Utease Corporation has many production plants across the Midwestern United States. A newly opened plant, the Bellingham plant, produces and sells one product. The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows.

Manufacturing costs (per unit based on expected activity of 24,000 units or 36,000 direct labor hours):

Direct materials (2 pounds at $20) $ 40.00

Direct labor (1.5 hours at $90) 135.00

Variable overhead (1.5 hours at $20) 30.00

Fixed overhead (1.5 hours at $30) 45.00

Standard cost per unit $ 250.00

Budgeted selling and administrative costs:

Variable $ 5 per unit

Fixed $ 1,800,000 .00

Expected sales activity: 20,000 units at $425.00 per unit

Desired ending inventories: 10% of sales

Assume this is the first year of operations for the Bellingham plant.

During the year, the company had the following activity.

Units produced 23,000

Units sold 21,500

Unit selling price $ 420

Direct labor hours worked 34,000

Direct labor costs $ 3,094,000

Direct materials purchased 50,000 pounds

Direct materials costs $ 1,000,000

Direct materials used 50,000 pounds

Actual fixed overhead $ 1,080,000

Actual variable overhead $ 620,000

Actual selling/admin costs $ 2,000,000

In addition, all over- or under applied overhead and all product cost variances are adjusted to cost of goods sold.

A.Prepare a production budget for the coming year based on the available standards, expected sales, and desired ending inventories based on the below table and options given.

List to choose from for table

Beginning inventory units

Budgeted unit sales

Cost of Goods Sold

Units budgeted to be available for sale

Please fill in each column Description and Units

(Description)	Units
Choose from list of items above?	?
Add or Less Beginning inventory units OR Add or Less Desired ending inventory of finished Goods?	?
Choose from list of items above?	?
Add or Less Beginning inventory units OR Add or Less Desired ending inventory of finished Goods?	?
Planned production of finished goods	Auto Populates Total

B.Prepare a budgeted responsibility income statement for the Bellingham plant for the coming year. Please fill out table below based on options given.

List to choose from for table

Budgeted unit sales
Cash
Cost of goods sold
Desired ending inventory
Fixed selling and admin expense
Planned production
Salaries Expense
Sales Return and Allowances
Sales Revenue
Variable selling and admin expense

Please fill in each column Description and Dollars

BELLINGHAM PLANT
Budgeted Income Statement
Year Ending December 31, 20
(Description)	Dollars
Choose from list of items above?	?
Choose from list of items above?	?
Choose Gain Loss OR Gain Profit?	Auto Populate
Operating Expenses:	Leave Blank
Choose from list of items above?	?
Choose from list of items above?	?
Choose from list of items above?	?
Choose from list of items above?	?
Total Operating Expenses :	Leave Blank
Choose Operating income OR loss?	Auto Populate

Question is asked according to this table format for both A. and B.