The first three slides are just information to answer the yellowboxes. Please only answer the yellow boxes that dont yet have answers in them!
I See The Light Projected Income Statement For the Period Ending December 31, 20x1 $ 1,125,000.00 750,000.00 $ 375,000.00 Sales 25,000 lamps @ $45.00 Cost of Goods Sold @ $30.00 Gross Profit Selling Expenses: Fixed Variable (Commission per unit) @ $3.00 Administrative Expenses: Fixed Variable @ $2.00 Total Selling and Administrative Expenses: Net Profit $ 23,000.00 75,000.00 $ 98,000.00 $ 42,000.00 50,000.00 92,000.00 190,000.00 $ 185,000.00 I See The Light Projected Balance Sheet As of December 31, 20x1 $ 34,710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets 8,000.00 500 @ $16.00 0 3000 @ $30.00 90,000.00 $ 200,210.00 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets $ 20,000.00 6,800.00 13,200.00 $ 213,410.00 $ $ 54,000.00 54,000.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 147.410.00 159,410.00 $ 213.410.00 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: Direct Labor Variable Overhead: Fixed Overhead: $16.0000000 per lamp 2.0000000 per lamp (4 lamps/hr.) 2.0000000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps) Cost per lamp $30.0000000 per lamp Expected increases for 20x2 When calculating projected increases round to TWO ($0.00) decimal places. 1. Material Costs are expected to increase by 5.00% 2. Labor Costs are expected to increase by 3.50%. 3. Variable Overhead is expected to increase by 3.00% 4. Fixed Overhead is expected to increase to $275,000. 5. Fixed Administrative expenses are expected to increase to $50,000. 3 6. Variable selling expenses (measured on a per lamp basis) are expected to increase 4 by 4.50% 5 6 7. Fixed selling expenses are expected to be $29,000 in 20x2. 5 6 8. Variable administrative expenses (measured a per lamp basis) are expected to 7 increase by 2.00% 8 39 On the following schedule develop the following figures: 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 88 39 00 01 02 2- 20x2 Projected Variable Unit Cost per lamp. 3- 20x2 Projected Fixed Costs Division N has decided to develop its budget based upon projected sales of 31.000 lamps at $51.00 per lamp The company has requested that you prepare a master budget for the year. This budget is to be used for planning and control of operations and should be composed of 1. Production Budget 2. Materials Budget 3. Direct Labor Budget 4. Factory Overhead Budget 5. Selling and Administrative Budget 6. Cost of Goods Sold Budget 3 7. Budgeted Income Statement 7 8. Cash Budget B 9 Notes for Budgeting: 0 3 4 The company wants to maintain the same number of units in the beginning and ending inventories of 5 work-in-process, and electrical parts while increasing the inventory of Lamp Kits to 600 pieces and 6 decreasing the finished goods by 20% 7 0 Complete the following budgets 1 2 1 Production Budget 3 54 Planned Sales 57 Desired Ending Inventory of Finished Goods 58 Total Needed 59 Less Beginning Inventory 50 51 Total Production {7.01) 55 2 Materials Budget 42.400 units Lamp Kits Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places. S## ###) {8.01) {8.02) (8.03} (8.04) 500 units {8.05) {8.06) 3 Direct Labor Budget {8.07) Labor Cost Per Lamp Production Total Labor Cost (Round to two places, S#####) {8.08) 4 Factory Overhead Budget Variable Factory Overhead: Varable Factory Overhead Cost Per Unit Number of Units to be Produced Total Variable Factory Overhead (Round to two places, $## ##) Fixed Factory Overhead 3 {8.09) (8.10) 1 Total Factory Overhead (Round to two places, $####) $ 373.616.00 {8.11) 3
