appologies that this is a long question
The management team at Splish Corporation is capitalizing on the trend for live-edge cedar fireplace mantels-beautiful simple onganic in fact, sales are so strong they are nunning out of inventory. This means that budgeting for next year will be edremely important, to ensure sure that Splish can source enough cedar. With budgeted sales as the starting point for the entire process, the management team agrees that the following levels present the most ikely scenario for the first five months of the upcoming year. In addition to sales volume, many other specifics are required in order to complete the companys operating budgets. Key detalls associated with prices costs, and usage are as follows. - Budgeted selling price is $500 per mantel. Each mantel measures 3 inches 12 inches 4 feet. - Tarbet endine imventory of finished mantels is 2005 of next monthis budigeted sales. However, beginning imventory on January 1 is expected to be only 39 units - Splisti primary DM, rough-cut cedar, is purchased from the supplier alreadyat the desired hedeht and depth ia inches high 12 inches deep), 5 plish cuts the cedar planka to the desired 4-foot lengths. Each rough-cut board costs 5 pitah $50 per foot. - Target endine OM inwentory (roughicut cedar) is soW of ned monthis production heeds. - DL to sand, stain, and treat the rough-cut cedar costs $20 per hour Exch mantel reguires one hour of labor time Depreciation of $2,100 is includedin that moothir fored cost. SGEA costs are also brolaen down into their variable and fwoed components budgeted variable SCEA costs are $50/ unit sold. while budgeted fixed monthly $G&A costs are $56,500, which includes $8,000 of degreciation. All sales are made on account, with 25% paying in the month of sale and 70% poying in the month following the sale. The remainder is considered uncollectible. December sales in the prior year were budgeted to be $225,000. - Beginning finished goods inventory was held at a cost of $280 /unit from the prior year. (a1) Prepare the 5 ales forecast (and corresponding schedule of cash receipt) for 5 plish Corp. Prepare the DL budget for Splish Corp. Prepare the SCEA budect for Splish Corp. Prepare the schedule of COGS for Splish's first quarter. (Round intermediate calculations and final answers to 2 decimol ploces, 5 15.25.) Prepare Splisti's budgeted income statement for the first quarter. (Round answers to 2 decimal ploces, es. 15.25) The management team at Splish Corporation is capitalizing on the trend for live-edge cedar fireplace mantels-beautiful simple onganic in fact, sales are so strong they are nunning out of inventory. This means that budgeting for next year will be edremely important, to ensure sure that Splish can source enough cedar. With budgeted sales as the starting point for the entire process, the management team agrees that the following levels present the most ikely scenario for the first five months of the upcoming year. In addition to sales volume, many other specifics are required in order to complete the companys operating budgets. Key detalls associated with prices costs, and usage are as follows. - Budgeted selling price is $500 per mantel. Each mantel measures 3 inches 12 inches 4 feet. - Tarbet endine imventory of finished mantels is 2005 of next monthis budigeted sales. However, beginning imventory on January 1 is expected to be only 39 units - Splisti primary DM, rough-cut cedar, is purchased from the supplier alreadyat the desired hedeht and depth ia inches high 12 inches deep), 5 plish cuts the cedar planka to the desired 4-foot lengths. Each rough-cut board costs 5 pitah $50 per foot. - Target endine OM inwentory (roughicut cedar) is soW of ned monthis production heeds. - DL to sand, stain, and treat the rough-cut cedar costs $20 per hour Exch mantel reguires one hour of labor time Depreciation of $2,100 is includedin that moothir fored cost. SGEA costs are also brolaen down into their variable and fwoed components budgeted variable SCEA costs are $50/ unit sold. while budgeted fixed monthly $G&A costs are $56,500, which includes $8,000 of degreciation. All sales are made on account, with 25% paying in the month of sale and 70% poying in the month following the sale. The remainder is considered uncollectible. December sales in the prior year were budgeted to be $225,000. - Beginning finished goods inventory was held at a cost of $280 /unit from the prior year. (a1) Prepare the 5 ales forecast (and corresponding schedule of cash receipt) for 5 plish Corp. Prepare the DL budget for Splish Corp. Prepare the SCEA budect for Splish Corp. Prepare the schedule of COGS for Splish's first quarter. (Round intermediate calculations and final answers to 2 decimol ploces, 5 15.25.) Prepare Splisti's budgeted income statement for the first quarter. (Round answers to 2 decimal ploces, es. 15.25)
