This is a small project, please read and answer the few questions attached. Please answer the questions in the yellow cells. Thanks.
I SEE THE LIGHT Background Information I SEE THE LIGHT (ISTL) is a subchapter S corporation that manufactures children's lampsightlights for use in bedrooms. These lamps are sold nationwide through a group of independent sales representatives who have an exclusive sales region. The business is in its tenth year and has asked you to assist in planning for next year's operations. The lamps are ceramic figurines of animals, boats, boys and girls playing and singing, all in delightful colors. The owner of the business, Big Al, creates a drawing for the figurine and faxes it to a plant in China where a mold is created and a sample produced and hand painted. If the mold meets the expectations of Big Al an order of 500 lamp parts is placed. Each lamp kit consists of the parts required to complete one lamp; a figurine, a lamp shade and the required electrical components. There are presently 10 different figurines that come in six different colors; 60 models. There are presently 10 workers in the plant. They are responsible for receiving the raw material, manufacturing the product, packing and shipping. In addition to Big Al there are two office workers who are responsible for all administrative duties. Big Al had his accountant prepare the Projected Income Statement and Balance Sheet presented on page two. Big Al heard about your skills in managerial accounting and would like your assistance in the following areas: To upload your work to Big Al the file without changing the name. Pay attention to the specific location that Excel saves the file. Return to the bottom of the page that you downloaded the file from; Cybertext.com, The Book List, Building Blocks of Accounting-A Managerial Perspective, Enter password, Upload Your Excel File. If you upload an old version of the file the results will not update. Keep two copies of your spreadsheet in two separate places in case one of Big Al's competitors sends someone to destroy your work or it is lost in transmission. You may find it easier to work on this project if you print a hard copy of all the pages. NOTE: If there are any questions about the project e-mail markfriedman@miami.edu or call 305.284.6296. Grade will be based upon answers entered into the shaded boxes. I See The Light Projected Income Statement For the Period Ending December 31, 20x1 Sales 25,000 lamps @ $45.00 @ $30.00 $1,125,000.00 Cost of Goods Sold Gross Profit Selling Expenses: Fixed Variable (Commission per unit) @ $3.00 \$23,000.00 Administrative Expenses: Fixed (1) $2.00 $42,000.00 Variable Total Selling and Administrative Expenses: Net Profit I See The Light Projected Balance Sheet As of December 31, 20x1 Current Assets Cash Accounts Receivable Inventory Raw Material Fixed Assets Equipment Accumulated Depreciation \begin{tabular}{cr} & 190,000.00 \\ \hline$185.000.00 \\ \hline \hline \end{tabular} Total Fixed Assets Total Assets $34,710.00 67,500.00 PART 1 Fixed and Variable Cost Determinations Unit Cost Calculations 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: Expected increases for 202 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 4.00%. 3. Variable Overhead is expected to increase by 4.50%. 4. Fixed Overhead is expected to increase to $260,000. 5. Fixed Administrative expenses are expected to increase to $48,000. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 5.50%. 7. Fixed selling expenses are expected to be $39,000 in 202. 8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 4.00%. On the following schedule develop the following figures: 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 2- 20x2 Projected Variable Unit Cost per lamp. 3- 20x2 Projected Fixed Costs. I See The Light, Inc Schedule of Projected Costs Variable Manufacturing Unit Cost Lamp Kit Labor Variable Overhead Projected Variable Manufacturing Cost Per Unit {4.01} {4.02} {4.03} {4.04} Iotal Variable Cost Per Unit Projected Total Variable Cost Per Unit {4.05} {4.06} {4.04} {4.07} Schedule of Fixed Costs Fixed Overhead (normal capacity of lamps @__) Fixed Selling Fixed Administrative Projected Total Fixed Costs {4.08} {4.09} {4.10} {4.11} Cost Volume Relationships - Profit Planning Big Al is about to begin work on the budget for 202 and they have requested that you prepare an analysis based on the following assumptions. Note: Remember, that we cannot sell part of a lamp, therefore to find the number of units you have to round up to the next complete unit. Furthuremore, to find the required sales in dollars it may be easier to find the number of units and then multiply by the selling price per unit. For 202 the selling price per lamp will be $45.00. What is the projected contribution margin and contribution marqin ratio for each lamp sold? Contnbution margin per unit (Round to two places, \$\#\#.\#\#) Contribution Margin Ratio (Round to four places, \% is two of those places \#\#.\#\#\%) For 202 the selling price per lamp will be $45.00. The desired net income in 202 is $207,500. What waild oalse in unito hawa to ha in gnve tn manh tha nmfit anal? For 20x2 the selling price per lamp will be $45.00. If the fixed cost increase by $60,000.00 how many lamps muot ha onld ta hraakauan? Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) Division N has decided to develop its budget based upon projected sales of 29,000 lamps at $53.00 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 7. Budgeted Income Statement 8. Cash Budget Notes for Budgeting: The company wants to maintain the same number of units in the beginning and ending inventories of work-in-process, and electrical parts while increasing the inventory of Lamp Kits to 725 pieces and decreasing the finished goods by 20%. Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods Total Needed Less: Beginning Inventory Total Production I SEE THE LIGHT Background Information I SEE THE LIGHT (ISTL) is a subchapter S corporation that manufactures children's lampsightlights for use in bedrooms. These lamps are sold nationwide through a group of independent sales representatives who have an exclusive sales region. The business is in its tenth year and has asked you to assist in planning for next year's operations. The lamps are ceramic figurines of animals, boats, boys and girls playing and singing, all in delightful colors. The owner of the business, Big Al, creates a drawing for the figurine and faxes it to a plant in China where a mold is created and a sample produced and hand painted. If the mold meets the expectations of Big Al an order of 500 lamp parts is placed. Each lamp kit consists of the parts required to complete one lamp; a figurine, a lamp shade and the required electrical components. There are presently 10 different figurines that come in six different colors; 60 models. There are presently 10 workers in the plant. They are responsible for receiving the raw material, manufacturing the product, packing and shipping. In addition to Big Al there are two office workers who are responsible for all administrative duties. Big Al had his accountant prepare the Projected Income Statement and Balance Sheet presented on page two. Big Al heard about your skills in managerial accounting and would like your assistance in the following areas: To upload your work to Big Al the file without changing the name. Pay attention to the specific location that Excel saves the file. Return to the bottom of the page that you downloaded the file from; Cybertext.com, The Book List, Building Blocks of Accounting-A Managerial Perspective, Enter password, Upload Your Excel File. If you upload an old version of the file the results will not update. Keep two copies of your spreadsheet in two separate places in case one of Big Al's competitors sends someone to destroy your work or it is lost in transmission. You may find it easier to work on this project if you print a hard copy of all the pages. NOTE: If there are any questions about the project e-mail markfriedman@miami.edu or call 305.284.6296. Grade will be based upon answers entered into the shaded boxes. I See The Light Projected Income Statement For the Period Ending December 31, 20x1 Sales 25,000 lamps @ $45.00 @ $30.00 $1,125,000.00 Cost of Goods Sold Gross Profit Selling Expenses: Fixed Variable (Commission per unit) @ $3.00 \$23,000.00 Administrative Expenses: Fixed (1) $2.00 $42,000.00 Variable Total Selling and Administrative Expenses: Net Profit I See The Light Projected Balance Sheet As of December 31, 20x1 Current Assets Cash Accounts Receivable Inventory Raw Material Fixed Assets Equipment Accumulated Depreciation \begin{tabular}{cr} & 190,000.00 \\ \hline$185.000.00 \\ \hline \hline \end{tabular} Total Fixed Assets Total Assets $34,710.00 67,500.00 PART 1 Fixed and Variable Cost Determinations Unit Cost Calculations 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: Expected increases for 202 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 4.00%. 3. Variable Overhead is expected to increase by 4.50%. 4. Fixed Overhead is expected to increase to $260,000. 5. Fixed Administrative expenses are expected to increase to $48,000. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 5.50%. 7. Fixed selling expenses are expected to be $39,000 in 202. 8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 4.00%. On the following schedule develop the following figures: 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 2- 20x2 Projected Variable Unit Cost per lamp. 3- 20x2 Projected Fixed Costs. I See The Light, Inc Schedule of Projected Costs Variable Manufacturing Unit Cost Lamp Kit Labor Variable Overhead Projected Variable Manufacturing Cost Per Unit {4.01} {4.02} {4.03} {4.04} Iotal Variable Cost Per Unit Projected Total Variable Cost Per Unit {4.05} {4.06} {4.04} {4.07} Schedule of Fixed Costs Fixed Overhead (normal capacity of lamps @__) Fixed Selling Fixed Administrative Projected Total Fixed Costs {4.08} {4.09} {4.10} {4.11} Cost Volume Relationships - Profit Planning Big Al is about to begin work on the budget for 202 and they have requested that you prepare an analysis based on the following assumptions. Note: Remember, that we cannot sell part of a lamp, therefore to find the number of units you have to round up to the next complete unit. Furthuremore, to find the required sales in dollars it may be easier to find the number of units and then multiply by the selling price per unit. For 202 the selling price per lamp will be $45.00. What is the projected contribution margin and contribution marqin ratio for each lamp sold? Contnbution margin per unit (Round to two places, \$\#\#.\#\#) Contribution Margin Ratio (Round to four places, \% is two of those places \#\#.\#\#\%) For 202 the selling price per lamp will be $45.00. The desired net income in 202 is $207,500. What waild oalse in unito hawa to ha in gnve tn manh tha nmfit anal? For 20x2 the selling price per lamp will be $45.00. If the fixed cost increase by $60,000.00 how many lamps muot ha onld ta hraakauan? Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) Division N has decided to develop its budget based upon projected sales of 29,000 lamps at $53.00 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 7. Budgeted Income Statement 8. Cash Budget Notes for Budgeting: The company wants to maintain the same number of units in the beginning and ending inventories of work-in-process, and electrical parts while increasing the inventory of Lamp Kits to 725 pieces and decreasing the finished goods by 20%. Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods Total Needed Less: Beginning Inventory Total Production
