Cartwright Inc produces wiring harnesses used in semi-trailers. The wiring harnesses sales for the next 4 months is projected to be:

January 15,000. February 17,000, March 22,000, April 24,000, May 26,000.

1. Finished goods inventory on January 1 is expected to be 5000 units. The desired ending FGI for any month (except for the Dec 31 inventory as noted previously) is expected to be 20% of the following months sales.
2. Data for materials used are: Part A87 4 parts per unit $26.50 per part Part D33 3 parts per unit $10.00 per part

Raw materials inventory is always budgeted to equal 25% of the following months production needs. On March 31, the ending inventory of A87 is expected to be 18,000 parts and for D33 is expected to be 12,000 parts.

3. Direct labor is made up of two types: Leather work is done by a Leather worker who is paid $20 per hour. The leather worker spends 1.75 hours on each harness. Assembly work is done by an Assembler who is $15 per hour. The Assembler spends 0.75 hour on each harness.
4. Overhead each month is estimated at:

The cost driver is DLH, which consists of Leather worker DLH plus Assembler DLH.

5. Selling and Admin is estimated each to be:

6. Selling price per harness is $330.00.
7. Sales are all on account. 25% of sales are collected in the month of sale and 75% in the month following the sale. Accounts receivable on January 1 is $150,000.
8. February is a planned purchase of land for $237,500.

Borrowings are at 6% per year interest, and borrowings are assumed to be at the beginning of the month required and at the end of the month of repayment. Beginning cash is $20,000. Interest on borrowings is paid before any principal can be paid. Principal and any accumulated interest are assumed to be paid at the end of any month when excess funds are available. Minimum cash balance at the end of any month is $10,000

1. Minimum cash balance at the end of any month is $10,000.

REQUIRED:

Please prepare the following budgets in an Excel spreadsheet for each month of the first quarter and for the quarter in total. The first six budgets are to be on one tab, separate from the original data, and the two last budgets (Cash and Income Statement) are to be on a third, separate, tab.

1. Sales budget
2. Production budget
3. Direct materials purchases budget
4. Direct labor budget
5. Overhead budget
6. Selling and Admin budget
7. Cash Budget
8. Income Statement

SALES INFORMATION Projected sales in units January 15000 February 17000 march 22000 April 24000 26000 May Selling price of each harness (finished product outptut) 330 Collections predition collected in month of sale 25% of current month sales 75% of prior month sales collected in subsequent month $150,000 Accounts receivable as at January 1 PRODUCTION INFORMATION Standard production predictions Finished good inventory, Jan 1 5000 units Finished Goods Inventory policy Desired ending FGI 20% percent of next months sales volun Direct materials usage - two types quantity per unit of ourput (per harness) A87 D33 3 Raw Materials inventory policy 25% percent of the follow Desired ending of the month RMI Assume beginning RMI (on Jan 1) is A87 18000 D33 12000 Direct labor two types Leather worker each harness takes 1.75 hours of direct labor 20 dollars per hour wage rate for direct labor is Assembler each harness takes 0.75 hour of direct labor wag rate for Assembler 15 dollars per hour Overhead estimates Fixed portion (per month) variable cost ($ per D Supplies 1 Power 0.2