please answer 7.1-10.10 (hilighted only)

Projected Income Statement For the Period Ending December 31, 20x1 25,000 lamps@ $45.00 @$30 00 $23,000.00 (Commission per unit) $3.00 75,000.00 $ 98,000.00 $42,000.00 @ $2.00 50,000.00 92,000 00 Fixed Assets Sales Cost of Goods Sold Gross Profit Selling Expenses Fixed Vanable Administrative Expenses Fixed Variable Total Selling and Administrative Expenses Net Profit Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity I See The Light Projected Balance Sheet As of December 31, 20x1 500 @ $16.00 0 3000@ $30.00 $ 20,000.00 6,800.00 $ 12,000.00 147,410.00 $ 1,125,000.00 750,000.00 $ 375,000.00 190,000.00 $ 185,000 00 $ 34,710.00 67,500.00 8,000.00 90,000.00 $ 200,210.00 13,200.00 $ 213,410.00 54,000.00 54,000.00 $ 159.410.00 $ 213,410.00 Budgets Division N has decided to develop its budget based upon projected sales of 39,000 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: 4 The company wants to maintain the same number of units in the beginning and ending inventories of 5 work-in-process, and electrical parts while increasing the inventory of Lamp Kits to 700 pieces and 4 decreasing the finished goods by 20%. Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods Total Needed Less: Beginning Inventory 00 01 Total Production. 02 03 04 13 39000 2400 41400 3000 33,600 units {7.01) bo 01 02 12 13 14 15 16 26 27 28 29 30 31 32 33 134 135 136 +27) 2 Materials Budget Lamp Kits Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, $##.##) 3 Direct Labor Budget Labor Cost Per Lamp Production Total Labor Cost (Round to two places, $####) 4 Factory Overhead Budget Variable Factory Overhead: Variable Factory Overhead Cost Per Unit Number of Units to be Produced Total Variable Factory Overhead (Round to two places, $####) Fixed Factory Overhead Total Factory Overhead (Round to two places, $####) $ 55 $ $ $ $ $ $ 33,600 units 700 units 34,300 units 500 units 33800 16.56 559,728.00 2.10 70,560.00 70,560.00 260,000.00 330,560.00 (8.01) (8.02) (8.03) (8.04) (8.05) (8.06) (8.07) (8.08) (8.09) (8.10) (8.11) 24 Cost of making one unit next year Cost of one Lamp Kit 25 26 Labor Cost Per Lamp Factory overhead per unit 27 34 35 Total cost of one unit 36 (Round to two places, $####) 37 49 56 Selling and Admin. Budget 57 58 Fixed Selling 59 Variable Selling (Round to two places, $####) 60 Fixed Administrative 67 Variable Administrative (Round to two places, S##.##) 68 Total Selling and Administrative (Round to two places, $## ##) 69 Cost of Goods Sold 70 Budget- 71 Beginning Inventory, Finished Goods 78 Production Costs: 79 Materials: Lamp Kits: 80 81 Beginning Inventory 82 Purchased 89 Available for Use 90 Ending Inventory of Lamp Kits Lamp Kits Used In Production 91 92 106 Total Materials: 107 Labor 108 Overhead. 109 Cost of Goods Available 110 Less: Ending Inventory, Finished Goods 111 Cost of Goods Sold 112 113 114 115 116 117 118 1 5 6 PERR858 78 9 16 10 11 12 13 14 15 16 $ $ $ Round dollars to two places, $## ## $ 90,000.00 8,000.000 559,728.000 567,728.000 $ $ $ 16.56 $ 16.56 $2.10 (9.02) 9.84 28.50 (9.03) 37000 $107,702.00 (9.04) 58000 70,315.00 (9.05) 273,017.00 (9.06) (9.07) 8,694.00 (9.08) (9.09) (9.10) (9.11) (9.12) (9.13) (9.14) SSSSSS 559,034.00 70,560.00 330,560.00 960,154.00 68,400.00 891,754.00 17 18 Present Value Tables B 7 Budgeted Income Statement 9 10 Sales S $ 11 Cost of Goods Sold 12 Gross Profit S 14 Selling Expenses & Admin Expenses. 15 Net Income $ 16 17 18 20 21 22 8 Cash Budget 23 24 Assume actual cash receipts and disbursements will follow the pattern below (Note: Receivables and 26 Payables of 12/31/x1 will have a cash impact in 20x2.) 27 28 1 19.00% 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 29 30 2. 83 00 % of material purchases will be paid during the year, the remaining portion will be paid in Januay or February 32 3. All other manufacturing and operating costs are paid for when incurred. 33 4 The budgeted depreciation expense is equal to 0 6% of the fixed manufacturing, selling and administrative expenses. 