AB C On the tab labeled SOLUTION 1, use all available data (Assumptions Row 4 Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: A Create a SALES BUDGET for the year ended December 31, 2017 B Create a SCHEDULE OF EXPECTED CASH COLLECTIONS for the year ended December 31, 2017 On the tab labeled SOLUTION 2, use all available data (Assumptions Row 4-Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: Create a PRODUCTION BUDGET for the year ended December 31, 2017 On the tab labeled SOLUTION 3, use all available data (Assumptions Row 4 Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: D Create a DIRECT MATERIALS BUDGET for the year ended December 31, 2017 1 E Create a SCHEDULE OF EXPECTED CASH DISBURSEMENTS FOR PURCHASES OF MATERIALS for the year ended December 31, 2017 3 On the tab labeled SOLUTION 4, use all available data (Assumptions Row 4-Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: 1 . Create a DIRECT LABOR BUDGET for the year ended December 31, 2017 5 On the tab labeled SOLUTIONS, use all available data (Assumptions How 4-Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: 7 G Create a MANUFACTURING OVERHEAD BUDGET for the year ended December 31, 2017 9 On the tab labeled SOLUTION 6, use all available data (Assumptions Row 4-Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: 0 H Create a ENDING FINISHED GOODS INVENTORY BUDGET (absorption costing basis) for the year ended December 31, 2017 2 On the tab labeled SOLUTION 7, use all available data (Assumptions Row 4 Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: 4 Create a SELUNG AND ADMINISTRATIVE EXPENSE BUDGET for the year ended December 31, 2017 26 On the tab labeled SOLUTION 8, use all available data (Assumptions Row 4-Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: 27 1 Create a CASH BUDGET for the year ended December 31, 2017 29 On the tab labeled SOLUTION 9, use all available data (Assumptions Row 4-Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: 30 K Create a BUDGETED INCOME STATEMENT (absorption casting basis for the year ended December 31, 2017 32 On the tab labeled SOLUTION 10, use all available data (Assumptions Row 4-Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: 33 Create a BUDGETED BALANCE SHEET as of December 31, 2017 SA L Assumptions Endless Mountain Company manufactures a single product that is popular with outdore recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2017. The company's CFO in consultation with various managers across the company is providing the latest Balance Sheet and a set of assumptions to help create the 2017 budgets. Beeterlinit sales Budgeted Unit Sales 01 2017 Q2 2017 03 2017 04 2017 01 2018 12 000 37.000 15 OKO 25.00 13.000 5 32 Burgeted Selling Price per unit 75% All sales are credit sales Tenore Uncollectible Accounts. They are minimal Percentage of Sales collected in the quarter of the sale Percentage of Sales collected in the subsequent quarter 25% S 15% 3.5 300 10N 5,000 2044 3016 5 18:00 0.25 Quarter ending finished goods inventory as a percent of next quarter's unit Sales Yards of raw material required for at Cost per yard of raw material Quarter ending raw materials inventory as a percent of next quarter's production needs Estimated ending raw materials inventory on December 31, 2017 (in yards 3 Percent of purchases paid for in the quarter of the purchase Percent of purchases paid for in the quarter following the purchase 5 6 Direct labor hourly rate 7 Direct labor hours required to finish teach unit of finished goods 8 Direct labor hours are paid in the after incurred 9 0 Budgeted variable manufacturing overhead per direct labor-hour 31 Quarterly fixed manufacturing overhead includine depreciation expense on equipment) 32 Quarterly depreciation on equipment The number of direct labor hours is used as the allocation base for the budgeted plantwide overhead rate 31 All overhead posts excluding depreciation are paid in the quant incurred Es 36 The budgetes variable selling and administrative expense en un sold 37 Fixed selling and administrative expenses RAH DIRECTIONS Assumptions Row Row 52 Bc Sheet for 2016 SOLUTION $ $ S 300 150,000 20,000 5 1.25 5. SOLUTION 25 non SOLUTIONS SO S Cost per yard of Taw material Quarter ending raw materials inventory as a percent of next Quarter's produktion needs Estimated ending raw materials entory on December 31, 2017 Kinyards) Percent of purchases paid for in the quarter of the purchase Percent of purchases paid for in