Budget Project

ACCT 2302

Spring 2022

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Jamison and Co makes lightweight yoga mats. Jamison is preparing its budget for the second quarter of 2022.

1. Each mat sells for $24. Sales in units are as follows:

February12,000$288,000

March12,000 288,000

April13,500 324,000

May 15,000 360,000

June15,500 372,000

July 15,000 360,000

August16,000 384,000

In order to prevent stockouts they maintain an ending inventory at the end of each month. That inventory is 30% of the following months sales.

2. The mats are made of a compound made of rubber and plastic which comes in a variety of colors and is made in India. Jamison buys the compound, rolls it flat, cuts the mats and stamps its logo on each one. Each mat requires 1.6 square yards of compound.

Because the compound comes from India, they require that a 20% inventory of the following months production. The compound costs $3.25 per square yard. Materials needed for production in July are $45,125.

3. Each mat requires .3 hours of direct labor and Jamison pays its assembly line workers $18 per hour. Variable overhead includes inexpensive cording that is attached to the mats and is included in the Variable OH application rate of $12 per direct labor hour. Fixed manufacturing overhead is applied at $8 per direct labor hour.

4. Delivery expenses are 7% of sales and sales commissions are another 4%. Fixed general and administrative are $32,000 per month and 50% of that amount is depreciation.

5. Sales are 30% cash and 70% on credit. Credit sales are collected as follows:

a. 10% in the month of sale

b. 50% in the month following sale

c. 10% in the second month following sale

6. Payments for Purchases are made 25% in the month of purchase and 75% in the month following purchase.Purchases for March total $65,375

7. Jamison requires that a minimum of $20,000 remain in the bank at all times. If the balance drops below $20,000 Jamison borrows from its line of credit in increments of $1,000. It pays all borrowings back as soon as possible. There are no borrowings on the line of credit on April 1. The beginning cash balance on April 1 is $20,000.

8. Jamison expects to purchase new equipment in April totaling $65,000 and pays a $50,000 dividend in the last month of each quarter.

Requirements:

Using the template provided, prepare a master budget and financial budgets for Jamison for the months of April-June 2022, showing quarterly totals. These should include the following:

a. Sales Budget

b. Production Budget

c. Materials purchases budget

d. Direct labor Budget

e. Manufacturing Overhead

f. Selling, General and Administrative Budget

g. Cost of Goods Sold Budget

h. Budgeted Income Statement

i. Cash receipts budget

j. Cash payments budget

k. Cash budget

All blue cells are for data input. Green cells are for formula input. I expect you to use Excel formulas whenever possible. Be sure to write you name on your EXCEL spreadsheets and include it in the file name that you send to me.

PLS ANSWER FAST UR QUESTION WILL BE LIKED INSTANTLY!!!!