addition, the company is interested in budgeting for selling and administrative costs, and in creating a budgeted income statement showing a prediction of net income for 20Y2.
You have been asked to assist the controller of LearnCo in preparing the 20Y2 budgets.
none
X
Sales Budget
The sales budget
One of the major elements of the income statement budget that indicates the quantity of estimated sales and the expected unit selling price.
often uses the prior year’s sales as a starting point, and then sales quantities are revised for various factors such as planned advertising and promotion, projected pricing changes, and expected industry and general economic conditions. LearnCo has completed reviewing its prior year’s sales and has prepared the following sales budget.
After reviewing LearnCo’s sales budget, you note that three numbers have been omitted. The company’s controller has told you that the units sold for the Basic and Deluxe models are expected to be the same. Fill in the missing amounts.
LearnCo | |||
Sales Budget | |||
For the Year Ending December 31, 20Y2 | |||
Product | Unit Sales Volume | Unit Selling Price | Total Sales |
Basic Abacus | $8.00 | $288,000 | |
Deluxe Abacus | 432,000 | ||
You are in Column LearnCo Sales Budget For the Year Ending December 31, 20Y2 ProductTotals | 72,000You are in Column LearnCo Sales Budget For the Year Ending December 31, 20Y2 Unit Sales Volume | You are in Column LearnCo Sales Budget For the Year Ending December 31, 20Y2 Unit Selling Price | $720,000You are in Column LearnCo Sales Budget For the Year Ending December 31, 20Y2 Total Sales |
Points:
Feedback
Check My Work
Explanation
none
X
Production Budget
The production budget
A budget of estimated unit production.
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) | ||
Desired ending inventory, December 31, 20Y2 | 1,000 | 3,000 |
Total units available | ||
Estimated beginning inventory, January 1, 20Y2 | (1,050) | (2,100) |
You are in Column LearnCo Production Budget For the Year Ending December 31, 20Y2Total units to be produced | You are in Column LearnCo Production Budget For the Year Ending December 31, 20Y2 | You are in Column LearnCo Production Budget For the Year Ending December 31, 20Y2 |
Points:
Feedback
Check My Work
Explanation
none
X
Direct Materials Purchases Budget
The direct materials purchases budget
A budget that uses the production budget as a starting point to budget materials purchases.
should be integrated with the production budget to ensure that production is not interrupted during the year. This budget estimates the quantities of direct materials to be purchased to support budgeted production, along with desired inventory levels of direct materials.
Before you make any changes to the budget, you review the information in the following Direct Materials Data Table and enter the units to be produced from the Production Budget panel. 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 | $0.20 | |
Beads | $0.20 | |
Units to be produced (from Production Budget): | ||
Basic abacus | ||
You are in Column Direct Materials Data Table Deluxe abacus |
Points:
LearnCo | |||
Direct Materials Purchases Budget | |||
For the Year Ending December 31, 20Y2 | |||
Direct Materials | |||
Wood Pieces | Beads | Total | |
Packages required for production: | |||
Basic abacus | |||
Deluxe abacus | |||
Desired inventory, December 31, 20Y2 | 2,200 | 5,000 | |
Total packages available | |||
Estimated inventory, January 1, 20Y2 | (3,500) | (4,500) | |
Total packages to be purchased | |||
Unit price (per package) | x | x | |
You are in Column LearnCo Direct Materials Purchases Budget For the Year Ending December 31, 20Y2Total direct materials to be purchased | You are in Column LearnCo Direct Materials Purchases Budget For the Year Ending December 31, 20Y2 | You are in Column LearnCo Direct Materials Purchases Budget For the Year Ending December 31, 20Y2 | $58,310 |
LearnCo | |||
Sales Budget | |||
For the Year Ending December 31, 20Y2 | |||
Product | Unit Sales Volume | Unit Selling Price | Total Sales |
Basic Abacus | 36000 | $ 8 | $ 288,000 |
Deluxe Abacus | 36000 | $ 12 | $ 432,000 |
Total | 72000 | $ 720,000 |
LearnCo | ||
Production Budget | ||
For the Year Ending December 31, 20Y2 | ||
Units Basic | Units Deluxe | |
Expected units to be sold (from Sales Budget) | 36000 | 36000 |
Desired ending inventory, December 31, 20Y2 | 1000 | 3000 |
Total units available | 37000 | 39000 |
Estimated beginning inventory, January 1, 20Y2 | -1050 | -2100 |
Units to be produced | 35950 | 36900 |
LearnCo | |||
Direct Materials Purchases Budget | |||
For the Year Ending December 31, 20Y2 | |||
Direct Materials | |||
Wood Pieces | Beads | Total | |
Packages required for production: | |||
Basic abacus | 35950 | 71900 | |
Deluxe abacus | 73800 | 110700 | |
Desired inventory, December 31, 20Y2 | 2200 | 5000 | |
Total packages available | 111950 | 187600 | |
Estimated inventory, January 1, 20Y2 | -3500 | -4500 | |
Total packages to be purchased | 108450 | 183100 | |
Unit price (per package) | $ 0.20 | $ 0.20 | |
Total direct materials to be purchased | $ 21,690 | $ 36,620 | $ 58,310 |
addition, the company is interested in budgeting for selling and administrative costs, and in creating a...
You have been asked to assist the controller of LearnCo in preparing the 20Y2 budgets. none X Sales Budget The sales budget One of the major elements of the income statement budget that indicates the quantity of estimated sales and the expected unit selling price. often uses the prior year’s sales as a starting point, and then sales quantities are revised for various factors such as planned advertising and promotion, projected pricing changes, and expected industry and general economic conditions....
LearnCo Sales Budget For the Year Ending December 31, 20Y2 Product Unit Sales Volume Unit Selling Price Total Sales Basic Abacus $8.00 $288,000 Deluxe Abacus 432,000 Totals 72,000 $720,000 X 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...
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