Required information [The following information applies to the questions displayed below.] Spring Manufacturing Company makes two components identified as C12 and D57. Selected budgetary data for 20X1 follow: Requirements for each finished component: Raw Material 1 Raw Material 2 Raw Material 3 Direct labor Product information: Sales price Sales (units) Estimated beginning inventory (units) Desired ending inventory (units) Finished Components C12 D57 10 pounds 0 2 pounds 2 hours $ 160 12,000 400 300 8 pounds 4 pounds 1 pound 3 hours $ 210 12,000 200 200 Cost per pound Estimated beginning inventory in pounds Desired ending inventory in pounds Direct Materials Information Raw Material 1Raw Material 2 Raw Material 3 $ 6 3,500 4,100 $ 4.50 1,200 1,400 $ 0.50 500 2,000 The firm expects the average wage rate to be $30 per hour in 20X1. Spring Manufacturing uses direct labor hours to apply overhead. Each year the firm determines the overhead application rate for the year based on budgeted direct labor hours for the year. The firm maintains negligible Work-in-Process Inventory and expects the cost per unit for both beginning and ending inventories of finished products to be identical. Factory Overhead Information $ 15,000 5,400 Indirect materials-variable Miscellaneous supplies and tools-variable Indirect labor-variable Supervision-fixed Payroll taxes and fringe benefits-variable Maintenance costs-fixed Maintenance costs-variable Depreciation-fixed Heat, light, and power-fixed Heat, light, and power-variable Total Advertising Sales salaries Travel and entertainment Depreciation-warehouse Office salaries Executive salaries Supplies Depreciation-office Total Selling and Administrative Expense Information $ 61,000 240,000 55,000 4,900 60,000 300,000 3,800 6,300 $ 731,000 45,000 120,000 260,000 18,000 10,050 71,340 43,400 11,000 $ 599,190 The effective income tax rate for the company is 50%. Spring Manufacturing Company has had a continuous improvement (kaizen) program for the last two years. According to the kaizen program, the firm is expected to manufacture C12 and D57 with the following specifications: Cost Element Raw material 1 Raw material 2 Raw material 3 Direct labor C12 D57 9 pounds 0 7 pounds 3.6 pounds 1.8 pounds 0.8 pound 1.5 hours 2.0 hours The company specifies that the variable factory overhead is to decrease by 10% while the fixed factory overhead is to decrease by 5%, except for depreciation expenses. The company does not expect the price of the raw materials to change. However, the hourly wage rate is likely to be $30. Prepare the Cost of goods sold and ending finished goods inventory budgets for 20X1. Note: Do not round intermediate calculations. Round "Cost per unit" to 5 decimal places. SPRING MANUFACTURING COMPANY Ending Finished Goods Inventory and Budgeted Cost of Goods Sold For the Year 20X1 C12 Sales volume Cost per unit Cost of goods sold Ending finished goods inventory Budgeted ending inventories D57 Total 12,000 12,000 24,000 $ 140.97310 $ 186.45951 $ 1,691,677 42,292 x $ 2,237,514 37,292 $ 3,929,191 $ 0 $ ° $ 0