Fine Office Company makes office furniture for offices. They are in the process of preparing a Master Budget including the Operating budget, Cash Statement, Income Statement and Balance Sheet for 2021. The yearly budget is broken into quarters. The year end is 31st December 2021. Your group has been requested to compile a master budget for the fiscal year 2021. O Package is to include the following budgets; 1. Sales budget for each quarter and for the year 22. Production budget for each quarter and for the year 83. Purchasing Budget for each quarter and for the year 44. Direct labour budget for each quarter and for the year 55. Manufacturing overhead budget for each quarter and for the year 56. Selling and Administration budget 7. Work sheets for Collections and Disbursements 38. Budgeted Income Statement 9. CVP Income Statement 010. Budgeted Cash Statement 11. Budgeted Balance Sheet 2 Additional details: Fine Office Company produces two products P100 and P200 Sales price per P100 is Sales price per P200 is There are of 2020 value A B 800 units from P100 in finished goods inventory at the end of 2020 with a value 300,000. At the end of each quarter, Fine Office Company requires ending inventory 600 units for P100 and sq. ft. of steel during the manufacturing process. The cost of sq. ft. of steel during the manufacturing process. 30,000 sq. ft. of steel in the beginning inventory. At The required ending inventory for Dec. 31, 2021 are Each P100 unit uses D Each P200 unit uses Fine Office Company currently has the end of each quarter, Fine Office Company wants to have inventory. Each product requires G Direct Labour costs $ machine hours and per direct labour hour. H sq. ft. direct labour hrs to prod and are all Fine Office Company allocates manufacturing overhead costs based on the estimated machine hours. Estimated manufacturing overhead cost for 2021 are $ For each quarter, it is estimated that 40% of sales will be cash and % will be credit sales. Of the credit sales, 80% pay in the quarter of the sale and 20% pay in the following quarter. Credit sales from Q4 2020 were $1,300,000 Direct labour costs and manufacturing overhead costs are paid for in cash in the quarter they occurred. Assume operating expenses occur evenly throughout the year and are all paid in cash. For each quarter, 5 the purchase and 70% of material purchases are paid for in cash in the quarter of 30% are paid in the following quarter. Purchases of materials fro Q4 2020 were $1,500,000 B Fine Office Company O Additional details continued: Fine Office Company will pay $60,000 in dividends in Q4 Currently, the cash balance in the bank is $15,000. Fine Office Company wants to maintain a minimum cash balance of $10,000 in the bank for each quarter. Budgeted sales volumes are: P100 Q1 K Q2 L Q3 M Q4 P200 Q1 10 Q2 P Q3 Q Q4 Selling and Administration expenses for the budgeted year are as follows; 3 Variable Cost: Delivery costs are based on $ 0.3 per sales unit Commissions are based on Fixed Costs: Accounting & professional services Administrative & Sales Salaries Advertising 0.1% of sales value. . Computer costs Depreciation Office Supplies Printing Insurance Property taxes Rent Utilities 3600 140000 20000 9000 70000 5000 3000 4000 2000 40000 3400 300000 700000 and will ma Total Fixed Costs Fine Office Company will purchase a new machine on 1/1/2021 worth $ payments. The first payment will be in Q2 and the second in Q4. Assume the machine was purchased at the beginning of the year. Taxation is Balance sheet information as at 31st December 2020 is as follows; PPE Common Stock 30% on taxable income and paid at the end of Q 4 each year. Accumulated Depreciation Retained Earnings $100,000 $580,000 For Cost of goods sold (COGS); Add total costs of production + Beginning Finished goods - Ending Finished goods Inventory. Interest of $ 9000 on loans is paid in total at the end of the year and is a fixed cost. $100,00 $145,00