Sundancer Boats, Inc. manufactures paddle boats in various colors for 5-Star Resorts. Prepare the 2021 Income Statement based on the following information: 1. Luckily, the company got word of the huge increase in plastic and metal prices. They adjusted their actual unit selling price for the year to $4,750. However, they didn't sell the budgeted 675, they only sold 625 boats. 2. Based off the ACTUAL COSTS determined in 2021, compute the Supplemental Schedule for COGS. "Hint Use Actual Standard Costs from Tab CH24 Standard Costs 3. Fixed cost for 2021 were as follows: Building and Equipment Depreciation Company Insurance Company Advertising Administrative Salaries and Benefits $65,000 $24,000 $125,000 $350,000 4. Management had to borrow some money from the bank to start the business five years ago. As a result, they still have some interest expense. It is $10,000 per year. Management anticipates a 21% tax rate for the next several years. Sales "Cost of goods sold Gross profit Selling and administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net Income Sundancer, Inc. Income Statement For the Year Ended December 31, 2021 Supplemental Schedule - COGS Cost per Unit Cost Element Plastic Parts Direct materials: Metal Parts Direct materials: Paint and Stickers Direct materials: Direct labor Quantity Unit Cost Total pounds pounds pounds hour Manufacturing overhead - machine hours Total COGS per Unit hour Sundancer Boats, Inc. manufactures paddle boats in various colors for 5-Star Resorts. Management is preparing the budget for 2022 and has asked for the accountants help. Last year was a tough year with price increases and a decrease in unit sales. Prepare the 2022 budget. You should use: 1. Information provided for you within each Budget section below. 2. The 2021 Actual Cost information from the "CH24 Standard Costs" tab as the 2022 Standard Cost Budget. Sales in 2021 were 625 units. The company worked hard to bring on some new customers in 2022. Overall, they are expecting a 20% increase in units overall from 2021. Management will keep the increase of the selling price of the boats at $4,750 because they already fear of pricing themselve out of the market. Sundancer, Inc. Sales Budget For the Year Ended December 31, 2022 Expected sales units Unit selling price Total sales At the end of 2021, there were 75 boats left in inventory to sell in 2022. They would like to budget to end 2022 with 10 completed and finished units. Sundancer, Inc. Production Budget Expected sales units For the Year Ended December 31, 2022 Add: Desired ending finished goods units (ending balance 2022) Total required units Less: Beginning finished goods units (ending balance 2021) Required production units Management ended 2021 with some direct materials on hand. They would also like to end 2022 with some direct materials on hand as well. Expected 2022 Pounds Expected 2022 Cost Per Pound Use the 2021 Actual Cost Information for: Per Unit Plastic Parts Direct materials: Metal Parts Direct materials: Paint and Stickers Direct materials: Actual Ending Expected Ending Balance 2021 Balance 2022 2,000 1,000 3,000 1,500 50 25 Required production units Sundancer, Inc. Direct Materials Budget For the Year Ended December 31, 2022 Plastic Parts Direct materials pounds per unit produced: Total pounds needed for production Add: Desired ending direct materials in pounds (ending balance 2022) Total materials required Less: Beginning direct materials in pounds (ending balance 2021) Direct materials purchases Cost per pound Total cost of Plastic Parts direct materials purchases Required production units Metal Parts Direct materials pounds per unit produced: Total pounds needed for production Add: Desired ending direct materials in pounds (ending balance 2022) Total materials required Less: Beginning direct materials in pounds (ending balance 2021) Direct materials purchases Cost per pound Total cost of Metal Parts direct materials purchases Required production units Paint and Stickers Direct materials pounds per unit produced: Total pounds needed for production Add: Desired ending direct materials in pounds (ending balance 2022) Total materials required Less: Beginning direct materials in pounds (ending balance 2021) Direct materials purchases Cost per pound Total cost of Paint and Stickers direct materials purchases Total cost of ALL direct materials purchases Use the 2021 Actual Cost Information for: 1. Direct Labor hours per Boat and 2. Direct Labor cost per hour Units to be produced Direct labor time (hours) per unit Total required direct labor hours Direct labor cost per hour Total direct labor cost. Sundancer, Inc. Direct Labor Budget For the Year Ended December 31, 2022 Use the 2021 Actual Cost Information for: 1. Machine Overhead hours per Boat and 2. Machine Overhead cost per hour Sundancer, Inc. Manufacturing Overhead Budget For the Year Ended December 31, 2022 Units to be produced Machine hours per unit Total required machine hours Machine cost per hour Total manufacturing overhead Management also anticipates the following fixed costs, some anticipated changes from last year: Building and Equipment Depreciation Company Insurance Company Advertising Administrative Salaries and Benefits Fixed expenses Building and Equipment Depreciation Company Insurance Company Advertising Administrative salaries and benefits Total selling and administrative expenses Sundancer, Inc. Selling and Administrative Expense Budget For the Year Ended December 31, 2022 $55,000 $18,000 $150,000 $360,000 Management had to borrow some money from the bank to start the business five years ago. They finally paid off the loan in 2021. Therefore, there is no interest expense. Management anticipates a 21% tax rate for for the next several years. Sundancer, Inc. Budget Income Statement For the Year Ended December 31, 2022 Sales "Cost of goods sold Gross profit Selling and administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net Income "Supplemental Schedule - COGS Cost Budget per Unit Cost Element Plastic Parts Direct materials: Metal Parts Direct materials: Paint and Stickers Direct materials: Direct labor Manufacturing overhead - machine hours Total COGS Budget per Unit Quantity Unit Cost Total pounds pounds pounds hour hour