core: 0 of 20 pts 1 of 1 (0 complete) 9-57A (similar to) Dickson Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Dickson Manufacturing's operations: Click the icon to view the data) Click the icon to view additional data) Read the results Data Table Requirement 1. Prepare a schedule of cash collections for January February, and March, and for the Dickson Manufacturing Cash Collections Budget For the Quarter Ended March 31 Month January February March Quarter $ $ 4,500 49,000 Current Assets of December 31 prior years Cash Accounts receivable, Inventory Property, plant, and equipment Accounts payable Catalstock Retained carrings Credits $ $ 15.200 121.500 42.400 125,000 23.400 Total Ghetons $ $ Print Done number in the cold and then click Check An CA 12 emaining MacBook Air Bo . 3 BE # 3 $ 4 % 5 & 7 2 6 8 Q W E R Y U lab . S D F G H J caps lock N X CV B N M alt db el 1 of 1 (0 complete) More Info a.Actual sales in December were $70,000. Selling price per unit is projected to remain stable at $10 per unit throughout the budget period. Sales for the first five months of the upcoming year are budgeted to be as follows: colle January $ 80,000 fact February $ 92,000 ense March $ 99,000 nded April $ 97,000 Mond May $ 85,000 Februl b. Sales are 30% cash and 70% credit. All credit sales are collected in the month following the sale. c. Dickson Manufacturing has a policy that states that each month's ending inventory of finished goods should 25% of the following month's sales (in units) d. Of each month's direct material purchases, 20% are paid for in the month of purchase, while the remainder is paid for in the month following purchase. Two pounds of direct material is needed per unit at $2.00 per pound. Ending Inventory of direct materials should be 10% of next month's production needs e. Most of the labor at the manufacturing facility is indirect, but there is some direct labor incurred. The direct labor hours per unit is 0.01. The direct labor rate per hour is $12 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 $ 990 February $ 1,125 March 1,182 + in mente nd then Print Done MacBook Air A 80 FE DOO 000 F4 ST 53 * # 3 $ 4 % 5 & 7 go 9 0 6 E 0 R Y U T edit Budgeting Assignment 1 of 1 (0 complete) bu More Info e. Most of the labor at the manufacturing facility is Indirect, but there is some direct labor incurred. The direct labor hours per unit is 0.01. The direct labor rate per hour is $12 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: COM ufact ons Ended Mon Febru January $ 996 February $ 1,125 March $ 1,182 f. Monthly manufacturing overhead costs are $5,000 for factory rent, $3,000 for other foved manufacturing expenses, and $1.20 per unit for variable manufacturing overhead. 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 upcoming quarter. In January, Dickson Manufacturing wil purchase equipment for $6,000 (cash), while February's cash expenditure will be $12,000 and March's cash expenditure will be $16,000 h. Operating capenses are budgeted to be $1.00 per unit sold plus fixed operating expenses of $1,000 per month All operating expenses are paid in the month in which they are incurred. No depreciation is included in these figures 1. Depreciation on the building and equipment for the general and administrative offices is budgeted to be $4.500 for the entire quarter, which includes depreciation on now acquisitions. J. Dickson Manufacturing has a policy that the ending cash balance in each month must be at least 54,000. It has a line of credit with a local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding on balance of $140,000. 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 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 borrowed during the quarter. k. The company's income tax rate is projected to be 30% of operating income interest expense. The company pays $10,000 cash at the end of February in estimated taxes And then cil Print Done MacBook Air 20 DOD F7 F4 FB F9 FVO A * $ 4 % 5 & 7 3 ON 9 0 C T