- Planning And Decision Making Lo 10 4 10 50 Comprehensive Profit Plan Spring Manufacturing Company Makes Two Components 1 (49.24 KiB) Viewed 14 times
- Planning And Decision Making Lo 10 4 10 50 Comprehensive Profit Plan Spring Manufacturing Company Makes Two Components 2 (19.16 KiB) Viewed 14 times
- Planning And Decision Making Lo 10 4 10 50 Comprehensive Profit Plan Spring Manufacturing Company Makes Two Components 3 (44.49 KiB) Viewed 14 times
Planning and Decision Making [LO 10-4] 10-50 Comprehensive Profit Plan Spring Manufacturing
Company makes two components identified as C12 and D57. Selected budgetary data for 2022 follow: Requirements for each finished component: RM 1 RM 2 RM 3 Direct labor Product information: Sales price Sales (units) Estimated beginning inventory (unit) Desired ending inventory (units) Cost per pound Estimated beginning inventory in pounds Desired ending inventory in pounds Indirect materials-variable Miscellaneous supplies and tools-variable Indirect labor-variable Supervision-fixed Payroll taxes and fringe benefits-variable Maintenance costs-fixed Maintenance costs-variable Depreciation-fixed Heat, light, and power-fixed Heat, light, and power-variable Total Advertising Sales salaries Travel and entertainment Depreciation-warehouse Office salaries Executive salaries Supplies Depreciation-office Total Finished Components C12 D57 10 pounds 0 2. Production budget. 3. Direct materials purchases budget (units and dollars). 2 pounds 2 hours $ 150 12,000 400 300 8 pounds 4 pounds The firm expects the average wage rate to be $25 per hour in 2022. Spring Manufacturing uses direct labor hours to apply overhead. Each year the firm determines the overhead application rate for the year based on budgeted direct labor hours for the year. The firm maintains negligible Work-in- Process Inventory and expects the cost per unit for both beginning and ending inventories of finished products to be identical. 1 pound 3 hours $ 220 9,000 Direct Materials Information RM1 $ 2.00 3,000 4,000 RM2 $2.50 1,500 1,000 150 200 Factory Overhead Information $ 10,000 5,000 40,000 120,000 250,000 20,000 10,080 71,330 43,420 11.000 $580.830 RM3 $ 0.50 1,000 1,500 $ 60,000 200,000 60,000 5,000 60,000 250,000 Selling and Administrative Expense Information 4,000 6.000 $ 645,000 The effective income tax rate for the
company is 40 percent. Required Prepare an Excel spreadsheet that contains the following schedules or statements for 2022: 1. Sales budget.
4. Direct labor budget. 5. Factory overhead budget. 6. Cost of goods sold and ending finished goods inventory budgets. 7. Selling and administrative expense budget, broken down into two components: Selling Expenses and Administrative Expenses 8. Budgeted income
statement, the last item of which is labeled After-Tax Operating Income.
calculations/formulas for numbers: I need the 6. Cost of Goods Sold 7. Selling and Admin Expense Budget 8. Budgeted Income
Statement