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Templatep 06 02name Section Enter The Appropriate Amount Or Item In

Remove instructions, metadata, and redundant information, leaving only the core task: entering appropriate amounts or items in shaded cells, using drop-down lists when available, and ensuring no cells are blank, with "0" entered where applicable. The focus is on preparing a comprehensive budget and associated financial statements, including sales, production, purchasing, labor, overhead, selling and administrative expenses, cost of goods manufactured, and income statement, based on given parameters and assumptions.

Paper For Above instruction

Develop a comprehensive set of financial budgets and statements for Bathworks for the year ended December 31, based on the given data and assumptions. This includes a sales budget, production budget, direct materials purchase budget, direct labor budget, overhead budget, selling and administrative expenses budget, cost of goods manufactured budget, and a budgeted income statement. Ensure that all values are accurately computed, using the provided formulas, percentages, and data points. The budget should reflect expected sales volumes, manufacturing needs, costs, and expenses, providing a detailed financial plan.

Begin with the sales budget, projecting quarterly and annual sales in units and dollars, based on a fixed selling price per unit, and ensure the total sales align with the cumulative quarterly forecasts. Follow with the production budget, which accounts for projected sales and desired ending and beginning finished goods inventories, calculated as 10% of the following or current quarter’s sales, respectively.

Proceed with the direct materials purchase budget, determining production needs in ounces, considering the desired ending inventory of 20% of the next quarter's production needs, and the beginning inventory at 20% of the current quarter’s production needs. Calculate the total purchase quantity and total cost based on the per-ounce price provided.

Next, calculate the direct labor budget by multiplying total production units by direct labor hours per unit and cost per hour, deriving total labor hours and costs. The overhead budget should include variable costs for factory supplies, employee benefits, inspections, maintenance, repairs, and utilities, plus fixed overhead costs; all sums should be computed accordingly.

Similarly, the selling and administrative expenses budget should incorporate variable costs like delivery expenses and sales commissions, along with fixed expenses, ensuring total expenses are accurately summarized.

The cost of goods manufactured (COGM) budget must compile direct materials used, direct labor costs, overhead, and total manufacturing costs to determine COGM. The ending inventories and beginning inventories are factored in as per assumptions, with no units in process at year-end.

Finally, prepare the forecasted income statement, starting with sales, deducting cost of goods sold (including beginning and ending finished goods inventories), and calculating gross margin. Subtract selling and administrative expenses to find operating income and account for income taxes at 30% to arrive at net income.

All expenses should be entered as positive values, and no cells should be left blank; "0" should be entered where applicable. Ensure consistency and accuracy throughout, integrating all data into a coherent financial plan for Bathworks for the specified year.

References

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