These things the prior wars les as a starting pont, and the sales quantities are used for us factors such as planned promotion projected pricing changes, and expected industry and general economic conditora toat.co has completed reviewing a prler years and has prepared the following sole budget Anur reviewing Luncosas bucket you note that twee numbers are been anned. The company's controller has told you that the intes sold for the base and Delane models are expected to be the same. Fin the missing arounts. Lemo Sales Budget For the Year Ending December 31, 2012 Product Unit Sales Volume Unit Selling Price Total Sales Basic Abacus 36.000 $7.00 $252.000 Deluxe Abacus 36.000 -1300 468,000 Totals 72.000 $720.000 Points 133 Fondhaa Check My Won Review the preparation et me sales budget and use the information the controiter provided Production Budget Shaded cols have feedback The textion badant should be integrated with the sales budget to ensure that production and sales we kept in balance during the year. The production budget estimates the number of units to be manufactured 10 meet budgeted sales and desired inventory levels You note that Loanco has orded a numbers from the following production budget and it in the main amounts you may need to use numbers from sales budget you prepared Learco Production Budget For the Year Ending December 31, 2012 Units Basic Units Deluxe 0.000 36.000 Expected units to be sold (from Sales Budget) Desired ending inventory, December 31, 2012 1,000 3,000 Total units available 37,000 39.000 Estimated beginning inventory, January 1, 2012 (1.050) (2.100) Total units to be produced 35.950 36.900 The direct materials prchases budget should be integrated win the production budget to ensure that production is not interrupted during the year. This budget estimates the quantities of direct materials to be purchased to support budgeted production, along with desired Inventory levels of direct materials. Belove you make any changes to the budget you review the information in the following Direct Materials Date Tatile and enter the units to be produced from the Production Budget panel Ater scanning the direct materials purchases budget (which follows the Direct Materials Data Table) you observe that Loanco nas omited quite a few numbers from the budget for in the missing amount. You may need to use numbers from the Direct Materials Data Table, or from the sales budget and production budget you prepared. When required, round your answers to the nearest dollar Direct Materials Data Table Wood Pieces Beads 1 2 2 3 Packages required pet unit Basie abacus Deluxe abacus Cost per package Wood places Beads Units to be produced (from Production Budget): Basic abacus Deluxe abacus $0.25 $0.25 Points 012 Leamco Direct Materials Purchases Budget For the Year Ending December 31, 20Y2 Direct Materials Wood Pieces Beads Total Packages required for production Basic abacus 35,950 73.800 X Deluxe abacus 71.800 x 101.700 X 2,200 5,000 Desired inventory, December 31, 2012 Total packages available Estimated inventory, January 1, 20Y2 110.080 X (3,500) (4,500) Total packages to be purchased 106.550 X Unit price (per package) 50 25 x Total direct materials to be purchased 5.26.630 X $72,888 Points 2/12 Direct labor needs from the direct labor cost budget should be coordinated between the production and personnel departments so that there will be enough labor available for production Before you make any changes to the budget you review the information in the following Direct Labor Data Table and enter the units to be produced from the Production Budget panel. Aller scanning the Direct Labor Cost Budget (which follows the Direct Labor Data Table) you observe that Leamco has omitted quite a low numbers from the budget. Fal in the missing amounts. You may need to use numbers from the Direct Labor Data Table, or from the sales budget production budget and direct materials purchases budget you prepared. When required, round your answers to the pearest dolar Direct Labor Data Table Gluing Assembly 0.10 0.10 0.10 0.20 Hours required per unit: Basic abacus Deluxe abacus Labor hourly rate Gluing Assembly Units to be produced (from Production Budget): Basic abacus Deluxo abacus $13.00 $17.00 Points 0/2 LearnCo Total Direct Labor Cost Budget For the Year Ending December 31, 20Y2 Gluing Assembly Hours required for production: Basic abacus Deluxe abacus Total Hourly rate Total direct labor cost $281.280 The tactory overhead.cost budent should be integrated with the production budget to ensure that production is not interrupted during the year. This budget may be supported by departmental schedules, which normally separate factory overhead costs into fixed and variable costs so that department managers may monitor and evaluate costs during the year. For simplicity. LeamCo has not separated costs in this manner Amer reviewing the following factory overhead cost budget you note that LearnCo has completed the budget with the exception of one amount. Fu in the missing amount LearnCo Factory Overhead Cont Budget For the Year Ending December 31, 2012 Indirect factory wages $5,400 Power and light Depreciation of plant and equipment 1,450 Total factory overhead cost $18,100 Points 011 The cost of goods so budget integrates the direct materials purchases budget, direct labor cost budget, and factory overhead cost budget. Estimated and desired inventories for direct materials, work in process, and finished goods must also be integrated into the cost of goods sold budget Complete the preparation of the cost of goods sold budget for Learco, using information that follows provided by the controller, and using the previous budgets you have prepared LearnCo Cost of Goods Sold Budget For the Year Ending December 31, 2012 $9,870 $2,010 $2,000 Finished goods inventory, January 1, 20Y2 Work in process inventory, January 1, 2072 Direct materials: Direct materials inventory, January 1, 20Y2 Direct materials purchases Cost of direct materials available for use Direct materials inventory, December 31, 20Y2 Cost of direct materials placed in production $ (1.800) Direct labor Factory overhead (1.250) Total manufacturing costs Total work in process during period Work in process inventory, December 31, 20Y2 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, December 31, 20Y2 Cost of goods sold (1,500) The sales budget is onen used as the starting point for the selling and administrative expenses budget. For example, a budgeted increase in sales may require more advertising expenses. Learco has prepared its seling and administrative expenses budget as follows. This budget is merely reviewed by you for use in the budgeted income statement LearnCo Selling and Administrative Expenses Budget For the Year Ending December 31, 2012 Selling expenses Sales salaries expense $45,000 Advertising expenso 15,000 Travel expense 5,400 Total seling expenses $65,400 Administrative expenses Officers' salaries expense $85,000 Office salaries expense 35,000 26,000 Office rent expense Office supplies expense Miscellaneous administrative expenses 6,400 1,600 154,000 Total administrative expenses Total selling and administrative expenses $219,400 The budgeted income statement is prepared by integrating the sales budget, cost of goods sold budget and selling and administrative expenses budget. Additional information that may be helpful in preparing the budgeted income statement are in the following Budgeted Income Statement Data Table Review the budgeted Income Statement Data Table, then complete the budgeted income statement that follows the table. Round the computed amount for income tax to the nearest whole dollar. Enter all amounts as positive numbers. $2.000 Budgeted Income Statement Data Table Interest revenue for the year Interest expense for the year LeamCo's income tax rate $1,500 40% Question not attempted LearnCo Score: 0/52 Budgeted Income Statement For the Year Ending December 31, 20Y2 1 Revenue from sales 2 Cost of goods sold 3 Gross profit Selling and administrative expenses. Selling expenses Administrative expenses 7 Total selling and administrative expenses Income from operations Other revence and expense 10 Interest revenue 11 Interest expense 12 Income before income tax 13 Income tax 14 Net Income 4. LearnCo's controller believes that the company can decrease its selling expenses by 10% and its administrative expenses by 15%. How much would income before income tax increase if these expense cuts are implemented? Round your answer to the nearest dollar. na MP4