December: 1200
January: 1550
February: 1350
March: 800
April: 400
BACKGROUND INFORMATION s North Pole Co. manufactures cross country skis for the outdoor enthusiasts at a price of $120 per pair Sales peak during the vinter months and for this year are estimated as follows: Forecasted Unit Sales: December 10 Januar 11 Februar 2 March 13 April 800 400 6 Cash Collections: 17 From past experience, North Pole Co. has learned that 25% of their sales are collected in the month of . 18 and 75% of the remaining sales are collected in the month following the sale 21 As of December 31. 2013. the ending inventory for direct materials as 10,000 grams of fibreglass and a 22 end of each month, North Pole Co. requies an ending inventory of 5% of next month's production needs 23 March 31. 2014. the desired ending inventory for direct materials is 7,000 grams of material. 24 For completed products, an ending inventory of 10% of next month's sales is required by North Pole Co 25 and the ending finished products inventory on December 31. 2013 as 155 units Other Information: For materials used in the production of skis, each pair of skis requires 300g of fibreglass at a price of 29 $.15 per gram. when the materials are purchased, 60% are paid in the month of the purchase, while the remaining 40% are paid in the following month. As of December 31, 2013, the account payable balance 31 is $11,000 To produce each pair of skis, it requires 0.6 hours of man time vith a age rate of $11. REQUIRED Background Parts 1 &2 Parts 3 &4 Parts 5 & 6 Grade 1 PART 3: PRODUCTION BUDGET NORTH POLE CO Production Budget For the quarter ended March 31, 2014 January February March QUARTER TOTAL 7 Budgeted sales 8 Add: desired e 9 Total needed 10 Less: beginning invent 11 Required production 12 Additional Instructions: click in cell A7-make your selection by clicking on the arrow to 13 get a drop list of Production budget items 14 40 3,740 17 PART 4: DIRECT MATERIALS BUDGET NORTH POLE CO Direct Materials For the quarter ended March 31, 2014 21 January February March QUARTER TOTAL 23 Production 24 Materials per unit 25 Production needs 26 Add: desired ending inventory 27 Total needed 28 Less: beginning inventor 29 Materials to be purchased NORTH POLE CO Cash Disbursements Budget For the quarter ended March 31, 2014 January February March UARTER TOTAL 7Accounts Payable 9 January Production 12 February Production 14 15 March Production 17 Total Cash Disbursements S nthe ualion shasels abose niare the homena eowuse 19 for the cash disburse 21 23 PART 6: DIRECT LABOUR BUDGET 24 NORTH POLE CO Direct Labour Budget For the quarter ended March 31, 2014 27 January February March QUARTER TOTAL 29 Production 30 Direct labour hours 31 Labour hours required 32 Hage rate 33 Total direct labour cost Background Parts 1 &2Parts 3 &4 Parts 5 &6 Grade Ready
