Accounting 102 Budget Project Hitchen's Widget store Part 1 The following information was provided by Hitchen's widget store for July 31, 202X. They make two products: R2D2 & C3PO. Both items use 2 of the 3 listed materials: Nada, Yada, and Bozo. Presented below is monthly sales data for the two balls R2D2 Expected unit sales 7,750 10,950 Expected price/unit $235. $148 Beginning product inventory 700 units 300 units Desired ending product inventory 500 units 500 units Direct materials R2D2 uses Nada and C3PO uses Yada for production. Both products require a Bozo. Yada (C3PO only) Bozo (both products) Material/unit Beginning DM Inv. Ending DM Inv Nada (R2D2 only) 6.3ft 4.75 ft 9,600 ft 6,200 ft 4,000 ft 8,000 ft Costs are $3.64per foot of Nada Costs are $2.79per foot of Yada Bozo's cost $7.85 each Direct Labor -Each product requires the time listed below. Process #1 Process #2 R2D2 1.95hours/unit 2.5 hours/unit 1 unit 450 300 C3PO 1.25hour/unit 1.5 hours/ unit Paid $14.50/hr Paid $18/hr Factor Overhead is broken into variable and fixed costs. Variable costs are estimated by D.L hour of Process #1. Fixed Costs are divided based on percent of Process #1 hours (round to nearest tenth of a percent). Round dollar amounts to nearest dollar Variable Indirect Materials ($3.5/hr) Indirect Labor ($4.8/hr) Utilities ($2.65/hr) Fixed Supervisor salary Depreciation $97,000 $58,750 Property taxes and ins. $48,500 Other Selling and Admin Expenses not listed above Advertising Sales salaries Office salaries Income Tax percentage = 30% $168,495 489,000 136,000 Instructions: Using the attached template fill-in sheet, complete all income statement budgets. Show all work for each budget 1. Sales budget - Determine total sales for each item and the combined total. 2. Production budget - Determine total units to be produced for each item and in total 3. Direct Materials budget - Determine total feet and total cost of each material and in total. 4. Direct Labor budget - Determine total hours and wage cost for each process and in total. 5. Factory O.H. budget - Determine the total variable cost, total fixed cost and manufacturing rate/hour using the cost driver. 6. Determine the Cost of Goods Sold for each item and in total. 7. Prepare the budgeted income statement for July 31, 202X Accounting 102 Budget Project Hitchen's Widget store Part 2 Using Hitchen's info from the income statement budgets (part 1), the remaining account info is presented to prepare the components of the balance sheet budgets. Assume the same budget is expected for the next three months (July, Aug, Sept). 1. Opening July 1 cash balance is $599,650. 2. A/R beginning balance of $2,195,000 was 65% collected in July and the remaining in August. 3. Sales: 30% collected in month of sale, 50% the following month, and 20% in the third month. 4. A/P opening balance of $302,450 was paid 70% this month and 30% next month. 5. Direct Materials are paid 30% during month of purchase, 50% the following month, and 20% the third month. 6. W/P had an opening balance of $222,000 and paid off this month 7. Direct Labor is paid 77% this month and the remaining in the following month. 8. Factory Overhead & Selling/Admin is paid 100% this month (excluding Depreciation) 9. Dividends are expected to be paid of $175,000, $240,000, and $260,000 in the three months respectively 10. Plans are in place to purchase a piece of equipment for $155,550 in month 2 (10% paid in mont 2, another 40% paid in month 3 and the remaining 50% in month 4) a. Retired Asset expected to sell for $18,500 and collected 100% in the second month. 11. 100% of income tax is paid this month 12. Beginning balances: a. Equipment 2,164,000 = b. Accum. Dep. Equipment = 1,256,000 C. Common Stock = $2,500,000 d. Retained Earnings = $1,159,179 Prepare these following budgets for month one, two and three. 1. Schedule of cash collections from customers 2. Schedule of cash payments for D.M. 3. Schedule of cash payments for D.L. 4. Cash Budget 5. Budgeted balance sheet (as of month 1)