the quarter following the purchase 3.00 10% 5.000 70% 2016 3 18.00 025 Direct labor hourly rate Direct labor hours required to finish each unit of finished soods Direct labor hours are paid in the quarter incurred 5 s 5 3.00 150 000 20.000 Budgeted variable manufacturing overhead per direct labor-hour Quarterly fixed manufacturing overhead (including depreciation expense on equipment Quarterly depreciation on equipment The number of direct labor hours is used as the allocation base for the budgeted plantwide overhead rate All overhead costs (escluding depreciation are paid in the quarti incurred si 125 3 The budgeted variable selling and administrative expense per unit sold Fixed selling and administrative expenses Advertising Executive Salaries Insurance Property Tax Depreciation expense selling and administrative) All selling and administrative expenses (excluding depreciations are paid in the quarter incurred $ 5 5 S 5 25,000 64,000 12.000 8000 8.000 1 3 1 S 30 000 Minimum cash balance at the end of each quarter Ar borrowing takes place on the first day of the quarter To the extent possible, the company will repay principal and interest on any borrowings on the last day of the fourth quarter The company's lender imposes simple interest per quarter on anyboming at a rate of 394 6 7 8 9 O -1 5 15.000 Dividends declared and paid in cath quarter 2 3 The company uses a LIFO inventory low assumption. This means that the most recently purchased raw materials are the out to production and the most recently completed tinished goods are the rest out to customers Rice Sheet 18 SOLUTION SOLUTION SOLUTIONS Balance Sheet December 31, 2016 Assets $ 46,200 260,000 11,250 32,250 s 349,700 Current Assets Cash Accounts Receivable Raw Materials Inventory (4,500 yards) Finished Goods Inventory (1,500 Units) Total Current Assets Plant and Equipment Buildines and Equipment Accumulated Depreciation Plant and Equipment, net Total Assets 900,000 (292,000) 600,000 957,700.00 5 S 158,000 Liabilities and Stockholders' Equity Current Liabilities: Accounts Payable Stockholders's Equity Common Stock S Retained Earnines Total Stockholders' Equity Total Liabilities and Stockholders' Equity 419,800 379,900 799,700 957,700.00 S 2 3 G 7 9 10 11 13 14 F 16 17 19 20 C D G H On the tab labeled SOLUTION 1, use all available data (Assumptions Row 4-Row S2, Balance Sheet for 2016, results from other SOLUTION tabs) to: A Create a SALES BUDGET for the year ended December 31, 2017 B Create a SCHEDULE OF EXPECTED CASH COLLECTIONS for the year ended December 31, 2017 On the tab labeled SOLUTION 2, use all available data (Assumptions How 4-Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: Create a PRODUCTION BUDGET for the year ended December 31, 2017 On the tab labeled SOLUTION 3, use all available data (Assumptions Row 4 Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: D Create a DIRECT MATERIALS BUDGET for the year ended December 31, 2017 E Create a SCHEDULE OF EXPECTED CASH DISBURSEMENTS FOR PURCHASES OF MATERIALS for the year ended December 31, 2017 On the tab labeled SOLUTION 4, use all available data (Assumptions Row 4 Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: Create a DIRECT LABOR BUDGET for the year ended December 31, 2017 On the tab labeled SOLUTION 5, use all available data (Assumptions Row 4 Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: 6 Create a MANUFACTURING OVERHEAD BUDGET for the year ended December 31, 2017 On the tab labeled SOLUTION 6, use all available data (Assumptions Row 4 Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: H Create a ENDING FINISHED GOODS INVENTORY BUXGET (absorption costing basis for the year ended December 31, 2017 On the tab labeled SOLUTION 7, use all available data (Assumptions Row 4 Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: 1 Create a SELLING AND ADMINISTRATIVE EXPENSE BUDGET for the year ended December 31, 2017 On the tab labeled SOLUTION 8, use all available data (Assumptions Row 4-Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: 1 Create a CASH BUDGET for the year ended December 31, 2017 On the tab labeled SOLUTION 9, use all available data (Assumptions Row 4-Row S2, Balance Sheet for 2016, results from other SOLUTION tabs) to: Create a BUDGETED INCOME STATEMENT (absorption casting basis for the vear ended December 31, 2017 On the tab labeled SOLUTION 10, use all available data (Assumptions Row 4-Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: L Create e BUDGETED BALANCE SHEET as of December 31 2017 22 24 26 27 29 30 32 33 34 K L B D E H Assumptions 12,000 37,000 15,000 25,000 13,000 10.5 1214.2857 32 Endless Mountain Company manufactures a single product that is popular with outdore recreation enthusiasts. The company sells its product to retailers throughout the northeastem quadrant of the United States. It is in the process of creating a master budget for 2017. The company's CFO in consultation with various managers across the company is providing the latest Balance Sheet and a set of assumptions to help create the 2017 budgets. 