Spring Manufacturing Company makes two components identified as C12 and D57. Selected budgetary data for 2019 follow:

	Finished Components
	C12				D57
Requirements for each finished component:
RM 1		10	pounds			8	pounds
RM 2		0				4	pounds
RM 3		2	pounds			1	pound
Direct labor		2	hours			3	hours
Product information:
Sales price	$	190			$	230
Sales (units)		12,000				9,000
Estimated beginning inventory (units)		410				130
Desired ending inventory (units)		300				200

	Direct Materials Information
	RM1				RM2				RM3
Cost per pound	$	4			$	3.50			$	0.50
Estimated beginning inventory in pounds		3,000				1,800				1,500
Desired ending inventory in pounds		4,100				1,500				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 firm maintains negligible Work-in-Process Inventory and expects the cost per unit for both beginning and ending inventories of finished products to be identical.

	Factory Overhead Information
Indirect materialsvariable	$	7,000
Miscellaneous supplies and toolsvariable		4,800
Indirect laborvariable		42,000
Supervisionfixed		110,000
Payroll taxes and fringe benefitsvariable		200,000
Maintenance costsfixed		15,000
Maintenance costsvariable		10,080
Depreciationfixed		71,380
Heat, light, and powerfixed		43,440
Heat, light, and powervariable		15,000
Total	$	518,700

	Selling and Administrative Expense Information
Advertising	$	65,000
Sales salaries		190,000
Travel and entertainment		61,000
Depreciationwarehouse		4,900
Office salaries		63,000
Executive salaries		300,000
Supplies		4,100
Depreciationoffice		5,500
Total	$	693,500

The effective income tax rate for the company is 30%.

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.

Required i Required 2 Required 3 Required 4 Required 5 Required 6 Required / Requ Prepare the Factory overhead budget for 2019. SPRING MANUFACTURING COMPANY Factory Overhead Budget For the Year 2019 $ Variable factory overhead: Indirect materials Miscellaneous supplies and tools Indirect labor Payroll taxes and fringe benefits Maintenance costs 7,000 4,800 42,000 200,000 10,080 15,000 Heat, light, and power Depreciation $ 278,880 Fixed factory overhead: Supervision Maintenance costs Depreciation Heat, light, and power Total cash fixed factory overhead $ 0 $ 0 Total budgeted factory overhead $ 278,880 Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Rec Prepare the Cost of goods sold and ending finished goods inventory budgets for 2019. (Round your intern to 2 decimal places.) SPRING MANUFACTURING COMPANY Ending Finished Goods Inventory and Budgeted CGS For the Year 2019 C12 D57 Total Sales volume 21,000 Cost of goods sold $ 0 $ 0 $ 0 Ending finished goods inventory Budgeted ending inventories $ 0 $ 0 $ 0 Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 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 Selling expenses: $ 0 Administrative expenses: $ 0 Total selling and administrative expenses $ 0 Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare the Budgeted income statement, the last item of which is labeled After-tax Operating Income for 2019. (Round you intermediate calculations to 2 decimal places.) SPRING MANUFACTURING COMPANY Budget Income Statement For the Year 2019 C12 D57 Total $ O 0 0 $ 0 $ 0 $ 0 O $ 0 o $ O 0