Cut Copy Paste 155 Format Painter Clipboard 4 L A iment - Excel (Product Activation Failed) Formulas Data Review View Tell me what you want to do... Arial 10 AA == Wrap Text General BIU- A Merge & Center - - %' +000 000 29pyilbrosV... zhWTZONhR... Conditional Format as zvlwxQCTyl... Formatting Table- X AutoSum Fill- Normal Insert Delete Format Sort & Clear- Filter Font Alignment Number Styles Cells Eating C D G H- 1 Pikachu Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Pikachu Manufacturing's operations: 2 3 Current Assets as of December 31 (prior year): 4 Cash 4,500 5 Accounts receivable, net 49,000 6 Inventory 15,320 7 Property, plant, and equipment, net 121,500 8 Accounts payable 42,400 9 Capital stock 125,000 10 Retained earnings 22,920 11 12 13 Actual sales in December were $70,000 14 Selling price per unit is projected to remain stable at $10 per unit throughout the budget period 15 Sales for the first five months of the upcoming year are budgeted to be as follows: 16 January 17 February 18 March 19 April $80,000 $92,000 $99,000 $97,000 $85,000 20 May 21 22 23 Sales are 24 30% cash and 70% credit. All credit sales are collected in the month following the sale 25 Pikachu Manufacturing has a policy that states that each month's ending inventory of finished goods should be 25% of the following month's sales (in units). 26 27 Of each month's direct material purchases 20% 28 29 Ending inventory of direct materials should be are paid for in the month of purchase, while the remainder is paid for in the month following purchase 2 kilograms of direct material is needed per unit at 2 kg 10% of next month's production needs. 30 31 Monthly manufacturing conversion costs are $5.000 for factory rent, $3,000 for other fixed manufacturing expenses, and $1.20 per unit for variable manufacturing overhead, 32 No depreciation is included in these figures. All expenses are paid in the month in which they are incurred 33 34 Computer equipment for the administrative offices will be purchased in the upcoming quarter E9-21 E9-33 P9-61 EE.000. +2.000. M Aciona Editing A B C D E 27 Of each month's direct material purchases 20% 28 29 Ending inventory of direct materials should be 10% of next month's production needs. are paid for in the month of purchase, while the remainder is paid for in the month following purchase. 2 kilograms of direct material is needed per unit at 2 /kg F G H J K L M N 0 $ 30 31 Monthly manufacturing conversion costs are - $5,000 for factory rent, $3,000 32 No depreciation is included in these figures. All expenses are paid in the month in which they are incurred. for other fixed manufacturing expenses, and $1.20 per unit for variable manufacturing overhead. 33 34 Computer equipment for the administrative offices will be purchased in the upcoming quarter. 35 In January, Pikachu Manufacturing will purchase equipment for $6,000 (cash), while February's cash expenditure will be $12,000 and March's cash expenditure will be $16,000 36 37 Operating expenses are budgeted to be $1.00 per unit sold plus fixed operating expenses of $1,000 per month. 38 All operating expenses are paid in the month in which they are incurred. 39 40 Depreciation on the building and equipment for the general and administrative offices is budgeted to be $6,000 for the entire quarter, which includes depreciation on new acquisitions. 41 1% 42 Pikachu Manufacturing has a policy that the ending cash balance in each month must be at least 43 It has a line of credit with a local bank. The company can borrow in increments of 44 The interest rate on these loans is 4,000 $1,000 per month simple interest (not compounded). 45 Pikachu Manufacturing pays down on the line of credit balance if it has excess funds at the end of the quarter. The company also pays the accumulated interest at the end of the quarter on the funds borrowed during the quarter. 47 The company's income tax rate is projected to be 30% of operating income less interest expense. The company pays $10,000 46 cash at the end of February in estimated taxes at the beginning of each month, up to a total outstanding loan balance of $100,000 48 49 50 Prepare a schedule of cash collections for January, February, and March, and for the quarter in total. 3 points 51 52 Prepare a production budget. (Hint: Unit sales = Sales in dollars / Selling price per unit) 5 points 53 55 59 54 Prepare a direct materials budget. 56 Prepare a cash payments budget for the direct material purchases from Requirement 3 57 58 Prepare a cash payments budget for conversion costs 60 Prepare a cash payments budget for operating expenses. E9-21 E9-33 P9-61 12 points 5 points 4 points 3 points Ready B ENG