5 2 Budeeted Unit Sales 5 Q1 2017 Q2 2017 7 Q3 2017 3 Q4 2017 Q1 2018 CO 11 Budgeted Selling Price per unit S 2 13 All sales are credit sales Ignore Uncollectible Accounts. They are minimal. 15 Percentage of Sales collected in the quarter of the sale 16 Percentage of Sales collected in the subsequent quarter 17 18 Quarter ending finished goods inventory as a percent of next quarter's unit sales 19 Yards of raw material required for each unit 20 Cost per yard of raw material $ 21 Quarter ending raw materials inventory as a percent of next quarter's production needs 22 Estimated ending raw materials inventory on December 31, 2017 (in yards) 23 Percent of purchases paid for in the quarter of the purchase 24 Percent of purchases paid for in the quarter following the purchase 25 26 Direct labor hourly rate 5 27 Direct labor hours required to finish each unit of finished goods 28 Direct labor hours are paid in the quarter incurred 29 an Rudeeted variable manufacturine nuerhesdner Hirat lahar keur DIRECTIONS Assumptions Row 4 -- Row 52 Balance Sheet for 2016 SOLUTION 1 SOLUTION 2 75% 25% 15% 3.5 3.00 10% 5.000 700 30% 18.00 0.25 2.00 SOLUTION 3 SOLUTION 4 SOLUTIONS S Cost per yard of raw material Quarter ending raw materials inventory as a percent of next quarter's production needs Estimated endine raw materials inventory on December 31, 2017 Xin yards) Percent of purchases paid for in the quarter of the purchase Percent of purchases paid for in the quarter following the purchase 300 10% 5,000 70% 30% $ 18.00 0.25 Direct labor hourly rate Direct labor hours required to finish each unit of finished goods Direct labor hours are paid in the quarter incurred mu 3.00 150,000 20,000 Budgeted variable manufacturing overhead per direct labor-hour Quarterly fixed manufacturing overhead Tincluding depreciation expense on equipment) Quarterly depreciation on equipment The number of direct labor hours is used as the allocation base for the budgeted plantwide overhead rate All overhead costs (excluding depreciation) are paid in the quartr incurred 20 23 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 5 125 The budgeted variable selling and administrative expense per unit sold Fixed selling and administrative expenses Advertising Executive Salaries Insurance Property tax Depreciation expense (selling and administrative) All selling and administrative expenses (excluding depreciation) are paid in the quarter incurred $ $ 5 5 S 25,000 64,000 12.000 8,000 8,000 $ 30,000 Minimum cash balance at the end of each quarter Any borrowing takes place on the first day of the quarter To the extent possible, the company will repay principal and interest on any borrowings on the last day of the fourth quarter The company's lender imposes simple interest per quarter on any borrowing at a rate of 34 5 15,000 Dividends declared and paid in each quarter The company uses a LIFO inventory flow assumption This means that the most recently purchased raw materials are the first out to production and the most recently completed finished goods are the first out to customers 52 SOL SOLUTIONS SOLUTION 2 Balance Sheet for 2016 SOLUTION 1 DIRECTIONS Assumptions Row 4 - Row 52 Ready Scroll Loc 46,200 260,000 11,250 32,250 S 349,700 900,000 (292,000) 3 Balance Sheet 1 December 31, 2016 5 6 Assets 7 Current Assets: 8 Cash $ 9 Accounts Receivable 10 Raw Materials Inventory (4,500 yards) 11 Finished Goods Inventory (1,500 Units) 12 Total Current Assets 13 Plant and Equipment: 14 Buildings and Equipment 15 Accumulated Depreciation 16 Plant and Equipment, net 17 Total Assets 18 19 Liabilities and Stockholders' Equity 20 Current Liabilities: 21 Accounts Payable 22 Stockholders's Equity: 23 Common Stock 24 Retained Earnings 25 Total Stockholders' Equity 26 Total Liabilities and Stockholders' Equity 27 28 29 30 31 32 33 608,000 957,700.00 S S 158,000 S 419,800 379,900 799,700 957.700.00 $ 35 AB C On