Will you provide answers to 10.1- 10.10

and 11.1- 11.10

Transcribed image text: 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 pieces is placed. There are presently 10 different figurines that come in six different colors; 60 models. The lamp shades and the electrical parts are supplied from domestic manufacturers. 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 AI 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: Part 1 Fixed and Variable Cost Determinations - Unit Cost Calculations Part 2 Cost Volume Relationships - Profit Planning Part 3 Budgets Part5Part6JobOrderCostingStandardCosting-VarianceAnalysis 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. 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 SEVEN decimal places, $0.0000000. 1. Material Costs are expected to increase by 3.00%. 2. Labor Costs are expected to increase by 5.00%. 3. Variable Overhead is expected to increase by 6.50%. 4. Fixed Overhead is expected to increase to $260,000. 5. Fixed selling expenses are expected to be $35,000 in 202. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 4.50%. 7. Fixed Administrative expenses are expected to increase by $14,000. The total administrative expenses for 200 were $40,320.00, when 22,000 units were sold. Use the High-Low method to calculate the total fixed administrative expense. 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 2.00%. The total administrative expenses for 200 were $40,320.00, when 22,000 units were sold. Use the High-Low method to calculate the variable administrative expense per lamp. On the following schedule develop the following figures: 1- 202 Projected Variable Manufacturing Unit Cost of a lamp. 2- 20x2 Projected Variable Unit Cost per lamp. 3- 202 Projected Fixed Costs. Variable Manufacturing Unit Cost Projected Variable Manufacturing Cost Per Unit Total Variable Cost Per Unit Projected Variable Manufacturing Unit Cost Projected Total Variable Cost Per Unit Schedule of Fixed Costs \begin{tabular}{l} \multicolumn{2}{c}{201 Cost } & \multicolumn{2}{c}{ Projected Increase } & \multicolumn{2}{c|}{ 20x2 Cost Rounded to 2 Decimal Places } \\ \cline { 2 - 6 } \end{tabular} 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 marnin ratin fnr earh lamn enle? Contribution Margin Ratio (Round to seven places, % is two of those places ##.\#\#\##\% For 202 the selling price per lamp will be $45.00. How many lamps must be sold to breakeven? For 202 the selling price per lamp will be $45.00. The desired operating income in 202 is $272,000. What would sales in units have to be in 202 to reach the profit ooal? For 202 the selling price per lamp will be $45.00. The company would like to have a operating income equal to 25.00% of sales. If that is to be achieved, what would be the sales in units in 202 ? Sales in units (Round up to zero places, ###,#\#\# units) If the company believed that it could only sell 25,000 lamps, what would the new selling price have to be so that the new contribution margin per unit is equal to last year's contribution margin per unit? For 202 the selling price per lamp will be $45.00 and the effective tax rate is 40%. How many units must be sold to denerated a oderatina income of $240.000 ater tares? If the company believes that the demand will be 27,500 units for the year. What selling price Der lamo. rounded to two olaces. would aenerate a oderatina income of $827.500 ? Keep in mind that the budget section builds on work from the previous parts, including Part I as well as the Background Information (tabs 1-4). You should continue to use the same file with your previously submitted answers. Division N has decided to develop its budget based upon projected sales of 37,000 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 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 figurines inventory to 675 pieces and increasing the finished goods by 26.00%. Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods (roundup to the next unit) Total Needed Less: Beginning Inventory Total Production . Cost of Goods Sold Budqet - Assume FIFO (First-In, First-Out) and overhead is applied based on the number of units to be produoed. Round dollars to seven places, Cost of making one unit next year Material cost per unit Labor Cost Per Lamp Factory overhead per unit Total cost of one unit (Round to seven places, \$\#\#.\#\#\#\#\#) Round dollars to two places, 8 Gash Giojor Assume actual cash receipts and disbursements will follow the pattern below: (Note: Receivables and Payables of 12/31+1 will have a cash impact in 202. . 1. 20.00% of sales for the year are made in November and December. Since our customers have 60 day terms those funds will be collected be collected in January and February. 2. 82.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February. 3. All other manufacturing and operating costs are paid for when incurred. 4. The budgeted depreciation expense is equal to 0.6% of the fined manufacturing, selling and administrative expenses. 5. Minimum Cash Balance needed for 202,$195,000. I See The Light Projected Cash Budget For the Year Ending December 31, 20=2 202 Cost Founded to 2 en:imal Plan:pe General Information The I See The Light Company has a related company that produces the figurines. They use process costing in the molding department. The factory overhead is applied at a rate of 50% of direct labor dollars. The material is added at the beginning of the process. The labor and overhead costs are assumed to be added uniformly throughout. Month of January Selected information for January is presented below. Note that the applied overhead rate was 50% of direct labor costs in the molding department. Molding Department Goods in-process as of January 1 were 3,400 figurines at a cost of $7,480.00. Of this amount, $1,972.00 was from raw materials added, $3,672.00 for labor and $1,836.00 for overhead. These 3,400 figurines were assumed to be 60.00% complete as to labor and overhead. During January, 24,000 units were started, $13,920.00 of materials and $43,488.00 of labor costs were incurred. The 4,000 figurines that were in-process at the end of January were assumed to be 70.00% complete to labor and overhead. All figurines in January passed inspection. Process Costing - Weighted Average MDLDING Physical Flow of Units Work-in-Process - Beginning Units Started this Period Units to Account for Total transierred out Work-in-Process - Ending 113.01} 113.02} Total Accounted for \begin{tabular}{|l|l|l|l|} \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & \\ \hline Equivalent Units Material (Round to three places, ##.###.###) \end{tabular} 113.03} {13.04}