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 with the policy. The product's manufacturing cost is $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 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. Company policy also 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 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 the sales. 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 $41,000 per quarter, insurance expense of $33,000 per quarter, straight- line depreciation 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. $170,000 in the final quarter. e Quarterly general and administrative expenses include $68.000 administrative salaries, rent expense of $41,000 per quarter, insurance expense of $33,000 per quarter, straight- line depreciation 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. Production Direct Mtls Direct Lbr Factory OH Selling Exp Admin Exp Cost of Sales Budget Income 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 Robinson Inc. Sales Budget 2018 First or Second Otr Third Qtr. Fourth otr. Total Budgeted sales (units) Total budgeted sales (dollars) Production Budget > Sales Budget Production Direct Mtls Budget Budget Direct Lbr Factory OH Selling Exp Admin Exp Budget Budget Budget Budget Cost of Income 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 Robinson Inc. Production Budget For the year ended December 31, 2018 First Otr Second Qtr. Third Qtr. Fourth atr. Total Ratio of inventory to future sales Budgeted ending inventory (units) Required units of available production Units to be produced Income taxes will be assessed at 35%, and are paid in the quarter incurred. Sales Budget Production Direct Mtis Budget Budget Direct Lbr Factory OH Selling Exp Admin Exp Budget Budget Budget Budget Cost of Income 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 lbs of materials, which complies with the policy. The company expects to have 10,800 lbs. 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 lbs. at $15 per Ib.), $88 for direct labor (4 hours * $22 direct labor rate per hour), $25 for variable overhead, and $12 for fixed overhead. Show less 40:45 ences Robinson Inc. Direct Materials Budget For the year ended December 31, 2018 First Qtr. Second Qtr. Third Qtr. Fourth Qtr. Total Materials needed for production (pounds) Total materials requirements (pounds) Materials to be purchased (pounds) Total cost of direct materials purchases Production Budget Direct Lbr Budget > Sales Budget Production Direct Mtis Budget Budget Direct Lbr Factory OH Selling Exp Budget Budget Budget Admin Exp Budget Cost of Income 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 lbs. at $15 per lb.), $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 Otr. Third Qtr. Fourth Qtr. Total Total direct labor hours needed Total budgeted direct labor cost (dollars) Sales Budget Production Budget Direct Mtis Budget Direct Lbr Factory OHSelling Exp Admin Exp Budget Budget Budget Budget Cost of Income 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 lbs. at $15 per lb.), $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 Robinson Inc. Factory Overhead Budget For the year ended December 31, 2018 First Qtr. Second Qtr. Third Qtr. Fourth Qtr. Total Budgeted variable overhead Budgeted total overhead Sales Budget Production Budget Direct Mtls Budget Direct Lbr Budget Factory OH Selling Exp Budget Budget Admin Exp Budget Cost of Goods Sold Income 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, and $170,000 in the final quarter. Robinson Inc. Selling Expense Budget For the year ended December 31, 2018 First Qir. Second Qur Third Qtr. Fourth atr, Total Sales commissions 160,000 160,000 160,000 170,000 650,000 Total budgeted selling expenses Sales Budget Production Budget Direct Mtis Budget Direct Lbr Factory OH Selling Exp Admin Exp Budget Budget Budget Budget Cost of Income Goods Sold Statement Requirement Prepare the Administrative Expense Budget for Robinson Inc. Quarterly general and administrative expenses include $68,000 administrative salaries, rent expense of $41,000 per quarter, insurance expense of $33,000 per quarter, straight-line depreciation of $33,000 per quarter, and 1% monthly interest on the $200,000 long-term note payable (3% quarterly). Show less Robinson Inc. General and Administrative Budget For the year ended December 31, 2018 First Qtr. Second Qtr. Third Qtr. Fourth Qtr. Total Total budgeted general and administrative expenses Sales Budget Production Budget Direct Mtis Budget Direct Lbr Budget Factory OH Selling Exp Admin Exp Budget Budget Budget Cost of Income Goods Sold: Statement Requirement Prepare the Budgeted Income Statement for the year for Robinson Inc. Interest on the $200,000 long-term note payable is 1% per month (12% annually). Income taxes will be assessed at 35%, and are paid in the quarter incurred. Robinson Inc. Budgeted Income Statement For the year ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses: Selling expenses Administrative expenses Interest expense Total operating expenses Income before income taxes Income tax expense Net Incomo Cost of Goods Sold