Winter Company manufacturer 2 products, Blue and White. The company predicts that sales in January 2021 and ending inventory in December 2020 of both products are as follows:

	Blue	White
Sales (in units)	50,000	70,000
Ending Inventory (in units)	5,500	7,000

Company gives information that sales per product every month will increase 40% from the earlier month. Then the monthly ending finished goods inventory will be 60% of the following month estimated sales.

Winter Company stated information about raw materials that needed to make these products:

Raw Materials	Cost per Pound	Required for Blue	Required for White
A	$5	4	6
Z	$10	8	10

Product Blue needs 3 hours of forming and 2 hour of finishing time, while product White needs 5 hours of roaming and 3 hours of finishing time. The direct labour rate for both products are the same, $6.5/hour for forming and $4,5/hour for finishing.

Winter expects variable costs to fluctuate with production volume on the basis of the following rates per direct labor hour: indirect materials $1.00, indirect labor $1.40, utilities $0.40, and maintenance $0.20. Winter Company also recognizes a total overhead fixed cost for each type of raw material $17,500.

Additional Information:

Product Blue Price: $180

Product White Price: $225

Budgeted Selling and Administrative Expense, January: $500,000

Expected Interest Expense, January: $100,000

Expected Income Tax Expense, January: $250,000

Prepare the production budget for product Blue and White for 2 month (January & February))!

	Blue	White
Unit Sales (January)	blank	blank
Unit Sales (February)	blank	blank
Unit Sales (March)	blank	blank

	Blue	White
Desired Ending Inventory (January)	blank	blank
Desired Ending Inventory (February)	blank	blank

Winter Company
Production Budget
For the Coming Year (in Units)
	Product Blue		Product White
	January	February	January	February
Sales (in units)	blank	blank	blank	blank
Desired Ending Inventory	blank	blank	blank	blank
Total Needs	blank	blank	blank	blank
Less: Beg. Inventory	\(#,##0\\)","3":1}"> blank	\(#,##0\\)","3":1}" data-sheets-formula="=-R[-2]C[-1]"> blank	\(#,##0\\)","3":1}"> blank	\(#,##0\\)","3":1}" data-sheets-formula="=-R[-2]C[-1]"> blank
Units to be Produced	blank	blank	blank	blank

Prepare material usage budget (in pounds and dollars) for material A and Z for 2 months!

Winter Company
Material Usage Budget
For the Coming Year (in Units)
Product Blue	January		February
	A	Z	A	Z
Units to be Produced	blank	blank	blank	blank
DM per Unit	blank	blank	blank	blank
DM to be Purchased	\(#,##0\\)","3":1}" data-sheets-formula="=R[-2]C[0]*R[-1]C[0]"> blank	\(#,##0\\)","3":1}" data-sheets-formula="=R[-2]C[0]*R[-1]C[0]"> blank	\(#,##0\\)","3":1}" data-sheets-formula="=R[-2]C[0]*R[-1]C[0]"> blank	\(#,##0\\)","3":1}" data-sheets-formula="=R[-2]C[0]*R[-1]C[0]"> blank
Cost per Material	blank	blank	blank	blank
Total Purchase Cost	blank	blank	blank	blank

How much total purchase cost for all raw materials in 2 months (in buying the direct raw material) of Winter Company?

Product Blue	January	A	blank
		Z	blank
	February	A	blank
		Z	blank
Product White	January	A	blank
		Z	blank
	February	A	blank
		Z	blank
TOTAL			blank

Prepare the direct labor budget (in hours and dollars) for product Blue for two months!

Winter Company
Direct Labour Budget (for Product Blue)
For the Coming Year (in Units)
Product Blue	January		February
	A	Z	A	Z
Units to be Produced	blank	blank	blank	blank
DL time per unit (in hours)	blank	blank	blank	blank
Total hours needed	\(#,##0\\)","3":1}" data-sheets-formula="=R[-2]C[0]*R[-1]C[0]"> blank	\(#,##0\\)","3":1}" data-sheets-formula="=R[-2]C[0]*R[-1]C[0]"> blank	\(#,##0\\)","3":1}" data-sheets-formula="=R[-2]C[0]*R[-1]C[0]"> blank	\(#,##0\\)","3":1}" data-sheets-formula="=R[-2]C[0]*R[-1]C[0]"> blank
Wage per hour	blank	blank	blank	blank
Total DL Cost	blank	blank	blank	blank

B. Prepare the overhead budget for Product Blue for January!

Winter Company
Manufacturing Overhead Budget (for Product Blue)
For January
Product Blue	January
	A	Z
Indirect Material ($1/hour)	blank	blank
Indirect Labor ($1.4/hour)	blank	blank
Utilities ($0.4/hour)	blank	blank
Maintenance ($0.2/hour)	blank	blank
Total Variable Cost	blank	blank
Total Fixed Cost	blank	blank
Total Manufacturing overhead	blank	blank
Direct Labors	\(#,##0\\)","3":1}" data-sheets-formula="=R[-18]C[0]"> blank	\(#,##0\\)","3":1}" data-sheets-formula="=R[-18]C[0]"> blank
MOH rate per DL Hours	blank	blank

C. Calculate the unit COGS for Product Blue for January!

Product Blue	A			Z
	Quantity	Unit Cost	Total	Quantity	Unit Cost	Total
Direct Material	blank	blank	blank	blank	blank	blank
Direct Labor	blank	blank	blank	blank	blank	blank
Manufacturing Overhead	blank	blank	blank	blank	blank	blank
Total Unit Cost (A+Z)						blank

D. Prepare the Income Statement budget for Product Blue for January!

Winter Company
Income Statement Budget (for Product Blue)
For January
Sales	blank
COGS	blank
Gross Profit	blank
Selling and administrative expense	blank
Income from operation	blank
Interest expense	blank
Income before taxes	blank
Income tax expense	blank
Net Income	blank

260,400 173,000 (7,000) 8 (58,800) (42,000) $4.50 694,400 121,800 $3,654,000 $781,200 2 121,520 58,800 (5,500) 180,320 $1,730,000 $12,180,000 98,000 $778,500 347,200 86,500 $1,692,600 3 346,000 92,000 137,200 692,000 5 $1,736,000 $6.50 10 $48,961,600 86,800 $12,152,000 $6,920,000 50,000 42,000 $1,686,750 128,800 4 70,000 173,600 82,320 $3,645,600 $6,944,000 259,500

$17,500 $173,000 $51,900 $242,200 3.1 $536,500 $103,800 $259,500 $363,300 $519,000 173,000 $69,200 $778,500 259,500 $796,000 $34,600 3.07

$9.00 $3.10 8 3 4 6.5 $5.00 $10.00 $20 $80.00 $6.20 $3.07 $9 $5.00 $144 2 $4.50

$500,000.00 $250,000 $100,000 $1,804,769 $1,204,769 $7,195,231 $1,304,769 $954,769 $9,000,000