a. Actual sales in December were $71,000. Selling price per unit is projected to remain stable at $12 per unit throughout the budget period. Sales for the first five months of the upcoming year are budgeted to be as follows: January $ 90.600 February $ 118,800 March $ 115 200 April $ 108,000 $ May.......... $ 103,200 b.Sales are 35% cash and 65% credit. All credit sales are collected in the month following the sale c.Darlcy Manufacturing has a policy that states that cach month's ending inventory of finished goods should be 10% of the following month's sales in units). d. Of each month's direct material purchases 20% are paid for in the month of purchase, while the remainder is paid for in the month following purchase. Three pounds of direct material is needed per unit at $2.00 per pound. Ending inventory of direct materials should be 20% of next month's production needs. e. Most of the labor at the manufacturing facility is inclirect, but there is some clirect labor incurred. The direct labor hours per unit is 0.05. The direct labor rate per hour is $9 per hour. All direct labor is paid for in the month in which the work is performed. The direct labor total cost for each of the upcoming three months is as follows: 3,807 January ........$ February .......5 $ March ..........$ 4,442 4,293 f. Monthly manufacturing overhead costs are 55,500 for factory rent $2,900 for other fixed manufacturing expenses, and $1.10 per unit for variable manufacturing overhead. No cepreciation is included in these figures. All expenses are paid in the month in which they are incurred. g. Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Darley Manufacturing will purchase equipment for $5,000 (cash), while February's cash expenditure will be $12 200 and March's cash expenditure will be $16,600. h. Operating expenses are budgeted to be $1.25 per unit sold plus fixed operating expenses of $1,800 per month. All operating expenses are paid in the month in which they are incurred. No depreciation is included in these figures. 1. Depreciation on the building and equipment for the general and administrative offices is budgeted to be $4,800 for the entire quarter, which includes depreciation on new acquisitions j. Darley Manufacturing has a policy that the ending cash balance in each month must be at least $4,000. It has a line of credit with a local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $120,000. The interest rate on these loans is 1% per month simple interest (not compounded). The company would pay down on the line of credit balance in increments of $1,000 if it has excess funds at the end of the quarter. The company would also pay the accumulated interest at the end of the quarter on the funds borrowed during the quarter. k. The company's income tax rate is projected to be 30% of operating income less interest expense. The company pays $10,000 cash at the end of February in estimated taxes. Data table Current Assets as of December 31 (prior year) Cash $ 4,600 $ 52,000 $ 15,100 Accounts receivable, net Inventory Property, plant, and equipment, net Accounts payable Capital stock $ 120,000 $ 43,000 127,000 $ Retained earnings $ 22,800 Print Done Requirement 1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total. Darley Manufacturing Cash Collections Budget For the Quarter Ended March 31 Month January February March Quarter Cash salos Credits sales Total cash collections Requirement 2. Prepare a production budget. (Hint: Unit sales - Sales in dollars - Selling price per unit.) Darley Manufacturing Production Budget For the Quarter Ended March 31 Month January February March Quarter Unit sales Plus: Desired ending inventory Total needed Less: Beginning inventory Units to produce Requirement 3. Prepare a direct materials budget. (Round your answers to the nearest whole dollar.) a Requirement 3. Prepare a direct materials budget. (Round your answers to the nearest whole dollar) Darley Manufacturing Direct Materials Budget For the Quarter Ended March 31 Month January February March Quarter Units to be produced Multiply by: Quantity (pounds) of DM nccdcd pcr unit Quantity (pounds) needed for production Plus. Desired ending inventory of DM Total quantity (pounds) needed Less Beginning inventory of DM Quantity (pounds) to purchase Multiply by. Cost per pound Total cost of DM purchases Required. Prepracunt parts urged the trusterial partner Recherche en 1 of year for the properties) Ruand our best Darley Vanering Cash Payment Direct Materiala Dunipet For the red ch31 Month Ja February 205 month andarse 80%purchas T.ML Narch Q Requirement 5. Prepare cash payments budget for direct labor. Darley Manufacturing Cash Payments for Direct Labor Budget For the Quarter Ended March 31 Month January February March Quarter Tolal cost of direct labor Requirement 8. Prepare a cash paymenils budgellur rrianulucturing overhead costs (Round your answers to the nearest whole dollar.) Darley Manufacturing Ceah Payments for Manufacturing Overhead Budget For the Quarter Ended March 31 Month January February March Quarter Variable manufacturing overhead costs Rent (fixed) Other fixed MOTI Cash payments for manufacturing overhead Requirement 7. Prepare a cash payments budget for operating expenses. (Round your answers to the nearest whole dollar.) Darley Manufacturing Cash Payments for Operating Expenses Budget For the Quarter Ended March 31 Month January February March Quarter Variable operaling expenses I ixed operating expenses Cash payments for operating expenses Requirement & Proper a comic ned cash budget of an input fick is not used in the table cave the input okomoty, do not enter a zero Use parenteses or a minus sign for mega cash balances and ending payments) Carley Manufacturing Combined Coh Budget For the Oertar Encies Narch 31 January February March Quarter Beginning as a co Plus Cashcodecs Tulalash va HEN Direct reputheses Director Manufacturing overhead out Operating proces TE Equipment purchase To when Total cash payments Ending cash balance before financing Financing Plus New borrowings Less. Debt repayments Loss Interest payments Total financing Ending cash balance Requiremente. Calculatotho budytod manufacturing cost pounit (sumo thatod manufacturing ovortcadis busgood to be 50.00 por unt for tho year). (Round your answer to the noroc cont.) Eurley Madisa.statius Budgeted Manufacturing Cart per Unit For the Quarter Ended March 31 Direct materials cost per unit Directo cos per un Vanablo manufacturing overhead cos por unt Fixed manufacturing costs per un Ausgeted cost se manufacturing cent Requirement 10. Preparated comfortoquerending bych 31 Entos elgondold Bucomandigo Nuriter of naseob Rosure to the westwo Derley Menecturing Budgeted income and For the art Frded Match Sare Less Castof goods sold GO DO Less Operating IRWAR powing income LAN W LESS come sorgere Net Income