Sales Budget For the Year Ended December 31 Quarter 1 2 3 Year 4,000 Sales in Units Selling Price per unit Total Sales 3,000 $ 6 $ 18,000 5.000 $6 $ 30,000 5.000 $6 $ 30,000 17,000 $6 $ 102,000 $ 24,000 Bathworks Production Budget For the Year Ended December 31 Quarter 1 2 3 4 Year 4,000 3,000 5.000 5.000 17,000 600 Sales in units Plus desired units of ending finished goods inventorya) Desired total units Less desired units of beginning finished goods inventorylb) Total production units 300 4 300 500 3,500 500 5,500 600 17,600 5,600 400 3,900 300 3.200 500 5,000 500 5,100 400 17,200 a) Desired units of ending finished goods Inventory = 10% of next quarter's budgeted sales. b) Desired units of beginning finished goods inventory = 10% of current quarter's budgeted sales. Bathworks Direct Material Purchase Budget For the Year Ended December 31 Quarter 1 2 4 Year 3,200 5.000 S. 100 Total production units Budget 2) Ounces per unit Total production needs in ounces Plus desired ounces of ending direct materials inventoryla) 17,200 4 3.900 4 15,600 4 20,400 12,800 20,000 68.800 3,600 3,600 2.560 18, 160 3,120 3,120 Less desired ounces of beginning direct materials inventory) Total ounces of direct materials to be purchased Cost per ounce Total cost of direct materials purchases 15,040 $ 0.10 $ 1,504 (a) Desired ounces of Ending direct materials inventory = 20% of next quarter's budgeted production needs in ounces b) Desired ounces of beginning direct materials inventory = 20% of next quarter's budgeted production needs in ounces For the Year Ended December 31 Quarter 1 2 3 Year Total production units (Budget 2) Direct labor hours per unit Total direct labor hours Direct labor cost per hour Total direct labor cost 3,900 0.10 390 $ 20 $ 7,800 Bathworks Overhead Budget For the Year Ended December 31 Quarter 1 2 Year Units Variable overhead costs: Factory supplies ($0.05) Employee benefits ($0.25) Inspection ($0.10) Maintenance and repairs ($0.15) Utilities ($0.05) Total variable overhead costs Totalfixed overhead costs Total overhead costs $195 975 390 58S 195 $2.340 4,300 $6,640 Bathworks Selling and Administrative Expenses Budget For the Year Ended December 31 Quarter 2 Year $400 600 200 Units Variable overhead costs: expenses: Delivery expenses ($0.10) Sales commissions ($0.15) Accounting ($0.05) Other administrative expenses ISO 20) Total variable selling and administrative expenses Totalfred selling and administrative expenses Total selling and administrative expenses 800 $2.000 5.000 $ 7.000 7 Leave no cells blank. Ensure to enter ' wherever applicable Bathworks Cost of Goods Manufactured Budget For the Year Ended December 31 Direct materials used: Direct materials inventory, beginning Purchases during the year Cost of direct materials available for use Less direct materials inventory, ending Cost of direct materials used Direct labor costs overhead costs Total manufacturing costs Work in process inventory, beginning Less work in process inventory, ending Cost of goods manufactured Manufactured cost per unit = units it is a company policy to have no units in process at year end. Bathworks Budgeted Income Statement For the Year Ended December 31 Sales Cost of goods sold Finished goods inventory, beginning Cost of goods manufactured Cost of goods available for sale Less finished goods inventory, ending Cost of goods sold Gross margin Selling and administrative expenses income from operations income taxes expense (0) Net Income Assumes a constant product unit cost during the year. Units Rate Finished goods inventory Beginning Ending
