Data table

Sleds, Inc., manufactures and sells snowboards. Sleds manufactures a single model, the Pipex. In late 2020, Sleds's management accountant gathered the following data to prepare budgets for January 2021: Budgeted balances at January 31, 2021 are as follows: Cash ? Accounts receivable ? ? $ 852,000 Inventory Property, plant, and equipment (net) Accounts payable Long-term liabilities Stockholders' equity ? 180,000 ? Selected budgeted information for December 2020 follows: Cash balance, December 31, 2020 $ Budgeted sales 12,000 1,750,000 Budgeted materials purchases 760,000 Customer invoices are payable within 30 days. From past experience, Sleds's accountant projects 30% of invoices will be collected in the month invoiced, and 70% 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 $11,000 of depreciation costs and fixed operating (nonmanufacturing) overhead costs include $9,000 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, Sleds's board of directors voted to pay a $195,000 dividend to stockholders on January 31, 2021. Variable manufacturing overhead is $8 per direct manufacturing labor-hour. There are also $20,800 in fixed manufacturing overhead costs budgeted for January 2021. Sleds 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. Materials and Labor Requirements Direct materials Wood 9 board feet (b.f.) per snowboard 7 yards per snowboard Fiberglass Direct manufacturing labor 8 hours per snowboard Sleds' 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. Direct Materials Inventories Beginning Inventory Ending Inventory January January 1, 2021 31, 2021 2,020 b.f. 1,520 b.f. 1,020 yards 2,020 yards Wood Fiberglass Other data include: 2020 Unit Price 2021 Unit Price Wood $ $ 30.00 per b.f. 6.00 per yard 32.00 per b.f. 7.00 per yard Fiberglass $ $ Direct manufacturing labor $ 26.00 per hour $ 27.00 per hour The inventoriable unit cost for ending finished-goods inventory on December 31, 2020, is $250.00. Assume Sleds uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process in your calculations. Revenue Budget For January 2021 Units Selling price Total revenues Snowboards 1,300 $ 650 $ 845,000 Direct Materials Purchases Budget For January 2021 Materials Wood Fiberglass Total Physical Units Budget To be used in production 9,100 yards 11,700 b.f. 1,520 b.f. 2,020 yards Add target ending inventory Total requirement 11,120 yards Deduct beginning inventory 13,220 b.f. 2,020 b.f. 11,200 b.f. 1,020 yards Purchases to be made 10,100 yards Cost Budget Cost Budget 358,400 $ 70,700 $ 429,100 Purchases Direct Manufacturing Labor Costs Budget For January 2021 Output Units DMLH Total Hourly Produced Hours Wage Rate 1,300 8 10,400 $ 27 per Unit Total Snowboards $ 280,800 Total labor hours Variable manufacturing overhead rate = Variable manufacturing overhead costs 10,400 8 = 83,200 Ending Inventories Budget For January 2021 Quantity Cost per unit Total Direct materials Wood 1,520 $ 32 $ 48,640 Fiberglass 2,020 7 14,140 Finished goods Snowboard 600 $ 633 379,800 $ 442,580 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. Sleds is interested in maintaining a minimum cash balance of $135,000 at the end of each month. Will Sleds be in a position to pay the $195,000 dividend on January 31? Why do Sleds's managers prepare a cash budget in addition to the revenue, expenses, and operating income budget? 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. 3. 4