$7)$ Julie wants to make sure that she is able to meet the demand for her wedding cakes. In order to do this, she needs to know how many cakes to produce, how many materials to buy, and how much money in the bank she needs to pay her bills as they come due. She prepares a master budget to calculate the budget sales, production, direct materials purchases, direct labor costs, and cash flows. Use the information below to put together the master budget in Excel.

Sales Budget:

$$ Expected Sales $($$$800/$cake$)$:

o January $50$ cakes

o February $60$ cakes

o March $80$ cakes

o April $90$ cakes

o May $100$ cakes

Production Budget:

$$ Desired ending cakes $=10\%$ of the following months demand

Direct Materials Budget:

$$ There are $6$ eggs in each wedding cake

$$ Desired ending eggs $=20\%$ of the following months eggs need

$$ A carton of a dozen eggs cost $$2\mathrm{.}40($$$0\mathrm{.}20/$egg$)$

$$ She currently have $24$ eggs in beginning inventory

Direct Labor Budget:

$$ Each cake requires $6$ hours of direct labor and bakers are paid $$20/$hr in the same month that they work

Cash Receipts Budget:

$$ Sales are $40\%$ cash and $60\%$ credit

$20\%$ of credit sales are collected in the same month and $80\%$ in the following month

Cash Payments Budget:

$$ Direct material purchases are paid $30\%$ in the same month of the purchase and $70\%$ in

the month following the purchase

Cash Budget:

$$ Julie currently has $$10,000$ set aside to open her business and wants to make sure she always has at least $$10,000$ in her account as a safety net