$110.000 15.000 $125,000 58.00 $150,000 7,500 $157,500 0.015 continued from previous page Fixed cost per quarter Cash Depreciation Total Selling and administrative costs Variable cost per unit Fixed costs per quarter Cash Depreciation Total Interest rate per quarter Portion of sales collected Quarter of sale Subsequent quarter Bad debts Portion of purchases paid Quarter of purchase Subsequent quarter Unit selling price Sales forecast Quarter Unit sales 0.70 0.29 0.01 0.60 0.40 $225.00 First 4,400 Second 4,600 Third 4,500 Fourth 4800 . . Additional information All cash payments except purchases are made quarterly as incurred. All borrowings occur at the start of a quarter. All repayments on borrowings occur at the end of a quarter. At the time the principal is repaid, interest is paid on the portion of principal that is repuid. Borrowings and repayments may be made in any amount. Required a. A sales budget for each quarter and the year. (Hint: Use of spreadsheet software strongly recom- mended for this problem.) b. A production budget for each quarter and the year. c. A purchases budget for each quarter and the year. d. A manufacturing cost budget for each quarter and the year. e A selling and administrative expense budget for each quarter and the year. f. A cash budget for each quarter and the year. 8. A pro forma contribution income statement for each quarter and the year. 222-42. Developing a Master Budget for a Manufacturing Organization: Challenge Problem Electric Monkey Computer Accessories assembles a computer networking device from kits of imported components. You have been asked to develop a quarterly and annual operating budget and pro forma income statements for next year. You have obtained the following information: - $ 75,000 $245,000 950 kits 1,500 kits $125,000 $ 30,000 1.000 kits 1.600 kits Beginning-of-year balances Cash... Accounts receivable (previous quarter's sales). Raw materials. Finished goods Accounts payable (materials) Borrowed funds. Desired end-of-year inventory balances Raw materials Finished goods Desired end-of-quarter balances Cash Raw materials as a portion of the following quarter's production... Finished goods as a portion of the following quarter's sales. Manufacturing costs Standard cost per unit Raw materials Direct labor hours at rate. Variable overhead/labor hour Total standard variable cost $ 30,000 0.20 0.30 Units Unit price 1 kit $75.00 0.50 hour $30.00 0.50 hour $ 5.00 Total $75.00 15.00 2.50 $92.50 continue