the tab labeled SOLUTION 1, use all available data (Assumptions Row 4 Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: A Create a SALES BUDGET for the year ended December 31, 2017 B Create a SCHEDULE OF EXPECTED CASH COLLECTIONS for the year ended December 31, 2017 On the tab labeled SOLUTION 2, use all available data (Assumptions Row 4-Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: Create a PRODUCTION BUDGET for the year ended December 31, 2017 On the tab labeled SOLUTION 3, use all available data (Assumptions Row 4 Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: D Create a DIRECT MATERIALS BUDGET for the year ended December 31, 2017 1 E Create a SCHEDULE OF EXPECTED CASH DISBURSEMENTS FOR PURCHASES OF MATERIALS for the year ended December 31, 2017 3 On the tab labeled SOLUTION 4, use all available data (Assumptions Row 4-Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: 1 . Create a DIRECT LABOR BUDGET for the year ended December 31, 2017 5 On the tab labeled SOLUTIONS, use all available data (Assumptions How 4-Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: 7 G Create a MANUFACTURING OVERHEAD BUDGET for the year ended December 31, 2017 9 On the tab labeled SOLUTION 6, use all available data (Assumptions Row 4-Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: 0 H Create a ENDING FINISHED GOODS INVENTORY BUDGET (absorption costing basis) for the year ended December 31, 2017 2 On the tab labeled SOLUTION 7, use all available data (Assumptions Row 4 Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: 4 Create a SELUNG AND ADMINISTRATIVE EXPENSE BUDGET for the year ended December 31, 2017 26 On the tab labeled SOLUTION 8, use all available data (Assumptions Row 4-Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: 27 1 Create a CASH BUDGET for the year ended December 31, 2017 29 On the tab labeled SOLUTION 9, use all available data (Assumptions Row 4-Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: 30 K Create a BUDGETED INCOME STATEMENT (absorption casting basis for the year ended December 31, 2017 32 On the tab labeled SOLUTION 10, use all available data (Assumptions Row 4-Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: 33 Create a BUDGETED BALANCE SHEET as of December 31, 2017 SA L Assumptions Endless Mountain Company manufactures a single product that is popular with outdore recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2017. The company's CFO in consultation with various managers across the company is providing the latest Balance Sheet and a set of assumptions to help create the 2017 budgets. Beeterlinit sales Budgeted Unit Sales 01 2017 Q2 2017 03 2017 04 2017 01 2018 12 000 37.000 15 OKO 25.00 13.000 5 32 Burgeted Selling Price per unit 75% All sales are credit sales Tenore Uncollectible Accounts. They are minimal Percentage of Sales collected in the quarter of the sale Percentage of Sales collected in the subsequent quarter 25% S 15% 3.5 300 10N 5,000 2044 3016 5 18:00 0.25 Quarter ending finished goods inventory as a percent of next quarter's unit Sales Yards of raw material required for at Cost per yard of raw material Quarter ending raw materials inventory as a percent of next quarter's production needs Estimated ending raw materials inventory on December 31, 2017 (in yards 3 Percent of purchases paid for in the quarter of the purchase Percent of purchases paid for in the quarter following the purchase 5 6 Direct labor hourly rate 7 Direct labor hours required to finish teach unit of finished goods 8 Direct labor hours are paid in the after incurred 9 0 Budgeted variable manufacturing overhead per direct labor-hour 31 Quarterly fixed manufacturing overhead includine depreciation expense on equipment) 32 Quarterly depreciation on equipment The number of direct labor hours is used as the allocation base for the budgeted plantwide overhead rate 31 All overhead posts excluding depreciation are paid in the quant incurred Es 36 The budgetes variable selling and administrative expense en un sold 37 Fixed selling and administrative expenses RAH DIRECTIONS Assumptions Row Row 52 Bc Sheet for 2016 SOLUTION $ $ S 300 150,000 20,000 5 1.25 5. SOLUTION 25 non SOLUTIONS SO S Cost per yard of Taw material Quarter ending raw materials inventory as a percent of next Quarter's produktion needs Estimated ending raw materials entory on December 31, 2017 Kinyards) Percent of purchases paid for in the quarter of the purchase Percent of purchases paid for in the quarter