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Felix Inc. is preparing budgets for the second quarter ending on June 3 0 , 2 0 2 4 . SALES BUDGET Budgeted sales of

Felix Inc. is preparing budgets for the second quarter ending on June 30,2024.
SALES BUDGET
Budgeted sales of the companys only product for the next five months are:
April .........24,300 units
May ..........36,320 units
June ..........23,800 units
July ...........21,700 units
August ......19,800 units
The selling price is $10.85 per unit.
SCHEDULE OF EXPECTED CASH COLLECTIONS
Additional data:
All sales are on account.
The company collects 58% of these credit sales in the month of the sale; 37% are
collected in the month following sale; and the remaining 5% are uncollectible.
The accounts receivable balance on March 31 was $38,040. All of this balance was
collectible.
PRODUCTION BUDGET
Additional data:
The company desires to have inventory on hand at the end of each month equal to
16% of the following months budgeted unit sales.
4,155 units were on hand on March 31st.
DIRECT MATERIALS BUDGET
Additional data:
6 pounds of material are required per unit of product.
Management desires to have materials on hand at the end of each month equal to
10% of the following months production needs.
The beginning materials inventory was 17,200 pounds.
The material costs $0.38 per pound.
SCHEDULE OF EXPECTED CASH DISBURSEMENTS FOR MATERIAL
Additional data:
Fifty-seven percent of a months purchases are paid for in the month of purchase; 43%
is paid for in the following month.
No discounts are given for early payment.
3
The accounts payable balance on March 31 was $18,200.
DIRECTBUDGET
Additional data:
Each unit produced requires 0.05 hour of direct labor.
Each hour of direct labor costs the company $16.93
Management fully adjusts the workforce to the workload each month.
MANUFACTURING OVERHEAD BUDGET
Additional data:
Variable manufacturing overhead is $22.48 per direct labor-hour.
Fixed manufacturing overhead is $33,400 per month. This amount includes $16,520 in
depreciation, which is not a cash outflow.
ENDING FINISHED GOODS INVENTORY BUDGET
Additional data:
The Company uses absorption costing in its budgeted income statement and balance
sheet.
Manufacturing overhead is applied to units of product on the basis of direct labor-
hours.
The company has no work-in-process inventories.
SELLING AND ADMINISTRATIVE EXPENSE BUDGET
Additional data:
Variable selling and administrative expenses are $0.62 per unit sold.
Fixed selling and administrative expenses are $73,500 per month and include $16,440
in depreciation.
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.
c. The interest rate is 11% annually.
2. Felix 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 $26,700.
3. Cash dividends of $ 15,000 are to be paid to stockholders in April.
4
4. Equipment purchases of $98,050 are scheduled for May and $62,900 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.
Requirements: (In completing all the budgets and financial statements, use formulas
only except for the inputs tab and the four items specified in the budgeting project
lecture.)
(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
(f) 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 30,2024, and a
budgeted balance statement as of June 30,2024.
Felix Inc.
Balance Sheet
March 31,2024
Assets
Cash $26,700
Accounts receivable $38,040
Raw materials inventory $6,536
Finished goods inventory $22,314
Total current assets 93,590
Property, plant, and equipment:
Land 380,000
Buildings and equipment 1,483,285
Less: Accumulated depreciation (680,000)
Buildings and equipment, net 803,285
Total assets 1,276,875
Liabilities and stockholders equity
Current liabilities:
Accounts payable 18,200
Stockholders equity:
Common stock 300,000
Retained earnings 958,675
Total Stockholders Equity 1,258,675
Total liabilities and stockholders equity 1,276,875
can you do that work on excel. and send me the excel sheet

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