Question Content Area I AM NEEDING THE PICTURES ANWSERED THE PASSAGE IS JUST FOR ASSISTANCE TO ANSWER THE QUESTIONS Question Content Area 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 c4ee4cf7601604b_1 $8 $288,000 Deluxe Abacus fill in the blank c4ee4cf7601604b_2 fill in the blank c4ee4cf7601604b_3 432,000 Totals 72,000 $720,000 Feedback Area Feedback Review the preparation of the sales budget and use the information the controller provided. Question Content Area 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 ae7e5bffffe4f89_1 fill in the blank ae7e5bffffe4f89_2 Desired ending inventory, December 31, 20Y2 1,000 3,000 Total units available fill in the blank ae7e5bffffe4f89_3 fill in the blank ae7e5bffffe4f89_4 Estimated beginning inventory, January 1, 20Y2 (1,050) (2,100) Total units to be produced fill in the blank ae7e5bffffe4f89_5 fill in the blank ae7e5bffffe4f89_6 Feedback Area Feedback Be sure to include the expected units to be sold for each model from the Sales Budget. Then review the preparation of the production budget and how the amounts are computed. Question Content Area 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 $0.25 Beads $0.25 Units to be produced (from Production Budget): Basic abacus fill in the blank f0a29efc5019f8c_1 Deluxe abacus fill in the blank f0a29efc5019f8c_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 f0a29efc5019f8c_3 fill in the blank f0a29efc5019f8c_4 Deluxe abacus fill in the blank f0a29efc5019f8c_5 fill in the blank f0a29efc5019f8c_6 Desired inventory, December 31, 20Y2 2,200 5,000 Total packages available fill in the blank f0a29efc5019f8c_7 fill in the blank f0a29efc5019f8c_8 Estimated inventory, January 1, 20Y2 (3,500) (4,500) Total packages to be purchased fill in the blank f0a29efc5019f8c_9 fill in the blank f0a29efc5019f8c_10 Unit price (per package) × $fill in the blank f0a29efc5019f8c_11 × $fill in the blank f0a29efc5019f8c_12 Total direct materials to be purchased $fill in the blank f0a29efc5019f8c_13 $fill in the blank f0a29efc5019f8c_14

Question Content Area I AM NEEDING THE PICTURES ANWSERED THE PASSAGE IS JUST FOR ASSISTANCE TO ANSWER THE QUESTIONS Question Content Area 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 c4ee4cf7601604b_1 $8 $288,000 Deluxe Abacus fill in the blank c4ee4cf7601604b_2 fill in the blank c4ee4cf7601604b_3 432,000 Totals 72,000 $720,000 Feedback Area Feedback Review the preparation of the sales budget and use the information the controller provided. Question Content Area 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 ae7e5bffffe4f89_1 fill in the blank ae7e5bffffe4f89_2 Desired ending inventory, December 31, 20Y2 1,000 3,000 Total units available fill in the blank ae7e5bffffe4f89_3 fill in the blank ae7e5bffffe4f89_4 Estimated beginning inventory, January 1, 20Y2 (1,050) (2,100) Total units to be produced fill in the blank ae7e5bffffe4f89_5 fill in the blank ae7e5bffffe4f89_6 Feedback Area Feedback Be sure to include the expected units to be sold for each model from the Sales Budget. Then review the preparation of the production budget and how the amounts are computed. Question Content Area 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 $0.25 Beads $0.25 Units to be produced (from Production Budget): Basic abacus fill in the blank f0a29efc5019f8c_1 Deluxe abacus fill in the blank f0a29efc5019f8c_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 f0a29efc5019f8c_3 fill in the blank f0a29efc5019f8c_4 Deluxe abacus fill in the blank f0a29efc5019f8c_5 fill in the blank f0a29efc5019f8c_6 Desired inventory, December 31, 20Y2 2,200 5,000 Total packages available fill in the blank f0a29efc5019f8c_7 fill in the blank f0a29efc5019f8c_8 Estimated inventory, January 1, 20Y2 (3,500) (4,500) Total packages to be purchased fill in the blank f0a29efc5019f8c_9 fill in the blank f0a29efc5019f8c_10 Unit price (per package) × $fill in the blank f0a29efc5019f8c_11 × $fill in the blank f0a29efc5019f8c_12 Total direct materials to be purchased $fill in the blank f0a29efc5019f8c_13 $fill in the blank f0a29efc5019f8c_14

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Question Content Area

I AM NEEDING THE PICTURES ANWSERED THE PASSAGE IS JUST FOR ASSISTANCE TO ANSWER THE QUESTIONS

Question Content Area

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 c4ee4cf7601604b_1	$8	$288,000
Deluxe Abacus	fill in the blank c4ee4cf7601604b_2	fill in the blank c4ee4cf7601604b_3	432,000
Totals	72,000		$720,000

Feedback Area

Feedback

Review the preparation of the sales budget and use the information the controller provided.

