The following information was provided by Hitchen$$s widget store for July $31,202$X$.$ They make two products: R$2$D$2$ & C$3$P$0.$ Both items use $2$ of the $3$ listed materials: Nada, Yada, and Bozo.

Presented below is monthly sales data for the two widgets:

R$2$D$2$ C$3$P$0$

Expected unit sales $7,200$ units $11,500$ units

Expected price$/$unit $$220$ $$150$

Beginning product inventory $700$ units $300$ units

Desired ending product inventory $500$ units $500$ units

Direct materials $-$ R$2$D$2$ uses Nada and C$3$P$0$ uses Yada for production. Both products require a Bozo.

Nada $($R$2$D$2$ only$)$ Yada $($C$3$P$0$ only$)$ Bozo $($both Products$)$

Material $/$ unit $6\mathrm{.}25$ ft $4\mathrm{.}8$ ft $1$ unit

Beginning DM Inv. $9,600$ ft $6,200$ ft $450$

Ending DM Inv $4,000$ ft $8,000$ ft $300$

Costs are $$3\mathrm{.}75$ per foot of Nada

Costs are $$2\mathrm{.}75$ per foot of Yada

Bozo$$s cost $$7\mathrm{.}85$ each

Direct Labor $-$ Each product requires the time listed below.

R$2$D$2$ C$3$P$0$

Process #$12$ hours$/$unit $1$ hour$/$unit DL rate $$14\mathrm{.}50/$hr$.$

Process #$22\mathrm{.}5$ hours$/$unit $1\mathrm{.}5$ hours$/$ unit DL rate $$18/$hr$.$

Factor Overhead is broken into variable and fixed costs. Variable costs are estimated by DL hour of Process #$1(2$ hours for R$2$D$2$ and $1$ hour for C$3$P$0.$ Fixed Costs are divided based on percent of Process #$1$ hours.

Variable Overhead Fixed Overhead

Indirect Materials $($$$3\mathrm{.}5/$hr$)$ Supervisor salary $$97,000$

Indirect Labor $($$$4\mathrm{.}8/$hr$)$ Depreciation $$60,000$

Utilities $($$$2\mathrm{.}50/$hr$)$ Property taxes and ins. $$48,500$

Other Selling and Admin Expenses:

Advertising $$160,000$

Sales salaries $$489,000$

Office salaries $$136,000$

Income Tax percentage $=30\%$

Instructions:

Using the attached template fill$-$in sheet, complete all Income Statement budgets. Show all work for each budget

$1.$ Sales budget $$ Determine total sales for each item and the combined total.

$2.$ Production budget $$ Determine total units to be produced for each item and in total.

$3.$ Direct Materials budget $$ Determine total feet and total cost of each material and in total.

$4.$ Direct Labor budget $$ Determine total hours and wage cost for each process and in total.

$5.$ Factory O$.$H$.$ budget $$ Determine the total variable cost, total fixed cost and manufacturing rate$/$hour using the cost driver.

$6.$ Determine the Cost of Goods Sold for each item and in total.

$7.$ Prepare the budgeted income statement for July $31,202$X