SOLVE THE YELLOW: 10.01->10.10
The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are: Lamp Kit $16.0000000 per lamp Direct Labor. 2 0000000 per lamp (4 lamps/hr.) Variable Overhead: 2.0000000 per lamp Fixed Overhead: 10.0000000 per lamp (based on normal capacity of 25,000 lamps) Cost per lamp: $30.0000000 perlamp Expected increases for 20x2 When calculating projected increases round to TWO ($0.00) decimal places. 1. Material Costs are expected to increase by 3.00% 2. Labor Costs are expected to increase by 5.00% 1,125,000.00 3. Variable Overhead is expected to increase by 5.50% Sales 25,000 lamps @ $45.00 750,000.00 Cost of Goods Sold @ $30.00 375,000.00 . Fixed Overhead is expected to increase to $280,000. Gross Profit Selling Expenses: 5. Fixed Administrative expenses are expected to increase to $56,000. Fixed 23,000.00 Variable Commission per unit) @ $3.00 75,000.00 _ $ 98,000.00 6. Variable selling expenses (measured on a per lamp basis) are expected to increas Administrative Expenses by 3.50%. Fixed $ 42,000.00 Variable @ $2.00 50,000.00 92,000.00 7. Fixed selling expenses are expected to be $27,000 in 20x2. Total Selling and Administrative Expenses: 190,000.00 8. Variable administrative expenses (measured a per lamp basis) are expected to Net Profit 185,000.00 increase by 5.00%. Budgeted Income Statement Sales Cost of Goods Sold Gross Profit Selling Expenses; & Admin. Expenses (10.01 Net Income Cash Budget sume actual cash receipts and disbursements will follow the pattern below. (Note: Receivables and yables of 12/31/x1 will have a cash impact in 20x2.) 18.00% of sales for the year are made in November and December. Since our customers have 60 day terms those funds will be collected be collected in January and February. 82.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February. All other manufacturing and operating costs are paid for The budgeted depreciation expense is equal to 0.6% of the fixed manufacturing, selling and administrative expenses. Minimum Cash Balance needed for 20x2, $185,000 . I See The Light Projected Cash Budget Current Assets For the Year Ending December 31, 20x2 Cash 34,710.00 Accounts Receivable 67.500.00 Round dollars to two Inventory places, $4.84 Raw Material Lamp Kits 500 @ $16.00 Beginning Cash Balance Work in Process 8,000.00 Cash Inflows: O 67.500 00 (10.01 Finished Goods 3000 @ $30.00 Account Receivable (Sales last year not collected) (10.03 Total Current Assets 90.000.00 Sales made and collected in 20x2 10.04 200,210.00 Cash Available Fixed Assets Equipment Cash Outflows: Accumulated $ 20.000.00 Purchases Total Fixed Assets 6,800.00 Accounts Payable (Purchases last year) (10.05 Total Assets 13,200.00 Purchases made and paid for In 20x2 213,410.00 ther Manufacturing Costs Direct Labor 356,804.000 Total Manufacturing Overhead Current Liabilities Selling and Administr (10.06 Accounts Payable Less: Depreciation (10.07 Total Liabilities $4,000.00 Total Cash Outflows Stockholder's Equity (10.08) $4,000.00 Common Stock Budgeted Cash Balance before financing Retained Earnings 12,000.00 Needed Minimum Balance (10.09) Total Stockholder's Equity 147,410.00 Amount to be borrowed (if any) Total Liabilities and Stockholder's Equity 159.410.00 (10.101 ntroduction FAQ 213.410.00 Budgeted Cash Balance
