LearnCo PARAGRAPH IS FOR ASSISTANCE TO HELP WITH THE QUESTIONS IN THE IMAGES ONLY WANT THE IMAGES ANWSERED LearnCo manufactures and sells one product, an abacus for classroom use, with two models, the Basic model and the Deluxe model. The company began operations on January 1, 20Y1, and is planning for 20Y2, its second year of operations, by preparing budgets from its master budget. The company is trying to decide how many units to manufacture, how much it might spend on direct materials and direct labor, and what their factory overhead expenses might be. In 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. Sales Budget The sales budget 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 fill in the blank c4ee4cf7601604b_1 $8 $288,000 Deluxe Abacus fill in the blank c4ee4cf7601604b_2 fill in the blank c4ee4cf7601604b_3 432,000 Totals 72,000   $720,000   Feedback Area   Feedback   Review the preparation of the sales budget and use the information the controller provided. Question Content Area 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 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) fill in the blank ae7e5bffffe4f89_1  fill in the blank ae7e5bffffe4f89_2  Desired ending inventory, December 31, 20Y2 1,000  3,000  Total units available fill in the blank ae7e5bffffe4f89_3  fill in the blank ae7e5bffffe4f89_4  Estimated beginning inventory, January 1, 20Y2 (1,050) (2,100) Total units to be produced fill in the blank ae7e5bffffe4f89_5  fill in the blank ae7e5bffffe4f89_6    Feedback Area   Feedback   Be sure to include the expected units to be sold for each model from the Sales Budget. Then review the preparation of the production budget and how the amounts are computed. Question Content Area Direct Materials Purchases Budget The direct materials purchases budget should be integrated with the production budget to ensure that production is not interrupted during the year. Before you make any changes to the budget, you review the information on the following Direct Materials Data Table and enter the units to be produced from the Production Budget. 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 $0.25     Beads $0.25   Units to be produced (from Production Budget):       Basic abacus fill in the blank f0a29efc5019f8c_1     Deluxe abacus fill in the blank f0a29efc5019f8c_2   LearnCo Direct Materials Purchases Budget For the Year Ending December 31, 20Y2   Direct Materials   Wood Pieces Beads Total Packages required for production:         Basic abacus fill in the blank f0a29efc5019f8c_3  fill in the blank f0a29efc5019f8c_4      Deluxe abacus fill in the blank f0a29efc5019f8c_5  fill in the blank f0a29efc5019f8c_6    Desired inventory, December 31, 20Y2 2,200  5,000    Total packages available fill in the blank f0a29efc5019f8c_7  fill in the blank f0a29efc5019f8c_8    Estimated inventory, January 1, 20Y2 (3,500) (4,500)   Total packages to be purchased fill in the blank f0a29efc5019f8c_9  fill in the blank f0a29efc5019f8c_10    Unit price (per package) × $fill in the blank f0a29efc5019f8c_11  × $fill in the blank f0a29efc5019f8c_12    Total direct materials to be purchased $fill in the blank f0a29efc5019f8c_13  $fill in the blank f0a29efc5019f8c_14  $72,888

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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LearnCo

PARAGRAPH IS FOR ASSISTANCE TO HELP WITH THE QUESTIONS IN THE IMAGES ONLY WANT THE IMAGES ANWSERED

LearnCo manufactures and sells one product, an abacus for classroom use, with two models, the Basic model and the Deluxe model. The company began operations on January 1, 20Y1, and is planning for 20Y2, its second year of operations, by preparing budgets from its master budget.

The company is trying to decide how many units to manufacture, how much it might spend on direct materials and direct labor, and what their factory overhead expenses might be. In 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.

Sales Budget

The sales budget 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 fill in the blank c4ee4cf7601604b_1 $8 $288,000
Deluxe Abacus fill in the blank c4ee4cf7601604b_2 fill in the blank c4ee4cf7601604b_3 432,000
Totals 72,000   $720,000
 

Feedback Area

 
Feedback
 

Review the preparation of the sales budget and use the information the controller provided.

Question Content Area

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 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) fill in the blank ae7e5bffffe4f89_1  fill in the blank ae7e5bffffe4f89_2 
Desired ending inventory, December 31, 20Y2 1,000  3,000 
Total units available fill in the blank ae7e5bffffe4f89_3  fill in the blank ae7e5bffffe4f89_4 
Estimated beginning inventory, January 1, 20Y2 (1,050) (2,100)
Total units to be produced fill in the blank ae7e5bffffe4f89_5  fill in the blank ae7e5bffffe4f89_6 
 

Feedback Area

 
Feedback
 

Be sure to include the expected units to be sold for each model from the Sales Budget. Then review the preparation of the production budget and how the amounts are computed.

Question Content Area

Direct Materials Purchases Budget

The direct materials purchases budget should be integrated with the production budget to ensure that production is not interrupted during the year.

