Fall Creation is preparing budgets for the second quarter ending June 30, 2021.
SALES BUDGET
Budgeted sales of the companys only product for the next five months are:
April ......... 26,000 units
May .......... 39,400 units
June .......... 37,000 units
July ........... 32,000 units
August ...... 20,500 units
The selling price is $11.15 per unit.
Production is:
Percentage of next months production in ending inventory. 5120
Expect March 31 balance in units. 4100 units
I need all budgets for these pictures provided, Im a little confused.
SCHEDULE OF EXPECTED CASH DISBURSEMENTS FOR MATERIAL Additional data: Sixty percent of a month's purchases are paid for in the month of purchase; 40% is paid for in the following month. No discounts are given for early payment. The accounts payable balance on March 31 was $21,040 CASH BUDGET Additional data: 1. A line of credit is available at a local bank that allows the company to borrow up to $75,000 in one-thousand-dollar increments. a. All borrowing occurs at the beginning of the month, and all repayments occur at the end of the month. b. The company does not have to make any payments until the end of the quarter. The interest rate is 10% annually. 2. Fall Creations Inc. desires a cash balance of at least $25,000 at the end of each month. The cash balance at the beginning of April was $13,600. 3. Cash dividends of $20,000 are to be paid to stockholders in April. c. 4. Equipment purchases of $100,250 are scheduled for May and 596,000 for June This equipment will be installed and tested during the second quarter and will not become operational until July, when depreciation charges will commence. Requirement: (Round all final figures to the nearest whole number utilizing the provided spreadsheer template) (1) Prepare the following budgets for April, May, and June (and second quarter totals): (a) Sales Budget (b) Production Budget (c) Direct Materials Budget (d) Direct Labor Budget (e) Manufacturing Overhead Budget ( Ending Finished Goods Inventory Budget (g) Selling and Administrative Expense Budget (h) Cash Budget (2) Prepare a budgeted income statement for the quarter ending June 30, 2021, and a budgeted balance statement as of June 30, 2021. Fall Creations Inc. Balance Sheet March 31, 2021 Assets Cash $ 13,600.00 Accounts receivable 52.100 Raw materials inventory 6,930 Finished goods inventory 21,500 Total current assets $ 94.130 400,000 Land Property, plant, and equipment: Buildings and equipment Less: Accumulated depreciation Property, plant and equipment, net Total assets 1,726,254 (740,000) 986 254 1,480,384 21,040 Liabilities and stockholders' equity Current liabilities: Accounts payable $ Stockholders equity Common stock 300,000 Retained earnings 1,159,344 Total stockholders Total liabilities and stockholder's equity 1.459,344 1,480,384
