Question

I See The Light Projected Balance Sheet As of December 31, 20x1 $ 34,710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets 8,90.00 8,000.00 500 @ $16.00 0 3000 @ $30.00 $ 90,000.00 200,210.00 $ Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 20,000.00 6,800.00 13,200.00 213,410.00 $ $ $ 54,000.00 54,000.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 147,410.00 159,410.00 213,410.00 $

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

I See The Light
Desired ending inventory of Finished Goods= 20% less than the opening quantity		Note
Balance as of Dec 20X1	3,000.00	A
20% of balance	600.00	B=A*20%
Desired ending inventory	2,400.00	C=A-B

Answer 1			Answer No.
Production Budget	Units	Note
Projected Sales	43,000.00
Add: Desired ending inventory of Finished Goods	2,400.00	See C
Total Needed	45,400.00
Less: Beginning Inventory	3,000.00
Total Production	42,400.00	D	Ans to 7.01
Answer 2
Materials budget
Lamp Kits		Note
Total Production	42,400.00	See D
Number of Lamp Kits needed for producing 1 unit	1.00	E
Needed for production of lamps	42,400.00	F=D*E	Ans to 8.01
Add: Desired ending inventory	750.00		Ans to 8.02
Total Needed	43,150.00		Ans to 8.03
Less: Beginning Inventory (opening balance)	500.00		Ans to 8.04
Total Purchases	42,650.00	G
Cost per piece	16.00	H	Ans to 8.05
Cost of purchases	682,400.00	I=G*H	Ans to 8.06
Calculation of Labor Costs		Note
Current Labor Cost per lamp	2.00	J
Increase by 6%	0.12	K=J*6%
Revised Labor Cost per lamp	2.12	L=J+K
Production of lamps	42,400.00	See D	Ans to 8.07
Total Labor Cost	89,888.00	M=L*D	Ans to 8.08
Variable Factory Overhead Budget		Note
Calculation of Variable Factory Overhead
Variable Factory Overhead per lamp	2.00	N
Increase by 4.5%	0.09	O=N*4.5%
Revised Variable Factory Overhead per lamp	2.09	P=N+O
Production of lamps	42,400.00	See D
Total Variable Factory Overhead	88,616.00	Q=P*D	Ans to 8.09
Fixed Factory Overhead	285,000.00	R	Ans to 8.10
Total Factory Overhead	373,616.00	S=Q+R	Ans to 8.11