. AT&T 10:28 PM 16 14% Sweetums Cookies - Master Budget... EXHIBIT 1 Sales Price, Production Costs, and Operating Expenses Sales Price A dozen cookies sell for $12.05. Direct Materials Costs Material Per Unit 5.15 Flour Sugar $15 $10 Eggs Shortening Chocolate Chips S50 $1.25 Any other ingredients are indirect materials and are considered part of manufacturing overhead Direct Labor Costs Information regarding direct labor costs is not maintained because you are your only employee. In this case, labor costs are considered part of manufacturing overhead. S.50 Manufacturing Overhead Costs Variable costs per deren Fixed costs per month Utilities Other indirect materials and labor Maintenance $250 Depreciation Na S500 Totals $1.25 5750 5.95 Operating Expenses Variable costs per dowen Fixed costs per month Shipping Costs SI SO Na Salaries $ 2.000 Depreciation S200 Na Totals S1.50 $3.650 Previous Next 0 Dashboard Calendar To Do Notifications Inbox . AT&T 10:28 PM 1 14% X Sweetums Cookies - Master Budget... 17 EXHIBIT 2 Sales Projections, Collections, Purchases, and Payments Monthly Sales Projections (in dozens of cookies): January 1.000 February 1,200 March 1.300 April 1,100 You have stopped production of cookies at year end to facilitate the expansion of the business. Therefore, you expect to have no uncollected accounts receivable, unpaid accounts payable, or raw materials inventories at January 1, the beginning of your budget period. Collections of Sales Sixty percent (60%) of all sales are collected in the month the sale occurs. Forty percent (40%) of all sales are collected in the month following the sale. Production The company produces cookies daily. No work-in-process or finished goods inventories are maintained. Raw Materials Inventory, Purchases, and Payments The company plans to maintain an ending inventory of raw materials at the end of each month equal to 10% of the raw materials production needs for the next month. Twenty-five percent (25%) of materials purchases are paid for in the month of the purchase. Seventy-five percent (75%) of materials purchases are paid for in the month following the purchase. EXHIBIT 3 Previous Next To Do Notifications Inbox EXHIBIT 3 Financing Activities and Cookie Ingredients Financing Activities January beginning cash balance Loan acquired in January Equipment purchase in January Minimum desired cash balance at the end of each month $10,000 $10,000 $25,000 $20,000 If cash over $10,000 is available at the end of the month, you will make repayments of outstanding loans in multiples of $1,000. If additional borrowing is necessary to maintain the $10,000 end-of-month balance, you have a line of credit with the bank and will borrow additional funds in multiples of $1,000. Interest (12% annual rate) is paid monthly on total outstanding borrowing at the end of the prior month. Sweetums Cookie Ingredient List (makes 1 dozen cookies) 2/2 cups flour 1/2 cups sugar 1 cup shortening 2 cups chocolate chips 2 eggs 1/2 teaspoons vanilla 1 teaspoon baking soda 1 teaspoon salt This project is based loosely on a master budget case developed by Thomas C. Wooten and Jane Dillard-Eggers of Belmont University Previous Previous Next Dashboard Calendar To Do Notifications Inbox Use the information provided in the Master Budget assignment prompt (posted in Canvas under Week 10) to prepare the cash disbursements for direct materials budget for the first quarter. January February Quarter - January disbursements February disbursements February disbursements March disbursements Total cash disbursements for materials