Prepare the following elements of the master budget for this problem
1. Sales budget (a. with a schedule of expected cash collections )
2. Production budget.
3. Direct materials budget (b. with a schedule of expected cash disbursements for materials)
4. Direct labor budget
PLEASE SHOW CELL REFERENCES PLEASE:)
- Budgeted Sales Of The Company S Only Product For The Next Five Months Are January 8 600 Units February 6 100 Units Mar 1 (19.71 KiB) Viewed 20 times
- Budgeted Sales Of The Company S Only Product For The Next Five Months Are January 8 600 Units February 6 100 Units Mar 2 (67.33 KiB) Viewed 20 times
- Budgeted Sales Of The Company S Only Product For The Next Five Months Are January 8 600 Units February 6 100 Units Mar 3 (80.47 KiB) Viewed 20 times
- Budgeted Sales Of The Company S Only Product For The Next Five Months Are January 8 600 Units February 6 100 Units Mar 4 (27.1 KiB) Viewed 20 times
- Budgeted Sales Of The Company S Only Product For The Next Five Months Are January 8 600 Units February 6 100 Units Mar 5 (26.26 KiB) Viewed 20 times
- Budgeted Sales Of The Company S Only Product For The Next Five Months Are January 8 600 Units February 6 100 Units Mar 6 (28.24 KiB) Viewed 20 times
Foc . SCHEDULE OF EXPECTED CASH COLLECTIONS All Sales are on account The company collects 60% of credit sales in the month of the sale 35% of credit sales in the following month and 5% remain uncollectible. The accounts receivable balance on January 1 was $0. PRODUCTION BUDGET The company desires to have inventory on hand at the end of each month equal to 20% of the following month's budgeted unit sales. On December 31, 0 units were on hand. DIRECT MATERIALS BUDGET 5.0 pounds of material are required per unit of product. Management desires to have materials on hand at the end of each month equal to 10% of the following month's production needs. The beginning materials inventory was 0 pounds. The material costs $ 54 per pound SCHEDULE OF EXPECTED CASH DISBURSEMENTS FOR MATERIAL • 60% of a month's purchases are paid for in the month of purchase, 40% is paid for in the following month • No discounts are given for early payment The accounts payable balance on December 31 was $0. DIRECT LABOR BUDGET Each unit produced requires 60 hours of direct labor • Each hour of direct labor costs the company $14.00 Management fully adjusts the workforce to the workload each month. MANUFACTURING OVERHEAD BUDGET • Variable manufacturing overhead is $3 20 per direct labor-hour Fixed manufacturing overhead is $91,000 per month. This includes $15,000 in depreciation, which is not a cash outflow. Het .
ENDING FINISHED GOODS INVENTORY BUDGET • Okay, a new startup business, uses absorption costing in its budgeted income statement and balance sheet. • Manufacturing overhead is applied to units of product on the basis of direct labor- hours The company has no work in process inventories SELLING AND ADMINISTRATIVE EXPENSE BUDGET • Variable selling and administrative expenses are $1.15 per unit sold • Fixed selling and administrative expenses are $62,000 per month and include $8,000 in depreciation CASH BUDGET 1. A line of credit is available at a local bank а. All borrowing occurs at the beginning of the month, and all repayments occur at the end of the month Borrowing occurs in increments of $1,000 b. Any interest incurred during the first quarter will be paid at the end of the quarter. The interest rate is 18% per year 2. Okay, a new startup business, desires a cash balance of at least $30,000 at the end of each month. The cash balance at the beginning of January was $18.000 3. Cash dividends of $34,000 are to be paid to stockholders in February 4 Equipment purchases of $133,000 are scheduled for January and $124.000 for February. This equipment will be installed and tested during the first quarter and will not become operational until April, when depreciation charges will commence Additional Information: The following balances exist on January 1 Land $300,000 Equipment $162,000 Common Stock $480,000
Master Budge! 2021 January February March 5,600 units 6 100 units 8000 units 5.400 units 6.400 units 1. Anni May SALES BUDGET 10 Quarter 12 11 Budgeted sales (units) Selling price per unit Total sales - SCHEDULE OF EXPECTED CASH COLLECTIONS ST Quarter Accounts receivable beginning balance April salos April May May sales May Juno June salos June Total cash collections 24
PRODUCTION BUDGET Quarter Budgeted sales Add desired ending inventory Total needs Less beginning inventory Required production DIRECT MATERIALS BUDGET Quarter Required production in units Raw materials per unit (pounds) Production needs (pounds) Add desired ending inventory (pounds) Total needs (pounds) Less beginning inventory (pounds) Raw materials to be purchased (pounds) Cost of raw materials to be purchased at $0.40 per pound
0 SCHEDULE OF EXPECTED CASH DISBURSEMENTS FOR MATERIAL 31 Quarter 36 53 Accounts payable beginning balance April purchases: ES April May 57. May purchases: May June June purchases June Total cash disbursements for materials 6 E DIRECT LABOR BUDGET 65 ot Quarter Required production Direct labor-hours per unit Total direct labor-hours needed Direct labor cost per hour Total direct labor cost TO 21