3 Fortin Limited produces and sells a single product, a wearable LED light for runners and cyclists. The analytics group at Fortin Limited has developed the following estimates for unit sales in the upcoming year. 10 points First Quarter 25,900 Budgeted unit sales Second Quarter 21,400 Third Quarter 20,900 Fourth Quarter 21,200 eBook At the end of the previous quarter there were 2,600 units in finished goods inventory. The desired ending finished goods inventory at the end of each quarter is 10% of the next quarter's budgeted sales. Management expects sales in the fourth quarter of the upcoming year to be the same as the first quarter of the following year. Each light requires 0.75 direct labour-hours for assembly and employees are paid $20 per hour. Print o Required: Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecast number of units. (Round "Direct labour time per unit" answers to 2 decimal places. Round "Total direct labour hours needed" answers to whole number.) References FORTIN LIMITED Direct Labour Budget First Quarter Second Quarter 25,900 21,400 Units to be produced Direct labour time per unit (hours) Year Third Quarter 20,900 Fourth Quarter 21,200 89.400 Total direct labour hours needed Direct labour cost per hour Total direct labour cost 1 Fortin Limited produces and sells a single product, a wearable LED light for runners and cyclists. The analytics group at Fortn Limited has developed the following estimates for unit sales in the upcoming year. 10 points First Quarter 25,600 Budgeted unit sales Second Quarter 22,500 Third Quarter 20,500 Fourth Quarter 22,200 eBook The light sells for $40 per unit and all sales are on account 75% of sales are expected to be collected in the quarter of sale, with the remainder in the following quarter. Accounts receivable at the beginning of the quarter were $164,000 and will all be collected during the first quarter of the year. Print At the end of the previous quarter there were 2,000 units in finished goods inventory. The desired ending finished goods inventory at the end of each quarter is 10% of the next quarter's budgeted sales, Management expects sales in the fourth quarter of the upcoming year to be the same as the first quarter of the following year References Required: 1-a. Prepare the company's sales budget. First Quarter 25,600 Year Second Quarter 22,500 40 900,000 Budgeted unit sales Selling price per unit Total Sales Third Quarter 20,500 40 820,000 $ Fourth Quarter 22,200 90,800 40 40 S 1,024,000 $ 40 888,000 $ $ 3,632,000 1-b. Prepare the schedule of expected cash collections, FORTIN LIMITED Schedule of Expected Cash Collections First Second Quarter Quarter Quarter $ 164,000 768.000 S 225.00 Third Fourth Quarter Year Accounts receivable, beginning balance 1st Quarter sales $ 164,000 1 1-b. Prepare the schedule of expected cash collections. FORTIN LIMITED 10 points Fourth Quarter Year Schedule of Expected Cash Collections First Second Third Quarter Quarter Quarter $ 164.000 768,000 $ 225,000 675,000 $ 205,000 615,000 $ $ Accounts receivable, beginning balance 1st Quarter sales 2nd Quarter sales 164,000 eBook 993,000 880,000 3rd Quarter sales 837,000 Print 4th Quarter sales 222,000 666,000 888,000 Total cash collections 932,000 $ 900,000 $ 666,000 3,540,000 820,000 $ $ o References 2. Prepare the company's production budget for the upcoming fiscal year. FORTIN LIMITED Production Budget First Second Quarter Quarter 25,600 Third Quarter Fourth Quarter Year Budgeted unit sales Add: Desired ending inventory Total units needed 25,600 2,000 2.000 2.000 2.000 0 Required production 25,600 0 2,000 2.000 2 Fortin Limited produces and sells a single product, a wearable LED light for runners and cyclists. The analytics group at Fortin Limited has developed the following estimates for unit sales in the upcoming year 25 points First Quarter 25,500 Second Quarter 22,100 Third Quarter 20,600 Fourth Quarter 22,200 Budgeted unit sales eBook Each light requires two separate LED bulbs, each of which costs $2. To ensure enough LED bulbs are on hand to support short-term production if a problem arises with the sole supplier, Fortin Limited maintains an ending Inventory of 10% of the following quarter's production needs. A total of 4,800 LED bulbs will be on hand to start the first quarter of the upcoming fiscal year. Management expects sales in the fourth quarter of the upcoming year to be the same as the first quarter of the following year Pri Required: Prepare a direct materials purchases budget for LED bulbs, by quarter and in total, for the upcoming fiscal year. At the bottom of your budget, show the dollar amount of purchases for each quarter and for the year in total, References FORTIN LIMITED Direct Materials Budget - Year 2 Quarter First Third Second 22,100 Fourth 22,200 Year 90.400 25.500 20,600 2 2 2 2 2. 51,000 41.200 180.800 Required production of lights Number of bulbs per light Total production needs--bulbs Add Desired ending Inventory-bulbs Total needs-bulbs Less Beginning inventory--bulbs Required purchases--bulbs Total cost of purchases 44,200 4.120 48,320 44.400 4,440 4.440 4,420 55,420 51.000 4.440 45,640 48.840 44.400 185 240 180.800 44.200 41.200