Evergreen Company Budget
Evergreen Company manufactures a single product that is popular with outdoor recreation enthusiasts. The product is sold to retailers throughout the northeastern quadrant of the United States. The company is in the budgeting planning stages for 2021 and has provided the following information to the budget team:
Assumptions:
1	The Balance Sheet for prior year is on the next tab.
2	The budgeted unit sales per quarter for 2021 are 12,000 units, 37,000 units, 15,000 units and 25,000 respectively. The company experiences peak sales in the second and fourth quarters each year. The budgeted selling price for the year is $32 per unit. The budgeted units sales for the first quarter of 2022 is 13,000 units
3	All sales are on credit. Uncollectible accounts are negligible and can be ignored for budgeting purposes. Seventy-five percent of all credit sales are collected in the quarter of the sale and 25% are collected in the subsequent quarter.
4	Each quarters ending finished goods inventory should equal 15% of the next quarters unit sales.
5	Each unit of finished goods requires 3.5 yards of raw material that costs $3,00 per yard. Each quarters ending raw materials inventory should equal 10% of the next quarters production needs. The estimated ending raw materials inventory on December 31, 2021, is 5,000 yards.
6	Seventy percent of each quarters purchases are paid for in the quarter of purchase. The remaining 30% of each quarters purchases are paid in the following quarter.
7	Direct laborers are paid $18 an hour and each unit of finished goods requires 0.25 direct labor-hours to complete. All direct labor costs are paid in the quarter incurred
8	The budgeted variable manufacturing overhead per direct labor-hour is $3.00. The quarterly fixed manufacturing overhead is $150,000 including $20,000 of depreciation on equipment. The number of direct labor-hours is used as the allocation base for the budgeted plantwide overhead rate. All overhead costs (excluding depreciation) are paid in the quarter incurred
9	The budgeted variable selling and administrative expense is $1.25 per unit sold. The fixed selling and administrative expenses per quarter include advertising of $25,000, executive salaries of $64,000, insurance of $12,000, property tax of $8,000 and depreciation expense of $8,000. All selling and administrative expense, excluding depreciation, are paid in the quarter incurred.
10	The company plans to maintain a minimum cash balance at the end of each quarter of $30,000. Assume that any borrowings take place on the first day of the quarter. To the extent possible, the company will repay principal and interest on any borrowings on the last day of the fourth quarter. The companys lender imposes a simple interest rate of 3% per quarter on any borrowings.
11	Dividends of $15,000 will be declared and paid in each quarter.
12	The company uses LIFO (Last-In, First-Out) as their inventory flow assumption.

PLEASE HELP ME FILL IN THE 1ST QUARTER OF 2022: (highlighted in yellow)

THANK YOU :)

\begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Evergreen Company } \\ \hline \multicolumn{3}{|l|}{ Balance Sheet } \\ \hline \multicolumn{3}{|c|}{ December 31, 2020} \\ \hline \multicolumn{3}{|l|}{ Assets } \\ \hline Cash & 46,200 & \\ \hline Accounts Receivable & 260,000 & \\ \hline Raw Materials Inventory ( 4,500 yards) & 11,250 & \\ \hline Finsihed Goods Inventory (1,500 units) & 32,250 & \\ \hline Total Current Assets & & $349,700 \\ \hline \multicolumn{3}{|l|}{ Plant and Equipment: } \\ \hline Buildings and Equipment & 900,000 & \\ \hline Accumulated depreciation & (292,000) & \\ \hline Plant and Equipment, net & & 608,000 \\ \hline Total Assets & & 957,700 \\ \hline \multicolumn{3}{|l|}{ Liabilities and Stockholder's Equity } \\ \hline \multicolumn{3}{|l|}{ Current Liabilities: } \\ \hline Accounts Payable & & $158,000 \\ \hline \multicolumn{3}{|l|}{ Stockholders' Equity: } \\ \hline Common Stock & 419,800 & \\ \hline Retained Earnings & 379,900 & \\ \hline Total Stockholders' Equity & & 799,700 \\ \hline Total Liabilities and Stockholders' Equity & & 957,700 \\ \hline \end{tabular} Schedule of Fxnerted Cash Collections \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{ Evergreen Company } \\ \hline \multicolumn{6}{|c|}{ Production Budget } & \\ \hline \multicolumn{6}{|c|}{ For the Year Ended Decemer 31, 2021} & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & 1st Quarter & 2nd Quarter & 3rd Quarter & 4th Quarter & Year & 1st quarter of 2022 \\ \hline Budgeted units Sales & 12,000 & 37,000 & 15,000 & 25,000 & 89,000 & \\ \hline \begin{tabular}{l} Add desired units of ending \\ finished goods inventory \end{tabular} & 5,550 & 2,250 & 3,750 & 1,950 & 1,950 & \\ \hline Total Needs & 17,550 & 39,250 & 18,750 & 26,950 & 90,950 & \\ \hline \begin{tabular}{l} Less units of beginning \\ finished goods inventory \end{tabular} & 1,500 & 5,550 & 2,250 & 3,750 & 1,500 & \\ \hline Required production in units & 16,050 & 33,700 & 16,500 & 23,200 & 89,450 & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Evergreen Company } \\ \hline \multicolumn{3}{|l|}{ Balance Sheet } \\ \hline \multicolumn{3}{|c|}{ December 31, 2020} \\ \hline \multicolumn{3}{|l|}{ Assets } \\ \hline Cash & 46,200 & \\ \hline Accounts Receivable & 260,000 & \\ \hline Raw Materials Inventory ( 4,500 yards) & 11,250 & \\ \hline Finsihed Goods Inventory (1,500 units) & 32,250 & \\ \hline Total Current Assets & & $349,700 \\ \hline \multicolumn{3}{|l|}{ Plant and Equipment: } \\ \hline Buildings and Equipment & 900,000 & \\ \hline Accumulated depreciation & (292,000) & \\ \hline Plant and Equipment, net & & 608,000 \\ \hline Total Assets & & 957,700 \\ \hline \multicolumn{3}{|l|}{ Liabilities and Stockholder's Equity } \\ \hline \multicolumn{3}{|l|}{ Current Liabilities: } \\ \hline Accounts Payable & & $158,000 \\ \hline \multicolumn{3}{|l|}{ Stockholders' Equity: } \\ \hline Common Stock & 419,800 & \\ \hline Retained Earnings & 379,900 & \\ \hline Total Stockholders' Equity & & 799,700 \\ \hline Total Liabilities and Stockholders' Equity & & 957,700 \\ \hline \end{tabular} Schedule of Fxnerted Cash Collections \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{ Evergreen Company } \\ \hline \multicolumn{6}{|c|}{ Production Budget } & \\ \hline \multicolumn{6}{|c|}{ For the Year Ended Decemer 31, 2021} & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & 1st Quarter & 2nd Quarter & 3rd Quarter & 4th Quarter & Year & 1st quarter of 2022 \\ \hline Budgeted units Sales & 12,000 & 37,000 & 15,000 & 25,000 & 89,000 & \\ \hline \begin{tabular}{l} Add desired units of ending \\ finished goods inventory \end{tabular} & 5,550 & 2,250 & 3,750 & 1,950 & 1,950 & \\ \hline Total Needs & 17,550 & 39,250 & 18,750 & 26,950 & 90,950 & \\ \hline \begin{tabular}{l} Less units of beginning \\ finished goods inventory \end{tabular} & 1,500 & 5,550 & 2,250 & 3,750 & 1,500 & \\ \hline Required production in units & 16,050 & 33,700 & 16,500 & 23,200 & 89,450 & \\ \hline \end{tabular}