Data table

Budgeted balances at January $31,2021$ are as follows:

Selected budgeted information for December $2020$ follows:

Customer invoices are payable within $30$ days. From past experience, Slaggs's accountant

projects $35\%$ of invoices will be collected in the month invoiced, and $65\%$ will be collected in

the following month. Accounts payable relates only to the purchase of direct materials. Direct

materials are purchased on credit with $40\%$ of direct materials purchases paid during the

month of the purchase, and $60\%$ paid in the month following purchase.

Fixed manufacturing overhead costs include $$11,000$ of depreciation costs and fixed

operating $($nonmanufacturing$)$ overhead costs include $$15,000$ of depreciation costs. Direct

manufacturing labor and the remaining manufacturing and operating $($nonmanufacturing$)$ Variable manufacturing overhead is $$8$ per direct manufacturing labor$-$hour. There are also $$20,800$ in

fixed manufacturing overhead costs budgeted for January $2021.$ Slaggs combines both variable and

fixed manufacturing overhead into a single rate based on direct manufacturing labor$-$hours. Variable

marketing costs are allocated at the rate of $$270$ per sales visit. The marketing plan calls for $36$ sales

visits during January $2021.$ Finally, there are $$33,000$ in fixed operating $($nonmanufacturing$)$ costs

budgeted for January $2021.$ Slaggs' CEO expects to sell $1,300$ snowboards during January $2021$ at an estimated retail price of

$$650$ per board. Further, the CEO expects $2021$ beginning inventory of $600$ snowboards and would

like to end January $2021$ with $600$ snowboards in stock.

Other data include:

The inventoriable unit cost for ending finished$-$goods inventory on December $31,2020,$ is $$250\mathrm{.}00.$Revenue Budget

For January $2021$

Direct Materials Purchases Budget

For January $2021$Slaggs, Inc., manufactures and sells snowboards. Slaggs manufactures a single model, the

Pipex. In late $2020,$ Slaggs's management accountant gathered the following data to prepare

budgets for January $2021$ :

$($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 labor requirements, the direct

materials inventories, and additional inventory information.$)$

$($Click the icon to view the following selected January $2021$budgets: Revenue, Dire

material purchases, Direct manufacturing labor cost, Variable manufacturing overhead

and Ending inventory.$)$

Read the requirements.

Requirement $1.$ Prepare a cash budget for January $2021.$ Show supporting schedules for the calculation of collection of receivables and payments of accounts payable, and for disbursements fo

fixed manufacturing and operating $($nonmanufacturing$)$ overhead.

Begin by preparing the supporting schedule for the calculation of collection of receivables.

Schedule of Cash Collections

From December $2020$ sales

From January $2021$ sales

Total collections

Next prepare the supporting schedule for the payments of accounts payable.

Schedule of Cash Payments for Accounts Payable

From December $2020$ purchases

From January $2021$ purchases

Total cash payments for accounts payable

Prepare the supporting schedule for disbursements for fixed manufacturing and operating $($nonmanufacturing$)$ overhead.

Schedule of Cash Payments for Fixed Overhead

Fixed manufacturing overhead