Completing a Master Budget - Manufacturing Nutty Co. makes gourmet gift baskets. Each basket requires 5 bags of snack mix to complete. The following fictional data relate to the operations of Nutty Co. Gourmet Snacks: Beginning of quarter balances: Cash $ 20,000 Accounts Receivable $ 26,250 Finished Goods Inventory (baskets) 100 Raw Materials inventory (bags) Buildings and equipment Accounts Payable Common Stock Retained Earnings Actual and budgeted sales data (number of baskets): Sept. (act.) 350 105,000 1,560 $ 100,000 66,278 October November December January February 400 450 600 300 450 Hint: these Gift baskets are sold for $150 each. Selling price per gift basket $ 150 Sales are 50% for cash and 50% on credit. Credit sales are collected in the month following sale. The accounts receivable at the beginning of the quarter are a result of September's credit sales. Sales: Cash 50% Credit 50% The finished goods inventory on hand at the end of each month must equal 25% of the next month's sales. Finished Goods inventory 25% of next month's sales The raw materials inventory on hand at the end of each month must equal 30% of the following month's production needs for raw materials. Raw materials inventory: 30% of next month's production needs Bags of snack mix required for each gift basket 5 bags of snack mix Raw materials cost: $ 6.00 per bag of snack mix 80% of each raw materials purchases is paid for in the month of purchase; the other 20% is paid in the following month. The accounts payable at the beginning of the quarter are the result of September raw materials purchases. Purchases: Month of 80% Manufacturing and Selling and Administrative costs: Variable cost per unit: Dir. materials $ 30.00 Direct labor $ 20.00 Var. MOH $ 15.00 Var. S&A $ 20.00 Month after 20% Fixed costs per month: Manufacturing OH Depreciation-Manuf. $ 15,000 $ 1,000 Selling and Admin. Depreciation-S&A $ 10,000 $ 800 Office equipment costing $8,000 will be purchased for cash in November. Office equipment $ 8,000 in November Management would like to maintain a minimum cash balance of at least $15,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 2% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. Minimum cash on hand $ 15,000 Borrow in $ 1,000 increments 2% Interest (no compounding) Use the data above, complete the following statements and schedules for the first quarter: Schedule of expected cash collections: blue cells for your use only Cash Sales Credit sales October November December Quarter Total cash collected Accounts Receivable at the end of the quarter