Division N has decided to develop its budget based upon projected sales of 41,000 lamps at
$46.00 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 inventory of Lamp Kits to 675 pieces and
decreasing the finished goods by 20%.
Complete the following budgets:

(Total production = 40,400 units)

Division N has decided to develop its budget based upon projected sales of 41,000 lamps at
$46.00 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 inventory of Lamp Kits to 675 pieces and
decreasing the finished goods by 20%.
***EDIT: MISSED OUT INFO: 20X2 Costs: * Lamp Kit price/unit = $16.56 * Labor/unit = $2.09 * Projected Variable MO cost/unit = $20.71 * Variable Selling/unit = $3.06 *Variable Admin./unit = $2.05 *Projected Total Variable Cost/unit = $25.82 *Fixed OH = $280,000 *Fixed Selling = $35,000 *Fixed Amin. = $65,000 *Projected Total Fixed Costs = $375,000 *For 20x2 selling price per lamp is $45

MATERIALS BUDGET - Lamp Kits

- Needed for production ???

- Desired Ending Inventory ???

- Total Needed ???

- Beginning Inventory ???

- Cost per piece ??

- Cost of purchase ??

DIRECT LABOR BUDGET

- Labor Cost per Lamp ??

- Total Labor Cost ??

FACTORY OVERHEAD BUDGET

- Total Variable Factory Overhead ???

- Fixed Factory Overhead ???

- Total Fctory Foverhead ???