Company Wood Parts-Musical Instruments is preparing its monthly master budget for the year ending December 31, 2021. Relevant data pertaining to its sales, production, and idrect materials budgets are as follows.

Sales:

• For the year ended Dec 31, 2020: 95,000 units at $50.00 each * (*Expected sales for the year ended December 31, 2020 are based on actual sales to date and budgeted sales for the duration of the year)
• For the year ended Dec 31, 2021: 100,000 units at $50.00 each
• For the year ended Dec 31, 2022: 110,000 units at $50.00 each.

• Manager expect a distribution of sales for each month based on percentage of the total budgeted as follow: Jan, Feb & Mar 2% each; Apr, Aug and Sep 6% each; May, Jun & Jul 9% each; Oct 10%; Nov 17% & Dec 22%. Sales are on cash and on account (credit), 70% of the sales are collected during the month of sales, 20% the following month, 9.5% the month thereafter. of 1% of sales are considered uncollectible (Bad debt expense)

• Sales in November and December 2020 are expected to be $807,500 and $1,045,000 respectively. Based on the above collection pattern this will result in Accounts Receivable of $384,988 at December 31, 2020 which will be collected in January and February, 2021.

Production

From previous experience, management has determined that an ending inventory equal to 20% of the next month's sales is required to fit the buyer's demands.

Because sales are seasonal, Wood Parts-Musical Instruments must rent an additional storage facility from October to December to house the additional inventory on hand. The only related cost is a flat $10,000 per month, payable at the beginning of the month.

Direct Mateirals:

The Xylophone1bX requires three types of raw materials:

Plastic PR is a compact material that is purchased in powder form. Each Xylophone1BX requires 0.5 kilograms of Plastic PR, at a cost of $25.00 per kilogram. The supplier of Plastic PR tends to be somewhat erratic so Wood Parts-Musical Instruments finds it necessary to maintain an inventory balance equal to 40% of the following month's production needs as a precaution against stock-outs.

A plastic wheel assembly is purchased in kit form, and is attached during the assembly process. For a small premium, Wood Parts-Musical Instruments has made a JIT agreement with the supplier which includes on-time and quality assurances. Each Xylophone1BX uses two kits, which cost $1.00 each. The supplier must be paid in cash

The final component for the musical instrument is a length of cord which is used to pull the mobile Xylophone1BX along the ground or floor. The cord supplier must be paid in cash. On the first day of every month she delivers exactly the right amount to manufacture the budgeted number of units for that month. It costs $2.00 per meter and Wood Parts-Musical Instruments uses one-half meter for each Xylophone1BX.

• The beginning accounts payable (associated with PlasticPR purchases only) will consist of $101,278 arising from the following estimated material purchases for November and December of 2020:

Material purchases in November 2020: $213,850

Material purchases in December 2020: $138,400

Wood Parts-Musical Instruments pays for 50% of a month's purchases in the month of purchase, 35% in the following month and the remaining 15% two months after the month of purchase. There is no early payment discount.

Required:

1. Provide a monthly master budget for Wood Parts-Musical Instruments for the year ending December 31, 2021, including the following schedules:

a) Sales Budget

b) Schedule of Cash Receipts

c) Production Budget

d) Direct Materials Budget (one separate schedule for each raw material. You

need to have three schedules)

ToyWorks Ltd. Production Budget For the year ended December 31, 2008 Jan Apr May Jul Aug Sep Oct Nov Dec Year 1 1 0 Budgeted sales in units Add desired ending inventory of finished goods Total needs Less beginning inventory of finished goods Required production 0 1 4 11 :11 11 1 1 4 13 .. 11 11 11 11 1: ToyWorks Ltd. Direct Materials Budget - SAA (kilograms) For the year ended December 31, 2008 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year 1 1 1 1 1 1 11 50 1 1 Units to be produced Raw Materials needed per unit Production needs Add desired ending inventory Total needs Less beginning inventory Raw materials to be purchased 1 1 1 1 1 1 1 1 1 1 1 1 1 2 1 1 1 1 1 1 1 1 1 1 1 1 1 Cost of SAA per kilogram Gross cost of purchases of SAA $ $ $ $ $ . S $ $ $ $ ToyWorks Ltd. Production Budget For the year ended December 31, 2008 Jan Apr May Jul Aug Sep Oct Nov Dec Year 1 1 0 Budgeted sales in units Add desired ending inventory of finished goods Total needs Less beginning inventory of finished goods Required production 0 1 4 11 :11 11 1 1 4 13 .. 11 11 11 11 1: ToyWorks Ltd. Production Budget For the year ended December 31, 2008 Jan Apr May Jul Aug Sep Oct Nov Dec Year 1 1 0 Budgeted sales in units Add desired ending inventory of finished goods Total needs Less beginning inventory of finished goods Required production 0 1 4 11 :11 11 1 1 4 13 .. 11 11 11 11 1: ToyWorks Ltd. Direct Materials Budget - SAA (kilograms) For the year ended December 31, 2008 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year 1 1 1 1 1 1 11 50 1 1 Units to be produced Raw Materials needed per unit Production needs Add desired ending inventory Total needs Less beginning inventory Raw materials to be purchased 1 1 1 1 1 1 1 1 1 1 1 1 1 2 1 1 1 1 1 1 1 1 1 1 1 1 1 Cost of SAA per kilogram Gross cost of purchases of SAA $ $ $ $ $ . S $ $ $ $ ToyWorks Ltd. Production Budget For the year ended December 31, 2008 Jan Apr May Jul Aug Sep Oct Nov Dec Year 1 1 0 Budgeted sales in units Add desired ending inventory of finished goods Total needs Less beginning inventory of finished goods Required production 0 1 4 11 :11 11 1 1 4 13 .. 11 11 11 11 1