Question Content Area

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 ae7e5bffffe4f89_1	fill in the blank ae7e5bffffe4f89_2
Desired ending inventory, December 31, 20Y2	1,000	3,000
Total units available	fill in the blank ae7e5bffffe4f89_3	fill in the blank ae7e5bffffe4f89_4
Estimated beginning inventory, January 1, 20Y2	(1,050)	(2,100)
Total units to be produced	fill in the blank ae7e5bffffe4f89_5	fill in the blank ae7e5bffffe4f89_6

Feedback Area

Feedback

Be sure to include the expected units to be sold for each model from the Sales Budget. Then review the preparation of the production budget and how the amounts are computed.

Question Content Area

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	$0.25
Beads	$0.25
Units to be produced (from Production Budget):
Basic abacus	fill in the blank f0a29efc5019f8c_1
Deluxe abacus	fill in the blank f0a29efc5019f8c_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 f0a29efc5019f8c_3	fill in the blank f0a29efc5019f8c_4
Deluxe abacus	fill in the blank f0a29efc5019f8c_5	fill in the blank f0a29efc5019f8c_6
Desired inventory, December 31, 20Y2	2,200	5,000
Total packages available	fill in the blank f0a29efc5019f8c_7	fill in the blank f0a29efc5019f8c_8
Estimated inventory, January 1, 20Y2	(3,500)	(4,500)
Total packages to be purchased	fill in the blank f0a29efc5019f8c_9	fill in the blank f0a29efc5019f8c_10
Unit price (per package)	× $fill in the blank f0a29efc5019f8c_11	× $fill in the blank f0a29efc5019f8c_12
Total direct materials to be purchased	$fill in the blank f0a29efc5019f8c_13	$fill in the blank f0a29efc5019f8c_14

Direct Materials Data Table
Packages required per unit:
Basic abacus
Deluxe abacus
Cost per package:
Wood pieces
Beads
Units to be produced (from Production Budget):
Basic abacus
Deluxe abacus
Packages required for production:
Basic abacus
Deluxe abacus
Desired inventory, December 31,
20Y2
Total packages available
Estimated inventory, January 1, 20Y2
Total packages to be purchased
Unit price (per package)
Total direct materials to be
purchased
Foodback
LearnCo
Direct Materials Purchases Budget
For the Year Ending December 31, 20Y2
X
Wood Pieces Beads
35,950 ✔
36,900
Wood Pieces
35,950 ✔
73,800 ✓
Direct Materials
Beads
2,200
111,950 ✔
(3,500)
1
2
$0.25
$0.25
108,450 ✔
0.25 ✔
27,113 ✔
X
2
3
71,900 ✔
110,700 ✓
5,000
187,600 ✔
(4,500)
183,100 ✔
0.25 ✔
Total
45,775 ✔ $72,888

Direct Labor Cost Budget
Direct labor needs from the direct labor cost budget should be coordinated between the production and personnel departments so that there will be enough labor available for production.
Before you make any changes to the budget, you review the information on the following Direct Labor Data Table and enter the units to be produced from the Production Budget. After scanning the Direct Labor Cost Budget (which follows the Direct Labor 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 Labor Data Table, or from the sales budget, production budget, and direct materials purchases budget
you prepared. When required, round your answers to the nearest dollar.
Direct Labor Data Table
Hours required per unit:
Basic abacus
Deluxe abacus
Labor hourly rate:
Gluing
Assembly
Units to be produced (from Production
Budget):
Basic abacus
Deluxe abacus
Hours required for production:
Basic abacus
Deluxe abacus
Total
Hourly rate
Total direct labor cost
Feedback
$
Gluing
Gluing
LearnCo
Direct Labor Cost Budget
For the Year Ending December 31, 20Y2
27,113 X
45,775 X
298,243 X
503,525 X
11
0.10
0.10
X
$11
$18
X
Assembly
0.10
0.20
Assembly
48,803 X
X
X
18 ✔
Total
X $277,685

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