A B C D E *#Complete table below to calculate the Cost of Goods Sold*#* LMN Manufacturing Budgeted income Statement For the Year Ended December 31, 2022 (Absorption costing basis) Sales Cost of goods sold (complete table below first ) Gross margin Selling and Administrative expenses Net operating income Interest expense Net income $ 267,722.00 The calculation of Cost of Good Sold requires calculating the Cost of Goods Manufactured first. Using the table below fill in the numbers to calculate the Cost of Goods Sold: Beginning Raw Materials Plus: Purchases Less: Ending Raw Materials (enter as a negative number) 26 Equals: Raw materials used 27 Plus: Direct Labor 28 Plus: Manufacturing Overhead 29 Equals: Cost of Goods Manufactured 30 Plus: Beginning Finished Goods value 31 Less; Ending Finished Goods value (enter as a negative number) 32 Equals: Cost of Goods Sold (move to the Income Statement) 33 34 3 Direct Materials Budget | 4 Direct Labor Budget | 5 Manufacturing OH | 6 End Finished Goods Inv Ready 1% Accessibility: Investigate 290F Cloudy Q SearchInsert Page Layout Formulas Data Review View Help ome Cut Calibri 11 A A 29 Wrap Text Copy BIU A Merge & Center $ ~ % Format Painter Alignment Num ipboard Font :XV fx B C D Blue highlighted boxes should contain answers Yellow highlighted boxes will turn green to indicate a correct answer Total Assets and Total Liabilities & Equity section will be accepted with a plus/minus of $20.00 due to rounding LMN Manufacturing Budgeted Balance Sheet December 31, 2022 Assets Current Assets: Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets $ Plant and Equipment Buildings and equipment Accumulated depreciation (enter has a negative number) Plant and equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Stockholders' equity: Common stock, no par Retained earnings (complete the table below ) Total stockholders' equity Total liabilities and stockholders' equity Calculation of Retained Earnings for 2022 4 Direct Labor Budget 5 Manufacturing OH | 6 End Finished Goods Inv Budget 1% Accessibility: Investigate 7 Selling & Admin Exp Bud 1 29-F Cloudy Q SearchAlignment Font Clipboard :XVfx C D B Raw materials inventory Finished goods inventory S Total current assets Plant and Equipment Buildings and equipment Accumulated depreciation (enter has a negative number ) Plant and equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Stockholders' equity: Common stock, no par Retained earnings (complete the table below ) Total stockholders' equity Total liabilities and stockholders' equity Calculation of Retained Earnings for 2022 December 31, 2021 Retained Earnings Add: Net Income from the Income Statement Deduct: Dividends paid (enter as a negative) December 31, 2022 Retained Earnings 4 Direct Labor Budget | 5 Manufacturing OH | 6 End Finished Goods Inv Budget | 7 Selling & Admin Exp B Ready Accessibility; Investigate 29 F Cloudy Q SearchAcc2610 Project 2 v3-3.xisx & Download @ Info X Close Page 2 > of 13 - ZOOM + The company's chief financial officer (CFO), in consultation with various managers across the organization has developed the following set of assumptions to help create the 2022 budget: 1 The budgeted unit sales are 12,000 units, 37,000 units, 15,000 units and 25,000 units for quarters 1-4, respectively. Notice that the company experiences peak sales in the second and fourth quarters. The budgeted selling price for the year is $34 per unit. The budgeted unit sales for the first quarter of 2023 are 13,000 units 2 All sales are on credit. Uncollectible accounts are negligible and can be ignored. The company reports that 75% percent of all credit sales are collected in the quarter of the sale and 25% are collected in the subsequent quarter. 3 Each quarter's ending finished goods inventory should equal 15% of the next quarter's unit sales 4 Each unit of finished goods requires 3.25 yards of raw material that costs $3.50 per yard. Each quarter's ending raw materials inventory should equal 10% of the next quarter's production needs. The estimated ending inventory on December 31, 2022 is 5,000 yards 5 70% of each quarter's purchases are paid for in the quarter of the purchase. The remaining 30% of each quarter's purchases are paid in the following quarter 6 Direct laborers are paid $20 an hour and each unit of finished goods requires 0.25 direct labor-hours to complete. All direct labor costs are paid for in the quarter incurred 7 The budgeted variable manufacturing overhead per direct labor-hour is $3.50. The quarterly fixed manufacturing overhead is $160,000 including $20,000 of depreciation on equipment. The number of direct labor hours is used as the allocation base for the budgeted plantwide overhead rate. All overhead costs (excluding depreciation) are paid in the quarter incurred 8 The budgeted variable selling and administrative expense is $1.25 per unit sold. The fixed selling and administrative expenses per quarter include advertising of $20,000, executive salaries of $65,000, insurance of $13,000, property tax of $8,000 and depreciation expense of $8,000. All selling and administrative expenses (excluding depreciation) are paid in the quarter they are incured. 9 The company plans to maintain a minimum cash balance at the end of each quarter of $35,000. Assume that any borrowing takes place on the first day of the quarter and must be in increments of $1,000. Interest on the borrowings is recorded at the end of the year. To the extent possible the company will repay principal and all interest on any borrowings on the last day of the fourth quarter. The company's lender imposed a simple interest rate of 5% on the balance per quarter on any borrowings 10 Dividends of $15,000 will be declared and paid in each quarter 11 The company uses last-in, first-out (LIFO) inventory flow assumption. This means that the most recently purchased raw materials are the "first-out" to use in production and most recently completed finished goods are the "first-out" to customers