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. Package is to include the following budgets; 1. Sales budget for each quarter and for the year 2. Production budget for each quarter and for the year 3. Purchasing Budget for each quarter and for the year 4. Direct labour budget for each quarter and for the year 5. Manufacturing overhead budget for each quarter and for the year 6. Selling and Administration budget 7. Work sheets for Collections and Disbursements 8. Budgeted Income Statement 9. CVP Income Statement 10. Budgeted Cash Statement 11. Budgeted Balance Sheet Additional details: Fine Office Company produces two products P100 and P200 Sales price per P100 is Sales price per P200 is There are 800 units from P100 in finished goods inventory at the end of 2020 with a value of 2020 value 300,000. At the end of each quarter, Fine Office Company requires ending inventory The required ending inventory for Dec 31, 2021 are 600 units for P100 and Each P100 unit uses D sq. ft. of steel during the manufacturing process. The cost of Each P200 unit uses sq. ft. of steel during the manufacturing process. Fine Office Company currently has 30,000 sq. ft. of steel in the beginning inventory. At the end of each quarter, Fine Office Company wants to have sq. ft. inventory Each product requires machine hours and direct labour hrs to proc Direct Labour costs $ per direct labour hour. Fine Office Company allocates manufacturing overhead costs based on the estimated machine hours. Estimated manufacturing overhead cost for 2021 are $ and are all 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, 70% of material purchases are paid for in cash in the quarter of the purchase and 30% are paid in the following quarter. Purchases of materials fro Q4 2020 were $1,500,000 Fine Office Company Additional details continued: Fine Office Company will pay $60,000 in dividends in 04 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 01 Q2 03 P200 01 lo Q2 03 Selling and Administration expenses for the budgeted year are as follows: Variable Cost: Delivery costs are based on $ 0.3 per sales unit Commissions are based on 0.1% of sales value. M Q4 Q4 Q Fixed Costs Accounting & professional services Administrative & Sales Salaries Advertising Computer costs Depreciation Office Supplies Printing Insurance Property taxes Rent Utilities Total Fixed Costs $ 3600 140000 20000 9000 70000 5000 3000 4000 2000 40000 3400 300000 Fine Office Company will purchase a new machine on 1/1/2021 worth $ 700000 and will mal payments. The first payment will be in Q2 and the second in 04. Assume the machine was purchased at the beginning of the year. Taxation is 30% on taxable income and paid at the end of Q4 each year, Balance sheet information as at 31st December 2020 is as follows: PPE $100,000 Accumulated Depreciation $100,00 Common Stock $580,000 Retained Earnings $145.00 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