following the purchase 3.00 10% 5.000 70% 2016 3 18.00 025 Direct labor hourly rate Direct labor hours required to finish each unit of finished soods Direct labor hours are paid in the quarter incurred 5 s 5 3.00 150 000 20.000 Budgeted variable manufacturing overhead per direct labor-hour Quarterly fixed manufacturing overhead (including depreciation expense on equipment Quarterly depreciation on equipment The number of direct labor hours is used as the allocation base for the budgeted plantwide overhead rate All overhead costs (escluding depreciation are paid in the quarti incurred si 125 3 The budgeted variable selling and administrative expense per unit sold Fixed selling and administrative expenses Advertising Executive Salaries Insurance Property Tax Depreciation expense selling and administrative) All selling and administrative expenses (excluding depreciations are paid in the quarter incurred $ 5 5 S 5 25,000 64,000 12.000 8000 8.000 1 3 1 S 30 000 Minimum cash balance at the end of each quarter Ar borrowing takes place on the first day of the quarter To the extent possible, the company will repay principal and interest on any borrowings on the last day of the fourth quarter The company's lender imposes simple interest per quarter on anyboming at a rate of 394 6 7 8 9 O -1 5 15.000 Dividends declared and paid in cath quarter 2 3 The company uses a LIFO inventory low assumption. This means that the most recently purchased raw materials are the out to production and the most recently completed tinished goods are the rest out to customers Rice Sheet 18 SOLUTION SOLUTION SOLUTIONS Balance Sheet December 31, 2016 Assets $ 46,200 260,000 11,250 32,250 s 349,700 Current Assets Cash Accounts Receivable Raw Materials Inventory (4,500 yards) Finished Goods Inventory (1,500 Units) Total Current Assets Plant and Equipment Buildines and Equipment Accumulated Depreciation Plant and Equipment, net Total Assets 900,000 (292,000) 600,000 957,700.00 5 S 158,000 Liabilities and Stockholders' Equity Current Liabilities: Accounts Payable Stockholders's Equity Common Stock S Retained Earnines Total Stockholders' Equity Total Liabilities and Stockholders' Equity 419,800 379,900 799,700 957,700.00 S 2 3 G 7 9 10 11 13 14 F 16 17 19 20 C D G H On the tab labeled SOLUTION 1, use all available data (Assumptions Row 4-Row S2, Balance Sheet for 2016, results from other SOLUTION tabs) to: A Create a SALES BUDGET for the year ended December 31, 2017 B Create a SCHEDULE OF EXPECTED CASH COLLECTIONS for the year ended December 31, 2017 On the tab labeled SOLUTION 2, use all available data (Assumptions How 4-Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: Create a PRODUCTION BUDGET for the year ended December 31, 2017 On the tab labeled SOLUTION 3, use all available data (Assumptions Row 4 Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: D Create a DIRECT MATERIALS BUDGET for the year ended December 31, 2017 E Create a SCHEDULE OF EXPECTED CASH DISBURSEMENTS FOR PURCHASES OF MATERIALS for the year ended December 31, 2017 On the tab labeled SOLUTION 4, use all available data (Assumptions Row 4 Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: Create a DIRECT LABOR BUDGET for the year ended December 31, 2017 On the tab labeled SOLUTION 5, use all available data (Assumptions Row 4 Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: 6 Create a MANUFACTURING OVERHEAD BUDGET for the year ended December 31, 2017 On the tab labeled SOLUTION 6, use all available data (Assumptions Row 4 Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: H Create a ENDING FINISHED GOODS INVENTORY BUXGET (absorption costing basis for the year ended December 31, 2017 On the tab labeled SOLUTION 7, use all available data (Assumptions Row 4 Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: 1 Create a SELLING AND ADMINISTRATIVE EXPENSE BUDGET for the year ended December 31, 2017 On the tab labeled SOLUTION 8, use all available data (Assumptions Row 4-Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: 1 Create a CASH BUDGET for the year ended December 31, 2017 On the tab labeled SOLUTION 9, use all available data (Assumptions Row 4-Row S2, Balance Sheet for 2016, results from other SOLUTION tabs) to: Create a BUDGETED INCOME STATEMENT (absorption casting basis for the vear ended December 31, 2017 On the tab labeled SOLUTION 10, use all available data (Assumptions Row 4-Row 52, Balance Sheet for 2016, results from other SOLUTION tabs) to: L Create e BUDGETED BALANCE SHEET as of December 31 2017 22 24 26 27 29 30 32 33 34 K L B D E H Assumptions 12,000 37,000 15,000 25,000 13,000 10.5 1214.2857 32 Endless Mountain Company manufactures a single product that is popular with outdore recreation enthusiasts. The company sells its product to retailers throughout the northeastem quadrant of the United States. It is in the process of creating a master budget for 2017. The company's CFO in consultation with various managers across the company is providing the latest Balance Sheet and a set of assumptions to help create the 2017 budgets. 