Question: Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. Th
Posted: Mon Apr 25, 2022 7:32 am
Question:
Endless Mountain Company manufactures a single product that is
popular with outdoor recreation enthusiasts. The company sells its
product to retailers throughout the northeastern quadrant of the
United States. It is in the process of creating a master budget for
2022 and reports a balance sheet at December 31, 2021 as
follows:
The company’s chief financial officer (CFO), in consultation
with various managers across the organization has developed the
following set of assumptions to help create the 2022 budget:
Required:
The company’s CFO has asked you to prepare the 2022 master
budget. To fulfill this request, prepare the following budget
schedules and financial statements.
1. Quarterly sales budget including a schedule of expected cash
collections.
2. Quarterly production budget.
3. Quarterly direct materials budget including a schedule of
expected cash disbursements for purchases of materials.
4. Quarterly direct labor budget.
5. Quarterly manufacturing overhead budget.
6. Ending finished goods inventory budget at December 31,
2022.
7. Quarterly selling and administrative expense budget.
8. Quarterly cash budget.
9. Income statement for the year ended December 31, 2022.
10. Balance sheet at December 31, 2022.
Endless Mountain Company manufactures a single product that is
popular with outdoor recreation enthusiasts. The company sells its
product to retailers throughout the northeastern quadrant of the
United States. It is in the process of creating a master budget for
2022 and reports a balance sheet at December 31, 2021 as
follows:
The company’s chief financial officer (CFO), in consultation
with various managers across the organization has developed the
following set of assumptions to help create the 2022 budget:
Required:
The company’s CFO has asked you to prepare the 2022 master
budget. To fulfill this request, prepare the following budget
schedules and financial statements.
1. Quarterly sales budget including a schedule of expected cash
collections.
2. Quarterly production budget.
3. Quarterly direct materials budget including a schedule of
expected cash disbursements for purchases of materials.
4. Quarterly direct labor budget.
5. Quarterly manufacturing overhead budget.
6. Ending finished goods inventory budget at December 31,
2022.
7. Quarterly selling and administrative expense budget.
8. Quarterly cash budget.
9. Income statement for the year ended December 31, 2022.
10. Balance sheet at December 31, 2022.