Brookes Inc. manufactures basketballs for $20/unit. Brookes Inc. budgets on a quarterly basis and the sales department has budgeted for the following sales: Budgeted Sales Units: 91 Q2 Q3 Q4 10,000 11,000 12,000 14,000 Please prepare the Sales Budget. Sales Budget For the year ended December 31, 2020 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Expected Sales (units) Selling Price ($/unit) Total Budgeted Sales Brookes Inc. does not collect all of the sales revenue in the period of sale. The accounts receivable department has budgeted for 85% of sales revenue to be collected in the period of sale and 15% to be collected in the next period. The accounts receivable beginning balance is $80,000. Please prepare the Schedule of Expected Cash Collections. # Schedule of Expected Cash Collections Quarter 2 Quarter 3 Quarter 1 Quarter 4 Year Accounts Receivable, beginning balance 80,000 80,000 First quarter sales Second quarter sales Third quarter sales Fourth quarter sales Total cash collections Brookes Inc. has spoken with the Production Department and determined that it would like to have a desired ending finished goods inventory of 20% of next periods sales. The assumed beginning inventory of finished goods for Q1 and the desired ending inventory of Q4 is provided. Please prepare the Production Budget. Production Budget For the Year Ended December 31, 2019 Quarter 2 Quarter 3 Quarter 1 Quarter 4 Year Budgeted Sales Add: Desired ending inventory of finished goods 3,000 3,000 Total needs Deduct: Beginning inventory of finished goods 2,000 2,000 Required Production The Production Department is ready to budget for Direct Material Purchases. The Direct Materials needed are 15kg/unit and the cost of the raw materials is $1.50/kg. Production would like to have 10% of next quarters production needs as the desired ending inventory of raw materials. The assumed Q1 beginning inventory of raw materials and the ending inventory for Q4 is provided. Please prepare the Direct Materials Budget Direct Materials Budget For the Year Ended December 31, 2019 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Required Production in Cases Production needs Add: Desired ending inventory of raw materials 22,500 22,500 Total needs Deduct: Beginning inventory of raw materials 21,000 21,000 Raw materials to be purchased Cost of raw materials to be purchased The Accounts Payable Department has advised Brookes Inc. that they expect to pay for Direct Materials 50% in the period of purchase and 50% in the next period. Accounts Payable beginning balance is provided. Please prepare the Schedule of Expected Cash Disbursements for Materials. Schedule of Expected Cash Disbursements for Materials Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Accounts Payable beginning balance $25,800 25,800 First quarter purchases Second quarter purchases Third quarter purchases Fourth quarter purchases Total cash disbursements The Human Resources Department has indicated that the Direct Labour Cost per hour is $7.50 and the Production Department has indicated that the # of Direct Labour Hours per unit is 0.90. Please prepare the Direct Labour Budget: Direct Labour Budget For the Year Ended December 31, 2019 Q2 93 Qi 94 Year Required Production in cases Total direct labour hours needed Total direct labour cost Brookes Inc. has determined that the variable Overhead Rate per Direct labour hour is $1.75 and the fixed manufacturing overhead is $6,200 per quarter and depreciation is $1,500. Please prepare the Manufacturing Overhead Budget Manufacturing Overhead Budget Q2 Q3 Qi Q4 Year Budgeted direct labour hours Variable overhead rate $1.75 $1.75 $1.75 $1.75 $1.75 Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Less: Depreciation Cash disbursement for manufacturing overhead Brookes Inc. would like to know the unit product cost as well as the ending finished goods inventory dollar amount. Please prepare the Ending Finished Goods Inventory Budget Ending Finished Goods Inventory Budget For the Year Ended December 31, 2019 Quantity per unit Cost Total Item Production Cost per case: w Direct Materials Direct labour Manufacturing Overhead Unit Product Cost kilogramos bours bours Rer kilogram per hour per hour $ S $ S w Budgeted Finished Goods Inventory Ending finished goods inventory Unit product cost Ending finished goods inventory in dollars Brookes Inc. budgeted for fixed selling and administrative expenses below. The variable selling and administrative rate based on budgeted units is $11/hour. # Please prepare the Selling and Administrative Expense Budget. Fixed selling and administrative expenses based on units sold: Advertising Executive Salaries 92 Insurance 93 Insurance Q4 Property taxes Depreciation $3,000 850 100 2,000 4,300 10,000 Selling and Administrative Expense Budget 91 Q2 93 94 Year Budgeted Sales $11 $11 $11 $11 $11 Variable selling & admins expense Total budgeted variable selling & administrative expense Budgeted fixed selling & admin. expenses Advertising Executive Salaries Insurance Property taxes Depreciation Total budgeted fixed selling & admin. expense Total budgeted selling & admin. expenses Less: Depreciation Cash disbursements for selling & administrative expenses The beginning cash balance has been provided and equipment purchases and dividends bas been provided. > Please prepare the cash budget. Cash Budget For the Year Ended December 31, 2019 Q2 Q3 94 Year Q1 $42,500 Cash balance, beginning Add Receipts: Collection from customers Total Cash available before current financing Deduct disbursements Direct materials Direct labour Manufacturing overhead Selling and administrative Equipment purchases Dividends Total Disbursements Excess (deficiency) of cash available over disbursements 50,000 40,000 500 20,000 500 27,000 500 137,000 2,000 500