Light Up Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available for the year 2020. (Click the icon to view the information.) Calculate (1) the cost of goods sold budget (label it Schedule 7) (2) the operating (nonmanufacturing) costs budget (label it Schedule 8) and (3) the operating income budget for the year endi December312020. ← (1). Begin by calculating (1) the cost of goods sold budget (label it Schedule 7) for the year ending December 31, 2020. Schedule 7: Cost of Goods Sold Budget for the Year Ending December 31, 2020 Data table Revenues Beginning inventory of finished goods (1-1-2020) Ending inventory of finished goods, 12-31-2020 Direct materials used Direct manufacturing labor Manufacturing overhead Variable marketing costs (4% of revenues) Fixed marketing costs Variable distribution costs ($0.50 per cu. ft. for 33,000 cu. ft.) Fixed distribution costs Fixed administration costs $ 802,200 68,032 62,888 356,000 57,000 99,880 37,000 44,000 71,000

Light Up Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available for the year 2020. (Click the icon to view the information.) Calculate (1) the cost of goods sold budget (label it Schedule 7) (2) the operating (nonmanufacturing) costs budget (label it Schedule 8) and (3) the operating income budget for the year endi December312020. ← (1). Begin by calculating (1) the cost of goods sold budget (label it Schedule 7) for the year ending December 31, 2020. Schedule 7: Cost of Goods Sold Budget for the Year Ending December 31, 2020 Data table Revenues Beginning inventory of finished goods (1-1-2020) Ending inventory of finished goods, 12-31-2020 Direct materials used Direct manufacturing labor Manufacturing overhead Variable marketing costs (4% of revenues) Fixed marketing costs Variable distribution costs ($0.50 per cu. ft. for 33,000 cu. ft.) Fixed distribution costs Fixed administration costs $ 802,200 68,032 62,888 356,000 57,000 99,880 37,000 44,000 71,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

Light Up Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available for the year 2020.
(Click the icon to view the information.)
Calculate (1) the cost of goods sold budget (label it Schedule 7) (2) the operating (nonmanufacturing) costs budget (label it Schedule 8) and (3) the operating income budget for the year endir
December312020.
(1). Begin by calculating (1) the cost of goods sold budget (label it Schedule 7) for the year ending December 31, 2020.
Schedule 7: Cost of Goods Sold Budget
for the Year Ending December 31, 2020
Data table
Revenues
Beginning inventory of finished goods (1-1-2020)
Ending inventory of finished goods, 12-31-2020
Direct materials used
Direct manufacturing labor
Manufacturing overhead
Variable marketing costs (4% of revenues)
Fixed marketing costs
Variable distribution costs ($0.50 per cu. ft. for 33,000 cu.
ft.)
Fixed distribution costs
Fixed administration costs
$
I
802,200
68,032
62,888
356,000
57,000
99,880
37,000
44,000
71,000

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