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Final Project - Operating Budget_Electronic Technology




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#81425 | Written in 18-Jul-2015

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