1.Rokarie Recyce, Inc. plans to sell 3,000 recycle bins in the first quarter with 200 urits` increments for each of the following quarter during the first year of operation in 2018. The sales price per bin is $25 in the first and second quarter and $30 in the third and fourth quarter. Rokaric has no Beginning Finished Goods Inventory and plan to have an Encing Finished Goods Invertory of 5% of next quarter expected urit sales, except for the fourth quarter that plan to have only 100 unts. Each bin requires 2.4 pounds of plastic (material). Rokarie has no Beginning plastic material) inventory and wants to have an Ending Finished Plastic Material Inventory of 6% of next quarter plastic material) units needed for production, except for the fourth quarter that plan to have only 400 pounds. Plastic material) costs $1.80 per pound. Each bin requires 25 (1/4) hours of direct labor and Rokaie pays it employees $11.00 per hour. Manufacturing variable overhead is applied based on direct labor hours. Selling and Administrative expenses are based on expected units' sales. Instructions: Prepare the 2018 Mater Budget for Rokare. Do not prepare the Income Statement Sales Budget Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Estimated Unit (Canastas) Sales Unit Selling Price Total Fstimated Sales Receipts erents Prudullion Budgel Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Estimated Units (Canastas) Sales Add Desired Ending Finished Good Inv. Units (1) Total Estimated Units Needed for Production Less Beginring Finished Goods Inv. Units (2) Estimated Production Units (Canastas Presente los Cmputos: (1) Q1 Q2 Qs Q4 = 100 (2) Q1 = 0 Direct Material Budget | Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Estimated Production Units (Canastas) Estimated Direct Materials per Unit Total Estimated Materials for production Add: Desired Ending Inv. for Direct Materials (1) Total Estimated Required Materials Tess Reginning Inv For Direct Materiak (7) Estimated Direct Materials purchases in Pounds Estimated Direct Material Cost Per Pound Total Estimated Direct Materials Purchases Cost Presente los cmputos: (1) Qi 02 Q3 04 = 400 (2) Q1 = 0 Problem 1 continuation Direct Labor Budget Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Estimated Production Units (Canastas) Direct Labor time (hours) per unit (Canasta) Estimated total Direct Labor Hours Direct Labor Cost per Hour Estimated rotal Direct Labor Cost Manufacturing Overhead Budget Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year I Estimated total Direct Labor Hours Variable Costs Indirect Materials ($0.50 per direct labor hour) Indirect Labor ($0.60 per direct labor hour) Utilities ($0.20 per direct labor hour) Maintenance ($0.10 per direct labor hour) I Total Variable Cost Fixed Costs Supervision Salaries ($10,000 per quarter) Depreciation Expense ($2,000 per quarter) Property Tax Expense ($2,500 per quarter) Insurance Expense ($1,000 per quarter) Maintenance Expense ($500 per quarter) Total Fixed Cost Total Manufacturing Overhead Cost MOH Rate per Direct Labor Hour Selling and Administrative Expense Budget Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Estimated Units (Canastas) Sales Estimated Variable Costs Sales Commissions Expense ($1.25 per unit sold) Transportation Out Expense ($0.50 per unit sold) Utilities ($0.10 per unit sold) Maintenance ($0.05 per unit sold) Estimated Total Variable Cost Fixed Costs Sales Salaries ($7,000 per quarter) Office Salaries (($3,000 per quarter) Depreciation Expense ($500 per quarter) Property Tax Expense ($700 per quarter) Insurance Expense ($500 per quarter) Advert & Promo Expense ($2,200 per quarter) Estimated Total Fixed Cost Total Selling and Administrative Expenses 2. Roprin Corporation's sales of shoes on account. Past collection, history indicates that credit sales are collected as follows: 30% in the month of sale 60% in the month following sale 10% in the second month following sale In January, sales were $42.000 and February sales were $45,000. Projected sales for March are 4.800 pair of shoes at $10 each pair ($48,000). Projected sales for April are 5,000 shoes at $12 each pair ($60,000). The cash balance at March 1, 2019 was $6.850. Roprin expects to purchase $26,000 of materials in February and $28.000 of materials in March. Three-quarters (75%) of all purchases are paid for in the month of purchase, and the other one-fourth (25%) is paid for in the month following the month of purchase. All other fixed expenses are $8.000 per month and are paid in the month incurred Financial Section (borrowings and/or payments are not considered.) Instructions: A. Prepare the cash collections and cash payments schedules for March 2019. B. Prepare a cash budget for the month ended 31 March 2019. Solution Problem II Expected Collections for Credit Sales January 30% $ February 60% $ 30% March $ January (Credit Sales = February (Credit Sales = March (Credit Sales = Total Creit Sales Collections 10% 60% 30% Expected Payments for Direct Materials February S 75% February (Credit purchases = March (Credit purchases = Total Payments ) ) March 25% 75% B. Roprin Corporation Cash Budget For the month ended 31 March 2019 Beginning Balance Add: Cash Collections for March Total Cash Available | Less: Cash Disbursements: Cash payments for March purchases Other fixed expenses Total Cash Disbursements for March Net cash receipts over (under) payments = (Ending Cash Balance)