Before you make any changes to the budget, you review the information on the following Direct Materials Data Table and enter the units to be produced from the Production Budget. 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 $0.25  
  Beads $0.25  
Units to be produced (from Production Budget):    
  Basic abacus fill in the blank f0a29efc5019f8c_1  
  Deluxe abacus fill in the blank f0a29efc5019f8c_2  
LearnCo
Direct Materials Purchases Budget
For the Year Ending December 31, 20Y2
  Direct Materials
  Wood Pieces Beads Total
Packages required for production:      
  Basic abacus fill in the blank f0a29efc5019f8c_3  fill in the blank f0a29efc5019f8c_4   
  Deluxe abacus fill in the blank f0a29efc5019f8c_5  fill in the blank f0a29efc5019f8c_6   
Desired inventory, December 31, 20Y2 2,200  5,000   
Total packages available fill in the blank f0a29efc5019f8c_7  fill in the blank f0a29efc5019f8c_8   
Estimated inventory, January 1, 20Y2 (3,500) (4,500)  
Total packages to be purchased fill in the blank f0a29efc5019f8c_9  fill in the blank f0a29efc5019f8c_10   
Unit price (per package) × $fill in the blank f0a29efc5019f8c_11  × $fill in the blank f0a29efc5019f8c_12   
Total direct materials to be purchased $fill in the blank f0a29efc5019f8c_13  $fill in the blank f0a29efc5019f8c_14  $72,888
 
bod.co
Transcribed Image Text:bod.co
Direct Labor Cost Budget
Direct labor needs from the direct labor cost budget should be coordinated between the production and personnel departments so that there will be enough labor available for production.
Before you make any changes to the budget, you review the information on the following Direct Labor Data Table and enter the units to be produced from the Production Budget. After scanning the Direct Labor Cost Budget (which follows the Direct Labor 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 Labor Data Table, or from the sales budget, production budget, and direct materials purchases budget you prepared. When required, round your answers to the nearest dollar.
Direct Labor Data Table
Hours required per unit:
Basic abacus
Deluxe abacus
Labor hourly rate
Gluing
Assembly
Units to be produced (from Production
Budg
Basic abacus
Deluxe abacus
Hours required for production:
Basic abacus
Deluxe abacus
Total
Hourly rate
Total direct labor cost
Feedback
Gluing
Gluing
11
LearnCo
Direct Labor Cost Budget
For the Year Ending December 31, 2012
x
X
LearnCo
Factory Overhead Cost Budget
For the Year Ending December 31, 2012
0.10
0.10
x
$11
$18
X
X
Assembly
0.10
0.20
Assembly
18
X
✓
Total
$277,685
Check My Work
Review an example of the direct labor cost budget, and the computations for each part of the budget. You will need to use the information on the Direct Labor Data Table in your computations.
Factory Overhead Cost Budget
The factory overhead cost budget should be integrated with the production budget to ensure that production is not interrupted during the year. This budget may be supported by departmental schedules, which normally separate factory overhead costs into fixed and variable costs so that department managers may monitor and evaluate costs during the year. For simplicity,
LearnCo has not separated costs in this manner.
After reviewing the following factory overhead cost budget, you note that LearnCo has completed the budget with the exception of one amount. Fill in the missing amount.
Transcribed Image Text:Direct Labor Cost Budget Direct labor needs from the direct labor cost budget should be coordinated between the production and personnel departments so that there will be enough labor available for production. Before you make any changes to the budget, you review the information on the following Direct Labor Data Table and enter the units to be produced from the Production Budget. After scanning the Direct Labor Cost Budget (which follows the Direct Labor 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 Labor Data Table, or from the sales budget, production budget, and direct materials purchases budget you prepared. When required, round your answers to the nearest dollar. Direct Labor Data Table Hours required per unit: Basic abacus Deluxe abacus Labor hourly rate Gluing Assembly Units to be produced (from Production Budg Basic abacus Deluxe abacus Hours required for production: Basic abacus Deluxe abacus Total Hourly rate Total direct labor cost Feedback Gluing Gluing 11 LearnCo Direct Labor Cost Budget For the Year Ending December 31, 2012 x X LearnCo Factory Overhead Cost Budget For the Year Ending December 31, 2012 0.10 0.10 x $11 $18 X X Assembly 0.10 0.20 Assembly 18 X ✓ Total $277,685 Check My Work Review an example of the direct labor cost budget, and the computations for each part of the budget. You will need to use the information on the Direct Labor Data Table in your computations. Factory Overhead Cost Budget The factory overhead cost budget should be integrated with the production budget to ensure that production is not interrupted during the year. This budget may be supported by departmental schedules, which normally separate factory overhead costs into fixed and variable costs so that department managers may monitor and evaluate costs during the year. For simplicity, LearnCo has not separated costs in this manner. After reviewing the following factory overhead cost budget, you note that LearnCo has completed the budget with the exception of one amount. Fill in the missing amount.
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