BONUS ASSIGNMENT Royal Company is propeng Sugs or the 2nd ged sales of the company's cely podat Apr1. M 20,000 Pi 0.000 30.000 29.000 which and he she Al soles as an act The company coles T0% of these are in the of these 25 The company de invertory en hand the and of On March 31, 4300 Management desires to have news 10% of the folowing months pa the end of each month ep The Segning eyes 13,000 po The mats 4 pound The sperable balance March 31.30 Cachup quins 08 hour of de Dach haur af det aber time as the cy Vagy the war to the word Payal Company as a coring bed income s S 4 0 2 2 35 +1 P MacBook Air s 6 82 27 00 9 6 8 1 R T Y U 84 00 O 1 Manufacturing overhead is applied to units of product on the basis of direct labor hours The company has no work in process inventories Variable manufacturing overhead is $20 per direct labor hour. Fixed manufacturing overhead is $50,500 per month. This includes $20,500 in depreciation, which is not a cash outflow Variable selling and administrative expenses are $0.50 per unit sold. Fixed seling and administrative expenses are $70,000 per month and include $10,000 in depreciation A line of credit is available at a local bank that allows the company to borrow up to $75,000 a. All borrowing occurs at the beginning of the month, and all repayments at the end of the month b. The interest rate is 1% per month The company does not have to make any payments until the end of the Quarter Total asses Accounts payable Stockholders equity Common stock Retained eamings Total labies and stockholders' equity.. REQUIRED $1.355.200 $ 12.000 $ 200,000 1.163.200 1343200 $1.350.200 Prepare the following elements of the Master Budget 1. Sales budget (with a schedule of expected cash collections). Production budget Direct materials budget (with a schedule of expected cash disbursements for materials) 2 3. 4 Direct labor budget 5. Manufacturing overhead budget 6. Ending finished goods inventory budget Royal Company desines a cash balance of at least $30,000 at the end of each month. The cash balance at the beginning of April was $40,000. Cash dividends of $51,000 are to be paid to stockholders in Apri Equipment purchases of $143,700 are scheduled for May and $48,800 for June This equipment will be installed and tested during the second quarter and will not become operational until July, when depreciation charges will commence BEGINNING BALANCE SHEET Royal Company Balance Sheer March 31 Current assets Cash. Accounts receivable Raw materials inventory Plant and equipment Land $40,000 30,000 5,200 Finished goods inventory 20.000 $ 95,200 400,000 Buldings and equipment. 1.610.000 Accumulated depreciation (750.000) 1.200.000 7. Selling and administrative expense budget 8 Cashbudget