34 5 Minimum Cash Balance needed for 20x2. $190,000 35 I See The Light Projected Cash Budget 36 38 For the Year Ending December 31, 20x2 Round dollars to two places, S Beginning Cash Balance $ 34,710 000 Cash inflows Sales Collections Account Receivable (Sales last year not collected) 67,500.00 made and collected in 20x2 1,314 400 00 Sales Cash Available 1,416,610.00 Cash Outflows Purchases Accounts Payable (Purchases last year) 33.800.000 428 413 44 Purchases made and paid for in 20x2 Other Manufacturing Costs Direct Labor Total Manufacturing Overhead Selling and Administrative Less Depreciation Total Cash Outflows 60 61 Budgeted Cash Balance before financing Minimum Balance Needed 170,000.000 Amount to be borrowed (if any) 66 Budgeted Cash Balance 67 89523244935883858885223386882EN 40 41 47 50 51 57 70 71 72 5 S S $ $ s 1.125,000.00 891,754.00 233,246 00 $273,017 00 506,263 00 (10.01) (1002) (10.03) (1004) (10.05) (1006) (1007) (1008) (10.09) (10.10) B D E G H Big Al is about to begin work on the budget for 2002 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 unts 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 20x2 the selling price per lamp will be $45.00. What is the projected contribution margin and contribution margin ratio for each lamp sold? Contribution Margin per unit (Round to two places, ses a Contribution Margin Ratio (Round to four places, % is two of those places # %) 2 For 20x2 the selling price per lamp will be $45.00. The desired net income in 20x2 is $195,000 What would sales in units have to be in 20x2 to reach the profit goal? Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit needed) 36 873 For 20x2 the selling price per lamp will be $45.00 the fixed cost encrease by $45,000 00 how many lamps must be sold to breakeven? 95 96 57 98 99 106 107 105 109 110 111 Breakeven sales in units (ince we cannot sell part of a unit round up to the net unde 113 114 115 116 157 118 115 1:20 121 122 123 124) 125 125 127 $19.03 (5.01) 42 2954 (502) (503) 28.902 unt 21,020 units (5:04) Variable Manufacturing Unit Cost 10 16 Lamp Kit 17 Labor 18 Vanable Overhead 19 20 Projected Variable Manufacturing Cost Per Unit 26 27 28 29 Total Variable Cost Per Unit 30 36 Variable Selling 37 Variable Administrative 38 Projected Variable Manufacturing Unit Cost 39 40 45 Projected Total Variable Cost Per Und 47 50 Schedule of Fored Costs 56 57 Faxed Overhead 50 (normal capacity of 50 Fixed Seling 60 Foxed Administrative 66 67 Projected Total Fixed Costs 68 3 636466 49 70 76 77 1881 *** I See The Light, Inc Schedule of Projected Costs 20x1 Cost lamps @_) 20x1 Cost 20x1 Cost 16 1 2 3 4 5 6 7 8 2 2 3 2 Projected Percent Increase A Projected Percent Increase Projected Percent Increase 9 $ 5 $ 20x2 Cost Rounded to 2 Decimal Places $16.56 $2.10 $2.12 $20.78 20x2 Cost Rounded to 2 Decimal Places 3 3.14 205 ( 5 19 (4 25.97 (4) 260,000.00 (4.08 (4.09 37,000.00 58,000.00 (410 355,000,00 (411) 12 12 $ 10 11 20x2 Cost (4 Total com of one unit Round to two places Sess 6 Selling and Admin Budget Fixed Selling Variable Selling (Round to two places Sess) Fixed Administrative Variable Administrative (Round to two places $288) Total Selling and Administrative Round to two places, SP.) Cost of Goods Sold Budget Ammune FIFQ (Fink: In Fir Outland overbead is applied based on the aumber of units to be produced. Beginning Inventory. Finished Goods Production Cost Materials Lamp Kit Beginning Inventory Purchased Available for Use Ending Inventory of Lamp Kits Lamp Kits Used in Production Total Materials Labor Overhead Cost of Goods Available Less Ending Inventory, Finished Goods Cost of Goods Sold X X X X X 29 82 41000 $98.270.00 50000 $ 65,720.00 3 254,900.00 Round dollars to two places SENA $ 90,000.00 $ 8,000.000 $ 510,016,000 4 516.015.000 $ 12.480.00 505536 505.536.00 62.320.00 338.732.00 996.085.00 71,565.00 924,520.00 $ 5 5 $ $ $ (964) (9.05) (9.06) (907) 19.08) (9.09) (9:10) 19.113 (9.12) 19.13) (914) Projected Income Statement For the Period Ending December 31, 20x1 25,000 lamps@ $45.00 @$30 00 $23,000.00 (Commission per unit) $3.00 75,000.00 $ 98,000.00 $42,000.00 @ $2.00 50,000.00 92,000 00 Fixed Assets Sales Cost of Goods Sold Gross Profit Selling Expenses Fixed Vanable Administrative Expenses Fixed Variable Total Selling and Administrative Expenses Net Profit Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity I See The Light Projected Balance Sheet As of December 31, 20x1 500 @ $16.00 0 3000@ $30.00 $ 20,000.00 6,800.00 $ 12,000.00 147,410.00 $ 1,125,000.00 750,000.00 $ 375,000.00 190,000.00 $ 185,000 00 $ 34,710.00 67,500.00 8,000.00 90,000.00 $ 200,210.00 13,200.00 $ 213,410.00 54,000.00 54,000.00 $ 159.410.00 $ 213,410.00 Budgets Division N has decided to develop its budget based upon projected sales of 39,000 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: 4 The company wants to maintain the same number of units in the beginning and ending inventories of 5 work-in-process, and electrical parts while increasing the inventory of Lamp Kits to 700 pieces and 4 decreasing the finished goods by 20%. Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods Total Needed Less: Beginning Inventory 00 01 Total Production. 02 03 04 13 39000 2400 41400 3000 33,600 units {7.01) bo 01 02 12 13 14 15 16 26 27 28 29 30 31 32 33 134 135 136 +27) 2 Materials Budget Lamp Kits Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, $##.##) 3 Direct Labor Budget Labor Cost Per Lamp Production Total Labor Cost (Round to two places, $####) 4 Factory Overhead Budget Variable Factory Overhead: Variable Factory Overhead Cost Per Unit Number of Units to be Produced Total Variable Factory Overhead (Round to two places, $####) Fixed Factory Overhead Total Factory Overhead (Round to two places, $####) $ 55 $ $ $ $ $ $ 33,600 units 700 units 34,300 units 500 units 33800 16.56 559,728.00 2.10 70,560.00 70,560.00 260,000.00 330,560.00 (8.01) (8.02) (8.03) (8.04) (8.05) (8.06) (8.07) (8.08) (8.09) (8.10) (8.11) 24 Cost of making one unit next year Cost of one Lamp Kit 25 26 Labor Cost Per Lamp Factory overhead per unit 27 34 35 Total cost of one unit 36 (Round to two places, $####) 37 49 56 Selling and Admin. Budget 57 58 Fixed Selling 59 Variable Selling (Round to two places, $####) 60 Fixed Administrative 67 Variable Administrative (Round to two places, S##.##) 68 Total Selling and Administrative (Round to two places, $## ##) 69 Cost of Goods Sold 70 Budget- 71 Beginning Inventory, Finished Goods 78 Production Costs: 79 Materials: Lamp Kits: 80 81 Beginning Inventory 82 Purchased 89 Available for Use 90 Ending Inventory of Lamp Kits Lamp Kits Used In Production 91 92 106 Total Materials: 107 Labor 108 Overhead. 109 Cost of Goods Available 110 Less: Ending Inventory, Finished Goods 111 Cost of Goods Sold 112 113 114 115 116 117 118 1 5 6 PERR858 78 9 16 10 11 12 13 14 15 16 $ $ $ Round dollars to two places, $## ## $ 90,000.00 8,000.000 559,728.000 567,728.000 $ $ $ 16.56 $ 16.56 $2.10 (9.02) 9.84 28.50 (9.03) 37000 $107,702.00 (9.04) 58000 70,315.00 (9.05) 273,017.00 (9.06) (9.07) 8,694.00 (9.08) (9.09) (9.10) (9.11) (9.12) (9.13) (9.14) SSSSSS 559,034.00 70,560.00 330,560.00 960,154.00 68,400.00 891,754.00 17 18 Present Value Tables B 7 Budgeted Income Statement 9 10 Sales S $ 11 Cost of Goods Sold 12 Gross Profit S 14 Selling Expenses & Admin Expenses. 15 Net Income $ 16 17 18 20 21 22 8 Cash Budget 23 24 Assume actual cash receipts and disbursements will follow the pattern below (Note: Receivables and 26 Payables of 12/31/x1 will have a cash impact in 20x2.) 27 28 1 19.00% 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 29 30 2. 83 00 % of material purchases will be paid during the year, the remaining portion will be paid in Januay or February 32 3. All other manufacturing and operating costs are paid for when incurred. 33 4 The budgeted depreciation expense is equal to 0 6% of the fixed manufacturing, selling and administrative expenses. 