The first 3 slides are information to answer the question. Please only answer the yellow box!

The first 3 slides are information to answer the question. Please only answer the yellow boxes!

I See The Light Projected Income Statement For the Period Ending December 31, 20x1 $ 1,125,000.00 750,000.00 $ 375,000.00 Sales 25,000 lamps @ $45.00 Cost of Goods Sold @ $30.00 Gross Profit Selling Expenses: Fixed Variable (Commission per unit) @ $3.00 Administrative Expenses: Fixed Variable @ $2.00 Total Selling and Administrative Expenses: Net Profit $ 23,000.00 75,000.00 $ 98,000.00 $42,000.00 50,000.00 92,000.00 190,000.00 $ 185,000.00 Fixed and Variable Cost Determinations Unit Cost Calculations The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are: Lamp Kit Direct Labor Variable Overhead: Fixed Overhead: $16.0000000 per lamp 2.0000000 per lamp (4 lamps/hr.) 20000000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps) Cost per lamp: $30.0000000 per lamp 6 Expected increases for 20x2 37 When calculating projected increases round to TWO ($0.00) decimal places 26 1. Material Costs are expected to increase by 5.00% 47 48 49 2. Labor Costs are expected to increase by 3.50% 50 59 3. Variable Overhead is expected to increase by 3.00%. 60 61 4. Fixed Overhead is expected to increase to $275,000 62 63 5. Fixed Administrative expenses are expected to increase to $50,000 72 73 6. Variable selling expenses (measured on a per lamp basis) are expected to increase 74 by 4.50% 75 76 7. Fixed selling expenses are expected to be $29,000 in 20x2 85 86 8. Variable administrative expenses (measured a per lamp basis) are expected to 87 increase by 2.00% 89 On the following schedule develop the following figures 98 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp 99 100 2- 20x2 Projected Variable Unit Cost per lamp 101 102 3- 20x2 Projected Fixed Costs. 61111 Fixed and Variable Cost Determinations Unit Cost Calculations The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are: Lamp Kit Direct Labor Variable Overhead: Fixed Overhead: $16.0000000 per lamp 2.0000000 per lamp (4 lamps/hr.) 20000000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps) Cost per lamp: $30.0000000 per lamp 5 6 Expected increases for 20x2 37 When calculating projected increases round to TWO ($0.00) decimal places. 46 47 1. Material Costs are expected to increase by 5.00% 48 49 2 Labor Costs are expected to increase by 3,50%. 50 59 3. Variable Overhead is expected to increase by 3.00% 60 61 4. Fixed Overhead is expected to increase to $275,000 62 63 5. Fixed Administrative expenses are expected to increase to $50,000 72 73 6. Variable selling expenses (measured on a per lamp basis) are expected to increase 74 by 4.50%. 75 76 7. Fixed selling expenses are expected to be $29,000 in 20x2 85 86 8. Variable administrative expenses (measured a per lamp basis) are expected to 87 increase by 2.00% 88 89. On the following schedule develop the following figures 98 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp 99 100 2- 20x2 Projected Variable Unit Cost per lamp 101 102 3- 20x2 Projected Fixed Costs 11 E F PART 3 Budgets Division N has decided to develop its budget based upon projected sales of 31,000 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 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 600 pieces and 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 Total Production {7.01) 2 Materials Budget 42.400 units 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, St# ### {8.01) {8.02) {8.03) {8.04) 500 units + {8.05) {8.06) 3 Direct Labor Budget {8.07) Labor Cost Per Lamp Production Total Labor Cost (Round to two places, S####) {8.08) 4 Factory Overhead Budget Variable Factory Overhead: Variable Factory Overhead Cost Per Unit Number of Units to be Produced Total Vanable Factory Overhead (Round to two places, SAW.##) Fixed Factory Overhead {8.09) (8.10) Total Factory Overhead (Round to two places, $####) 373.616.00 {8.11) 9 0 1 2 3 34 35 36 I See The Light Projected Income Statement For the Period Ending December 31, 20x1 $ 1,125,000.00 750,000.00 $ 375,000.00 Sales 25,000 lamps @ $45.00 Cost of Goods Sold @ $30.00 Gross Profit Selling Expenses: Fixed Variable (Commission per unit) @ $3.00 Administrative Expenses: Fixed Variable @ $2.00 Total Selling and Administrative Expenses: Net Profit $ 23,000.00 75,000.00 $ 98,000.00 $42,000.00 50,000.00 92,000.00 190,000.00 $ 185,000.00 Fixed and Variable Cost Determinations Unit Cost Calculations The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are: Lamp Kit Direct Labor Variable Overhead: Fixed Overhead: $16.0000000 per lamp 2.0000000 per lamp (4 lamps/hr.) 20000000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps) Cost per lamp: $30.0000000 per lamp 6 Expected increases for 20x2 37 When calculating projected increases round to TWO ($0.00) decimal places 26 1. Material Costs are expected to increase by 5.00% 47 48 49 2. Labor Costs are expected to increase by 3.50% 50 59 3. Variable Overhead is expected to increase by 3.00%. 60 61 4. Fixed Overhead is expected to increase to $275,000 62 63 5. Fixed Administrative expenses are expected to increase to $50,000 72 73 6. Variable selling expenses (measured on a per lamp basis) are expected to increase 74 by 4.50% 75 76 7. Fixed selling expenses are expected to be $29,000 in 20x2 85 86 8. Variable administrative expenses (measured a per lamp basis) are expected to 87 increase by 2.00% 89 On the following schedule develop the following figures 98 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp 99 100 2- 20x2 Projected Variable Unit Cost per lamp 101 102 3- 20x2 Projected Fixed Costs. 61111 Fixed and Variable Cost Determinations Unit Cost Calculations The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are: Lamp Kit Direct Labor Variable Overhead: Fixed Overhead: $16.0000000 per lamp 2.0000000 per lamp (4 lamps/hr.) 20000000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps) Cost per lamp: $30.0000000 per lamp 5 6 Expected increases for 20x2 37 When calculating projected increases round to TWO ($0.00) decimal places. 46 47 1. Material Costs are expected to increase by 5.00% 48 49 2 Labor Costs are expected to increase by 3,50%. 50 59 3. Variable Overhead is expected to increase by 3.00% 60 61 4. Fixed Overhead is expected to increase to $275,000 62 63 5. Fixed Administrative expenses are expected to increase to $50,000 72 73 6. Variable selling expenses (measured on a per lamp basis) are expected to increase 74 by 4.50%. 75 76 7. Fixed selling expenses are expected to be $29,000 in 20x2 85 86 8. Variable administrative expenses (measured a per lamp basis) are expected to 87 increase by 2.00% 88 89. On the following schedule develop the following figures 98 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp 99 100 2- 20x2 Projected Variable Unit Cost per lamp 101 102 3- 20x2 Projected Fixed Costs 11 E F PART 3 Budgets Division N has decided to develop its budget based upon projected sales of 31,000 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 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 600 pieces and 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 Total Production {7.01) 2 Materials Budget 42.400 units 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, St# ### {8.01) {8.02) {8.03) {8.04) 500 units + {8.05) {8.06) 3 Direct Labor Budget {8.07) Labor Cost Per Lamp Production Total Labor Cost (Round to two places, S####) {8.08) 4 Factory Overhead Budget Variable Factory Overhead: Variable Factory Overhead Cost Per Unit Number of Units to be Produced Total Vanable Factory Overhead (Round to two places, SAW.##) Fixed Factory Overhead {8.09) (8.10) Total Factory Overhead (Round to two places, $####) 373.616.00 {8.11) 9 0 1 2 3 34 35 36