Texts: Sudbury Office Equipment manufactures and sells metal shelving. It began operations on January 1, 2022. (Click the icon to view the costs incurred during 2022.) (Click the icon to view the inventory data.) (Click the icon to view additional information.) pjnb
Requirement 1. Calculate the units of finished goods produced in 2023
Target ending finished goods, Dec. 31, 2023
units units units
Forecasted sales for 2023 Total finished goods required in 2023
Beginning finished goods, Jan. 1, 2023
units
Finished goods production required in 2023
units
Requirement 2. Prepare a budgeted statement of comprehensive income for 2023 Finish the income statement by entering the amounts and calculating the operating income/(loss). (For amounts with a SO balance, make sure to enter *0* in the appropriate cell. Use parentheses or a minus sign for a net loss.)
Sudbury Office Equipment
Budgeted Statement of Comprehensive Income For the Year Ended December 31, 2023
Cost of goods sold:
Operating costs
Operating income/(loss)
Costs incurred
Costs incurred for 2022 are as follows (V stands for variable; F stands for fixed):
Additional information
+ Inventory data
X
Direct materials used costs Direct manufacturing labor costs Plant energy costs Indirect manufacturing labor costs
$140,500 V
$25,500 V $6,000 V $16,000 V $14,000 F $12,000 V $30,000 F
Revenues in 2022 were $475,200. The selling price per unit and the purchase
Inventory data are as follows: Beginning, January 1, 2022
Ending, December 31, 2022
manufacturing costs for 2022. Finished goods inventory at December 31, 2022, was $15,400.
Other indirect manufacturing costs Other indirect manufacturing costs
Direct materials 0 kilograms 2,400 kilograms Work in process 0 units 0 units Finished goods 0 units ? units Production in 2022 was 115,000 units. Two kilograms of direct materials is used to make one unit of finished product.
Unit will be the same in 2023 as in 2022. Fixed manufacturing costs and marketing, distribution, and customer-service costs in 2023 are also predicted to be the same as in 2022. Sales in 2023 are forecast to be 130,000 units. The desired ending inventory of finished goods, December 31, 2023, is 11,000 units. Assume zero
Marketing, distribution, and customer-service costs Marketing, distribution, and customer-service costs
$124,000 V $46,000 F $53,000 F
Administrative costs
ending inventory of finished goods is carried at the average unit manufacturing costs for 2023. The company uses the first-in, first-out inventory method. Management has asked that you prepare a budgeted statement of comprehensive income for 2023. On December 31, 2022, finished goods inventory is 7,000 units.
Variable manufacturing costs are variable with respect to units produced. Variable marketing, distribution, and customer-service costs are variable with respect to units sold.
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