Answer Happy

Use the information from the master budget to solve the answers for requirements B,C, & D.
Olcay Co. Master Budget Input Section 47 Sales Budget Expected unit sales in the first quarter January February March April May 8.800 6.100 8,200 5,400 6.200 Sellings 57.00 $ Cash Collections Beginning Balance Collected in month of sale Collected in the month following sale Uncollectible amount 80% 35% 5% Production Budget of namor's 20% sale units $ $ 7 pounds 058 10% pounds $ 60% 40% 2 Desired ending inventory 5 Beginning Inventory 24 E Raw Materials Budget 36 Raw materials per unit 27 Cost per pound 2 Desired ending inventory 29 Beginning inventory 30 * Cash payments 12 Beginning balance 13 Paid in month of sale 34 Paid in the month following sale 25 36 Direct Labor Budget Direct labor hours per unit 30 Direct labor cost per hour 39 40 Manufacturing Overhead Budget 41 Variable Manufacturing Overhead Rate 42 Fixed Manufacturing Overhead Rate 43 Depreciation 44 Selling and Administrative Expense Budget Variable Selling & Admin Rate 47 Fixed Selling & Admin Rate Depreciation 074 14 $ $ $ $ 3.20 per hour 91.000 per month 15.000 per month $ $ 5 1.10 per unit 62.000 per month 8.000 per month 50 Cash Budget 51 Beginning balance 52 Dividends 5 Purchase of equipment 54 Purchase of equipment 55 Interest Rate $ 5 $ $ 30.000 34000 rst money 114.000 second month 112.000 Med month 159
Okay Co. Master Budget 2021 1 1 January February March April May 8.800 units 6,100 units 8,200 units 5.400 units 6.200 units SALES BUDGET LO LI Buduated sales funts) Selling price per unit Total sales January February 8.800 6.100 3 57 $ 57 S 501.600.5 347.700 $ March Quarter 8,200 23,100 57 $ 57 $ 467.400 5 1216.700 Apri 5.400 57 307.2005 May 8.200 57 321100 23 SCHEDULE OF EXPECTED CASH COLLECTIONS January 30,000 February March Quarter 30,000 300,960 175,560 300,960 175,560 1 Accounts receivable beginning balance 10 January sales 39 January 21 February 22. February salos 21 February March 25 March sales March 3 Total cash collections 208 620 121,695 208,620 121,695 280,440 1.117275 230.000 280 440 402.12 394180 PRODUCTION BUDGET May 5.200 January 8,800 1.220 10,020 Budgeted sales Add desired ending inventory Total needs Less beginning inventory Required production 12 February 6,100 1.640 7,740 1.220 6.520 March 8.200 1.080 9,280 1.640 ZBAN Quarter 23,100 1.080 24.180 April 5,400 1.240 6,640 1,000 5.560 15 10102 74180 17 DIRECT MATERIALS BUDGET May 30 Required production in units Raw materials per unit (pounds) Production needs (pounds) Add desired ending inventory (pounds) Total needs (pounds) January 10020 7 70,140 4,564 74,704 February 6,520 7 45,840 5,348 50.988 March 7,640 7 53.480 3,892 57,372 Quarter 24, 180 7 169,280 3,892 173,152 April 5,560 7 38,920
DIRECT MATERIALS BUDGET May Apr 5,560 7 38.920 Quarter 24,180 7 169,280 3,892 173,152 March 7,640 7 53480 3.892 57 372 5,348 52,024 February 6.520 7 45,640 5,348 50,988 4,564 46,424 41 173,152 25,997 $ 29,133 5 96,965 January Required production in units 10,020 Raw materials per un (pounds) 7 Production noode (pounds) 70.140 Add desired ending inventory (pounds) 4,564 Total needs (pounds) 74,704 Loss beginning inventory (pounds) Raw materials to be purchased (pounds) 74.704 Cost of raw material to be purchased at $0.40 por a pound $ 41,8345 SCHEDULE OF EXPECTED CASH DISBURSEMENTS FOR MATERIAL S1 January Accounts payable beginning balance January purchases January 25,101 February 52 February purchases: February March March purchases March Total cash disbursements for materials $ 25,101 $ DIRECT LABOR BUDGET February March Quarter 25,101 16,734 16,734 15,598 15,598 10.399 10,399 1 17.480 27,879 $ 17,480 85,312 32.332 $ Required production Direct labor hours per unit Total direct labor-hours needed Direct labor cost per hour Total direct labor cost January 10,020 0.74 7,415 14 103,807 $ February 6,520 0.74 4,825 14 67,547 $ March 7,640 0.74 5,654 14 79,150 $ Quarter 24,180 0.74 17,893 14 250,505 $ MANUFACTURING OVERHEAD BUDGET 10 Budgeted direct labor hours Variable manufacturing overhead rate Variable manufacturing overhead Fixed manufacturing overhead 0 Total manufacturing overhead Less depreciation January 7.415 3 23,727 91.000 114,727 15,000 February 4,825 3 15,439 91.000 106,439 15,000 March 5.654 3 18,092 91,000 109,092 15,000 Quarter 17,893 3 57,258 273,000 330,258 45.000
MANUFACTURING OVERHEAD BUDGET 77 January 7,415 3 23,727 91,000 114,727 15,000 99,727 S Budgeted direct labor-hours Variable manufacturing overhead rate Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Less depreciation Cash disbursements for manufacturing overhead 38 February 4,825 3 15,439 91,000 106,439 15,000 91,439 $ March 5,654 3 18,092 91,000 109,092 15,000 94,092 $ Quarter 17 893 3 57 258 273,000 330,258 45,000 285,258 TO 11 $ ENDING FINISHED GOODS INVENTORY BUDGET - Computation of absorption unit product cost: 2 Direct materials Direct labor Manufacturing overhead Unit product cost Quantity 7 pounds 0.74 hours 0.74 hours Cost 0.56 per pound 14 per hour 18 per hour Total 3.92 10.36 13.66 27.94 92 18.46 -- Predetermined Overhead Rate - Total manufacturing overhead Total direct labor hours 330.258 17,893 1,080 27.94 30.173 $ 503 - Budgeted ending finished goods inventory - Ending finished goods inventory in units Unit product cost - Ending finished goods inventory in dollars SELLING AND ADMINISTRATIVE EXPENSE BUDGET 100 104 10 Budgeted sales in units 10 Variable selling and administrative expense per unit 109 Variable selling and administrative expense 10 Foodseling and administrative expenso 1.00 Total soling and administrative expenso 110 Loss depreciation Cash disbursements for seling and administrative 111 expenses March 8.200 1.10 January 8,800 1.10 9,680 62,000 71,680 8,000 February 6,100 1.10 6,710 62,000 68,710 8,000 9,020 62,000 71,020 8,000 Quarter 23.100 1.10 25,410 186,000 211,410 24,000 $ 63,680 $ 60,710 $ 63,020 $ 187,410
