Data table Budgeted balances at January 31, 2021 are as follows: Cash Accounts receivable Inventory 222 Property, plant, and equipment (net) $ 851,000 Accounts payable ? Long-term liabilities 179,000 ? Stockholders' equity Selected budgeted information for December 2020 follows: Cash balance, December 31, 2020 Budgeted sales Budgeted materials purchases $ 11,000 1,700,000 660,000 Customer invoices are payable within 30 days. From past experience, Snowmass'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. Data table Long-term liabilities Stockholders' equity Selected budgeted information for December 2020 follows: Cash balance, December 31, 2020 Budgeted sales Budgeted materials purchases 179,000 ? $ 11,000 1,700,000 660,000 Customer invoices are payable within 30 days. From past experience, Snowmass'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 operating (nonmanufacturing) overhead costs include $8,000 of depreciation costs. Direct manufacturing labor and the remaining manufacturing and operating (nonmanufacturing) overhead costs are paid monthly. All property, plant, and equipment acquired during January 2021 were purchased on credit and did not entail any outflow of cash. There were no borrowings or repayments with respect to long-term liabilities in January 2021. On December 15, 2020, Snowmass's board of directors voted to pay a $130,000 dividend to stockholders on January 31, 2021. More info Variable manufacturing overhead is $10 per direct manufacturing labor-hour. There are also $24,000 in fixed manufacturing overhead costs budgeted for January 2021. Snowmass 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 $260 per sales visit. The marketing plan calls for 35 sales visits during January 2021. Finally, there are $32,000 in fixed operating (nonmanufacturing) costs budgeted for January 2021. Data table Materials and Labor Requirements Direct materials Wood Fiberglass 8 board feet (b.f.) per snowboard Direct manufacturing labor 6 yards per snowboard 6 hours per snowboard Snowmass' CEO expects to sell 1,800 snowboards during January 2021 at an estimated retail price of $550 per board. Further, the CEO expects 2021 beginning inventory of 500 snowboards and would like to end January 2021 with 700 snowboards in stock. Direct Materials Inventories Beginning Inventory Wood Fiberglass January 1, 2021 2,010 b.f. 1,010 yards Other data include: Wood Ending Inventory January 31, 2021 1,510 b.f. 2,500 yards 2020 Unit Price 2021 Unit Price $ 29.00 per b.f. $ 31.00 per b.f. Data table Direct manufacturing labor 6 hours per snowboard Snowmass' CEO expects to sell 1,800 snowboards during January 2021 at an estimated retail price of $550 per board. Further, the CEO expects 2021 beginning inventory of 500 snowboards and would like to end January 2021 with 700 snowboards in stock. Wood Direct Materials Inventories Beginning Inventory January 1, 2021 2,010 b.f. Fiberglass 1,010 yards Other data include: Ending Inventory January 31, 2021 1,510 b.f. 2,500 yards 2020 Unit Price 2021 Unit Price Wood 29.00 per b.f. $ 31.00 per b.f. Fiberglass $ 5.00 per yard $ 10.00 per yard Direct manufacturing labor $ 25.00 per hour $ 26.00 per hour The inventoriable unit cost for ending finished-goods inventory on December 31, 2020, is $240.00. Assume Snowmass uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process in your calculations. Reference Revenue Budget For January 2021 Units Selling price Total revenues Snowboards 1,800 $ 550 $ 990,000 Direct Materials Purchases Budget For January 2021 Materials Wood Fiberglass Total Physical Units Budget To be used in production 16,000 b.f. 12,000 yards Add target ending inventory 1,510 b.f. 2,500 yards Total requirement 17,510 b.f. 14,500 yards Deduct beginning inventory 2,010 1,010 b.f. yards 15,500 13,490 Purchases to be made b.f. yards Cost Budget Reference Purchases to be made Cost Budget Purchases 15,500 13,490 b.f. yards $ 480,500 $ 134,900 $ 615,400 Direct Manufacturing Labor Costs Budget For January 2021 Output Units DMLH Total Hourly Produced per Unit Hours Wage Rate Total Snowboards 2,000 6 12,000 $ 26 $ 312,000 Total labor hours x Variable manufacturing overhead rate = Variable manufacturing overhead costs 12,000 x 10 120,000 Ending Inventories Budget For January 2021 Quantity Cost per unit Total Direct materials Reference Snowboards Output Units DMLH Total Produced per Unit Hours Hourly Wage Rate Total 2,000 6 12,000 $ 26 $ 312,000 Total labor hours x Variable manufacturing overhead rate = Variable manufacturing overhead costs 12,000 10 = $ Ending Inventories Budget For January 2021 Quantity Cost per unit Total Direct materials Wood Fiberglass 1,510 2,500 120,000 31 46,810 10 10 25,000 Finished goods Snowboard 700 $ 375,200 536 $ 447,010 Total ending inventory Requirements 1. 