Finance

(a) Larussa INC.

Sales Budget

For the Year Ended 12/31/11

JB 50 JB 60 Total

Expected unit sales

selling price per unit

Total sales    400,000

   X $20

$8,000,000    200,000

   X $25

$5,000,000

$13,000,000

(b) Larussa INC.

Production Budget

For the Year Ended 12/31/11

JB 50 JB 60 Total

Expected unit sales

Add: Desired ending finished

goods units

Total required units

Less: Beginning finished goods

units

Required production units 400,000

 25,000

425,000

 30,000

395,000 200,000

 15,000

215,000

 10,000

205,000

600,000

(c) Larussa INC.

Direct Materials Budget

For the Year Ended 12/31/11

JB 50 JB 60 Total

Units to be produced

Direct materials per unit

Total pounds needed for

  production

Add: Desired ending direct

materials (pounds)

Total materials required

Less: Beginning direct

materials (pounds)

Direct materials purchases

Cost per pound

Total cost of direct materials

  purchases    395,000

      X 2

   790,000

    30,000

   820,000

    40,000

   780,000

     X $3

$2,340,000    205,000

      X 3

   615,000

    15,000

   630,000

10,000

   620,000

     X $4

$2,480,000

$4,820,000

(d) Larussa INC.

Direct Labor Budget

For the Year Ended 12/31/11

JB 50 JB 60 Total

Units to be produced

Direct labor time (hours) per

  unit

Total required direct labor

  hours

Direct labor cost per hour

Total direct labor cost 395,000

      X .4

158,000

    X $12

$1,896,000    205,000

      X .6

   123,000

    X $12

$1,476,000

$3,372,000

(e) Larussa INC.

Budgeted Income Statement

For the Year Ended 12/31/11

JB 50 JB 60 Total

Sales

Cost of goods sold

Gross profit

Operating expenses

  Selling expenses

  Administrative

    expenses...