Budget #$4$: Direct Labor Budget

Budgeted units to be produced

Direct labor hours per unit

Direct labor hours needed for production

Direct labor cost per hour

Budgeted direct labor cost

Budget #$5$: Cash Receipts Budget

Jan $-$ Cash Sales

Jan $-$ Credit Sales $(20\%)$

Jan $-$ Credit Sales $(80\%)$

Feb$-$Cash Sales

Feb $-$ Credit Sales $(20\%)$

Feb $-$ Credit Sales $(80\%)$

March $-$ Cash Sales

March $-$ Credit Sales $(20\%)$

March $-$ Credit Sales $(80\%)$

Total Cash Receipts

Accounts Receivable Balance end of March

Budget #$6$: Cash Payments $($Direct Materials$-$Eggs$)$ Budget

Jan $-$ Direct Materials $($eggs$)$ purchases $(30\%)$

Jan $-$ Direct Materials $($eggs$)$ purchases $(70\%)$

Feb $-$ Direct Materials $($eggs$)$ purchases $(30\%)$

Feb $-$ Direct Materials $($eggs$)$ purchases $(70\%)$

March $-$ Direct Materials $($eggs$)$ purchases $(30\%)$

March $-$ Direct Materials $($eggs$)$ purchases $(70\%)$

Total Payments for Direct Materials $($eggs$)$

Accounts Payable Balance end of March

Round to two decimals

Round to two decimals

Round to two decimals

Round to two decimals

Round to two decimals

Round to two decimals Round to two decimals

Round to two decimals Budget #$5$: Cash Budget

Beginning Cash Budget

Cash Receipts

Cash Available

Cash Payments:

Payments of direct materials $($eggs$)$

Payments of other direct materials

Direct Labor $($paid in same month incurred$)$

Utilities

Tax Accountant

Selling and Administrative

Income Taxes

Total Cash Payments

Ending Cash Balance before Financing

Minimum Cash Balance Desired

Projected Cash Excess$($Deficiency$)$

Financing:

Borrowing

Principal Repayment

Total Effects of Financing

Ending Cash Blanace

Round to the nearest whole dollar

Does Julie currently have enough saved up to be able to pay her bills for January? Julie wants to make sure that she is able to meet the demand for her wedding cakes. In order to

do this, she needs to know how many cakes to produce, how many materials to buy, and how

much money in the bank she needs to pay her bills as they come due. She prepares a master

budget to calculate the budget sales, production, direct materials purchases, direct labor costs,

and cash flows. Use the information below to put together the master budget in Excel.

Sales Budget:

Expected Sales $($ $$\frac{800}{?}$ cake$)$:

January $-50$ cakes

February $-60$ cakes

March $-80$ cakes

April $-90$ cakes

May $-100$ cakes

Production Budget:

Desired ending cakes $=10\%$ of the following months demand

Direct Materials Budget:

There are $6$ eggs in each wedding cake

Desired ending eggs $=20\%$ of the following months eggs need

A carton of a dozen eggs cost $$2\mathrm{.}40($ $$\frac{0\mathrm{.}20}{e}gg)$

She currently have $24$ eggs in beginning inventory

Direct Labor Budget:

Each cake requires $6$ hours of direct labor and bakers are paid $$\frac{20}{h}r$ in the same month

that they work

Cash Receipts Budget:

Sales are $40\%$ cash and $60\%$ credit

$20\%$ of credit sales are collected in the same month and $80\%$ in the following month

Cash Payments Budget:

Direct material purchases are paid $30\%$ in the same month of the purchase and $70\%$ in

the month following the purchase

Cash Budget:

Julie currently has $$10,000$ set aside to open her business and wants to make sure she

always has at least $$10,000$ in her account as a safety net

Use Excel to prepare all the budgets to determine if Julie has enough money saved up to get her

business started.Requirment $7$:

Use the data provided to complete the master budget and determine whether or not Julie has enough money saved up to get her started.

Round all answers to the nearest whole number except the direct materials budget $($should be rounded to two decimals$)$