Smart Touch Learning prepared the following budgets: i (Click the icon to view the budgets.) Smart...

  
 
 
 
 
 
 
 
 
 
 

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Smart Touch Learning prepared the following budgets: i (Click the icon to view the budgets.) Smart Touch Learning has decided to revise its budget to show fourth quarter sales of 700 tablets due to the expectation of increased holiday sales. First quarter sales for the following year are expected to be 700. The company desires to have an ending Finished Goods Inventory each quarter equal to 20% of the next quarter's sales. X Read the requirements. Requirements ****** Requirement 1a. Revise the sales budget. 1. Revise the following budgets: a. Sales budget Smart Touch Learning b. Production budget Sales Budget 2. Describe how the following budgets will be affected (without revising the budgets): For the Year Ended December 31, 2027 a. Direct materials budget First Second Fourth Third Quarter b. Direct labor budget Quarter Quarter Quarter c. Manufacturing overhead budget d. Cost of goods sold budget Budgeted tablets to be sold e. Selling and administrative expense budget Sales price per unit Total sales Total Budgeted tablets to be sold Sales price per unit Total sales Smart Touch Learning Sales Budget For the Year Ended December 31, 2027 First Second Third Quarter Quarter Quarter $ $ 500 550 500 $ 500 $ 250,000 $275,000 $ Fourth Quarter Total 600 650 2,300 500 $ 500 $ 500 300,000 $ 325,000 $1,150,000 Smart Touch Learning Production Budget For the Year Ended December 31, 2027 First Second Third Quarter Quarter Quarter Budgeted tablets to be sold Plus: Desired tablets in ending inventory Total tablets needed Less: Tablets in beginning inventory Budgeted tablets to be produced 500 110 610 200 410 550 120 670 110 560 600 130 730 120 610 Fourth Quarter 650 140 790 130 660 Total 2,300 140 2,440 200 2,240 Direct Materials Budget For the Year Ended December 31, 2027 First Second Quarter Quarter Budgeted tablets to be produced Direct materials (pounds) per tablet Direct materials needed for production Plus: Desired direct materials in ending inventory (pounds) Total direct materials needed Less: Direct materials in beginning inventory (pounds) Budgeted purchases of direct materials Direct materials cost per pound Budgeted cost of direct materials purchases $ LA LA 410 3 1,230 672 1,902 600 1,302 50 $ 65,100 $ 560 3 1,680 732 2,412 672 1,740 50 $ 87,000 $ Third Quarter 610 3 1,830 792 2,622 732 1,890 50 $ 94,500 $ Fourth Quarter 660 3 1,980 852 2,832 792 2,040 50 $ 102,000 $ Total 2,240 3 6,720 852 7,572 600 6,972 50 348,600 Smart Touch Learning Direct Labor Budget For the Year Ended December 31, 2027 First Second Third Quarter Quarter Quarter Budgeted tablets to be produced Direct labor hours per unit Direct labor hours needed for production Direct labor cost per hour Budgeted direct labor cost GA 410 3 1,230 25 $ 30,750 $ 560 3 1,680 25 $ 42,000 $ 610 3 1,830 25 $ 45,750 $ Fourth Quarter 660 3 1,980 25 $ 49,500 $ Total 2,240 3 6,720 25 168,000 Budgeted tablets to be produced VOH cost per tablet Budgeted VOH Budgeted FOH Depreciation Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs Manufacturing Overhead Budget For the Year Ended December 31, 2027 First Second Quarter Quarter 69 GA 410 20 $ 8,200 $ 12,000 15,440 27,440 35,640 $ 560 Third Quarter 610 20 $ 20 $ 11,200 $ 12,200 $ 12,000 12,000 15,440 15,440 27,440 27,440 38,640 $ 39,640 $ Fourth Quarter 660 20 $ 13,200 $ 12,000 15,440 27,440 40,640 $ Total 2,240 20 44,800 48,000 61,760 109,760 154,560 Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate 35,640 $ 1,230 38,640 $ 1,680 39,640 $ 1,830 40,640 $ 1,980 LA LA $ 154,560 6,720 154,560 23 Beginning inventory Tablets produced and sold in 2027 Total budgeted cost of goods sold Smart Touch Learning Cost of Goods Sold Budget For the Year Ended December 31, 2027 First Second Third Quarter Quarter Quarter $ $ 55,000 88,200 $ 161,700 $ 143,200 $ 161,700||$ 176,400 $ 176,400 $ Fourth Quarter $ 191,100 191,100 $ Total 55,000 617,400 672,400 Smart Touch Learning Selling and Administrative Expense Budget For the Year Ended December 31, 2027 First Second Third Fourth Quarter Quarter Quarter Quarter 30,000 $ 30,000 $ 30,000 $ 30,000 $ 25,000 25,000 25,000 25,000 