Deacon Corp. is a manufacturing company that is preparing its master budget for the threemonths period ended March 31, 2021 (January-March 2021; First Quarter). The following information is available:

a) Unit sales by quarter: Fourth Quarter 2020 (actual): 55,000

First Quarter 2021 (expected): 65,000

Second Quarter 2021 (expected): 70,000

Third Quarter 2021 (expected): 75,000

Fourth Quarter 2021 (expected): 90,000

b) The selling price is $400 per unit. All sales are credit sales. Deacon collects 85% of all sales within the quarter in which they are realized; the other 15% is collected in the following quarter. There are no bad debts.

c) There is no beginning inventory of finished goods. Deacon is planning the following ending finished goods inventories for each quarter in 2021:

First-quarter: 13,000 units

Second quarter: 15,000 units

Third quarter: 20,000 units

Fourth quarter: 10,000 units

d) Each unit produced uses 5 hours of direct labor and three pounds of direct materials. Workers are paid $10 per hour, and one pound of direct materials costs $80.

e) There are 65,700 pound of direct materials in beginning inventory as of January 1,2021. At the end of each quarter, Deacon plans to have 30% of the direct materials needed for next quarter's unit sales. Deacon will end the year with the same amount of direct materials found in this year's beginning inventory.

f) Deacon buys direct materials on account. Half of the purchases are paid for in the quarter of acquisition, and the remaining half are paid for in the following quarter. Wages and salaries are paid at the end of each month.

g) Actual fixed overhead totals $1 million each quarter. Of this total, $350,000 represents depreciation. All other fixed expenses are paid for in cash in the quarter incurred.

h) Variable overhead is $6 per direct labor hour. All variable overhead expenses are paid for in the quarter incurred

.i) OH is applied to production based on units produced. Total estimated OH per year is $13,300,000. Total estimated units produced in the year 310,000.

j) Fixed selling and administrative expenses total $250,000 per quarter, including $50,000 depreciation.

k) Variable selling and administrative expenses are budgeted at $10 per unit sold. All selling and administrative expenses are paid for in the quarter incurred.

l) The balance sheet as of December 31, 2020, is as follows

ASSETS

Cash $ 250,000

Accounts Receivable $ 3,300,000

Direct Material Inventory $ 5,256,000

PPE, net $ 33,500,000

Total Assets $42,306,000

LIABILITIES

Accounts Payable $ 7,248,000

EQUITY

Common Shares $ 27,000,000

Retained Earnings $ 8,058,000

Total Liabilities and Equity $42,306,00

Deacon will pay quarterly dividends of $300,000.

Required: Show all your calculations to receive full points Prepare for the first Quarter of 2021 only (Q1) the following:

1. Sales budget

2. Schedule of cash collection

3. Production budget

4. DM purchase budget

5. DL budget

6. OH budget

7. Selling and Administrative Expense Budget

8. Cash budget

9. Income statement no beginning nor ending WIP inventories; Actual OH equals Estimated OH - so, no over(under)-applied OH: to find COGS use the Inventory Equation: F/Gbeg+ COGM - F/G end=COGS 10. Balance Sheet