Create a Master Budget.

Id like to check my work, I have done it. Use the rounding rule for # of units (.5 or up, round up)

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Sales Budget (and Schedule of Cash Collections) Production Budget Direct Materials Purchases Budget Direct Labor Budget Manufacturing Overhead Budget SG\&A Budget Cap Ex Budget Cash Budget Budgeted 2024 Income Statement It's an exciting time at Bigfoot Electronics. You decide to hold a meeting so you can learn more about the company and its upcoming year. Here is the transcript from your meeting: Adam, the Sales Manager: "The new product will launch on January 1. The launch price is going to be $500/ unit. We pay $10 in sales commission to our sales team members for each unit sold. Based on our history, we expect to sell about 40,000 units in January and then we'll lose 1% of sales every month after that until July." You: "What happens in July?" Adam, Sales Manager: "We use a skimming pricing strategy. Our customers are very price sensitive. After 6 months with a new product, we cut prices typically 20%. This kills our margins, but we typically see a surge in purchases. When we do a price drop, the first month sales is usually 20% higher than our initial product launch sales. Sales usually decline 3% every month from there." Sarah, Cashier: " 20% of our sales are cash. The rest are on account. The last couple years we've averaged 66% of credit sales being collected in the same month as the sale. 28% are collected the month following the sale. 4% are collected 2 months after the sale. The rest are never collected. At the end of the year, after we do the adjusting entries for the allowance for bad debt, we expect to have a Dec 31, 2023A/R balance of $350,000. 92% of that we'll collect in January and the rest will be collected in February." Destiny, Production Manager: "We have figured out our sweet spot is to have 32% of next month's sales in our finished goods inventory at the end of each month. That way, we are able to meet the sales in the early part of the month. The first month, we want to be extra cautious so we will have 25,000 units ready to go by the end of 2023 prior to the launch date." You: "Tell me about making them" Destiny, Production Manager: " We have 2 departments. The assembly of each unit takes about 3 hours. Then the testing department will spend about 30 minutes on each unit to ensure it's right. The assembly workers make $62/ hour total cost, and the testing department makes $31/hr." Myg, Procurement Manoger: "Our product is simple. It only has 4 components: 0.4 grams of rhodium 0.5 grams of gold 1.1 grams of palladium 1 main board The main board is reliably available for $10 each. From the purchasing perspective, by the end of each month, we want 50% of the materials we project to need in the following month. If I could predict the price of precious metals, I wouldn't be working here-so all you can do is use the current market price of metals to project forward. I'll start the year with these expected quantities of raw materials: 11.02lbs of Rhodium 13.66lbs of Gold 30.86 lbs of Palladium 13,000 main boards." Dole, Accounting Manager: 'We're overhead intensive. We currently have $1.3M per month in fixed overhead costs. We apply variable overhead at a rate of $0.80 per direct labor dollar. The only big change I know about is in July our factory rent goes up $100,000 a month." Destiny, Production Manoger: "Did you notice the condition of our micro 30 welding equipment?" You: "My last factory made cupcakes" Dole. Accounting Monoger: "Our micro 30 welding equipment needs replacing, it's been fully depreciated. We need to spend $2,000,000 on a new one. They usually last about 10 years. We currently have $530,000 in monthly depreciation expense related to our factory. Let's buy a new one before our busiest months of production. You: "What other monthly expenses do we have here at Bigfoot Electronics?" Dale, Accounting Manoger: Advertising $75,000 Executive Salaries: $220,000 Office Headquarters Rent: $30,000 Office Maintenance: $10,000 Non-Factory related Depreciation: $20,000 You: "Thank you everyone for coming to my meeting. Please enjoy the leftover Halloween candy on your way out." Linda, CFO: "One more thing ....on your resume it said you had experience with flexible budgeting. I'm concerned about the price of precious metals fluctuating. Can you make our budget flexible, so we can see how our company's profitability would change with a change in prices of the 3 metals?" Complete the 2024 Master Budget