Lily Inc. is preparing its annual budgets for the year ending December 31, 2027. Accounting assistants furnish the data shown below. Sales budget: Anticipated volume in units Unit selling price Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound Direct labor budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound Direct labor budget: Direct labor time per unit Direct labor rate per hour Budgeted income statement: Total unit cost Product JB 50 440,000 $30 33,000 27,500 2 33,000 $3 2 33,000 44,000 $3 0.4 44,000 16,500 $12 Product JB 60 $13 220,000 $35 16,500 11,000 3 11,000 $4 3 11,000 16,500 $4 0.6 $12 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $616,000 for product JB 50 and $396,000 for product JB 60, and administrative expenses of $594,000 for product JB 50 and $374,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 20%
Lily Inc. is preparing its annual budgets for the year ending December 31, 2027. Accounting assistants furnish the data shown below. Sales budget: Anticipated volume in units Unit selling price Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound Direct labor budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound Direct labor budget: Direct labor time per unit Direct labor rate per hour Budgeted income statement: Total unit cost Product JB 50 440,000 $30 33,000 27,500 2 33,000 $3 2 33,000 44,000 $3 0.4 44,000 16,500 $12 Product JB 60 $13 220,000 $35 16,500 11,000 3 11,000 $4 3 11,000 16,500 $4 0.6 $12 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $616,000 for product JB 50 and $396,000 for product JB 60, and administrative expenses of $594,000 for product JB 50 and $374,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 20%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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Transcribed Image Text:Lily Inc. is preparing its annual budgets for the year ending December 31, 2027. Accounting assistants furnish the data shown below.
Sales budget:
Anticipated volume in units
Unit selling price
Production budget:
Desired ending finished goods units
Beginning finished goods units
Direct materials budget:
Direct materials per unit (pounds)
Desired ending direct materials pounds
Beginning direct materials pounds
Cost per pound
Direct labor budget:
Direct materials per unit (pounds)
Desired ending direct materials pounds
Beginning direct materials pounds
Cost per pound
Direct labor budget:
Direct labor time per unit
Direct labor rate per hour
Budgeted income statement:
Total unit cost
Product
JB 50
440,000
$30
33,000
27,500
2
33,000
44,000
$3
2
33,000
44,000
$3
0.4
$12
$13
Product
JB 60
220,000
$35
16,500
11.000
3
11,000
16,500
$4
3
11,000
16,500
$4
0.6
$12
$20
An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget.
The latter shows selling expenses of $616,000 for product JB 50 and $396,000 for product JB 60, and administrative expenses of
$594,000 for product JB 50 and $374,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes
are expected to be 20%
Transcribed Image Text:Prepare the sales budget for the year.
Direct Labor
Direct Materials
Expected Unit Sales
Production Units
Total Sales
Unit Selling Price
a
$
JB 50
LILY INC.
Sales Budget
$
$
JB 60
$
Total
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