Product	Unit Sales Volume	Unit Selling Price	Total Sales
Basic Abacus	fill in the blank b2c596ffbfdffd3_1	$7	$252,000
Deluxe Abacus	fill in the blank b2c596ffbfdffd3_2	fill in the blank b2c596ffbfdffd3_3	468,000
Totals	72,000		$720,000

Review the preparation of the sales budget and use the information the controller provided.

Production Budget

The production budget should be integrated with the sales budget to ensure that production and sales are kept in balance during the year. The production budget estimates the number of units to be manufactured to meet budgeted sales and desired inventory levels.

You note that LearnCo has omitted six numbers from the following production budget and fill in the missing amounts. You may need to use numbers from the sales budget you prepared.

LearnCo Production Budget For the Year Ending December 31, 20Y2
	Units Basic	Units Deluxe
Expected units to be sold (from Sales Budget)	fill in the blank 074473073fe604e_1	fill in the blank 074473073fe604e_2
Desired ending inventory, December 31, 20Y2	1,000	3,000
Total units available	fill in the blank 074473073fe604e_3	fill in the blank 074473073fe604e_4
Estimated beginning inventory, January 1, 20Y2	(1,050)	(2,100)
Total units to be produced	fill in the blank 074473073fe604e_5	fill in the blank 074473073fe604e_6

Be sure to include the expected units to be sold for each model from the Sales Budget. Then review the preparation of the production budget and how the amounts are computed.

Direct Materials Purchases Budget

The direct materials purchases budget should be integrated with the production budget to ensure that production is not interrupted during the year.

Before you make any changes to the budget, you review the information on the following Direct Materials Data Table and enter the units to be produced from the Production Budget. After scanning the direct materials purchases budget (which follows the Direct Materials 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 Materials Data Table, or from the sales budget and production budget you prepared. When required, round your answers to the nearest dollar.

Direct Materials Data Table
	Wood Pieces	Beads
Packages required per unit:
Basic abacus	1	2
Deluxe abacus	2	3
Cost per package:
Wood pieces	$0.25
Beads	$0.25
Units to be produced (from Production Budget):
Basic abacus	fill in the blank babc8c0d4fd1f86_1
Deluxe abacus	fill in the blank babc8c0d4fd1f86_2

LearnCo Direct Materials Purchases Budget For the Year Ending December 31, 20Y2
	Direct Materials
	Wood Pieces	Beads	Total
Packages required for production:
Basic abacus	fill in the blank babc8c0d4fd1f86_3	fill in the blank babc8c0d4fd1f86_4
Deluxe abacus	fill in the blank babc8c0d4fd1f86_5	fill in the blank babc8c0d4fd1f86_6
Desired inventory, December 31, 20Y2	2,200	5,000
Total packages available	fill in the blank babc8c0d4fd1f86_7	fill in the blank babc8c0d4fd1f86_8
Estimated inventory, January 1, 20Y2	(3,500)	(4,500)
Total packages to be purchased	fill in the blank babc8c0d4fd1f86_9	fill in the blank babc8c0d4fd1f86_10
Unit price (per package)	$fill in the blank babc8c0d4fd1f86_11	$fill in the blank babc8c0d4fd1f86_12
Total direct materials to be purchased	$fill in the blank babc8c0d4fd1f86_13	$fill in the blank babc8c0d4fd1f86_14	$72,888

Feedback Area

Feedback

Review an example of the direct materials purchases budget, and the computations for each part of the budget. You will need to use the information on the Direct Materials Data Table in your computations.

Question Content Area

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	$18
Units to be produced (from Production Budget):
Basic abacus	fill in the blank f30c45fe3fa6014_1
Deluxe abacus	fill in the blank f30c45fe3fa6014_2

LearnCo Direct Labor Cost Budget For the Year Ending December 31, 20Y2
	Gluing	Assembly	Total
Hours required for production:
Basic abacus	fill in the blank f30c45fe3fa6014_3	fill in the blank f30c45fe3fa6014_4
Deluxe abacus	fill in the blank f30c45fe3fa6014_5	fill in the blank f30c45fe3fa6014_6
Total	fill in the blank f30c45fe3fa6014_7	fill in the blank f30c45fe3fa6014_8
Hourly rate	$fill in the blank f30c45fe3fa6014_9	$fill in the blank f30c45fe3fa6014_10
Total direct labor cost	$fill in the blank f30c45fe3fa6014_11	$fill in the blank f30c45fe3fa6014_12	$284,970