FactsSailor, Inc.Input CellFactsLinked CellCalculationVariable costs per unit manufactured:Direct materialsWooden boatboat ateachFabric sailsails at eachDirect laborhour atper hourVariable manfacturing overheadper unitFixed manufacturing overheadper quarterSales priceProjected ending inventory unitsfollowing quarter's salesOperating expensesVariableper unit soldFixedper quarterDepreciationper quarterIncome tax rate

PY BSSailor, Inc.Prior Year End Projected Balance Sheet20X0AssetsCurrent assets:Cash$50,000Accounts receivable107,000Inventory:Direct materials (5,000 units)12,500Finished goods (5,000 units)60,000Total current assets229,500Buildings and equipment420,000Less: Accumulated depreciation(20,000)Total assets$629,500

Liabilities and Owners' EquityCurrent liabilities:Accounts payable$25,000Notes payable36,000Income taxes payable25,000Total current liabilities86,000Owners' equity:Capital stock400,000Retained earnings143,500Net income0.0Total owners' equity543,500Total liabilities and owners' equity$629,500

Check0.0

SalesSailor, Inc.Sales BudgetQ1Q2Q3Q4Projected unit salesSales priceProjected revenue

ProductionSailor, Inc.Production BudgetsUnits of ProductionQ1Q2Q3Q4Next yearProjected unit salesAdd: Ending inventory2,600Units available for sale0.00.00.00.02,600Less: Beginning inventory2,400Budgeted production0.0(2,400)0.00.02,600Try AgainTry AgainTry AgainTry AgainDirect Materials Purchases BudgetBoatsBoats needed for productionAdd: Ending inventoryBoats available for production0.00.00.00.0Less: Beginning inventory0.0Boats to purchase0.00.00.00.0

Budgeted cost of boats0.00.00.00.0Try AgainTry AgainTry AgainTry AgainSailsSails needed for production14,800Add: Ending inventorySails available for production14,8000.00.00.0Less: Beginning inventorySails to purchase14,8000.00.00.0

Budgeted cost of sailsTotal budgeted cost of materialsTry AgainTry AgainTry AgainTry Again

Direct Materials Used BudgetBeginning inventoryPurchases14,400Less: Ending inventory boatsLess: Ending inventory sailsDirect materials used$14,4000.00.00.0Try AgainTry AgainTry AgainTry AgainDirect Labor BudgetBudgeted productionTotal labor hours needed

Budgeted direct labor costTry AgainTry AgainTry AgainTry AgainManufacturing OverheadBudgeted production

Variable overhead costFixed overhead costTotal overhead cost0.00.00.00.0Try AgainTry AgainTry AgainTry Again

COGSSailor, Inc.Budgeted Cost of Goods Manufactured and SoldQ1Q2Q3Q4Finished goods, beginning inventoryAdd: Cost of goods manufacturedDirect materials used19,700Direct labor usedVariable overheadFixed overheadTotal cost of goods manufactured19,7000.00.00.0Hint: Complete this schedule up until this point, then work on Finished Goods Inventory below.Total costs of goods available for sale19,7000.00.00.0Less: Ending finished goods inventory0.00.00.0Cost goods sold$19,7000.00.00.0Try AgainTry AgainTry AgainTry AgainFinished Goods InventoryCost of goods manufacturedDivide by: Units of productionProduction cost per unitMultiply by: Ending inventory unitsCost of ending FG inventoryTry AgainTry AgainTry AgainTry Again

OpexSailor, Inc.Operating Expense BudgetQ1Q2Q3Q4Variable opexFixed opexTotal opex0.00.00.00.0

NPSailor, Inc.Notes PayableNP - BankPrincipalInterest ratePrincipal PaymentInterestBalanceCash PaymentBegQ1$450Q2Q3Try AgainQ4

ISSailor, Inc.Budgeted Income StatementQ1Q2Q3Q4RevenueCost of goods sold99,198Gross profit0.0(99,198)0.00.0Operating expensesOperating income0.0(99,198)0.00.0Interest expenseIncome before taxes0.0(99,198)0.00.0Tax expense (benefit)Net income (loss)0.0$(99,198)0.00.0Try AgainTry AgainTry AgainTry Again

CashSailor, Inc.Cash BudgetQ1Q2Q3Q4Next yearCash inflowsSales

Beg bal A/RQuarter65%$162,500Quarter following35%Total cash inflows$162,5000.00.00.0Try AgainTry AgainTry AgainTry AgainCash outflowsDirect materials purchasedPayments for direct materials

Direct materials0.00.00.00.0Direct laborMfg overheadDebt service9,338Income taxesOperating expensesLess: DepreciationTotal cash outflows0.0$9,3380.00.0Net change in cash$162,500$(9,338)0.00.0Beginning balance cashEnding balance cash$162,500$(9,338)0.00.0Try AgainTry AgainTry AgainTry Again

BSSailor, Inc.Budgeted balance sheetQ1Q2Q3Q4AssetsCurrent assets:Cash$257,734Accounts receivableInventory:Direct materialsFinished goodsTotal current assets0.00.0257,7340.0Buildings and equipmentLess: Accumulated depreciation(28,000)Total assets$(28,000)0.0$257,7340.0Try AgainTry AgainTry AgainTry AgainLiabilities and Owners' EquityCurrent liabilities:Accounts payableNotes payableIncome taxes payableTotal current liabilities0.00.00.00.0Owners' equity:Capital stockRetained earnings227,023Net incomeTotal owners' equity0.00.0227,0230.0Total liabilities and owners' equity0.00.0$227,0230.0

Check(28,000)0.030,7110.0

Flexible BudgetsSailor, Inc.Flexible BudgetsQ1 BudgetQ1 ActualVariance% VarianceManufacturing costs:Direct materials$21,000Direct labor16,250Variable mfg OH22,20021,000Fixed mfg OH3,200Total manufacturing costs$22,200$61,450Units7,250

Q1 BudgetVolume Variance% VarianceQ1 Flexible BudgetFlexible Budget Variance% VarianceQ1 ActualManufacturing costs:Direct materials$21,750Direct labor0.0Variable mfg OH0.0Fixed mfg OH0.0Total manufacturing costs0.0$21,7500.0Units