AutoSave OF ABG ... CTA 7 (version 1).xlsb - Auto Recovered Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments v y X Calibri (body) v 12 ~ A A ab Wran Text General v H LE Pastc BIU A - Merge & Center $ -% th Conditional Format Cell Insert Delete Format Sort & Find & Analyze Formatting es Table Styles Filter Select Date A3 + x fx As you know from the previous problem, Sudsy Days manufactures white label scaps that other companies customize with their own logo. Sudsy Days is planning for the upcoming year by developing a master budget by A B C D E F G H 1 J K L M N 0 P Q 1 Comprehensive: Master Budgets, Variances, Performance Evaluation 2 a.a Sales Budget Stude As you know from the previous problem, Sudsy Days manufactures white label soaps that other companies customize 4 with their own logo. Sudsy Days is planning for the upcoming year by developing a master budget by quarters. Using a Sudsy Days 5 the balance sheet and additional Information below you will need to: Sales Budget 6 For the Year Ended December 31, 2019 7a.Prepare Sudsy's operating budget and cash budget for the year by quarter. Required schedules and budgets include: Q1 Q2 03 04 Total 8 8 a Sales budget Budgeted soap jugs to be sold 9 b.Production budget Sales Price per soap jug 10 c. Direct materials budget Total Sales 11 d.Direct labor budget 12 e. Manufacturing overhead budget 13 f.Cost of goods sold budget a.b Production Budget 14 & Selling and administrative expense budget Sudsy Days 15 h.Schedule of cash receipts Production Budget 16 i.Schedule of cash payments For the Year Ended December 31, 2019 17 j. Cash budget Q1 Q2 Q3 Q4 Total 1816. Prepare Sudsy Days annual financial budget, including: Budgeted soap Jugs to be sold 19 a. Budgeted Income Statement Plus: Desired soap jues in ending inventory 20 b. Budgeted Balance Sheet Total soap jugs needed 21 Less: soap jues in beginning inventory 22 **Note that manufacturing overhead costs are allocated based on DL hours. Budgeted soap jugs to be produced 23 24 25 Sudsy Days a.c Direct Materials Budget 26 Balance Sheet Sudsy Days 27 December 31, 2018 Direct Materials Budget 28 For the Year Ended December 31, 2019 29 Q1 02 03 04 Total 30 Current Assets: Budgeted soap jugs to be produced 31 Cash $ 58,000 Direct materials per soap jug 32 A/R 22,000 Direct materials needed for production 33 Raw Materials Twentory 1,200 Plus: Desired DM in end inventory 34 Finished Goods Inventory 5,400 Total DM needed Directions Reqt Reg2 Req3 Reg4 + Select destination and press ENTER or chaose Paste 119% * Assets v 7 AutoSave OF ABG ... CTA 7 (version 1).xlsb - AutoRecovered Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments X Calibri (Body) v 12 VAA ab Wran Text General 0 H LE Pastc BIUM A - Merge & Center $ -% Conditional Format Insert Cell $ Format Delete Sort & Find Analyze Formatting as Table Styles Filter Select Date A3 fx As you know from the previous problem, Sudsy Days manufactures white label scaps that other companies customize with their own logo. Sudsy Days is planning for the upcoming year by developing a master budget by A B C D E E F G H ! J K L M N 0 0 P Q 31 Cash $ 58.000 Direct materials per soap UE 32 A/R 22.000 Direct materials needed for production 33 Raw Materials Inventory 1,200 Plus: Desired DM in end inventory 34 Finished Goods Inventory 5,400 Total DM needed 35 Total Current Assets $ $ 86,600 Less: DM in beg. Inv 36 Plant Property & Equipment: Budgeted purchases of DM 37 Equipment 142.000 DM cost per item 3B Less: Accumulated Depreciation (47000) 95,000 Budgeted purchases of DM 39 Total Assets 181,600 40 ad Direct Labor Budget Stude 41 Liabilities Sudsy Days 42 Current Liabilities: Direct Labor Budget 43 Accounts Payable $ 8,000 For the Year Ended December 31, 2019 44 Q1 Q2 03 04 Total 45 Stockholders' Equity Budgeted soap jues to be produced 46 Common Stock, no par $ 120,000 Direct Labor hours per scap jug 47 Retained Earnings 53,600 Direct Labor hours needed for production 48 Total stockholders' equity 173,600 Direct Labor cost per hour 49 Total Liabilities and Stockholders' Equity 5 181,600 Budgeted direct labor cost 50 51 a.e Manufacturing Overhead Budget 52 Additional Information Sudsy Days 53 a. Budgeted sales are 1,400 soap Jugs for the first quarter and are expected to increase by 150 jugs per quarter. Cash Manufacturing Overhead Budget 54 sales are expected to make up 30% of total sales, the remainder will be on account. The expected sales price per For the Year Ended December 31, 2019 55 soap jug is $90. Q1 OZ 03 04 