CAN SOMEONE SOLVE THIS QUESTION FOR ME. (2-10 PARTS)

2. Cost of goods sold, inventory, and purchases budget 3. Operating expense budget 4. Budgeted income statement 5. Cash collections budget 6. Cash payments budget 7. Combined cash budget PROBLEMS Group B P9-65B Comprehensive budgeting problem (Learning Objectives 2 & 3) Conrad Manufacturing is preparing its master budget for the first quarter of the upcom ing year. The following data pertain to Conrad Manufacturing's operations: Current assets as of December 31 (prior year): Cash. $ 4,460 Accounts receivable, net........ $ 49,000 Inventory $ 15,600 Property, plant, and equipment, net.. $121,500 Accounts payable $ 43,000 Capital stock..... ........... $127,000 Retained earnings $ 22,800 a. Actual sales in December were $76,000. Selling price per unit is projected to remain stable at 59 per unit throughout the budget period. Sales for the first five onths of the upcoming year are budgeted to be as follows: January $80,100 February $89.100 March $82,800 April. $85,500 May $77,400 Sales are 30% cash and 70% credit. All credit sales are collected in the month follow ing the sale of 944 - Location 13534 of 22456 The Master e Conrad Manufacturing has a policy stating that each month's ending inventory of fin. ished goods should be 10% of the following month's sales (in units). d. Of each month's direct materials purchases, 20% are paid for in the month of pur. chase, while the remainder is paid for in the month following purchase. Two pounds of direct material is needed per unit at $1.50 per pound. Ending inventory of direct materials should be 20% of next month's production needs. .. Most of the labor at the manufacturing facility is indirect, but there is some direct la. bor incurred. The direct labor hours per unit is 0.03. The direct labor rate per hour is 513 per hour. All direct labor is paid for in the month in which the work is performed The direct labor total cost for each of the upcoming three months is as follows: January February March $3,510 $3,834 $3,600 Monthly manufacturing overhead costs are $6,500 for factory rent, $2.900 for other fixed manufacturing expenses, and $1.40 per unit for variable manufacturing over head. No depreciation is included in these figures. All expenses are paid in the month in which they are incurred. 9. Computer equipment for the administrative offices will be purchased in the upcom. ing quarter. In January, the company will purchase equipment for 55,800 (cash), while February's cash expenditure will be $11,600 and March's cash expenditure will be $15,800. h. Operating expenses are budgeted to be $1.20 per unit sold plus fixed operating ex penses of $1,400 per month. All operating expenses are paid in the month in which they are incurred. No depreciation is included in these figures. Depreciation on the building and equipment for the general and administrative offices is budgeted to be 54,900 for the entire quarter, which includes depreciation on new acquisitions. Conrad Manufacturing has a policy that the ending cash balance in each month must be at least $4,400. The company has a line of credit with a local bank. It can borrow in Increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $160,000. The interest rate on these loans is 1% per month simple interest (not compounded). The company would pay down on the line of credit balance in increments of $1,000 if it has excess funds at the end of the quarter. The company would also pay the accumulated interest at the end of the quarter on the funds bor rowed during the quarter. k. The company's income tax rate is projected to be 30% of operating income less interest expense. The company pays $10,800 cash at the end of February in estimated Requirements 1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total Cash Collections Budget For the Quarter Ended March 31 March Quarter 107% Page 572 of 944 2. Prepare a production budget. Production Budget For the Quarter Ended March 31 Quarter 5 Unit sales 6 Plus: Desired ending Inventory 7 Total needed 8 Le Beginning inventory 9 Number of units to produce 10 Hint: Unit ales - Sales in dollars Selling price per unit 3. Prepare a direct materials budget. March Quarter Direct Materials Budget For the Quarter Ended March 31 uary February 5 Units to be produced from Production Budget) 6 Multiply by: Quantity (pounds) of DM needed per unit 7 Quantity pounds) needed for production 8 Plus: Desired ending inventory of DM 9 Total quantity (pounds) needed 10 Lew Beginning inventory of DM 11 Quantity (pounds) to purchase 12 Multiply by: Cost per pound 11 Total cost of DM purchases 4. Prepare a cash payments budget for the direct material purchases from Requirement 3 using the following format. (Use the accounts payable balance at December 31 of prior year for the prior month payment in January) Cash Payments for Direct Materials Budget For the Quarter Ended March 31 u month purchases 6 Bocprior month OM purchases 7 Total cash payments 5. Prepare a cash payments budget for direct labor, using the following format Cash Payments for Direct Labor Budget for the quarter Ended March 11 Tot cost of rector 61% Page 572 of 944. Location 13586 of 22456 w Go Tools Help anaya's Kindle for Mac - Managerial Accounting 107% Page 573 of 944 The Master Budget 573 6. Prepare a cash payments budget for manufacturing overhead costs. Cash Payments for Manufacturing Overhead Budget For the quarter Ended March 1 Month January February March Variable manufacturing overhead costs 6 Rent 7 Othered MOH 8 Cash payments for manufacturing overhead CHAPTER 9 7. Prepare a cash payments budget for operating expenses. Ca Cash Payments for Operating Expenses Budget t er March 31 Month 5 anable operating expense Freed operating expenses Cash payments for operating expenses 8. Prepare a combined cash budget. Combined Cash Budget For the Quarter Ended March 11 Plus: Cash collections 7 Total cash available 8 Les cash payments Direct material purchases 10 Direct labor 11 Manufacturing overhead cost u Operating expenses 13Tax payment 14 Equipment purchases Totalcanh payments 16 Ending cash balance before financing 17 Financing 1 Plus New borrowings 19 Less Debt repayments 21 Ending cash balance 20 61% Page 573 of 944 . Location 13598 of 22456 107% Page 574 of 944 CHAPTER 9 9. Calculate the budgeted manufacturing cost per unit (assume that fixed manufacturing overhead is budgeted to be $0.70 per unit for the year). Budgeted Manufacturing Cost per Unit 4 5 6 7 Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead costs per unit Ford manufacturing overhead costs per unit Budgeted cost of manufacturing one unit 10. Prepare a budgeted income statement for the quarter ending March 31. Budgeted Income Statement For the Quarter Ended March 31 Sales revenue 5 Less: Cost of goods sold 6 Gross profit 7 Less Operating expenses 8 Less Depreciation expense 9 Operating income 10 Less: Interest expense 11 Less: Income tax expense 12 Net income "Hint: Cost of goods sold Budgeted cost of manufacturing one unit Number of units old P9-66B Cash budgets under two alternatives (Learning Objectives 2 & 3) Each autumn, as a hobby, Joann Denton weaves cotton placemats to sell at a local craft shop. The mats sell for $20 per set of four mats. The shop charges a 15% commission and remits the net proceeds to Denton at the end of December. Denton has woven and sold 22 sets in each of the last two years. She has enough cotton in inventory to make another 22 sets. She paid $8 per set for the cotton. Denton uses a four-harness loom that she pur chased for cash exactly two years ago. It is depreciated at the rate of $12 per month. The accounts payable relate to the cotton inventory and are payable by September 30. Denton is considering buying an eight-harness loom so that she can weave more in tricate patterns in linen. The new loom costs $1,000; it would be depreciated at $20 per month. Her bank has agreed to lend her $1,000 at 9% Interest, with $200 principal plus accrued interest payable each December 31. Denton believes she can weave 10 linen place mat sets in time for the Christmas rush if she does not weave any cotton mats. She predicts that each linen set will sell for $40. Linen costs $5 per set. Denton's supplier will sell her linen on credit, payable December 31