Eric and Heather agree that there also is a need for better forecasting regarding the companys cash inflows and outflows After a series of questions, you determined that (1) the company had not prepared a cash budget for several quarters and (2) is not up to date on its payables and receivables You are going to prepare a forecasted income statement and a forecasted cash budget for the fourth quarter Pertinent information needed has been collected and is outlined below PROJECTED Oct Nov Dec TOTAL QTR SALES REVENUE SALES $126,945 $177,723 $203,112 $507,780 SALES PRICE X QUANTITY $126,945 $177,723 $203,112 $507,780 Number of Bottles Sold Oct Nov Dec TOTAL QTR Number of Bottles Sold 15,356 21,499 24,570 61,425 Cost Classifications based on 4 th quarter 2020 information Product Costs Variable Costs Fixed Costs Raw Materials Cost (See corrected COGs Schedule in Part 1, Required 1)) $ Direct Labor 114,000 Overhead Rent Factory $ 36,000 Indirect Labor 16,800 Insurance Factory (55 ) 3,630 Utility Factory (75 ) 5,400 1,800 Depreciation factory building 18,200 Period Costs Advertising 64,000 Selling Administrative Wages and Salaries 18,000 67000 Utility Selling Administrative 1,680 720 Insurance Administrative 2,970 Depreciation Administrative 27,000 Total sales 4 th quarter 2020 58,500 10 oz bottles Sales price is $8 bottle 1 Determine the variable cost PER 10 oz bottle for EACH variable cost identified in the table above 2 Prepare a contribution margin income statement for the total 4 th quarter 2020 and for the projected total 1 st quarter 2021

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Eric and Heather agree that there also is a need for better forecasting regarding the companys cash inflows and outflows. After a series of questions,

Eric and Heather agree that there also is a need for better forecasting regarding the companys cash inflows and outflows. After a series of questions, you determined that (1) the company had not prepared a cash budget for several quarters and (2) is not up to date on its payables and receivables. You are going to prepare a forecasted income statement and a forecasted cash budget for the fourth quarter. Pertinent information needed has been collected and is outlined below.

PROJECTED	Oct	Nov	Dec	TOTAL QTR
SALES REVENUE
SALES	$126,945	$177,723	$203,112	$507,780

SALES: PRICE X QUANTITY	$126,945	$177,723	$203,112	$507,780

Number of Bottles Sold	Oct	Nov	Dec	TOTAL QTR

Number of Bottles Sold	15,356	21,499	24,570	61,425

Cost Classifications based on 4^th quarter 2020 information:

Product Costs	Variable Costs	Fixed Costs
Raw Materials Cost (See corrected COGs Schedule in Part 1, Required #1))	$ ?
Direct Labor	114,000
Overhead:
Rent-Factory		$ 36,000
Indirect Labor	16,800
Insurance Factory (55%)		3,630
Utility-Factory (75%)	5,400	1,800
Depreciation-factory building		18,200

Period Costs
Advertising		64,000
Selling & Administrative Wages and Salaries	18,000	67000
Utility-Selling & Administrative	1,680	720
Insurance-Administrative		2,970
Depreciation-Administrative		27,000

Total sales 4^th quarter 2020: 58,500 10-oz bottles; Sales price is $8/bottle

1. Determine the variable cost PER 10-oz bottle for EACH variable cost identified in the table above. 2. Prepare a contribution margin income statement for the total 4^th quarter 2020 and for the projected total 1^st quarter 2021.