(Solution) - Ladderton Electronics Inc manufactures three models of electric power supply -(2025 Original AI-Free Solution)

Paper Details

Ladderton Electronics Inc. manufactures three models of electric power supply units, Economy, Standard, and Deluxe. They are sold in four different markets, Eastern United States, Western United States, Europe, and Asia. Each unit converts electric current from AC to DC for use in various types of electronic equipment ranging from radios and televisions to computers. The three different units produce DC output at different wattage levels. The product is manufactured in two producing departments, Assembly and Testing. Estimates for the coming year follow: (a) Sales forecast by territory:

(b) Inventories:
Work in Process: None at beginning or end of period.
(c) Materials requirements for products and estimated materials costs:
(d) Estimated labor time requirements and rates in hours:
(e) Estimated machine time in Testing Department:
(f) Budgeted factory overhead:
Overhead is allocated to production on the basis of direct labor hours in the Assembly Department and on the basis of machine hours in the Testing Department.
(g) Budgeted commercial expenses:
Marketing: $6,145,000.
Administration: $2,330,500.
(h) Income tax rate is 40%.
Required:
Prepare annual budget schedules. The schedules should be designed to provide essential data in a form that is easily understood and should include the following:
(1) Sales budget-by models and by sales territories
(2) Production budget-by models and by units
(3) Direct materials budget in units-by materials and by models
(4) Materials purchases budget-by materials and by cost
(5) Cost of materials required for production-by materials and by models
(6) Direct labor budget-by models and departments, with costs and hours
(7) Budgeted machine hours in the Testing Department
(8) Budgeted factory overhead and departmental rates
(9) Budgeted unit product costs
(10) Beginning and ending inventories
(11) Budgeted cost of goods manufactured and sold
(12) Budgeted income statement