Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Spring Manufacturing Company makes two components identified as C12 and D57. Selected budgetary data for 2019 follow: 40 Finished Components C12 10 pounda 2pounds D57

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Spring Manufacturing Company makes two components identified as C12 and D57. Selected budgetary data for 2019 follow: 40 Finished Components C12 10 pounda 2pounds D57 Requirenents for each finished component: RHI RM 2 RM 3 Direct labor 8 pounds 4 pounds 1 pound 3 hours ints 2 hours Product information Skipped Sales price Sales (units) Estimated beginning inventory (units Desired ending inventory (units) $ 160 12,000 400 300 $ 250 12,000 200 200 Direct Materials Infornation RM2 RM3 RN Cost per pound Estimated beginning inventory in pounds Desired ending inventory in pounds $ 64.50$0.50 500 3,500 1,200 4,100400 2,000 The firm expects the average wage rate to be $25 per hour in 2019. Spring Manufacturing uses direct labor hours to apply overhead. Each year the firm determines the overhead application rate for the year based on budgeted direct labor hours for the year. The firnm maintains negligible Work-in-Process Inventory and expects the cost per unit for both beginning and ending inventorles of finished products to be identical. Factory Overhead Information Indirect materials-variable Miscellaneous supplies and tools-variable Indirect labor-variable Supervision-fixed Payroll taxes and fringe benefits-variable Maintenance costs-fixed Maintenance costs-variable Depreciation-fixed Heat, light, and power-fixed Heat, light, and power-variable $ 15,000 5,400 45,000 120,000 260,000 18,000 10,050 71,340 43,400 11,000 599,190 5 points Skipped Total Selling and Administrative Expense Information Advertising Sales salaries Travel and entertainment Depreciation-warehouse Office salaries Executive salaries Supplies Depreciation-office 61,000 240,000 55, 000 4,900 60,000 300,000 3, 800 6,300 $731,000 Total The effective income tax rate for the company is 50%. Required: 1. Prepare the Sales budget for 2019. 2. Prepare the Production budget for 2019. 3. Prepare the Direct materials purchases budget (units and dollars) for 2019. 4. Prepare the Direct labor budget for 2019. 5. Prepare the Factory overhead budget for 2019. 6. Prepare the Cost of goods sold and ending finished goods inventory budgets for 2019 7. Prepare the Selling and administrative expense budget, broken down into two components: Selling Expenses, and Administrative Expenses for 2019. 8. Prepare the Budgeted income statement, the last item of which is labeled After-tax Operating Income for 2019 40 ints Skipped 7. Prepare the Selling and administrative expense budget, broken down into two components: Selling Expenses, and A Expenses for 2019. 8. Prepare the Budgeted income statement, the last item of which is labeled After-tax Operating Income for 2019 Complete this question by entering your answers in the tabs below. Required 1 Required 2 qred 3Required 4Required Required 6 Required 7 Required 8 oints Skipped Prepare the Sales budget for 2019 SPRING MANUFACTURING COMPANY Sales Budget For the Year 2019 C12 Total D57 Sales (in units) Selling price per unit Total sales revenue Required 1 Required 2 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare the Production budget for 2019. oints SPRING MANUFACTURING COMPANY Production Budget For the Year 2019 Skipped D57 C12 Budgeted sales (in units) Total units needed Budgeted production (in units) Required 3> Required 1 Required 1 Required 2Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare the Direct materials purchases budget (units and dollars) for 2019. (Round "Cost per pound" to 2 decimal places.) SPRING MANUFACTURING COMPANY Direct Materials Purchases Budget (units and dollars) For the Year 2019 points C12 D57 Total Skipped Raw matenal (RM) 1 Budgeted production RM 1 needed for production Total RM 1 needed (ibs.) Required purchases of RM 1 (bs.) Budgeted purchases, RM 1 Raw material (RM) 2 Budgeted production RM 2 needed for production Total RM 2 needed (Ibs.) Required purchases of RM 1 (Ibs.) Budgeted purchases, RM 1 Raw material (RM) 2: Budgeted production 5 points RM 2 needed for production Skipped Total RM 2 needed (lbs.) Required purchases of RM 2 (lbs.) Budgeted purchases, RM 2 Raw material (RM) 3: Budgeted production RM 3 needed for production Total RM 3 needed (bs.) Required purchases of RM 3 (lbs.) Budgeted purchases, RM 3 40 Complete this question by entering vour answers in thetabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7Required 8 5 points Prepare the Direct labor budget for 2019 Skipped SPRING MANUFACTURING COMPANY Direct Labor Budget For the Year 2019 C12 D57 Total Budgeted production Total direct labor hours needed Budgeted direct labor costs Required 3 Required 5> Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare the Factory overhead budget for 2019. SPRING MANUFACTURING COMPANY Factory Overhead Budget For the Year 2019 5 points Variable factory overhead: Skipped Fixed factory overhead: Total cash fixed factory overhead Total budgeted factory overhead 40 Required 1 Required 2 Required 3 Reqd4Required S Required 6Required 7 Required 8 Prepare the Cost of goods sold and ending finished goods inventory budgets for 2019. (Round your intermediate calculations to 2 decimal places.) SPRING MANUFACTURING COMPANY Ending Finished Goods Inventory and Budgeted CGS For the Year 2019 oints Skipped Total C12 D57 24,000 Sales volume Cost of goods sold Ending finished goods inventory Budgeted ending inventories Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7Required 8 Prepare the Selling and administrative expense budget, broken down into two components: Selling Expenses, and Administrative Expenses for 2019. SPRING MANUFACTURING COMPANY Selling and Administrative Expense Budget For the Year 2019 points Skipped Selling expenses: Administrative expenses Total selling and administrative expenses Required 1 Required 2 Required 3 Required 4 Required 5 Required 6Required 7 Required 8 Prepare the Budgeted income statement, the last item of which is labeled After-tax Operating Income for 2019. (Round your intermediate calculations to 2 decimal places.) SPRING MANUFACTURING COMPANY Budget Income Statement For the Year 2019 points Skipped C12 Total D57

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sound Investing Uncover Fraud And Protect Your Portfolio

Authors: Kate Mooney

1st Edition

0071481826, 9780071481823

More Books

Students also viewed these Accounting questions

Question

81 3 - 27 3 / 3 7

Answered: 1 week ago

Question

What do we do that frustrates each other?

Answered: 1 week ago