emical compound bled to of 2019. The bed hodet will be CASE 9-29 Master Budget for a Manufacturer (LO3, L04 Garneau Manufacturing Ltd, produces and distributes a special type of she Compound WX. The information below about Garneau's operations has been preparation. The company is preparing is master toget for the first quarter of 20 detail each month's activity and the activity for the quarter in total. The master the following information Selling price is $60 per unit in 2018 and will not change for the first two and estimated sales are as follows: quarters of 2019. Estimated 2019 Actual 2018 November: 10.000 units December: 12.000 units January: 11,000 units February: 10,000 units March: 13,000 units April: 11,000 units May: 11,000 units Addi b. c. Req The company produces enough units each month to meet that month's sales plus a desired tory level cqual to 20% of next month's estimated sales. Finished Goods inventory at the 2018 consisted of 2.200 units at a variable cost of $33 cach. The company purchases enough raw materials each month for the current month's produkti quirement and 25% of next month's production requirements. Each unit of product requires SE grams of raw material at $0.60 per kilogram. There were 13.500 kilograms of raw material inventory at the end of 2018 Garneau pays 40% of raw material purchases in the month of purchase and the remaining 60% in the following month. Each unit of finished product requires 1.25 labour-hours. The average wage rate is $ 16 per hout Variable manufacturing overhead is 50% of the direct labour cost. Credit sales are 60% of total sales. The company collects 50% of the credit sales during the first month following the month of sale and 50% during the second mooth. Fixed overhead costs (per month) are as follows: d. f. 8. Factory supervisor's salary .............. $75,000 Factory insurance Factory rent. 8.000 Depreciation of factory equipment ........ 1.200 1,400 9-1 Cas! A Total fixed selling and administrative expenses are as follows: Tora - Depreciation Insurance Salaries S 300 9.000 Bud Add Tota 4.000 14.550 Rea 9-3 Pay - Variable selling and administrative care se consist of $4 for shipping commissions The company will acquire assets for use in the sales office at a cost of $300,000 at the end of January 2019. The monthly depreciation expense on the addition pping and 10% of sales for Paya , be $6,000 00,000, which will be utional capital Chapter 9 Budgeting oce sheet as of December 31, 2018, is as follows: The balance sheets $ 80.000 612,000 80,700 Assets Cash.... Accounts receivable......... Inventory: Raw materials $ 8,100 Finished goods...... 72.600 Plant and equipment..... 1.000.000 Less accumulated depreciation ......... (100,000) Total assets............. Liabilities and Equity Accounts payable...... 6% long-term notes payable......... Common shares ...... Retained earnings....... Total liabilities and shareholders' equity.. 900.000 $1,672,700 $24,000 900.000 735,000 13.700 $1,672,700 Additional information is as follows: All cash payments except purchases of raw materials are made monthly as incurred All borrowings occur at the beginning of each month, and all repayments occur at the end of the moothBorrowines and repayments may occur in any amount interest on borrowed funds is paid at the end of each month at a rate of 0.5% per month minimum cash balance of $30,000 is required at the end of each month. Required: repare the following budgets for each of the first three months of 2019. 4. Sales budget. b. Production budget. c. Raw materials purchases budget. Direct labour and manufacturing overhead budget c Selling and administrative budget. Cash budget. Prepare a budgeted and a budgeted balance sheet as at March a budgeted contribution format income statement for each of the first three months of 2019 balance sheet as at March 31, 2019. emical compound bled to of 2019. The bed hodet will be CASE 9-29 Master Budget for a Manufacturer (LO3, L04 Garneau Manufacturing Ltd, produces and distributes a special type of she Compound WX. The information below about Garneau's operations has been preparation. The company is preparing is master toget for the first quarter of 20 detail each month's activity and the activity for the quarter in total. The master the following information Selling price is $60 per unit in 2018 and will not change for the first two and estimated sales are as follows: quarters of 2019. Estimated 2019 Actual 2018 November: 10.000 units December: 12.000 units January: 11,000 units February: 10,000 units March: 13,000 units April: 11,000 units May: 11,000 units Addi b. c. Req The company produces enough units each month to meet that month's sales plus a desired tory level cqual to 20% of next month's estimated sales. Finished Goods inventory at the 2018 consisted of 2.200 units at a variable cost of $33 cach. The company purchases enough raw materials each month for the current month's produkti quirement and 25% of next month's production requirements. Each unit of product requires SE grams of raw material at $0.60 per kilogram. There were 13.500 kilograms of raw material inventory at the end of 2018 Garneau pays 40% of raw material purchases in the month of purchase and the remaining 60% in the following month. Each unit of finished product requires 1.25 labour-hours. The average wage rate is $ 16 per hout Variable manufacturing overhead is 50% of the direct labour cost. Credit sales are 60% of total sales. The company collects 50% of the credit sales during the first month following the month of sale and 50% during the second mooth. Fixed overhead costs (per month) are as follows: d. f. 8. Factory supervisor's salary .............. $75,000 Factory insurance Factory rent. 8.000 Depreciation of factory equipment ........ 1.200 1,400 9-1 Cas! A Total fixed selling and administrative expenses are as follows: Tora - Depreciation Insurance Salaries S 300 9.000 Bud Add Tota 4.000 14.550 Rea 9-3 Pay - Variable selling and administrative care se consist of $4 for shipping commissions The company will acquire assets for use in the sales office at a cost of $300,000 at the end of January 2019. The monthly depreciation expense on the addition pping and 10% of sales for Paya , be $6,000 00,000, which will be utional capital Chapter 9 Budgeting oce sheet as of December 31, 2018, is as follows: The balance sheets $ 80.000 612,000 80,700 Assets Cash.... Accounts receivable......... Inventory: Raw materials $ 8,100 Finished goods...... 72.600 Plant and equipment..... 1.000.000 Less accumulated depreciation ......... (100,000) Total assets............. Liabilities and Equity Accounts payable...... 6% long-term notes payable......... Common shares ...... Retained earnings....... Total liabilities and shareholders' equity.. 900.000 $1,672,700 $24,000 900.000 735,000 13.700 $1,672,700 Additional information is as follows: All cash payments except purchases of raw materials are made monthly as incurred All borrowings occur at the beginning of each month, and all repayments occur at the end of the moothBorrowines and repayments may occur in any amount interest on borrowed funds is paid at the end of each month at a rate of 0.5% per month minimum cash balance of $30,000 is required at the end of each month. Required: repare the following budgets for each of the first three months of 2019. 4. Sales budget. b. Production budget. c. Raw materials purchases budget. Direct labour and manufacturing overhead budget c Selling and administrative budget. Cash budget. Prepare a budgeted and a budgeted balance sheet as at March a budgeted contribution format income statement for each of the first three months of 2019 balance sheet as at March 31, 2019