BEACH WIND COMPANY Beach Wind Company manufactures kites that sell for $20 each. Each kite requires 2 yards of lightweight canvas, which costs $0.60 per yard. Each kite takes approximately 30 minutes to build, and the labor rate averages $8 per hour. Beach Wind has the following inventory policies: Ending finished goods inventory should be 30 percent of next month's sales. Ending raw materials inventory should be 20 percent of next month's production. Expected kite sales for the upcoming months are: March 850 700 April 650 ay 720 June 830 July 760 August Variable manufacturing overhead is incurred at a rate of $0.40 per unit produced. Annual fixed manufacturing overhead is estimated to be $9,000 ($750 per month) for expected production of 9,000 units for the year. Selling and administrative expenses are estimated at $820 per month plus $0.75 per unit sold. Beach Wind Company had $12, 200 cash on hand on April 1. Of its sales, 60 percent is cash. Of the credit sales, 50% is collected during the month of the sale and 50 percent is collected during the month following the sale. Of raw material purchases, 60 % is paid for during the month purchased, and 40% is paid in the following month. Raw materials purchases for March totaled $800. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $280 in depreciation. Beach Wind plans to spend $15,000 on equipment during April. Beach Wind has a company policy of never letting month-end cash balances drop below $10,000. If this happe ns, Beach Wind borrows against its line of credit in even $1,000 increments. Required: 1. Sales budget. 2. Production budget. 3. Raw materials purchases budget. 4. Direct labor budget 5. Manufacturing overhead budget. a Budgeted cost of goods sold. 7. Selling and administrative expenses budget. 8. Cash budget. F9 10 F11 Cash Budget BEACH WIND COMPANY Quarter June May April Cash receipts Cash payments: Raw materials purchases Direct labor Manufacturing overhead Selling & Administrative expenses Equipment Total budgeted cash payments Total cash receipts less payments Beginning balance Financing Ending balance