Total 56 b. Finished goods inventory on December 31, 2018, consists of 200 soap jues at $27 each. Budgeted soap jues to be produced 57 c. Desired ending finished goods inventory is 40% of the next quarter's sales; first-quarter sales for 2020 are expected Variable OH cost per soap jug 58 to be 2,000 soap jues: FIFO inventory costing is used. . Budgeted variable overhead 59 d. Raw Materials Inventory on December 31, 2018, consists of 600 gallons of the required components used to Budgeted Fixed OH 60 manufacture the soap. Depreciation 61 e Direct materials requirements are 3 gallons of material per soap jug. The cost of each gallon is $2. Utilities, Insurance, prop tax 62 1 Desired ending, Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; Total budgeted fixed OH 63 desired ending inventory for December 31, 2019, is 600 gallons; indirect materials are insignificant and not Budgeted manufacturing OH costs 64 considered for budgeting purposes. Directions Regt Re42 Req3 Reg4 + Select destination and press ENTER or choose Paste E C - + 119% AutoSave OF A v G ... A CTA 7 (version 1).xlsb - AutoRecovered Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments 27 Paste 7 X Calibri (body) v 12 ~ A A 25 Wraa Text ab General H LE B 1 Uy A - Merge & Center Cell Insert Conditional Format Format Sort & Delete $ - % Find & B a Analyze Formatting a Table Styles Filter Select Date A3 . fx As you know from the previous problem, Sudsy Days manufactures white label scaps that other companies customize with their own logo. Sudsy Days is planning for the upcoming year by developing a master budget by A B D E F G H ! J K L M N 0 P Q DIRO TOLSTEGO CMCISCOILS OF THE TOP Soap jug. THE COST OF COC gamms-. UCHICIES, S., prop tax 62 f. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production: Total budgeted fixed OH 63 desired ending inventory for December 31, 2019, is 600 gallons; indirect materials are insignificant and not Budgeted manufacturing OH costs 64 considered for budgeting purposes. 65 2 Each soap jug requires 0.30 hours of direct labor; direct labor costs average $12 per hour. DL Hours 66 h. Variable manufacturing owerhead is $$3,60 per soap jug Predetermined OH allocation rate per DL hour 67 i. Fixed manufacturing overhead includes $7,000 per quarter in depreciation and $2,585 per quarter for other costs, i. 68 such as utilities, insurance, and property taxes. a.f Cost of Goods Sold Budget 69 j. Fixed selling and administrative expenses include $11,000 per quarter for salaries; $1,500 per quarter for rent; 70 $1,350 per quarter for insurance; and $1,500 per quarter for depreciation. Calculations for COGS Budget 71 k. Variable selling and administrative expenses include supplies at 2% of sales. DM cost per soap jug 72 I. Capital expenditures include $45,000 for new manufacturing equipment to be purchased and paid in the first DL Cost per soap jue 73 quarter. MOH cost per soap jug 74 m. Cash receipts for sales on account are 40% in the quarter of the sale and 60% in the quarter following the sale: Total projected manufacturing cost per soap jue 75 December 31, 2018, Accounts Receivable is received in the first quarter of 2019, uncollectible accounts are 76 considered insignificant and not considered for budgeting purposes. Sudsy Days 77 n. Direct materials purchases are paid 90% in the quarter purchased and 10% in the following quarter: December 31, Cost of Goods Sold Budget 78 2018, Accounts Payable is paid in the first quarter of 2019. For the Year Ended December 31, 2019 79 o. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. Q1 02 03 04 Total BD Beg. Inventory, 81 p. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. soap jugs produced & sold 82 4. Sudsy desires to maintain a minimum cash balance of $55,000 and borrows from the local bank as needed in Total Budgeted cost of goxxds sold 83 increments of $1,000 at the beginning of the quarter; principal repayments are made at the beginning of the 84 quarter when excess funds are available and in increments of $1,000; interest is 10% per year and paid at the a.g Selling & Admin Budget Stude B5 beginning of the quarter based on the amount outstanding from the previous quarter. Sudsy Days 86 Selling & Administrative Expense Budget B7 For the Year Ended December 31, 2019 88 Q1 02 Q3 04 Total 89 Salaries Expense 90 Rent Expense 91 Insurance Expense 92 Depreciation Expense 93 Supplies Expense 94 Total Budgeted S&A Expense Regt Reg2 Reg3 Reg4 + Directions Select destination and press ENTER or chaose Paste 