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PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($45,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses $ 960,000 225,000 $3,150,000 60,000 315,000 180,000 200,000 1,940,000 1,210,000 90,000 105,000 235,000 430,000

PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($45,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses $ 960,000 225,000 $3,150,000 60,000 315,000 180,000 200,000 1,940,000 1,210,000 90,000 105,000 235,000 430,000

FINANCIAL ACCOUNTING
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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Required information Problem 21-1A Preparing and analyzing a flexible budget LO P1, A1 Skip to question [The following information applies to the questions displayed below.] Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Utilities ($45,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations $ 960,000 225,000 60,000 315,000 180,000 200,000 1,940,000 1,210,000 90,000 105,000 235,000 $3,150,000 100,000 241,000 80,000 430,000 421,000 $ 359,000
Transcribed Image Text:Required information Problem 21-1A Preparing and analyzing a flexible budget LO P1, A1 Skip to question [The following information applies to the questions displayed below.] Phoenix Company's 2019 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. Sales Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2019 Utilities ($45,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations $ 960,000 225,000 60,000 315,000 180,000 200,000 1,940,000 1,210,000 90,000 105,000 235,000 $3,150,000 100,000 241,000 80,000 430,000 421,000 $ 359,000
Required: 1&2. Prepare flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classify all items listed in the fixed budget as variable or fixed. Sales Variable costs Direct materials Direct labor Machinery repairs Utilities Packaging Shipping Total variable costs Contribution margin Fixed costs Depreciation-Plant equipment (straight-line) Advertising expense Plant management salaries Utilities Sales salary Salaries Entertainment expense Total fixed costs Income from operations PHOENIX COMPANY Flexible Budgets For Year Ended December 31, 2019 Flexible Budget 33 >> Answer is not complete. >> Variable Amount per Unit 0.00 Total Fixed Cost $ 0 Flexible Budget for: Units Unit Sales of 14,000 Sales of 16,000 S 0 0 $ 0 0
Transcribed Image Text:Required: 1&2. Prepare flexible budgets for the company at sales volumes of 14,000 and 16,000 units and classify all items listed in the fixed budget as variable or fixed. Sales Variable costs Direct materials Direct labor Machinery repairs Utilities Packaging Shipping Total variable costs Contribution margin Fixed costs Depreciation-Plant equipment (straight-line) Advertising expense Plant management salaries Utilities Sales salary Salaries Entertainment expense Total fixed costs Income from operations PHOENIX COMPANY Flexible Budgets For Year Ended December 31, 2019 Flexible Budget 33 >> Answer is not complete. >> Variable Amount per Unit 0.00 Total Fixed Cost $ 0 Flexible Budget for: Units Unit Sales of 14,000 Sales of 16,000 S 0 0 $ 0 0
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