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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
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:
Beginningofyear balances
Cash $
Accounts receivable previous quarters sales $
Raw materials kits
Finished goods kits
Accounts payable materials $
Borrowed funds $
Desired endofyear inventory balances
Raw materials kits
Finished goods kits
Desired endofquarter balances
Cash $
Raw materials as a portion of the following quarters production
Finished goods as a portion of the following quarters sales
Manufacturing costs
Standard cost per unit Units Unit price Total
Direct labor hours at rate hour $ $
Raw materials kit $
Variable overheadlabor hour hour $
Total standard variable cost $
Fixed cost per quarter
Cash $
Depreciation
Total $
Selling and administrative costs $
Variable cost per unit
Fixed costs per quarter
Cash $
Depreciation
Total $
Interest rate per quarter
Portion of sales collected
Quarter of sale
Subsequent quarter
Bad debts
Portion of purchases paid
Quarter of purchase
Subsequent quarter
Unit selling price $
Sales forecast
Quarter First Second Third Fourth
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.
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.
Part A
Part B
Part C
Part D
Part E
Part F
Part G
d A manufacturing cost budget for each quarter and the year.
Electric Monkey Computer Accessories
Manufacturing Cost Budget
For the Year Ending December
First Second Third Fourth Total
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
Total manufacturing costs
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