119% * AutoSave OF ABG ... CTA 7 (version 1).xlsb - Auto Recovered Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments v y X Calibri (body) v 12 ~ A A ab Wran Text General v H LE Pastc BIU A - Merge & Center $ -% th Conditional Format Cell Insert Delete Format Sort & Find & Analyze Formatting es Table Styles Filter Select Date A3 + x fx As you know from the previous problem, Sudsy Days manufactures white label scaps that other companies customize with their own logo. Sudsy Days is planning for the upcoming year by developing a master budget by A B C D E F G H 1 J K L M N 0 P Q 1 Comprehensive: Master Budgets, Variances, Performance Evaluation 2 a.a Sales Budget Stude As you know from the previous problem, Sudsy Days manufactures white label soaps that other companies customize 4 with their own logo. Sudsy Days is planning for the upcoming year by developing a master budget by quarters. Using a Sudsy Days 5 the balance sheet and additional Information below you will need to: Sales Budget 6 For the Year Ended December 31, 2019 7a.Prepare Sudsy's operating budget and cash budget for the year by quarter. Required schedules and budgets include: Q1 Q2 03 04 Total 8 8 a Sales budget Budgeted soap jugs to be sold 9 b.Production budget Sales Price per soap jug 10 c. Direct materials budget Total Sales 11 d.Direct labor budget 12 e. Manufacturing overhead budget 13 f.Cost of goods sold budget a.b Production Budget 14 & Selling and administrative expense budget Sudsy Days 15 h.Schedule of cash receipts Production Budget 16 i.Schedule of cash payments For the Year Ended December 31, 2019 17 j. Cash budget Q1 Q2 Q3 Q4 Total 1816. Prepare Sudsy Days annual financial budget, including: Budgeted soap Jugs to be sold 19 a. Budgeted Income Statement Plus: Desired soap jues in ending inventory 20 b. Budgeted Balance Sheet Total soap jugs needed 21 Less: soap jues in beginning inventory 22 **Note that manufacturing overhead costs are allocated based on DL hours. Budgeted soap jugs to be produced 23 24 25 Sudsy Days a.c Direct Materials Budget 26 Balance Sheet Sudsy Days 27 December 31, 2018 Direct Materials Budget 28 For the Year Ended December 31, 2019 29 Q1 02 03 04 Total 30 Current Assets: Budgeted soap jugs to be produced 31 Cash $ 58,000 Direct materials per soap jug 32 A/R 22,000 Direct materials needed for production 33 Raw Materials Twentory 1,200 Plus: Desired DM in end inventory 34 Finished Goods Inventory 5,400 Total DM needed Directions Reqt Reg2 Req3 Reg4 + Select destination and press ENTER or chaose Paste 119% * Assets v 7 AutoSave OF ABG ... CTA 7 (version 1).xlsb - AutoRecovered Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments X Calibri (Body) v 12 VAA ab Wran Text General 0 H LE Pastc BIUM A - Merge & Center $ -% Conditional Format Insert Cell $ Format Delete Sort & Find Analyze Formatting as Table Styles Filter Select Date A3 fx As you know from the previous problem, Sudsy Days manufactures white label scaps that other companies customize with their own logo. Sudsy Days is planning for the upcoming year by developing a master budget by A B C D E E F G H ! J K L M N 0 0 P Q 31 Cash $ 58.000 Direct materials per soap UE 32 A/R 22.000 Direct materials needed for production 33 Raw Materials Inventory 1,200 Plus: Desired DM in end inventory 34 Finished Goods Inventory 5,400 Total DM needed 35 Total Current Assets $ $ 86,600 Less: DM in beg. Inv 36 Plant Property & Equipment: Budgeted purchases of DM 37 Equipment 142.000 DM cost per item 3B Less: Accumulated Depreciation (47000) 95,000 Budgeted purchases of DM 39 Total Assets 181,600 40 ad Direct Labor Budget Stude 41 Liabilities Sudsy Days 42 Current Liabilities: Direct Labor Budget 43 Accounts Payable $ 8,000 For the Year Ended December 31, 2019 44 Q1 Q2 03 04 Total 45 Stockholders' Equity Budgeted soap jues to be produced 46 Common Stock, no par $ 120,000 Direct Labor hours per scap jug 47 Retained Earnings 53,600 Direct Labor hours needed for production 48 Total stockholders' equity 173,600 Direct Labor cost per hour 49 Total Liabilities and Stockholders' Equity 5 181,600 Budgeted direct labor cost 50 51 a.e Manufacturing Overhead Budget 52 Additional Information Sudsy Days 53 a. Budgeted sales are 1,400 soap Jugs for the first quarter and are expected to increase by 150 jugs per quarter. Cash Manufacturing Overhead Budget 54 sales are expected to make up 30% of total sales, the remainder will be on account. The expected sales price per For the Year Ended December 31, 2019 55 soap jug is $90. Q1 OZ 03 04 