2,500 2,500 2,500 2,500 1,500 1,500 1,500 1,500 2,500 2,750 3,000 3,250 61,500 $ 61,750 $ 62,000 $ 62,250 $ Salaries Expense Rent Expense Insurance Expense Depreciation Expense Supplies Expense* $ Total budgeted selling and administrative expense * Supplies expense is 1% of sales revenue. $ Total 120,000 100,000 10,000 6,000 11,500 247,500 Requirement 1a. Revise the sales budget. Budgeted tablets to be sold Sales price per unit Total sales Smart Touch Learning Sales Budget For the Year Ended December 31, 2027 First Second Third Quarter Quarter Quarter Fourth Quarter Total Requirement 1b. Revise the production budget. Plus: Total tablets needed Less: Budgeted tablets to be produced Smart Touch Learning Production Budget For the Year Ended December 31, 2027 First Second Quarter Quarter Third Quarter Fourth Quarter Total Requirement 2. Describe how the following budgets will be affected (without revising the budgets): a. Direct materials budget: Since production will the amount of direct materials required will : therefore, b. Direct labor budget: The change in production will the amount of labor required; therefore, direct labor costs will c. Manufacturing overhead budget: The change in production will the change in production takes Smart Touch Learning out of its relevant range. d. Cost of goods sold budget: The change in production will ▼ The change in production will have a due to the increase in units sold. e. Selling and administrative expense budget: Fixed selling and administrative costs will Supplies, will with the change in sales. purchases of materials will be required. the amount of variable manufacturing overhead; therefore, variable manufacturing overhead costs will . Fixed costs will units. In other words, the predetermined overhead allocation rate will portion of the total production cost. Therefore, total cost of goods sold will the increase in sales takes Smart Touch Learning out of its relevant range. The variable selling and administrative cost, the production cost per unit because the fixed costs will be distributed among effect on production costs because fixed manufacturing overhead costs are a Smart Touch Learning prepared the following budgets: i (Click the icon to view the budgets.) Smart Touch Learning has decided to revise its budget to show fourth quarter sales of 700 tablets due to the expectation of increased holiday sales. First quarter sales for the following year are expected to be 700. The company desires to have an ending Finished Goods Inventory each quarter equal to 20% of the next quarter's sales. X Read the requirements. Requirements ****** Requirement 1a. Revise the sales budget. 1. Revise the following budgets: a. Sales budget Smart Touch Learning b. Production budget Sales Budget 2. Describe how the following budgets will be affected (without revising the budgets): For the Year Ended December 31, 2027 a. Direct materials budget First Second Fourth Third Quarter b. Direct labor budget Quarter Quarter Quarter c. Manufacturing overhead budget d. Cost of goods sold budget Budgeted tablets to be sold e. Selling and administrative expense budget Sales price per unit Total sales Total Budgeted tablets to be sold Sales price per unit Total sales Smart Touch Learning Sales Budget For the Year Ended December 31, 2027 First Second Third Quarter Quarter Quarter $ $ 500 550 500 $ 500 $ 250,000 $275,000 $ Fourth Quarter Total 600 650 2,300 500 $ 500 $ 500 300,000 $ 325,000 $1,150,000 Smart Touch Learning Production Budget For the Year Ended December 31, 2027 First Second Third Quarter Quarter Quarter Budgeted tablets to be sold Plus: Desired tablets in ending inventory Total tablets needed Less: Tablets in beginning inventory Budgeted tablets to be produced 500 110 610 200 410 550 120 670 110 560 600 130 730 120 610 Fourth Quarter 650 140 790 130 660 Total 2,300 140 2,440 200 2,240 Direct Materials Budget For the Year Ended December 31, 2027 First Second Quarter Quarter Budgeted tablets to be produced Direct materials (pounds) per tablet Direct materials needed for production Plus: Desired direct materials in ending inventory (pounds) Total direct materials needed Less: Direct materials in beginning inventory (pounds) Budgeted purchases of direct materials Direct materials cost per pound Budgeted