Sales Budget

The sales budget often uses the prior years 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 years sales and has prepared the following sales budget.

After reviewing LearnCos sales budget, you note that three numbers have been omitted. The companys controller 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
Product	Unit Sales Volume	Unit Selling Price	Total Sales
Basic Abacus	fill in the blank 678430037ff7037_1	$6	$216,000
Deluxe Abacus	fill in the blank 678430037ff7037_2	fill in the blank 678430037ff7037_3	504,000
Totals	72,000		$720,000

Production Budget

LearnCo Production Budget For the Year Ending December 31, 20Y2
	Units Basic	Units Deluxe
Expected units to be sold (from Sales Budget)	fill in the blank dda2e607604d079_1	fill in the blank dda2e607604d079_2
Desired ending inventory, December 31, 20Y2	1,000	3,000
Total units available	fill in the blank dda2e607604d079_3	fill in the blank dda2e607604d079_4
Estimated beginning inventory, January 1, 20Y2	(1,050)	(2,100)
Total units to be produced	fill in the blank dda2e607604d079_5	fill in the blank dda2e607604d079_6

Direct Materials Purchases Budget

The direct materials purchases budget should be integrated with the production budget to ensure that production is not When required, round your answers to the nearest dollar.

Direct Materials Data Table
	Wood Pieces	Beads
Packages required per unit:
Basic abacus	1	2
Deluxe abacus	2	3
Cost per package:
Wood pieces	$0.25
Beads	$0.25
Units to be produced (from Production Budget):
Basic abacus	fill in the blank e9b641077fe7047_1
Deluxe abacus	fill in the blank e9b641077fe7047_2

LearnCo Direct Materials Purchases Budget For the Year Ending December 31, 20Y2
	Direct Materials
	Wood Pieces	Beads	Total
Packages required for production:
Basic abacus	fill in the blank e9b641077fe7047_3	fill in the blank e9b641077fe7047_4
Deluxe abacus	fill in the blank e9b641077fe7047_5	fill in the blank e9b641077fe7047_6
Desired inventory, December 31, 20Y2	2,200	5,000
Total packages available	fill in the blank e9b641077fe7047_7	fill in the blank e9b641077fe7047_8
Estimated inventory, January 1, 20Y2	(3,500)	(4,500)
Total packages to be purchased	fill in the blank e9b641077fe7047_9	fill in the blank e9b641077fe7047_10
Unit price (per package)	$fill in the blank e9b641077fe7047_11	$fill in the blank e9b641077fe7047_12
Total direct materials to be purchased	$fill in the blank e9b641077fe7047_13	$fill in the blank e9b641077fe7047_14	$72,888

Direct Labor Cost Budget

Direct labor needs from the direct labor cost budget should be coordinated between the production and personnel 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 your answers to the nearest dollar.

Direct Labor Data Table
	Gluing	Assembly
Hours required per unit:
Basic abacus	0.10	0.10
Deluxe abacus	0.10	0.20
Labor hourly rate:
Gluing	$12
Assembly	$19
Units to be produced (from Production Budget):
Basic abacus	fill in the blank fb8151f9cf91f83_1
Deluxe abacus	fill in the blank fb8151f9cf91f83_2

LearnCo Direct Labor Cost Budget For the Year Ending December 31, 20Y2
	Gluing	Assembly	Total
Hours required for production:
Basic abacus	fill in the blank fb8151f9cf91f83_3	fill in the blank fb8151f9cf91f83_4
Deluxe abacus	fill in the blank fb8151f9cf91f83_5	fill in the blank fb8151f9cf91f83_6
Total	fill in the blank fb8151f9cf91f83_7	fill in the blank fb8151f9cf91f83_8
Hourly rate	$fill in the blank fb8151f9cf91f83_9	$fill in the blank fb8151f9cf91f83_10
Total direct labor cost	$fill in the blank fb8151f9cf91f83_11	$fill in the blank fb8151f9cf91f83_12	$295,945

Factory Overhead Cost Budget

The factory overhead cost budget should be integrated with the production budget to ensure that production is not interrupted during the year. This budget may be supported by departmental schedules, which normally separate factory overhead costs into fixed and variable costs so that department managers may monitor and evaluate costs during the year. For simplicity, LearnCo has not separated costs in this manner.

After reviewing the following factory overhead cost budget, you note that LearnCo has completed the budget with the exception of one amount. Fill in the missing amount.

LearnCo Factory Overhead Cost Budget For the Year Ending December 31, 20Y2
Indirect factory wages	$5,400
Power and light	fill in the blank 3dfc7404a050fa3_1
Depreciation of plant and equipment	1,450
Total factory overhead cost	$18,100

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	$2,000
Direct materials purchases	fill in the blank 6e1ed003eff4f9d_1
Cost of direct materials available for use	$fill in the blank 6e1ed003eff4f9d_2
Direct materials inventory, December 31, 20Y2	(1,800)
Cost of direct materials placed in production	$fill in the blank 6e1ed003eff4f9d_3
Direct labor	fill in the blank 6e1ed003eff4f9d_4
Factory overhead	fill in the blank 6e1ed003eff4f9d_5
Total manufacturing costs		fill in the blank 6e1ed003eff4f9d_6
Total work in process during period		$fill in the blank 6e1ed003eff4f9d_7
Work in process inventory, December 31, 20Y2		(1,250)
Cost of goods manufactured			fill in the blank 6e1ed003eff4f9d_8
Cost of finished goods available for sale			$fill in the blank 6e1ed003eff4f9d_9
Finished goods inventory, December 31, 20Y2			(1,500)
Cost of goods sold			$fill in the blank 6e1ed003eff4f9d_10

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