c Data Table Cicek Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Cicek Manufacturing's operations: BE (Click the icon to view the data.) i (Click the icon to view additional data.) Current Assets as of December 31 (prior year): Additional data Cash $ 4,500 Accounts receivable, net $ 49.000 $ a. Actual sales in December were $70,000. Selling price per unit is projected to remain stable at $10 per unit throughout the budget period. Sales for the first five months of the upcoming year are budgeted to be as follows: 15,320 121,500 $ Inventory Property, plant, and equipment, net. Accounts payable Capital stock Retained earnings $ 42.400 $ 125,000 $ 22.920 Requirements January $ 80,000 February $ 92,000 March $ 99,000 April $ 97,000 May $ 85,000 b. Sales are 30% cash and 70% credit. All credit sales are collected in the month following the sale. C. Cicek Manufacturing has a policy that states that each month's ending inventory of finished goods should be 25% of the following month's sales (in units). d. Of each month's direct material purchases, 20% are paid for in the month of purchase, while the remainder is paid for in the month following purchase. Two kilograms of direct material is needed per unit at $2.00/kg. Ending inventory of direct materials should be 10% of next month's production needs. e. Monthly manufacturing conversion costs are $5,000 for factory rent, $3,000 for other fixed manufacturing expenses, and $1.20 per unit for variable manufacturing overhead. No depreciation is included in these figures. All expenses are paid in the month in which they are incurred. f. Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Cicek Manufacturing will purchase equipment for $5,000 (cash), while February's cash expenditure will be $12,000 and March's cash expenditure will be $16,000. g. Operating expenses are budgeted to be $1.00 per unit sold plus fixed operating expenses of $1,000 per month. All operating expenses are paid in the month in which they are incurred. h. Depreciation on the building and equipment for the general and administrative offices is budgeted to be $6,000 for the entire quarter, which includes depreciation on new acquisitions. i. Cicek Manufacturing has a policy that the ending cash balance in each month must be at least $4,000. It has a line of credit with a local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $100,000. The interest rate on these loans is 1% per month simple interest (not compounded). Cicek Manufacturing pays down on the line of credit balance if it has excess funds at the end of the quarter. The company also pays the accumulated interest at the end of the quarter on the funds borrowed during the quarter. j. The company's income tax rate is projected to be 30% of operating income less interest expense. The company pays $10,000 cash at the end of February in estimated taxes. 1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total 2. Prepare a production budget. (Hint: Unit sales - Sales in dollars / Selling price per unit.) 3. Prepare a direct materials budget. 4. Prepare a cash payments budget for the direct material purchases from Requirement 3. 5. Prepare a cash payments budget for conversion costs. 6. Prepare a cash payments budget for operating expenses. 7. Prepare a combined cash budget. 8. Calculate the budgeted manufacturing cost per unit. (Assume that fixed manufacturing overhead is budgeted to be $0.80 per unit for the year.) 9. Prepare a budgeted income statement for the quarter ending March 31. (Hint: Cost of goods sold = Budgeted cost of manufacturing each unit x Number of units sold.) 10. Prepare a partial budgeted balance sheet for March 31. Include Loans Payable and Income Tax Payable. Print Done Done Requirement 1. Prepare a schedule of cash collections for January, February, and March and for the quarter in total. (Round your answers to the nearest whole dollar.) Cicek Manufacturing Cash Collection Budget January February March Quarter Cash sales Credits sales Total cash collections Requirement 2. Prepare a production budget. (Hint: Unit sales - Sales in dollars / Selling price per unit.) Cicek Manufacturing Production Budget January February March Quarter Unit sales Plus: Desired ending inventory Total needed Less: Beginning inventory Units to produce Requirement 3. Prepare a direct materials budget. (Round your answers to the nearest whole dollar. For cost per kg, round your answers to the nearest cent. Abbreviation used: DM = direct material.) Cicek Manufacturing Direct Materials Budget January February March Quarter Units to be produced x kg of DM needed per unit Quantity (kg) needed for production Plus: Desired ending inventory of DM Total quantity (kg) needed Less: Beginning inventory of DM Quantity (kg) to purchase x Cost per kg Total cost of DM purchases Requirement 4. Prepare a cash payments budget for the direct material purchases from Requirement 3. (Leave any unused cells blank. Round your answers to the nearest cent.) Cicek Manufacturing Cash Payments for Direct Material Purchases Budget January February March Quarter December purchases (from Accounts Payable) January purchases February purchases March purchases Total disbursements Requirement 5. Prepare a cash payments budget for conversion costs. (Round your answers to the nearest whole dollar.) Cicek Manufacturing Cash Payments for Conversion Costs Budget January February March Quarter Variable conversion costs Rent (fixed) Other fixed MOH Total payments for conversion costs Requirement 6. Prepare a cash payments budget for operating expenses. (Round your answers to the nearest whole dollar.) Cicek Manufacturing Cash Payments for Operating Expenses Budget January February March Quarter Variable operating expenses Fixed operating expenses Total payments for operating expenses Requirement 7. Prepare a combined cash budget. (Leave any unused cells blank. Use parentheses or a minus sign for negative cash balances and financing payments. Round your answers to the nearest cent.) Cicek Manufacturing Combined Cash Budget January February March Quarter Cash balance beginning Add cash collections Total cash available Less cash disbursements: Direct material purchases Conversion costs Operating expenses Equipment purchases Tax payment Total cash payments Excess (deficiency) of cash Financing Borrowings Repayments Interest payments Total financing Ending cash balance Requirement 8. Calculate the budgeted manufacturing cost per unit. (Assume that fixed manufacturing overhead is budgeted to be $0.80 per unit for the year.) (Round your answers to the nearest cent.) Cicek Manufacturing Budgeted Manufacturing Cost per Unit Direct materials cost per unit Conversion costs per unit Fixed manufacturing overhead per unit Budgeted cost manufacturing each unit Requirement 9. Prepare a budgeted income statement for the quarter ending March 31. (Hint Cost of goods sold = Budgeted cost of manufacturing each unit x Number of units sold.) (Round your answers to the nearest whole dollar.) Cicek Manufacturing Budgeted Income Statement For the Quarter Ending March 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Operating income Less: interest expense Less: provision for income taxes Net income Requirement 10. Prepare a partial budgeted balance sheet for March 31. Include Loans Payable and Income Tax Payable. (Round your answers to the nearest whole dollar.) Cicek Manufacturing Partial Budgeted Balance Statement March 31 Cash Accounts receivable, net Inventory Property, plant and equipment, net Accounts payable Income tax payable Financing payable Capital stock Retained earnings