| Chapter 23 Assignment |
| Instructions: Prepare a budgeted income statement with supporting operating budgets for |
| | the full year ending 2012 given the following information. This assignment can be |
| | completed in either: Microsoft Excel, Word, or hand-written and scanned in PDF |
| | format. I prefer Excel but will not dock point for Word or PDF formats. |
| Hint: Use Illustration 23-2 in the book as a guide to the order in which to prepare each budget. |
| | You'll prepare a total of 7 budgets. |
| 2012 Information: |
| | Expected unit sales | 18,000 |
| | Average unit selling price | 85.00 |
| | Desired ending finished goods, units | 1,400 |
| | Direct materials needed per unit (pounds) | 3.0 |
| | Desired ending direct materials (pounds) | 1,800 |
| | Direct material cost, per pound | 6.50 |
| | Direct labor time per unit (hours) | 1.5 |
| | Direct labor cost, per hour | 12.50 |
| Anticipated total 2012 miscellaneous costs: |
| | Indirect materials (per direct labor hour) | 1.50 |
| | Indirect labor (per direct labor hour) | 2.00 |
| | Factory utilities (per direct labor hour) | 1.00 |
| | Factory maintenance (per direct labor hour) | 0.50 |
| | Factory maintenance (fixed costs) | 24,600 |
| | Factory supervisory salaries | 95,000 |
| | Factory depreciation | 26,500 |
| | Factory property taxes and insurance | 45,000 |
| | Sales commissions (per unit sold) | 3.50 |
| | Freight-out (per unit sold) | 1.50 |
| | Advertising | 25,000 |
| | Sales salaries | 85,000 |
| | Office salaries | 62,000 |
| | Office depreciation | 5,500 |
| | Office property and insurance | 8,250 |
| | Interest Expense | 2,500 |
| | Income Taxes, percentage of income before taxes | 40% |
| 2011 Infromation: |
| | Ending finished goods, units | 1200 |
| | Ending direct materials (pounds) | 2500 |