20 HW i ok Int ences LITTL---- ---- Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and equity $ 1,495,234 206,390 30,000 236,390 525,000 761,390 353,000 380,844 733,844 $ 1,495,234 Saved To prepare a master budget for April, May, and June of 2019, management gathers the following information. a. Sales for March total 23,300 units. Forecasted sales in units are as follows: April, 23,300; May, 17,000; June, 21,900; and July, 23,300. Sales of 258,000 units are forecasted for the entire year. The product's selling price is $26.00 per unit and its total product cost is $21.10 per unit. b. Company policy calls for a given month's ending raw materials Inventory to egual 50% of the next month's materials requirements. The March 31 raw materials inventory is 4,565 units, which complies with the policy. The expected June 30 ending raw materials Inventory is 5,800 units. Raw materials cost $20 per unit. Each finished unit requires 0.50 units of raw materials. c. Company policy calls for a given month's ending finished goods Inventory to equal 80% of the next month's expected unit sales. The March 31 finished goods Inventory is 18,640 units, which complies with the policy. d. Each finished unit requires 0.50 hours of direct labor at a rate of $14 per hour. e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $4.50 per direct labor hour. Depreciation of $38,360 per month is treated as fixed factory overhead. f. Sales representatives' commissions are 10% of sales and are paid in the month of the sales. The sales manager's monthly salary is $4,800. g. Monthly general and administrative expenses Include $30,000 administrative salaries and 0.8% monthly interest on the long-term note payable. h. The company expects 20% of sales to be for cash and the remaining 80% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale). I. All raw materials purchases are on credit, and no payables arise from any other transactions. One month's raw materials purchases are fully paid in the next month. J. The minimum ending cash balance for all months is $58,000. If necessary, the company borrows enough cash using a short-term note to reach the minimum. Short-term notes require an Interest payment of 1% at each month-end (before any repayment). If the ending cash balance exceeds the minimum, the excess will be applied to repaying the short-term notes payable balance. k. Dividends of $28,000 are to be declared and paid in May. 1. No cash payments for Income taxes are to be made during the second calendar quarter. Income tax will be assessed at 40% in the quarter and paid in the third calendar quarter. m. Equipment purchases of $148,000 are budgeted for the last day of June.

To prepare a master budget for Apni. May. and June or 2019, management gathers the foliowing information a. Sales for March total 23,300 units. Forecasted sales in unts are as tollows.Apri, 23,300: May, 17,000;,June.21,900, and July. 23,300 . Soles of 258,000 units are forecasted for the entre year rhe product's selling price is $26.00 per unit and its totai product cost is $2110 per unit b. Company policy calis for a given month's ending raw materiais inventory to equal 50% or the next month's materals requirements The March 31 raw materals inventory is 4,565 units, which complies with the bolicy. The expected June 30 ending raw materials inventory is 5.800 units. Raw materiats cost 320 per unit Each finutied unit requires 0.50 units of raw materlals c. Compariy policy calls for a given month's ending finished goods inventory to cqual 80% of the next month's expected unit sales The March 31 finished goods inventory is 18.640 units, which complles with the policy d. Each finished unit requires 0.50 hours of direct labor at a rate of 514 per hour. e. Overhead is allocated based on direct iabor nours. The predetermined varlable overhead rate is 5450 per direct labor hour Deprectation of $38,360 per month is treated as fixcd foctory overhead f. Sales tepresentatives commissions are 10% of sales and are paid in the month of the sales. The sales manager's monthly salary is 54,800 note payable h. The company expects 200 of sales to be for cash and the remaining 80% on credit Receivabies are coliected in ful in the month following the sale inone are collected in the month of the sale) 1. Al raw materlas purchases are on credit. and no payables anse from any other transactions One month's raw materlals purchases are fully paid in the next month 1. The minmum ending cash balance for al months is $58,000. If necessary, the company borrows enough cash using a short-terin note to teach the minimum. Short-term notes requite an interest payment of the at each month-end (toerore any repayment) if the ending cash balance exceeds the minimum, the excess wil be appled to repaying the shorterm notes payable balance k. Dividends of $2,8,000 are to be declared and paid in May. 1. No cash payments for income taxes are to be made during the fecond calendar quarter income tax wit be assessed at 40 ch in the quatter and paid in the third ca:encat quarter. m. Equipment purchases or $148,000 are budgeted for the last day of June To prepare a master budget for Apri,. May, and June of 2019, management gathers the following information. a. Sales for March total 23,300 units. Forecasted sales in units are as tollows: Apri, 23,300. May, 17,000; June. 21,900; and July. 23,300. Sales of 258,000 units are forecasted for the entre yeor The products selling price is $2,6.00 per unit and its total product cost is $21,10 per unit b. Company policy calls for a given month's ending raw materials inventory to equal 50% or the next month's matenais requirements The March 31 raw materials inventory is 4,565 units, which complies with the bolicy. The expected June 30 ending raw materials inventory is 5.800 units. Raw materlals cost $20 per unit. Each finshed unit requires 0.50 units of raw materials. c. Compariy policy calls for a given month's ending finished goods inventory to equal 80% of the next month's expected unit sales. The March 31 finished goods inventory is 18.640 units, which complies with the policy d. Each finished unit requires 0.50 hours of direct labor at a rate of $14 per hour. e. Overhead is allocated based on direct labor nours. The predetermined variable overhead rate is $450 per direct labor hour. Depreciation of $38,360 per month is treated as fixed factory ovehead 1. Sales tepresentatives commissions are 10s of sales and are paid in the month of the sales. The sales managers monthly salary is 54,800 9. Monthly generar and administrative expenses include $30,000 administrative salaries and 08% monthy interest on the iong-teim note payable. h. The company expects 2004 or sales to be for cash and the remaining 80% on ciedit. Recelvabies are collected in full in the month following the sale (none are collected in the month of the sale) 1. All raw materaz purchases are on credit, and no payables anse from any other transactions. One months raw matenas purchases are fully paid in the next month. 1. The intimum ending cosih balance for all months is $58,000. If necessary, the company borrows enough cash using a short term note to teach the minimum. Short-term notes requite an interest payment of 1c at each month-end (before any repayment) if the ending cash balance exceeds the minimum, the excess wil be applied to repaying the shortterm notes payable batance k. Dividends of $28,000 are to be declared and pald in May. 1. No cash payments for income taxes are to be made duing the second calendar quarter income tax wail be assessed at 40 in the quarter and paid in the third ca:endar quarter m. Equpment purchases or $148,000 are budgeted for the last day of June