CALCULATED IN DETAIL PLS

Cash budget practice Deleon Inc. is preparing its annual budgets for the year ending December 31,20X2. Accounting assistants furnish the data shown below for the first quarter of the year 20X2 as follow: Product JB 50 Product JB 60 Sales budget: Anticipated volume in units 400.000 200.000 Unit selling price $20 $25 Production budget: Beginning finished goods units 25.000 10.000 Direct materials budget: Direct materials per unit (pounds) 2 3 Beginning direct materials pounds 40.000 15.000 Cost per pound S3 S4 Direct labor budget: Direct labor time per unit 0,4 0,6 Direct labor rate per hour S12 $12 Budgeted income statement: Total unit cost $13 $20 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of S560,000 for product JB 50 and $360,000 for product JB 60, and administrative expenses of $540,000 for product JB 50 and $340,000 for product JB 60. Income taxes are expected to be 30%. Instructions: a. Prepare the following budgets for each quarter for the year ending December 31, 20X2. Show data for each product. 1. Sales 2. Production 3. Direct materials 4. Direct labor With the following assumptions: (1) Sales quantity and sales price for each unit increase 5% and 10% accordingly for each quarter. (2) The required closing balance of finished goods is 25% of next quarter's expected sales. (3) The required closing balance of materials is 30% of next quarter's expected usage. b. Prepare Cash budget for each quarter for the year ending December 31, 20X2. Knowing that all sales are on account. Collections are expected to be 50% in the quarter of sale, 30% in the quarter following the sale, and 20% in the second quarter following the sale. Last year, the growth rate of sales volume is 2% per quarter, and no change in sales price per unit at $18 and $22 for JB 50 and JB 60 respectively. 60% of direct materials purchases are paid in cash in the quarter of purchase, and the balance due is paid in the quarter following the purchase. In the first quarter of 20X1 the amount of cash paid for material purchased in the forth quarter of 20X1 is 10% of sales of the fourth quarter of 20X1 itself. All other items above are paid in the month incurred except for selling and administrative expenses that include $1,000 of depreciation per month. Company must maitain cash balance at the end of the quarter at minimum of $30,000