Spring Manufacturing Company makes two components identified as C12 and D57. Selected budgetary data for 2019 follow: Finished Components C12 D57 10 pounds 0 2 pounds 2 hours 8 pounds 4 pounds 1 pound 3 hours Requirements for each finished component: RM 1 RM 2 RM 3 Direct labor Product information: Sales price Sales (units) Estimated beginning inventory (units) Desired ending inventory (units) $ 150 12,000 400 300 $ 220 9,000 150 200 Cost per pound Estimated beginning inventory in pounds Desired ending inventory in pounds Direct Materials Information RM1 RM2 RM3 $ 2.00 $ 2.50 $ 0.50 3,000 1,500 1,000 4,000 1,000 1,500 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. 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 Total Factory Overhead Information $ 10,000 5,000 40,000 120,000 250,000 20,000 10,080 71,330 43,420 11,000 $ 580,830 Advertising Sales salaries Travel and entertainment Depreciation-warehouse Office salaries Executive salaries Supplies Depreciation-office Total Selling and Administrative Expense Information $ 60,000 200,000 60,000 5,000 60,000 250,000 4,000 6,000 $ 645,000 The effective income tax rate for the company is 40%. 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. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare the Sales budget for 2019. SPRING MANUFACTURING COMPANY Sales Budget For the Year 2019 C12 D57 Total Sales (in units) Selling price per unit Total sales revenue Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare the Production budget for 2019. SPRING MANUFACTURING COMPANY Production Budget For the Year 2019 C12 D57 Budgeted sales in units) Total units needed Budgeted production (in units) Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare the Direct labor budget for 2019. 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 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required Prepare the Factory overhead budget for 2019. SPRING MANUFACTURING COMPANY Factory Overhead Budget For the Year 2019 Variable factory overhead: Fixed factory overhead: Total cash fixed factory overhead Total budgeted factory overhead Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare the Cost of goods sold and ending finished goods inventory budgets for 2019. (Round "Cost per unit" to 2 decimal places.) SPRING MANUFACTURING COMPANY Ending Finished Goods Inventory and Budgeted CGS For the Year 2019 C12 D57 Total 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 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: Administrative expenses: Total selling and administrative expenses 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
