1. Sales Budget

Hamster Enterprises estimates the unit sales for 2021 to be:

Q1 Q2 Q3 Q4 Year

Units sold 24,000 31 000 28,000 35,000 118,000

The company expects to sell its goods for $120 per unit.

Required:

a.) make a sales budget for the year.

2. Cash Collections Budget

The company expects to collect 70% of sales in the quarter of the sale, and 30% in the quarter following the sale.

The company's beginning accounts receivable was $540,000, all of which was expected to be collected in the first quarter.

Required:

make a schedule of expected cash collections for the year. Also, calculate the ending accounts receivable.

3. Production Budge

Continuing with the same example, Hamster Enterprises requires finished goods inventory on hand equal to 15% of the next quarter's expected sales.

The company expects to begin the year with 3,600 units in inventory. The expected unit sales for Q1 in 2022 are 30,000.

Required:

make a production budget for the quarter.

4. Materials Purchases Budget

Hamster Enterprises manufactures little boxes. Each one takes 2 sq-fts of material which costs $12 per sq-ft.

The company had 5,010 sq-fts of material on hand at the beginning of January and required enough ending materials to be on hand to meet 10% of the following quarter's production requirements.

The company expects to produce 32,000 units in Q1 of 2022.

Required:

make a materials purchases budget for the year. Provide both the number of sq-fts and the dollar value of inventory to be purchased.

5. Cash Payments Budget

The company expects to pay 60% of sales in the quarter of the purchase of materials, and 40% in the quarter following the purchase.

The company's beginning accounts payable was $385,000, all of which was expected to be paid in the first quarter.

Required:

make a schedule of expected cash disbursements for direct materials for the year. Also, calculate the ending accounts payable.

6. Direct Labour Budget

Each unit requires 2 direct labour hours to produce and workers are paid $20.00 per hour.

Required:

a.) Assuming a completely flexible labour force, prepare the company's direct labour budget for the

year.

b.) Refer to the original data. Assume the company has permanent employees who are guaranteed to be

paid for at least 55,000 hours of work per quarter.

If production requires less than 55,000 hours, they will be paid for 55,000 hours anyway. Any amount of

work above 55,000 hours will be paid at 1.2 times their normal hourly rate.

7. Manufacturing Overhead Budget

The company's variable overhead rate is $10 per direct labour hour. The company's fixed overhead is

$100,000 per quarter; this number includes quarterly depreciation of $15,000.

Required:

Prepare the company's manufacturing overhead budget for the quarter.

8. Selling and Administrative Expenses Budget

The company's variable expenses include:

The company's fixed expenses are:

Also, executive bonus payments of $25,000 will be made in Q2, and a corporate event of $15,000 will be

paid in Q3.

Required:

Prepare the company's selling and administrative budget for the upcoming year.

Disclose both total selling and administrative expenses and cash disbursements for selling and

administrative expenses.

Shipping expenses: $1.20 per unit

Sales commissions: $1.30 per unit

Other expenses: $2.30 per unit

Advertising: $40,000 per quarter

Salaries $150,000 per quarter

Depreciation: $30,000 per quarter

Other: $50,000 per quarter