CASH BUDGET Okay Co Cash Budget For the Quarter Ending June 30 16 January 30,000 February 84,645 March 102,796 Quarter 30,000 330,960 360,960 $ 384,180 468,825 $ 402,135 504,931 $ $ 1,117,275 1,147,275 125 Cash balance, beginning 20 Add receipts: 21 Cash collections 22 Total cash available 23 Less disbursements: Direct materials 226 Direct labor Manufacturing overhead Seling & administrative Equipment purchases Dividends 1 Total disbursements Excess (deficiency) of cash avalable over disbursements 25,101 103,807 99,727 63,680 32,332 67,547 91,439 60,710 114,000 27,879 79,150 94,092 63,020 112,000 85,312 250,505 285,258 187,410 226,000 34,000 1,068,485 12 130 34,000 326,315 $ $ 366,029 $ 376,141 $ 232 $ 34,645 $ 102,796 $ 128,790 $ 78,790 114 136 50,000 + as Financing Borrowings 137 Repayments Interest 139 Total financing 50,000 (50,000) (2,000) (2.000) (50,000) (2.250) (52,250) 136 50,000 140 $ 34,645 $ 102,796 $ 76,540 $ 76.790 14 Cash balance, ending 142 14 Interest 50,000 18% 1/4 2,250) 145
1 BUDGETED INCOME STATEMENT Okay Co Budgeted Income Statement For the Quarter Ending June 30 ISO Net sales Cost of goods sold Cross margin Selling & administrative expenses 14 Net operating income Interest expense Net Income 1.250,565 545,375 005,400 211,410 394,080 2,250 391,830 Computation of rets 5 Less uncount Net sales 1 315.700 45.635 1.250,095 100 IND Computation of cost of goods sold Budgeted lente) Unit product cost Cost of goods sold 23.100 20 375 tea 10 BEGINNING BALANCE SHEET Based on information given, beginning balances and actions) 31-Mar 30,000 30,000 Okay Co 167 Balance Sheet SE 100 190 Current assets 175 Cash 172 Accounts receivable 175 Raw materials inventory 110 Finished goods inventory LPS Plant and equipment 178 Land 121 Buildings and equipment Accumulated depreciation L79 Total assets 180 Liabilities Accounts payable 1 Stockholdeneguilty Common stock 15 Retained samingo 1:36 Total abilities and stockholders' equity 17 110 Royal Company Budonded Ralance Sheet 300,000 162.000 (750.000) (288000) 1258 0001 480,000 1,143,200 1,623,200 1,623,200 30 Jun 191 IM 76,540 163,590 2,180 30.173 272.483 Current assets Cash Accounts rceivable Raw materials inventory Finished poods inventory Piant and equipment Land Buildings and equipment Accumulated depreciation Total assets 10 19 200 300,000 388,000 (819,000) (131.000) 141.483 11 653 abilities Accounts payable 20 Stockholdem guly 200 Common stock Retained earings 200 Total liabilities and stockholders' equity 300 LO 480.000 1.501.630 1.981,630 1992853
C. Assume that Okay expects to produce and sell 90,000 units during the current year. One of Okay's sales representatives has found a new customer that is willing to buy 8,000 additional units for a price of $43 per unit. If they accept the customer's offer, it will decrease unit sales to regular customers by 5,000 units. Should they accept this special order? Show all work/calculations to justify your decision. Label your work appropriately. If I can't understand it, I can't grade it. D. Assume that Okay expects to produce and sell 23,000 units during the current quarter. A supplier has offered to manufacture and deliver 23,000 units for a price of $25 per unit. Should Okay accept this offer? How much will profit's increase or|| decrease? Show all work/calculations to justify your decision. Label your work appropriately. If I can't understand it, I can't grade it.
Requirements 1. What are the budgeted sales for February? 2. What are the expected cash collections for February 3. What is the accounts receivable balance at the end of March? 4. What is the estimated cost of raw materials purchases for February? 5. What is the estimated accounts payable balance at the end of March? 6. What is the estimated finished goods inventory balance at the end of March? 7 What is the estimated cost of goods sold and gross margin for March? 8. What is the estimated total selling and administrative expense for February? 9. What is the estimated not operating income for March? 10. What is the estimated retained earning balance for March? Requirement This question is assignment version specific. Please refer to the assignment document for further details. Reforence the DATA from your master budget. The profit impact is computed as follows: Alternate Solution 1 Altomate Solution 2 Units Decision
Requirement D This question is assignment version specific. Please refer to the assignment document for further details. Reference the DATA from your master budget. Make Buy Units Decision