2. 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 for fixed manufacturing and operating (nonmanufacturing) overhead. Snowmass is interested in maintaining a minimum cash balance of $135,000 at the end of each month. Will Snowmass be in a position to pay the $130,000 dividend on January 31? 3. Why do Snowmass's managers prepare a cash budget in addition to the revenue, expenses, and operating income budget? 4. Prepare a budgeted balance sheet for January 31, 2021 by calculating the January 31, 2021 balances in (a) cash (b) accounts receivable (c) inventory (d) accounts payable and (e) plugging in the balance for stockholders' equity. Strowmass Inc., manufactures and sells snowboards. Snowmass manufactures a single model, the Pipex. In late 2020, Snowmass'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, Direct 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 for 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 Strowmask, Inc., manufactures and sells snowboards. Snowmass manufactures a single model, the Pipex. In late 2020, Snowmass'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, Direct material purchases, Direct manufacturing labor cost, Variable manufacturing overhead and Ending inventory.) Read the requirements 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 Fixed operating (nonmanufacturing) overhead Total cash payments for fixed overhead Prepare a cash budget for January 2021. (If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.) Strowmass Inc., manufactures and sells snowboards. Snowmass manufactures a single model, the Pipex. In late 2020, Snowmass'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, Direct material purchases, Direct manufacturing labor cost, Variable manufacturing overhead and Ending inventory.) Read the requirements Prepare a cash budget for January 2021. (If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.) Snowmass, Inc. Cash Budget For Month Ending January 31, 2021 Cash balance, beginning Add receipts Total cash available for needs Deduct disbursements Strowerkisk Inc., manufactures and sells snowboards. Snowmass manufactures a single model, the Pipex. In late 2020, Snowmass'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, Direct material purchases, Direct manufacturing labor cost, Variable manufacturing overhead and Ending inventory.) Read the requirements. Deduct disbursements Total disbursements Cash balance, ending Requirement 2. Snowmass is interested in maintaining a minimum cash balance of $135,000 at the end of each month. Strowmass Inc., manufactures and sells snowboards. Snowmass manufactures a single model, the Pipex. In late 2020, Snowmass'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, Direct material purchases, Direct manufacturing labor cost, Variable manufacturing overhead and Ending inventory.) Read the requirements. Requirement 2. Snowmass is interested in maintaining a minimum cash balance of $135,000 at the end of each month. Will Snowmass be in a position to pay the $130,000 dividend on January 31? be in a position to pay the $130,000 dividend on January 31. Requirement 3. Why do Snowmass's managers prepare a cash budget in addition to the revenue, expenses, and operating income budget? Snowmass's managers prepare a cash budget in addition to the operating income budget to profitable on an accrual accounting basis, need to that adequate cash will be available. If Snowmass is Snowmass's managers may then Building a profitable operating plan Deguirament A Dranare a hudnated halance choot for lanuan 31 2021 hy calculatinn the lanuary 21 2021 halancae Strowmass Inc., manufactures and sells snowboards. Snowmass manufactures a single model, the Pipex. In late 2020, Snowmass'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, Direct material purchases, Direct manufacturing labor cost, Variable manufacturing overhead and Ending inventory.) Read the requirements. Requirement 4. Prepare a budgeted balance sheet for January 31, 2021 by calculating the January 31, 2021 balances in (a) cash (b) accounts receivable (c) inventory (d) accounts payable and (e) plugging in the balance for stockholders' equity. Assets: Total Snowmass, Inc. Budgeted Balance Sheet January 31, 2021 Strowmass Inc., manufactures and sells snowboards. Snowmass manufactures a single model, the Pipex. In late 2020, Snowmass'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, Direct material purchases, Direct manufacturing labor cost, Variable manufacturing overhead and Ending inventory.) Read the requirements. Assets: Total Liabilities and Stockholders' Equity: Total