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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 ($60,000 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 $ 930,000 210,000 45,000 315,000 180,000 210,000 1,890,000 1,260,000 90,000 105,000 235,000 $3,150,000 150,000 241,000 80,000 430,000 471,000 $ 359,000

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 ($60,000 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 $ 930,000 210,000 45,000 315,000 180,000 210,000 1,890,000 1,260,000 90,000 105,000 235,000 $3,150,000 150,000 241,000 80,000 430,000 471,000 $ 359,000

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 [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 ($60,000 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 $ 930,000 210,000 45,000 315,000 180,000 210,000 90,000 105,000 235,000 $3,150,000 1,890,000 1,260,000 430,000 150,000 241,000 80,000 471,000 $ 359,000
Transcribed Image Text:Required information [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 ($60,000 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 $ 930,000 210,000 45,000 315,000 180,000 210,000 90,000 105,000 235,000 $3,150,000 1,890,000 1,260,000 430,000 150,000 241,000 80,000 471,000 $ 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. Variable costs Fixed costs PHOENIX COMPANY Flexible Budgets For Year Ended December 31, 2019 Flexible Budget Variable Amount Total Fixed per Unit Cost 0.00 $ Flexible Budget for: Units Sales of 14,000 $ 0 0 Unit Sales of 16,000 $ 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. Variable costs Fixed costs PHOENIX COMPANY Flexible Budgets For Year Ended December 31, 2019 Flexible Budget Variable Amount Total Fixed per Unit Cost 0.00 $ Flexible Budget for: Units Sales of 14,000 $ 0 0 Unit Sales of 16,000 $ 0 0
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