Accounting Artifacts is a business created to sell lifesize abaci. Below are details regarding the budgetary...

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Accounting Artifacts is a business created to sell lifesize abaci. Below are details regarding the budgetary assumptions for the first quarter. Month January February 6 March Unit Sales 500 560 620 580 L 2 April Sales price per unit is $170 Plans are to have an inventory of finished product equal to 20% of the unit sales for the next month. There was 100 units in beginning finished goods inventory on January 1st. Three pounds of materials are required for each unit produced. Each pound of material costs $20. Inventory levels for materials equal 30% of the needs for the next month. Desired ending inventory for March is 400 pounds of material. Beginning inventory for January was 450 pounds of material. Each unit requires 0.6 hours of direct labor and the average wage rate is $18 per hour. Variable overhead rate is $3.50 per direct labor hour. There is also fixed overhead of $22,000 per month. Cost of goods sold is $139.16 per unit The balance in common stock was $100,000 at the beginning of the quarter. The balance in retained earnings was $213,082 at the beginning of the quarter. Accounts receivable had a beginning balance of $20,000. Seventy percent of sales are collected in the month of sale and 30 percent are collected in the following month. Accounts payable had a beginning balance of $30,000. Forty percent of purchases are paid for in the month of purchase and 60 percent are paid for the following month. Cash had a beginning balance of $250,000 on January 1. The company pays a 3% commission on sales. Company has fixed selling and administrative expenses as follows: Rent $3,000/month Utilities $800/month Advertising $600/month Office Salaries $4,000/month Complete the following instructions: B Prepare a sales budget and schedule of expected cash for collections for the quarter. Prepare a production budget for the quarter. Prepare a direct materials budget in pounds and dollars for the quarter and schedule of expected cash disbursements. A B. C. DEFC D. Prepare a direct labor budget in hours and total cost for the quarter. E. Prepare a manufacturing overhead budget for the quarter. F. G. H. I. Prepare a budgeted balance sheet at the end of the quarter. Prepare a selling and administrative expense budget for the quarter. Prepare a cash budget for the quarter. Prepare a budgeted income statement for the quarter-the corporation pays 21% of net operating income in federal income taxes (the state is incorporated in South Dakota where there is no state income tax). Accounting Artifacts is a business created to sell lifesize abaci. Below are details regarding the budgetary assumptions for the first quarter. Month January February 6 March Unit Sales 500 560 620 580 L 2 April Sales price per unit is $170 Plans are to have an inventory of finished product equal to 20% of the unit sales for the next month. There was 100 units in beginning finished goods inventory on January 1st. Three pounds of materials are required for each unit produced. Each pound of material costs $20. Inventory levels for materials equal 30% of the needs for the next month. Desired ending inventory for March is 400 pounds of material. Beginning inventory for January was 450 pounds of material. Each unit requires 0.6 hours of direct labor and the average wage rate is $18 per hour. Variable overhead rate is $3.50 per direct labor hour. There is also fixed overhead of $22,000 per month. Cost of goods sold is $139.16 per unit The balance in common stock was $100,000 at the beginning of the quarter. The balance in retained earnings was $213,082 at the beginning of the quarter. Accounts receivable had a beginning balance of $20,000. Seventy percent of sales are collected in the month of sale and 30 percent are collected in the following month. Accounts payable had a beginning balance of $30,000. Forty percent of purchases are paid for in the month of purchase and 60 percent are paid for the following month. Cash had a beginning balance of $250,000 on January 1. The company pays a 3% commission on sales. Company has fixed selling and administrative expenses as follows: Rent $3,000/month Utilities $800/month Advertising $600/month Office Salaries $4,000/month Complete the following instructions: B Prepare a sales budget and schedule of expected cash for collections for the quarter. Prepare a production budget for the quarter. Prepare a direct materials budget in pounds and dollars for the quarter and schedule of expected cash disbursements. A B. C. DEFC D. Prepare a direct labor budget in hours and total cost for the quarter. E. Prepare a manufacturing overhead budget for the quarter. F. G. H. I. Prepare a budgeted balance sheet at the end of the quarter. Prepare a selling and administrative expense budget for the quarter. Prepare a cash budget for the quarter. Prepare a budgeted income statement for the quarter-the corporation pays 21% of net operating income in federal income taxes (the state is incorporated in South Dakota where there is no state income tax).