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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
SALES BUDGET
Budgeted sales of the companys only product for the next five months are:
April units
May units
June units
July units
August units
The selling price is $ per unit.
SCHEDULE OF EXPECTED CASH COLLECTIONS
Additional data:
All sales are on account.
The company collects of these credit sales in the month of the sale; are
collected in the month following sale; and the remaining are uncollectible.
The accounts receivable balance on March was $ 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
of the following months budgeted unit sales.
units were on hand on March st
DIRECT MATERIALS BUDGET
Additional data:
pounds of material are required per unit of product.
Management desires to have materials on hand at the end of each month equal to
of the following months production needs.
The beginning materials inventory was pounds.
The material costs $ per pound.
SCHEDULE OF EXPECTED CASH DISBURSEMENTS FOR MATERIAL
Additional data:
Fiftyseven percent of a months purchases are paid for in the month of purchase;
is paid for in the following month.
No discounts are given for early payment.
The accounts payable balance on March was $
DIRECTBUDGET
Additional data:
Each unit produced requires hour of direct labor.
Each hour of direct labor costs the company $
Management fully adjusts the workforce to the workload each month.
MANUFACTURING OVERHEAD BUDGET
Additional data:
Variable manufacturing overhead is $ per direct laborhour.
Fixed manufacturing overhead is $ per month. This amount includes $ 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 workinprocess inventories.
SELLING AND ADMINISTRATIVE EXPENSE BUDGET
Additional data:
Variable selling and administrative expenses are $ per unit sold.
Fixed selling and administrative expenses are $ per month and include $
in depreciation.
CASH BUDGET
Additional data:
A line of credit is available at a local bank that allows the company to borrow up to
$ in onethousanddollar 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 annually.
Felix Inc. desires a cash balance of at least $ at the end of each month. The
cash balance at the beginning of April was $
Cash dividends of $ are to be paid to stockholders in April.
Equipment purchases of $ are scheduled for May and $ 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.
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
Prepare a budgeted income statement for the quarter ending June and a
budgeted balance statement as of June
Felix Inc.
Balance Sheet
March
Assets
Cash $
Accounts receivable $
Raw materials inventory $
Finished goods inventory $
Total current assets
Property, plant, and equipment:
Land
Buildings and equipment
Less: Accumulated depreciation
Buildings and equipment, net
Total assets
Liabilities and stockholders equity
Current liabilities:
Accounts payable
Stockholders equity:
Common stock
Retained earnings
Total Stockholders Equity
Total liabilities and stockholders equity
can you do that work on excel. and send me the excel sheet
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