Excel Assignment #5 - Master Budgeting Fall Semester Northern Illinois Manufacturing is preparing its budget for the coming year. The first step is to plan for the first quarter of the coming year. Northern Illinois gathered the following information from the managers. Sales: Actual unit sates for November 112.500 Actual unit sales for December 102,100 Expected unit sales for January 113,000 Expected unil sales for February 112,500 Expected usit sales for March 116,000 Expected unit sales for April 125,000 Expected unit sales for May 137.500 Unit selling price S12 Northern Illinois wants to keep 10% of the next month's unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31 totaled 183,780. Direct Materials The product uses metal, plastic, and rubber. In total, each unit requires 2 pounds of material at an average cost of 0.75 per pound. Northern Illinois likes to keep 5% of the materials needed for the next month in its ending inventory. Payment for materials is made within 15 days. 50% is paid in the month of purchase and 50% is paid in the month after purchase. Accounts Payable on December 31 totaled $120,595, Raw materials on December 31 totaled 11,295 pounds. Direct Labor: Labor requires 12 minutes per unit for completion and is paid at a rate of $18 per hour. Manufacturing Overhead: Indirect materials 30 cents per labor hour Indirect labor 50 cents per labor hour Utilities 45 cents per labor hour Maintenance 25 cents per laber hour Salaries S42,000 per month Depreciation $16.800 per month Property takes $2,675 per month Indirect materials 30 cents per labor hour Indirect laber 50 cents per labor hour Utilities 45 cents per labore Maintenance 25 cents per labor how Salaries S42.000 per month Depreciation 516,800 per month Property taxes 52.675 per month Insurance 51.200 per month Janitorial $1.500 per month Selling and Administrative Expenses: Variable selling and administrative cost per unit is $1.60. Advertising $15,000 per month Insurance $1,000 per month Salaries 572,000 per month Depreciation $2.500 per month Other fixed costs $3,000 per month Other Information: The cash balance on December 31 totaled $100,500, but management has decided that it wants to maintain a cash balance of at least 5800,000 beginning January 31. Dividends are paid each month at the rate of $2.50 per share for 5,000 shares outstanding. The company has an open line of credit with the First National Bank. The terms of the agreement requires borrowing to be in $1,000 increments at 8% interest. Northern Illinois borrows on the first day of the month and repays on the last day of the month. Reserve repayment, if required, until Northern Illinois can pay the entire amount. A $500,000 equipment purchase is planned for February Instructions (Do all parts: Note: All budgets and schedules should be prepared by month for the first quarter (January, February, and March). Round all figures to the nearest dollar. For labor hours round to whole hours. a. Prepare a sales budget. b. Prepare a production budget. c. Prepare a direct materials budget. d. Prepare a direct labor budget. e. Prepare a manufacturing overhead budget. f. Prepare a selling and administrative budget. g. Prepare a schedule for expected cash collections from customers. h. Prepare a schedule for expected payments for materials purchases. i. Prepare a cash budget