- Follow the instructions on the template to complete the assignment. The template contains all of the information and forms youll need to prepare the required budgets.
Instructions: In this assigment you will create a series of budgets for Wolverine Manafucturing an aircraft manufacturing company. Below you will find the information you need to create each budget. To the right you will find a template for each budget. Complete each template by filling in the missing information, as indicated by bordered boxes with an off-white fill. Make sure you have completed all of the budgets before submitting the assignment! Sales Budget Wolverine Manufacturing's aircrafts sell for $150,000 per unit. Develop a sales budget for the first quarter of 20XX. Assume the company will sell 1 aircraft in the first month of the quarter and then increase sales by 1 aircraft each subsequent month. Ace ancitipates collecting 70% of the sales in cash during each month within the period. The remaining 30% will be collected in the second quarter. Schedule of Expected Cash Collections Calculate the expected cash collection for each month based on the percentage collected during the month of the sale and the percentage collected following th month of the sale. Direct Materials Budget Wolverine has determined it will produce 1,2, and 4 aircraft in January, February, and March respectively. 2500 pounds of raw materials are needed to produce 1 aircraft. Develop a direct materials budget for Wolverine Manufacturing. Assume a starting raw materials inventory of 0 in this quarter. Wolverine would like to have an ending raw materials inventory each month of 10% of the following month's raw material needs. The cost of raw materials is $10/ pound. In April, Wolverine will be filling a special order for 10 aircraft. April's raw materials needs have been included in the chart so you can calculate the desired ending inventory for March. Wolverine will pay for its raw materials with 50% cash due in the month the materials are received and the remaining 50% on credit, due in the second Schedule of Expected Cash Disbursements for Materials Calculate the expected cash disbursement for each month based on the percentage Schedule of Expected Cash Disbursements for Materials paid during the month the materials are received and the percentage paid follow/Accounts payable, beginning balance the month the materials are received. First-month purchases Second-month purchases Third-month purchases Total cash disbursements for materials Direct Labor Budget 160 direct labor hours are required to build one aircraft. Labor is paid at a rate of $25/ hour. Using this information, prepare a direct labor budget for Wolverine Manufacturing's first quarter 20XX. Assume direct labor costs must be paid in cash during the month the expense is incurred. Manufacturing Overhead Budget Variable manufacturing overhead is based on direct-labor hours and has a rate of $1,000/ direct-labor hour. Fixed manufacturing overhead is $80,000/ month. Depreciation is computed to be $10,000/month. Using this information, prepare a manufacturing overhead budget for the first quarter 20XX. Assume all manufacturing overhead must be paid in cash in the month the expense is incurred. Selling and Administrative Expense Budget Wolverine Manufacturing incurs a selling and administrative expense of $15,000 per aircraft sold. It also has fixed monthly selling and administrative expenses of $5,000 for advertising, $25,000 for executive salaries, $12,000 for insurance, $15,000 in property taxes, and $13,000 of depreciation. Using this information, prepare a selling and administrative expense budget for the first quarter 20XX. Assume all selling and administrative expenses must be paid in chas in the month the expense is incurred. Cash Budget Use the information from all of the previous budgets and schedules to prepare a cash budget for Wolverine Manufacturing. Wolverine will make a cash equipment purchase of $50,000 in January, but no cash equipment purchases will be made through the rest of the first quarter. Assume that the minimum cash balance required each month is $500,000 when calculating the amount to be borrowed. Wolverine starts the quarter with $500,000 in their cash account. Instructions: In this assigment you will create a series of budgets for Wolverine Manafucturing an aircraft manufacturing company. Below you will find the information you need to create each budget. To the right you will find a template for each budget. Complete each template by filling in the missing information, as indicated by bordered boxes with an off-white fill. Make sure you have completed all of the budgets before submitting the assignment! Sales Budget Wolverine Manufacturing's aircrafts sell for $150,000 per unit. Develop a sales budget for the first quarter of 20XX. Assume the company will sell 1 aircraft in the first month of the quarter and then increase sales by 1 aircraft each subsequent month. Ace ancitipates collecting 70% of the sales in cash during each month within the period. The remaining 30% will be collected in the second quarter. Schedule of Expected Cash Collections Calculate the expected cash collection for each month based on the percentage collected during the month of the sale and the percentage collected following th month of the sale. Direct Materials Budget Wolverine has determined it will produce 1,2, and 4 aircraft in January, February, and March respectively. 2500 pounds of raw materials are needed to produce 1 aircraft. Develop a direct materials budget for Wolverine Manufacturing. Assume a starting raw materials inventory of 0 in this quarter. Wolverine would like to have an ending raw materials inventory each month of 10% of the following month's raw material needs. The cost of raw materials is $10/ pound. In April, Wolverine will be filling a special order for 10 aircraft. April's raw materials needs have been included in the chart so you can calculate the desired ending inventory for March. Wolverine will pay for its raw materials with 50% cash due in the month the materials are received and the remaining 50% on credit, due in the second Schedule of Expected Cash Disbursements for Materials Calculate the expected cash disbursement for each month based on the percentage Schedule of Expected Cash Disbursements for Materials paid during the month the materials are received and the percentage paid follow/Accounts payable, beginning balance the month the materials are received. First-month purchases Second-month purchases Third-month purchases Total cash disbursements for materials Direct Labor Budget 160 direct labor hours are required to build one aircraft. Labor is paid at a rate of $25/ hour. Using this information, prepare a direct labor budget for Wolverine Manufacturing's first quarter 20XX. Assume direct labor costs must be paid in cash during the month the expense is incurred. Manufacturing Overhead Budget Variable manufacturing overhead is based on direct-labor hours and has a rate of $1,000/ direct-labor hour. Fixed manufacturing overhead is $80,000/ month. Depreciation is computed to be $10,000/month. Using this information, prepare a manufacturing overhead budget for the first quarter 20XX. Assume all manufacturing overhead must be paid in cash in the month the expense is incurred. Selling and Administrative Expense Budget Wolverine Manufacturing incurs a selling and administrative expense of $15,000 per aircraft sold. It also has fixed monthly selling and administrative expenses of $5,000 for advertising, $25,000 for executive salaries, $12,000 for insurance, $15,000 in property taxes, and $13,000 of depreciation. Using this information, prepare a selling and administrative expense budget for the first quarter 20XX. Assume all selling and administrative expenses must be paid in chas in the month the expense is incurred. Cash Budget Use the information from all of the previous budgets and schedules to prepare a cash budget for Wolverine Manufacturing. Wolverine will make a cash equipment purchase of $50,000 in January, but no cash equipment purchases will be made through the rest of the first quarter. Assume that the minimum cash balance required each month is $500,000 when calculating the amount to be borrowed. Wolverine starts the quarter with $500,000 in their cash account