5 2 Budeeted Unit Sales 5 Q1 2017 Q2 2017 7 Q3 2017 3 Q4 2017 Q1 2018 CO 11 Budgeted Selling Price per unit S 2 13 All sales are credit sales Ignore Uncollectible Accounts. They are minimal. 15 Percentage of Sales collected in the quarter of the sale 16 Percentage of Sales collected in the subsequent quarter 17 18 Quarter ending finished goods inventory as a percent of next quarter's unit sales 19 Yards of raw material required for each unit 20 Cost per yard of raw material $ 21 Quarter ending raw materials inventory as a percent of next quarter's production needs 22 Estimated ending raw materials inventory on December 31, 2017 (in yards) 23 Percent of purchases paid for in the quarter of the purchase 24 Percent of purchases paid for in the quarter following the purchase 25 26 Direct labor hourly rate 5 27 Direct labor hours required to finish each unit of finished goods 28 Direct labor hours are paid in the quarter incurred 29 an Rudeeted variable manufacturine nuerhesdner Hirat lahar keur DIRECTIONS Assumptions Row 4 -- Row 52 Balance Sheet for 2016 SOLUTION 1 SOLUTION 2 75% 25% 15% 3.5 3.00 10% 5.000 700 30% 18.00 0.25 2.00 SOLUTION 3 SOLUTION 4 SOLUTIONS S Cost per yard of raw material Quarter ending raw materials inventory as a percent of next quarter's production needs Estimated endine raw materials inventory on December 31, 2017 Xin yards) Percent of purchases paid for in the quarter of the purchase Percent of purchases paid for in the quarter following the purchase 300 10% 5,000 70% 30% $ 18.00 0.25 Direct labor hourly rate Direct labor hours required to finish each unit of finished goods Direct labor hours are paid in the quarter incurred mu 3.00 150,000 20,000 Budgeted variable manufacturing overhead per direct labor-hour Quarterly fixed manufacturing overhead Tincluding depreciation expense on equipment) Quarterly depreciation on equipment The number of direct labor hours is used as the allocation base for the budgeted plantwide overhead rate All overhead costs (excluding depreciation) are paid in the quartr incurred 20 23 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 5 125 The budgeted variable selling and administrative expense per unit sold Fixed selling and administrative expenses Advertising Executive Salaries Insurance Property tax Depreciation expense (selling and administrative) All selling and administrative expenses (excluding depreciation) are paid in the quarter incurred $ $ 5 5 S 25,000 64,000 12.000 8,000 8,000 $ 30,000 Minimum cash balance at the end of each quarter Any borrowing takes place on the first day of the quarter To the extent possible, the company will repay principal and interest on any borrowings on the last day of the fourth quarter The company's lender imposes simple interest per quarter on any borrowing at a rate of 34 5 15,000 Dividends declared and paid in each quarter The company uses a LIFO inventory flow assumption This means that the most recently purchased raw materials are the first out to production and the most recently completed finished goods are the first out to customers 52 SOL SOLUTIONS SOLUTION 2 Balance Sheet for 2016 SOLUTION 1 DIRECTIONS Assumptions Row 4 - Row 52 Ready Scroll Loc 46,200 260,000 11,250 32,250 S 349,700 900,000 (292,000) 3 Balance Sheet 1 December 31, 2016 5 6 Assets 7 Current Assets: 8 Cash $ 9 Accounts Receivable 10 Raw Materials Inventory (4,500 yards) 11 Finished Goods Inventory (1,500 Units) 12 Total Current Assets 13 Plant and Equipment: 14 Buildings and Equipment 15 Accumulated Depreciation 16 Plant and Equipment, net 17 Total Assets 18 19 Liabilities and Stockholders' Equity 20 Current Liabilities: 21 Accounts Payable 22 Stockholders's Equity: 23 Common Stock 24 Retained Earnings 25 Total Stockholders' Equity 26 Total Liabilities and Stockholders' Equity 27 28 29 30 31 32 33 608,000 957,700.00 S S 158,000 S 419,800 379,900 799,700 957.700.00 $ 35