cost of direct materials purchases $ LA LA 410 3 1,230 672 1,902 600 1,302 50 $ 65,100 $ 560 3 1,680 732 2,412 672 1,740 50 $ 87,000 $ Third Quarter 610 3 1,830 792 2,622 732 1,890 50 $ 94,500 $ Fourth Quarter 660 3 1,980 852 2,832 792 2,040 50 $ 102,000 $ Total 2,240 3 6,720 852 7,572 600 6,972 50 348,600 Smart Touch Learning Direct Labor Budget For the Year Ended December 31, 2027 First Second Third Quarter Quarter Quarter Budgeted tablets to be produced Direct labor hours per unit Direct labor hours needed for production Direct labor cost per hour Budgeted direct labor cost GA 410 3 1,230 25 $ 30,750 $ 560 3 1,680 25 $ 42,000 $ 610 3 1,830 25 $ 45,750 $ Fourth Quarter 660 3 1,980 25 $ 49,500 $ Total 2,240 3 6,720 25 168,000 Budgeted tablets to be produced VOH cost per tablet Budgeted VOH Budgeted FOH Depreciation Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs Manufacturing Overhead Budget For the Year Ended December 31, 2027 First Second Quarter Quarter 69 GA 410 20 $ 8,200 $ 12,000 15,440 27,440 35,640 $ 560 Third Quarter 610 20 $ 20 $ 11,200 $ 12,200 $ 12,000 12,000 15,440 15,440 27,440 27,440 38,640 $ 39,640 $ Fourth Quarter 660 20 $ 13,200 $ 12,000 15,440 27,440 40,640 $ Total 2,240 20 44,800 48,000 61,760 109,760 154,560 Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate 35,640 $ 1,230 38,640 $ 1,680 39,640 $ 1,830 40,640 $ 1,980 LA LA $ 154,560 6,720 154,560 23 Beginning inventory Tablets produced and sold in 2027 Total budgeted cost of goods sold Smart Touch Learning Cost of Goods Sold Budget For the Year Ended December 31, 2027 First Second Third Quarter Quarter Quarter $ $ 55,000 88,200 $ 161,700 $ 143,200 $ 161,700||$ 176,400 $ 176,400 $ Fourth Quarter $ 191,100 191,100 $ Total 55,000 617,400 672,400 Smart Touch Learning Selling and Administrative Expense Budget For the Year Ended December 31, 2027 First Second Third Fourth Quarter Quarter Quarter Quarter 30,000 $ 30,000 $ 30,000 $ 30,000 $ 25,000 25,000 25,000 25,000 2,500 2,500 2,500 2,500 1,500 1,500 1,500 1,500 2,500 2,750 3,000 3,250 61,500 $ 61,750 $ 62,000 $ 62,250 $ Salaries Expense Rent Expense Insurance Expense Depreciation Expense Supplies Expense* $ Total budgeted selling and administrative expense * Supplies expense is 1% of sales revenue. $ Total 120,000 100,000 10,000 6,000 11,500 247,500 Requirement 1a. Revise the sales budget. Budgeted tablets to be sold Sales price per unit Total sales Smart Touch Learning Sales Budget For the Year Ended December 31, 2027 First Second Third Quarter Quarter Quarter Fourth Quarter Total Requirement 1b. Revise the production budget. Plus: Total tablets needed Less: Budgeted tablets to be produced Smart Touch Learning Production Budget For the Year Ended December 31, 2027 First Second Quarter Quarter Third Quarter Fourth Quarter Total Requirement 2. Describe how the following budgets will be affected (without revising the budgets): a. Direct materials budget: Since production will the amount of direct materials required will : therefore, b. Direct labor budget: The change in production will the amount of labor required; therefore, direct labor costs will c. Manufacturing overhead budget: The change in production will the change in production takes Smart Touch Learning out of its relevant range. d. Cost of goods sold budget: The change in production will ▼ The change in production will have a due to the increase in units sold. e. Selling and administrative expense budget: Fixed selling and administrative costs will Supplies, will with the change in sales. purchases of materials will be required. the amount of variable manufacturing overhead; therefore, variable manufacturing overhead costs will . Fixed costs will units. In other words, the predetermined overhead allocation rate will portion of the total production cost. Therefore, total cost of goods sold will the increase in sales takes Smart Touch Learning out of its relevant range. The variable selling and administrative cost, the production cost per unit because the fixed costs will be distributed among effect on production costs because fixed manufacturing overhead costs are a

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As per given details please refer below answer Req 1 a Sales Budget Req 1 b Production Budget Sales ... View the full answer