Electric Monkey Computer Accessories assembles a computer networking device from kits of imported components. You have been asked to develop a quarterly and annual operating budget and pro forma income statements for next year. You have obtained the following information Beginning-of-year balances Cash $67,500 Accounts receivable (previous quarter's sales) $220.500 Raw materials 855 kits Finished goods 1,350 kits $112.500 Accounts payable (materials) Borrowed funds Desired end-of-year inventory balances Raw materials Finished goods Desired end-of-quarter balances Cash Raw materials as a portion of the following quarter's production Finished goods as a portion of the following quarter's sales Manufacturing costs Standard cost per unit Direct labor hours at rate Raw materials Variable overhead/labor hour Total standard variable cost Faxed cost per quarter Cash Depreciation Total $27,000 900 kits 1,440 kits $27,000 0.20 0.30 Units Unit price Total 0.50 hour $30.00 $15.00 1 kit 0.50 hour $75.00 75.00 $5.00 250 $92.50 $99,000 13,500 $112,500 Selling and administrative costs Variable cost per unit Fixed costs per quarter Cash $8.00 $135,000) Unit 13-Chp 16 Assigned Problems Depreciation 6,750 Total $141,750 Interest rate per quarter 0.015 Portion of sales collected Quarter of sale Subsequent quarter Bad debts Portion of purchases paid Quarter of purthase Subsequent quarter 070 0.29 0.01 0.60 0.40 1225 Unit selling price Sales forecast Quarter Unit sales Additional information. All cash payments except purchases are made quarterly as incurred All borrowings occur at the start of a quarter. All repayments on borrowings occur at the end of a quarter. First Second Third Fourth 3,900 A140 4050 4320 At the time the principal is repaid, interest is paid on the portion of principal that is repaid. Borrowings and repayments may be made in any amount Required Note: Do not use negative signs with any of your answers in the requirements that follow. a. A sales budget for each quarter and the year. Electric Monkey Computer Accessories Sales Budget For the Year Ending December 31 First Unit sales Sales revenue $ $ Check Second Third Fourth Total b. A production budget for each quarter and the year. Electric Monkey Computer Accessories Production Budget For the Year Ending December 31 Unit sales Desired ending inventory Finished goods requirements Less beg inv. Production requirements Check First Second Third Fourth Total c. A purchases budget for each quarter and the year. Electric Money Computer Accessories Purchases Budget For the Year Ending December 31 Purchases in units Required for production Desired ending inventory Total requirements Less beginning inventory Purchase requirements (units) Purchase requirements (dollars) $ Check First $ Second Third Fourth Total d. A manufacturing cost budget for each quarter and the year. Electric Monkey Computer Accessories Manufacturing Cost Budget For the Year Ending December 31 Production requirements: Manufacturing resource requirements: Direct materials Direct labor hours Variable manufacturing costs: Direct materials Direct labor Manufacturing overhead Total variable costs Fixed manufacturing costs First Second Third Fourth Total $ $ $ $ $ Total manufacturing costs $ Check $ e. A selling and administrative expense budget for each quarter and the year. Electric Monkey Computer Accessories Selling and Administrative Expense Budget For the Year Ending December 31 First Second Third Fourth Unit sales Sales Revenue $ $ $ $ $ Variable costs: Bad debts $ $ $ $ Other Total Fixed costs Total selling and admin. $ Check $ Total f. A cash budget for each quarter and the year. Electric Monkey Computer Accessories Cash Budget For the Year Ending December 31 Beginning balance Operating cash receipts Current quarter's sales Previous quarter's sales Total operating receipts Total available for operations Cash disbursements: Purchases: Current quarter Previous quarter Direct labor Var. manufacturing overhead Axed manufacturing overhead Variable selling and admin. Fixed selling and admin Interest Total disbursements Available before borrowing or repayment Borrowing Repayment Ending balance First Second Third Fourth Total g. A pro forma contribution income statement for each quarter and the year. Electric Monkey Computer Accessories Pro Forma Contribution Income Statement For the Year Ending December 31 Sales revenue Less variable costs: Cost of goods sold Selling and admin. Total variable costs Contribution margin Less fixed costs: Manufacturing overhead Selling and admin. Total fixed costs Operating income Less interest expense Net income (loss) Check First Second Third Fourth Total $ $ S $ $ $ $ $ $