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LearnCo Sales Budget LearnCo Sales Budget For the Year Ending December 31, 20Y2 Product Unit Sales...

LearnCo

Sales Budget

LearnCo
Sales Budget
For the Year Ending December 31, 20Y2

Product
Unit Sales
Volume
Unit Selling
Price
Total
Sales
Basic Abacus 36000 $8 $288,000
Deluxe Abacus 36000 12 432,000
Totals 72,000 $720,000

Production Budget

LearnCo
Production Budget
For the Year Ending December 31, 20Y2
Units Basic Units Deluxe
Expected units to be sold (from Sales Budget) 36000 36000
Desired ending inventory, December 31, 20Y2 1,000 3,000
Total units available 37000 39000
Estimated beginning inventory, January 1, 20Y2 (1,050) (2,100)
Total units to be produced 35950 36900

Direct Materials Purchases Budget

Direct Materials Data Table
Wood Pieces Beads
Packages required per unit:
  Basic abacus 1 2
  Deluxe abacus 2 3
Cost per package:
  Wood pieces $0.20
  Beads $0.20
Units to be produced (from Production Budget):
  Basic abacus 35950
  Deluxe abacus 36900
LearnCo
Direct Materials Purchases Budget
For the Year Ending December 31, 20Y2
Direct Materials
Wood Pieces Beads Total
Packages required for production: 35950 71900
  Basic abacus 73800 110700
  Deluxe abacus
Desired inventory, December 31, 20Y2 2,200 5,000
Total packages available 111950 187600
Estimated inventory, January 1, 20Y2 (3,500) (4,500)
Total packages to be purchased 108450 183100
Unit price (per package) × $ .20 × $ .20
Total direct materials to be purchased $ 21690 $ 36620 $58,310

Direct Labor Cost Budget

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 on the following Direct Labor Data Table and enter the units to be produced from the Production Budget. After scanning the Direct Labor Cost Budget (which follows the Direct Labor Data Table), you observe that LearnCo has omitted quite a few numbers from the budget. Fill 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 nearest dollar.

Direct Labor Data Table
Gluing Assembly
Hours required per unit:
  Basic abacus 0.10 0.10
  Deluxe abacus 0.10 0.20
Labor hourly rate:
  Gluing $12
  Assembly $17
Units to be produced (from Production Budget):
  Basic abacus 35950
  Deluxe abacus 36900
LearnCo
Direct Labor Cost Budget
For the Year Ending December 31, 20Y2
Gluing Assembly Total
Hours required for production:
  Basic abacus 3595 3595
  Deluxe abacus 3690 7380
Total 7285 10975
Hourly rate × $12 × $17
Total direct labor cost $87420 $186575 $273,995


Factory Overhead Cost Budget

LearnCo
Factory Overhead Cost Budget
For the Year Ending December 31, 20Y2
Indirect factory wages $5,400
Power and light 11250
Depreciation of plant and equipment 1,450
Total factory overhead cost $18,100

Cost of Goods Sold Budget- I need help with this one!

LearnCo
Cost of Goods Sold Budget
For the Year Ending December 31, 20Y2
Finished goods inventory, January 1, 20Y2 $9,870
Work in process inventory, January 1, 20Y2 $2,010
Direct materials:
  Direct materials inventory, January 1, 20Y2 $1,600
  Direct materials purchases
  Cost of direct materials available for use $
  Direct materials inventory, December 31, 20Y2 (1,440)
  Cost of direct materials placed in production $
Direct labor
Factory overhead
Total manufacturing costs
Total work in process during period $
Work in process inventory, December 31, 20Y2 (1,250)
Cost of goods manufactured
Cost of finished goods available for sale $
Finished goods inventory, December 31, 20Y2 (1,500)
Cost of goods sold $

Selling/Admin. Expenses Budget- I need help with this one!

LearnCo
Selling and Administrative Expenses Budget
For the Year Ending December 31, 20Y2
Selling expenses:
  Sales salaries expense $45,000
  Advertising expense 15,000
  Travel expense 5,400
Total selling expenses $65,400
Administrative expenses:
  Officers' salaries expense $85,000
  Office salaries expense 35,000
  Office rent expense 26,000
  Office supplies expense 6,400
  Miscellaneous administrative expenses 1,600
Total administrative expenses 154,000
Total selling and administrative expenses $219,400

Budgeted Income Statement-I need help with this one!

Budgeted Income Statement Data Table
Interest revenue for the year $2,000
Interest expense for the year $1,500
LearnCo’s income tax rate 40%
LearnCo
Budgeted Income Statement
For the Year Ending December 31, 20Y2
Revenue from sales $
Cost of goods sold
Gross profit $
Selling and administrative expenses:
  Selling expenses $
  Administrative expenses
    Total selling and administrative expenses
Operating income $
Other revenue and expense:
  Interest revenue $
  Interest expense
Income before income tax $
Income tax
Net income $

Solutions

Expert Solution

  • Requirements asked

LearnCo

Cost of Goods Sold Budget

For the Year Ending December 31, 20Y2

Finished goods inventory, January 1, 20Y2

$9,870

Work in process inventory, January 1, 20Y2

$2,010

Direct materials:

  Direct materials inventory, January 1, 20Y2

$1,600

  Direct materials purchases

$58,310

  Cost of direct materials available for use

$59,910

  Direct materials inventory, December 31, 20Y2

($1,440)

  Cost of direct materials placed in production

$61,350

Direct labor

$273,995

Factory overhead

$18,100

Total manufacturing costs

$353,445

Total work in process during period

$355,455

Work in process inventory, December 31, 20Y2

($1,250)

Cost of goods manufactured

$354,205

Cost of finished goods available for sale

$364,075

Finished goods inventory, December 31, 20Y2

($1,500)

Cost of goods sold

$365,575

LearnCo

Budgeted Income Statement

For the Year Ending December 31, 20Y2

Revenue from sales

$720,000

Cost of goods sold

$365,575

Gross profit

$354,425

Selling and administrative expenses:

  Selling expenses

$65,400

  Administrative expenses

$154,000

    Total selling and administrative expenses

$219,400

Operating income

$135,025

Other revenue and expense:

  Interest revenue

$2,000

  Interest expense

($1,500)

$500

Income before income tax

$135,525

Income tax

$54,210

Net income

$81,315


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