Excel Assignment # 5 Spring Northern Illinois Manufacturing is preparing its budget for the coming year. The first step is to plan for the first quarter of that coming year. Northern Illinois gathered the following information from its managers. Sales: Unit sates for November, prior year 112,500 Unit sales for December, prior year 102,200 Expected unit sales for January 113,400 Expected unit sales for February 112,500 Expected unit sales for March 116,700 125,000 137,500 $13 Expected unit sales for April Expected unit sales for May Unit selling price 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 is collected in the month of sale and 15% of the Accounts Receivable is collected in the month after sale. Accounts receivable on December 31 totaled 183,750 and this total is expected to be collected in January. 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 and the total will be paid in full in January. Raw materials in inventory on December 31 totaled 10,355 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 Indirect labor 30 cents per labor hour 50 cents per labor hour 45 cents per labor hour Utilities Maintenance Salaries Depreciation Property taxes Insurance Janitorial 30 cents per labor hour $12,000 per month $16,800 per month $2,700 per month $1,300 per month $1,400 per month