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Final Project - Operating Budget_Electronic Technology




Question;Final;Project - Operating Budget -;Accounting Principles II;Electronic Technology, Incorporated;manufactures two different types of housing used for electric motors. In the fall of the current year, James;Lingor, the controller, compiled the following data to aid in preparing the 2015;annual budget.;Sales Forecast for 2015;Product Units Price;Small Housing 90,000 $170;Large Housing 70,000 $275;Raw Materials Prices;and Inventory Levels;Raw Material Expected;Inventory, 1/1 Desired Inventory, 12/31 Estimated Price;Sheet Metal 32,000 lbs 36,000;lbs $8;Bar Stock 29,000 lbs 32,000;lbs $5;Base 6,000 units 7,000 units $12;Used of Raw Material;Raw Material Amount Used Per Unit;Small Housing Large Housing;Sheet Metal 4 lbs 5 lbs;Bar Stock 2 lbs 3 lbs;Base -- 1 unit;Direct Labor requirements and rates;Product Hours per Unit Rate;per Hour;Small Housing 2 $15;Large Housing 3 $20;Finished Goods Inventory;Prices and Units;Product Expected Inventory, 1/1 Desired Inventory, 12/31 Estimated;Cost;Small Housing 20,000 25,000 $ 81;Large Housing;8,000 9,000 $146;Manufacturing Overhead;Variable Overhead Activity Based Budget Rate;Purchasing and materials handling $.25 per;pound of sheet metal and bar stock purchased;Machine depreciation $;2.50 per housing produced (either type);Utilities and inspection $1.50 per;housing produced (either type);General manufacturing overhead $3.00 per direct labor hour;Fixed Overhead Annual Cost;Property taxes on plant $ 10,000;Building S/L depreciation - plant $ 12,000;Administrative and Marketing Expenses;Variable Admin and Mktg Activity Based Budget Rate;Sales commissions 7.5% of sales dollars;Shipping $1.00 per housing shipped;(either type);Advertising 2% of sales dollars;Fixed Admin and Mktg Annual Cost;Property taxes on office $ 5,000;Building S/L depreciation ? office $;2,000;Administrative and marketing salaries $102,000;Income tax rate 30%;Required;Prepare the following budgets for 2015.;All budgets must link to others so that a ?what-if? scenario change;will result in an completely update operating budget.;a.;Sales budget;b.;Production budget;c.;Direct materials budget;d.;Direct labor budget;e.;Manufacturing overhead budget;f.;Cost of goods sold budget (assume no WIP inventories);g.;Budgeted income statement (Net income =;$ 9,458,050);(CPA Adapted)


Paper#37520 | Written in 18-Jul-2015

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