ed SB Problem PB8-1 to PB8-3 [The following information applies to the questions displayed below.] Beach Wind Company manufactures kites that sell for $20 each. Each kite requires 2 yards of lightweight canvas, which costs $0.60 per yard. Each kite takes approximately 30 minutes to build, and the labor rate averages $8 per hour. Beach Wind has the following inventory policies: Ending finished goods inventory should be 30 percent of next month's sales. Ending direct materials inventory should be 20 percent of next month's production. Expected kite sales for the upcoming months are: March April 850 700 May 650 June 720 July August 830 760 Variable manufacturing overhead is incurred at a rate of $0.40 per unit produced. Annual fixed manufacturing overhead is estimated to be $9,000 ($750 per month) for expected production of 9,000 units for the year. Selling and administrative expenses are estimated at $820 per month plus $0.75 per unit sold. Beach Wind Company had $12,200 cash on hand on April 1. Of its sales, 60 percent is cash. Of the credit sales, 50 percent is collected during the month of the sale, and 50 percent is collected during the month following the sale. Of direct materials purchases, 60 percent is paid for during the month purchased, and 40 percent is paid in the following month. Direct materials purchases for March totaled $800. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $280 in depreciation. Beach Wind plans to spend $15,000 on equipment during April. during April. ded PB8-3 (Static) Preparing Cash Budget [LO 8-4] Required: 1. Compute the budgeted cash receipts for Beach Wind. 2. Compute the budgeted cash payments for Beach Wind. 3. Prepare the cash budget for Beach Wind. Assume the company can borrow in increments of $1,000 to maintain a $10,000 minimum cash balance. No interest is charged if the loan is paid off by the end of the next quarter. Complete this question by entering your answers in the tabs below. nces Required 1 Required 2 Required 3 Compute the budgeted cash receipts for Beach Wind. Note: Do not round your intermediate calculations. Budgeted Cash Receipts April May June 2nd Quarter Total 14,000 13,200 $ 14,120 $ 41,920 Required Required 2 > B8-3 (Static) Preparing Cash Budget [LO 8-4] Required: 1. Compute the budgeted cash receipts for Beach Wind. 2. Compute the budgeted cash payments for Beach Wind. 3. Prepare the cash budget for Beach Wind. Assume the company can borrow in increments of $1,000 to maintain a $10,000 minimum cash balance. No interest is charged if the loan is paid off by the end of the next quarter. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the budgeted cash payments for Beach Wind. Note: Do not round your intermediate calculations. Round final answers to 2 decimal places. Budgeted Cash Payments April May June 2nd Quarter Total 685.00 $ 671.00 753.00 2,109.00 * indicate sponse was expected in a cell or a formule-based calculation is incorrect; no points deducted 3 Complete this question by entering your answers in the tabs below. 5 Required 1 Required 2 Required 3 warded pred Prepare the cash budget for Beach Wind. Assume the company can borrow in increments of $1,000 to maintain a $10,000 minim balance. No interest is charged if the loan is paid off by the end of the next quarter. Note: Leave no cell blank enter "0" wherever required. Round your answers to 2 decimal places. Book April May June 2nd Quarter Total ferences Beginning Cash Balance $ Plus: Budgeted Cash Receipts 12,200.00 $ 14,600.00 10,504.82 S 13,200.00 19,460.00 14,120.00 42,164.82 41,920.00. Less: Budgeted Cash Payments 19,295.18 4,244.79 4,663.37 x 28,203.34 Preliminary Cash Balance $ 7,504.82 $ 19,460.00 $ 28,916.66 S 55,881.48 x Cash Borrowed/Repaid 3,000.00 x 3,000.00 Ending Cash Balance $ 10,504.82 $ 19,460.00 $ 28,916.66 171,169.64 Red test indicates no response was expected in a cell or a forme-based calculation is incorrect points