Accounting Question

Gulf Electronics Company approached you as Management Accounting expert toassist them in preparing their 2022 budget for mobile phone.
They provided you with the following data:
• Expected number of units to be sold in 2014
o Mobile phone: 15,000 units
• Expected selling Price per unit
o Mobile phone : $175
• Each mobile phone requires 5 components (camera, keypad, screen, frame,
and motherboard) each.
• Component prices currently are as follows:
o Camera: $20
o Keypads: $15
o Screen: $10
o Frame: $4
o Motherboard: $11
• The company already had a beginning inventory of 3,000 units of each of
the above components at a cost of:
o Camera: $19.50
o Keypads: $14
o Screen: $8
o Frame: $4.50
o Motherboard: $11.50
• No ending inventory of any component item or finished goods is required.
• The company had no beginning inventory of finished goods.
• The manufacture of mobile phone needs 6.5 hours of labor at a cost of
$5.00 per hour.
• Overhead is allocated at a rate of $12 per direct labor hour.
Required:
• Prepare the following:
o Sales Budget…………………………………………………………………..10 marks
o Direct Materials Budget………………………………………………….40 marks
o Direct Labor Budget………………………………………………………..20 marks
o An overhead Budget……………………………………………………….10 marks
• Prepare a budgeted partial income statement till “Gross Profit
Line”………………………………………………………………………………….20 marks
Important:
• This is an individual assignment and you should not receive any help
from anyone.
• You are free to use your book and notes.
• Prepare your solution in Excel (use formulae rather than calculators) and
upload in your e-portfolio file.
Best wishes