34 5 Minimum Cash Balance needed for 20x2. $190,000 35 I See The Light Projected Cash Budget 36 38 For the Year Ending December 31, 20x2 Round dollars to two places, S Beginning Cash Balance $ 34,710 000 Cash inflows Sales Collections Account Receivable (Sales last year not collected) 67,500.00 made and collected in 20x2 1,314 400 00 Sales Cash Available 1,416,610.00 Cash Outflows Purchases Accounts Payable (Purchases last year) 33.800.000 428 413 44 Purchases made and paid for in 20x2 Other Manufacturing Costs Direct Labor Total Manufacturing Overhead Selling and Administrative Less Depreciation Total Cash Outflows 60 61 Budgeted Cash Balance before financing Minimum Balance Needed 170,000.000 Amount to be borrowed (if any) 66 Budgeted Cash Balance 67 89523244935883858885223386882EN 40 41 47 50 51 57 70 71 72 5 S S $ $ s 1.125,000.00 891,754.00 233,246 00 $273,017 00 506,263 00 (10.01) (1002) (10.03) (1004) (10.05) (1006) (1007) (1008) (10.09) (10.10) B D E G H Big Al is about to begin work on the budget for 2002 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 unts 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 20x2 the selling price per lamp will be $45.00. What is the projected contribution margin and contribution margin ratio for each lamp sold? Contribution Margin per unit (Round to two places, ses a Contribution Margin Ratio (Round to four places, % is two of those places # %) 2 For 20x2 the selling price per lamp will be $45.00. The desired net income in 20x2 is $195,000 What would sales in units have to be in 20x2 to reach the profit goal? Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit needed) 36 873 For 20x2 the selling price per lamp will be $45.00 the fixed cost encrease by $45,000 00 how many lamps must be sold to breakeven? 95 96 57 98 99 106 107 105 109 110 111 Breakeven sales in units (ince we cannot sell part of a unit round up to the net unde 113 114 115 116 157 118 115 1:20 121 122 123 124) 125 125 127 $19.03 (5.01) 42 2954 (502) (503) 28.902 unt 21,020 units (5:04) Variable Manufacturing Unit Cost 10 16 Lamp Kit 17 Labor 18 Vanable Overhead 19 20 Projected Variable Manufacturing Cost Per Unit 26 27 28 29 Total Variable Cost Per Unit 30 36 Variable Selling 37 Variable Administrative 38 Projected Variable Manufacturing Unit Cost 39 40 45 Projected Total Variable Cost Per Und 47 50 Schedule of Fored Costs 56 57 Faxed Overhead 50 (normal capacity of 50 Fixed Seling 60 Foxed Administrative 66 67 Projected Total Fixed Costs 68 3 636466 49 70 76 77 1881 *** I See The Light, Inc Schedule of Projected Costs 20x1 Cost lamps @_) 20x1 Cost 20x1 Cost 16 1 2 3 4 5 6 7 8 2 2 3 2 Projected Percent Increase A Projected Percent Increase Projected Percent Increase 9 $ 5 $ 20x2 Cost Rounded to 2 Decimal Places $16.56 $2.10 $2.12 $20.78 20x2 Cost Rounded to 2 Decimal Places 3 3.14 205 ( 5 19 (4 25.97 (4) 260,000.00 (4.08 (4.09 37,000.00 58,000.00 (410 355,000,00 (411) 12 12 $ 10 11 20x2 Cost (4 Total com of one unit Round to two places Sess 6 Selling and Admin Budget Fixed Selling Variable Selling (Round to two places Sess) Fixed Administrative Variable Administrative (Round to two places $288) Total Selling and Administrative Round to two places, SP.) Cost of Goods Sold Budget Ammune FIFQ (Fink: In Fir Outland overbead is applied based on the aumber of units to be produced. Beginning Inventory. Finished Goods Production Cost Materials Lamp Kit Beginning Inventory Purchased Available for Use Ending Inventory of Lamp Kits Lamp Kits Used in Production Total Materials Labor Overhead Cost of Goods Available Less Ending Inventory, Finished Goods Cost of Goods Sold X X X X X 29 82 41000 $98.270.00 50000 $ 65,720.00 3 254,900.00 Round dollars to two places SENA $ 90,000.00 $ 8,000.000 $ 510,016,000 4 516.015.000 $ 12.480.00 505536 505.536.00 62.320.00 338.732.00 996.085.00 71,565.00 924,520.00 $ 5 5 $ $ $ (964) (9.05) (9.06) (907) 19.08) (9.09) (9:10) 19.113 (9.12) 19.13) (914)