LearnCo LearnCo manufactures and sells one product, an abacus for classroom use, with two models, the Basic model and the Deluxe model. The company began operations on January 1, 20Y1, and is planning for 20Y2, its second year of operations, by preparing budgets from its master budget. The company is trying to decide how many units to manufacture, how much it might spend on direct materials and direct labor, and what their factory overhead expenses might be. In addition, the company is interested in budgeting for selling and administrative costs, and in creating a budgeted income statement showing a prediction of net income for 20Y2. You have been asked to assist the controller of LearnCo in preparing the 20Y2 budgets. Sales Budget The sales budget often uses the prior year’s sales as a starting point, and then sales quantities are revised for various factors such as planned advertising and promotion, projected pricing changes, and expected industry and general economic conditions. LearnCo has completed reviewing its prior year’s sales and has prepared the following sales budget. After reviewing LearnCo’s sales budget, you note that three numbers have been omitted. The company’s controller has told you that the units sold for the Basic and Deluxe models are expected to be the same. Fill in the missing amounts. LearnCo Sales Budget For the Year Ending December 31, 20Y2 Product Unit Sales Volume Unit Selling Price Total Sales Basic Abacus fill in the blank d954fbfd7064033_1 $6 $216,000 Deluxe Abacus fill in the blank d954fbfd7064033_2 fill in the blank d954fbfd7064033_3 504,000 Totals 72,000   $720,000     Feedback Production Budget The production budget should be integrated with the sales budget to ensure that production and sales are kept in balance during the year. The production budget estimates the number of units to be manufactured to meet budgeted sales and desired inventory levels. You note that LearnCo has omitted six numbers from the following production budget and fill in the missing amounts. You may need to use numbers from the sales budget you prepared. LearnCo Production Budget For the Year Ending December 31, 20Y2   Units Basic Units Deluxe Expected units to be sold (from Sales Budget) fill in the blank 60111cf9004d062_1  fill in the blank 60111cf9004d062_2  Desired ending inventory, December 31, 20Y2 1,000  3,000  Total units available fill in the blank 60111cf9004d062_3  fill in the blank 60111cf9004d062_4  Estimated beginning inventory, January 1, 20Y2 (1,050) (2,100) Total units to be produced fill in the blank 60111cf9004d062_5  fill in the blank 60111cf9004d062_6      Feedback Direct Materials Purchases Budget The direct materials purchases budget should be integrated with the production budget to ensure that production is not interrupted during the year. Before you make any changes to the budget, you review the information on the following Direct Materials Data Table and enter the units to be produced from the Production Budget. After scanning the direct materials purchases budget (which follows the Direct Materials Data Table), you observe that LearnCo has omitted quite a few numbers from the budget. Fill in the missing amounts. You may need to use numbers from the Direct Materials Data Table, or from the sales budget and production budget you prepared. When required, round your answers to the nearest dollar. Direct Materials Data Table   Wood Pieces Beads Packages required per unit:       Basic abacus 1 2   Deluxe abacus 2 3 Cost per package:       Wood pieces $0.20     Beads $0.20   Units to be produced (from Production Budget):       Basic abacus fill in the blank d9e8ac00dfbafb3_1     Deluxe abacus fill in the blank d9e8ac00dfbafb3_2   LearnCo Direct Materials Purchases Budget For the Year Ending December 31, 20Y2   Direct Materials   Wood Pieces Beads Total Packages required for production:         Basic abacus fill in the blank d9e8ac00dfbafb3_3  fill in the blank d9e8ac00dfbafb3_4      Deluxe abacus fill in the blank d9e8ac00dfbafb3_5  fill in the blank d9e8ac00dfbafb3_6    Desired inventory, December 31, 20Y2 2,200  5,000    Total packages available fill in the blank d9e8ac00dfbafb3_7  fill in the blank d9e8ac00dfbafb3_8    Estimated inventory, January 1, 20Y2 (3,500) (4,500)   Total packages to be purchased fill in the blank d9e8ac00dfbafb3_9  fill in the blank d9e8ac00dfbafb3_10    Unit price (per package) × $fill in the blank d9e8ac00dfbafb3_11  × $fill in the blank d9e8ac00dfbafb3_12    Total direct materials to be purchased $fill in the blank d9e8ac00dfbafb3_13  $fill in the blank d9e8ac00dfbafb3_14  $58,310

LearnCo

LearnCo manufactures and sells one product, an abacus for classroom use, with two models, the Basic model and the Deluxe model. The company began operations on January 1, 20Y1, and is planning for 20Y2, its second year of operations, by preparing budgets from its master budget.

The company is trying to decide how many units to manufacture, how much it might spend on direct materials and direct labor, and what their factory overhead expenses might be. In addition, the company is interested in budgeting for selling and administrative costs, and in creating a budgeted income statement showing a prediction of net income for 20Y2.

You have been asked to assist the controller of LearnCo in preparing the 20Y2 budgets.

Sales Budget

The sales budget often uses the prior year’s sales as a starting point, and then sales quantities are revised for various factors such as planned advertising and promotion, projected pricing changes, and expected industry and general economic conditions. LearnCo has completed reviewing its prior year’s sales and has prepared the following sales budget.

After reviewing LearnCo’s sales budget, you note that three numbers have been omitted. The company’s controller has told you that the units sold for the Basic and Deluxe models are expected to be the same. Fill in the missing amounts.