Exp Cost of Budget Budget Budget Budget Budget Goods Sold Statement Requiement Prepare the Budgeted Income Statement for the year for Robinson Inc. Interest on the $2", [Hill _ Elong term note payable' Is 1% per month (12% annualy). Income taxes II be assessed at 35%, and are paid' In; Cost of goods sold Gross prot Operating expenses: Selling expenses Administrative expenses Interest expense Total operating expenses Income before income taxes Income tax expense Net income 4: Cost of Goods Sold