Total 56 b. Finished goods inventory on December 31, 2018, consists of 200 soap jues at $27 each. Budgeted soap jues to be produced 57 c. Desired ending finished goods inventory is 40% of the next quarter's sales; first-quarter sales for 2020 are expected Variable OH cost per soap jug 58 to be 2,000 soap jues: FIFO inventory costing is used. . Budgeted variable overhead 59 d. Raw Materials Inventory on December 31, 2018, consists of 600 gallons of the required components used to Budgeted Fixed OH 60 manufacture the soap. Depreciation 61 e Direct materials requirements are 3 gallons of material per soap jug. The cost of each gallon is $2. Utilities, Insurance, prop tax 62 1 Desired ending, Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; Total budgeted fixed OH 63 desired ending inventory for December 31, 2019, is 600 gallons; indirect materials are insignificant and not Budgeted manufacturing OH costs 64 considered for budgeting purposes. Directions Regt Re42 Req3 Reg4 + Select destination and press ENTER or choose Paste E C - + 119% AutoSave OF A v G ... A CTA 7 (version 1).xlsb - AutoRecovered Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments 27 Paste 7 X Calibri (body) v 12 ~ A A 25 Wraa Text ab General H LE B 1 Uy A - Merge & Center Cell Insert Conditional Format Format Sort & Delete $ - % Find & B a Analyze Formatting a Table Styles Filter Select Date A3 . fx As you know from the previous problem, Sudsy Days manufactures white label scaps that other companies customize with their own logo. Sudsy Days is planning for the upcoming year by developing a master budget by A B D E F G H ! J K L M N 0 P Q DIRO TOLSTEGO CMCISCOILS OF THE TOP Soap jug. THE COST OF COC gamms-. UCHICIES, S., prop tax 62 f. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production: Total budgeted fixed OH 63 desired ending inventory for December 31, 2019, is 600 gallons; indirect materials are insignificant and not Budgeted manufacturing OH costs 64 considered for budgeting purposes. 65 2 Each soap jug requires 0.30 hours of direct labor; direct labor costs average $12 per hour. DL Hours 66 h. Variable manufacturing owerhead is $$3,60 per soap jug Predetermined OH allocation rate per DL hour 67 i. Fixed manufacturing overhead includes $7,000 per quarter in depreciation and $2,585 per quarter for other costs, i. 68 such as utilities, insurance, and property taxes. a.f Cost of Goods Sold Budget 69 j. Fixed selling and administrative expenses include $11,000 per quarter for salaries; $1,500 per quarter for rent; 70 $1,350 per quarter for insurance; and $1,500 per quarter for depreciation. Calculations for COGS Budget 71 k. Variable selling and administrative expenses include supplies at 2% of sales. DM cost per soap jug 72 I. Capital expenditures include $45,000 for new manufacturing equipment to be purchased and paid in the first DL Cost per soap jue 73 quarter. MOH cost per soap jug 74 m. Cash receipts for sales on account are 40% in the quarter of the sale and 60% in the quarter following the sale: Total projected manufacturing cost per soap jue 75 December 31, 2018, Accounts Receivable is received in the first quarter of 2019, uncollectible accounts are 76 considered insignificant and not considered for budgeting purposes. Sudsy Days 77 n. Direct materials purchases are paid 90% in the quarter purchased and 10% in the following quarter: December 31, Cost of Goods Sold Budget 78 2018, Accounts Payable is paid in the first quarter of 2019. For the Year Ended December 31, 2019 79 o. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. Q1 02 03 04 Total BD Beg. Inventory, 81 p. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. soap jugs produced & sold 82 4. Sudsy desires to maintain a minimum cash balance of $55,000 and borrows from the local bank as needed in Total Budgeted cost of goxxds sold 83 increments of $1,000 at the beginning of the quarter; principal repayments are made at the beginning of the 84 quarter when excess funds are available and in increments of $1,000; interest is 10% per year and paid at the a.g Selling & Admin Budget Stude B5 beginning of the quarter based on the amount outstanding from the previous quarter. Sudsy Days 86 Selling & Administrative Expense Budget B7 For the Year Ended December 31, 2019 88 Q1 02 Q3 04 Total 89 Salaries Expense 90 Rent Expense 91 Insurance Expense 92 Depreciation Expense 93 Supplies Expense 94 Total Budgeted S&A Expense Regt Reg2 Reg3 Reg4 + Directions Select destination and press ENTER or chaose Paste 119% *