data

Skis, Inc., manufactures and sells snowboards. Skis manufactures a single model, the Pipex. In late 2021, Skis's management accountant gathered the following data to prepare budgets for January 2022: (Click the icon to view the budgeted balances and additional information pertaining to the cash budget.) (Click the icon to view the additional variable and fixed manufacturing cost information.) (Click the icon to view the materials and labour requirements, the direct materials inventories, and additional inventory information.) (Click the icon to view the following selected January 2022 budgets: Revenue, Direct material purchases, Direct manufacturing labour cost, Variable manufacturing overhead and Ending inventory.) Required Requirement 1. Prepare a cash budget for January 2022. Show supporting schedules for the calculation of collection of receivables and payments of accounts payable, and for disbursements for fixed manufacturing and nonmanufacturing overhead. Begin by preparing the supporting schedule for the calculation of collection of receivables. Schedule of Cash Collections From December 2021 sales From January 2022 sales Total collections X Budget balances and information on cash budget Budgeted balances at January 31, 2022 are as follows: Cash ? ? ? 851,000 Accounts receivable Inventory Property, plant, and equipment (net) $ Accounts payable Long-term liabilities Shareholders' equity ? 179,000 ? Selected budgeted information for December 2021 follows: Cash balance, December 31, 2021 $ Budgeted sales 11,000 1,680,000 Budgeted materials purchases 640,000 Customer invoices are payable within 30 days. From past experience, Skis's accountant projects 25% of invoices will be collected in the month invoiced, and 75% will be collected in the following month. Accounts payable relates only to the purchase of direct materials. Direct materials are purchased on credit with 35% of direct materials purchases paid during the month of the purchase and 65% paid in the month following purchase. Fixed manufacturing overhead costs include $13,000 of depreciation costs and fixed nonmanufacturing overhead costs include $5,000 of depreciation costs. Direct manufacturing labour and the remaining manufacturing and nonmanufacturing overhead costs are paid monthly. Variable and fixed manufacturing cost information Variable manufacturing overhead is $10 per direct manufacturing labour-hour. There are also $24,000 in fixed manufacturing overhead costs budgeted for January 2022. Skis combines both variable and fixed manufacturing overhead into a single rate based on direct manufacturing labour-hours. Variable marketing costs are allocated at the rate of $260 per sales visit. The marketing plan calls for 35 sales visits during January 2022. Finally, there are $32,000 in fixed nonmanufacturing costs budgeted for January 2022. ials and labour requirements, direct materials inventories, and additional inventory nation Materials and Labour Requirements Direct materials Wood 8 board feet (b.f.) per snowboard 6 yards per snowboard Fibreglass Direct manufacturing labour 6 hours per snowboard Skis' CEO expects to sell 1,800 snowboards during January 2022 at an estimated retail price of $550 per board. Further, the CEO expects 2022 beginning inventory of 500 snowboards and would like to end January 2022 with 700 snowboards in stock. Direct Materials Inventories Beginning Inventory 1/1/2022 Ending Inventory 1/31/2022 Wood 2,010 b.f. 1,510 b.f. Fibreglass 1,010 yards 2,500 yards Other data include: 2021 Unit Price 2022 Unit Price Wood $ 29.00 per b.f. $ 31.00 per b.f. Direct manufacturing labour 6 hours per snowboard Skis' CEO expects to sell 1,800 snowboards during January 2022 at an estimated retail price of $550 per board. Further, the CEO expects 2022 beginning inventory of 500 snowboards and would like to end January 2022 with 700 snowboards in stock. Direct Materials Inventories Beginning Inventory 1/1/2022 2,010 b.f. Wood Ending Inventory 1/31/2022 1,510 b.f. 2,500 yards Fibreglass 1,010 yards Other data include: 2021 Unit Price 2022 Unit Price Wood $ $ 31.00 per b.f. $ 29.00 per b.f. 5.00 per yard 25.00 per hour $ Fibreglass Direct manufacturing labour 10.00 per yard $ $ 26.00 per hour The inventoriable unit cost for ending finished-goods inventory on December 31, 2021, is $240.00. Assume Skis uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process in your calculations. Selected January budgets Revenue Budget For January 2022 Units Selling price Total revenues Snowboards 1,800 $ 550 $ 990,000 Direct Materials Purchases Budget For January 2022 Materials Wood Fibreglass Total Physical Units Budget To be used in production 16,000 b.f. 1,510 b.f. Add target ending inventory Total requirement 17,510 b.f. 12,000 yards 2,500 yards 14,500 yards 1,010 yards 13,490 yards Deduct beginning inventory 2,010 b.f. Purchases to be made 15,500 b.f. Cost Budget $ 480,500 $ 134,900 $ 615,400 Purchases Output Units Produced For January 2022 DMLH Total Hours Hourly Wage Rate per Unit Total Snowboards 2,000 6 12,000 $ 26 $ 312,000 Variable manufacturing overhead costs Total labour hours x Variable manufacturing overhead rate 12,000 10 = $ 120,000 Ending Inventories Budget For January 2022 Quantity Cost per unit Total Direct materials Wood 1,510 $ 31 $ 46,810 Fibreglass 2,500 10 25,000 Finished goods Snowboard 700 $ 536 375,200 $ 447,010 Total ending inventory 1. 2. Prepare a cash budget for January 2022. Show supporting schedules for the calculation of collection of receivables and payments of accounts payable and for disbursements for fixed manufacturing and nonmanufacturing overhead. Skis is interested in maintaining a minimum cash balance of $130,000 at the end of each month. Will Skis be in a position to pay the $195,000 dividend on January 31? Why do Skis's managers prepare a cash budget in addition to the revenue, expenses, and operating income budget? Prepare a budgeted balance sheet for January 31, 2022 by calculating the January 31, 2022 balances in (a) cash (b) accounts receivable (c) inventory (d) accounts payable and (e) plugging in the balance for shareholders' equity. 3. 4