Gareld Case Project - 150 points Garfield and George Foreman are contemplating becoming business partners of an out-door grill company appropriately named, \"Outdoor Chef Grill.\" Garfield has been a customer of George Foreman's grills for years. George accepted his proposal to be a business partner, as he believes that Garfield's name will bring in a new demographic of shoppers. Garfield needs to obtain funding for his capital contribution. Potential investors have asked for budgets and forecasts for the revenue and expenses of the company. George is having the finance department create a special monthly forecast budget for Roger as well as an annual forecast and budget. You, being one of George's employees, is asked to prepare the monthly budget for January 2021. Budget Requirements: 100 points Using the information below, please prepare Sales Budget including a schedule of expected cash collection. Production Budget Direct Materials budget including a schedule of expected cash disbursements. Direct Labor Budget MOH Budget including cash disbursements for overhead S&A budget including cash disbursements for 5&A ade'I-IhUJNll Budgeted Income Statement. a. When calculating COGS please illustrate how you comguted the C065 per unit. b. Must calculate a COST Per Unit for each product line. I. Cash Budget FOR BUDGETS 1-8: IF ROUNDING I5 NECESSARY, PLEASE ROUND T0 TWO DECIMALS. Excel Requirements: 50 points The budgets are to be completed in Excel. Please use the Excel File uploaded on Canvas. The Excel Reg uirements are as follows: 1. Each Budget will appear in an individual worksheet with each Tab labeled with appropriate Budget's Name. 2. All calculations must be completed in excel using formulas. Selected information concerning sales and production for January 2021 is summarized as follows: a. The sales budget must be divided up by product {Backyard and Master). Estimated sales for Januag by sales territory: Georgia: Backyard 288 units at $775 per unit Master 200 units at $1,550 per unit South Carolina: Backyard 219 units at $880 per unit Master 168 units at $1,566 per unit Louisiana: Backyard 345 units at $855 per unit Master 215 units at $1,777 per unit Alabama: Backyard 175 units @ $888 per unit Master 199 @ $1500 per unit Estimated sales for February for all territories: Backyard Grills 624 grills Master Grills 1,150 grills Outdoor Chef Grill has a beginning accounts receivable balance of $1,550,000 in the month ofJanuary and expects to collect 40% of that balance. In addition, their accounting department has estimated that 70% of sales for the Master Grill will be paid in cash and 80% of the Backyard grill will be paid in cash. b. Inventory of Grills Beginning Inventog of Grills: Backyard 36 units Master 18 units Outdoor Chef Grill has established a new ending inventory policy to take effect the month of January. From January and going forward, the ending inventory should be: Ending Inventory: Backyard 2% of February's sales Master 5% of February's sales. Estimated direct material inventories at January 1: Direct materials (available forthe Master and Backyard Grill}: Grates Stainless steel Burner subassemblies Shelves Desired inventories at January 30: Direct materials (available forthe Master and Backyard Grill}: Grates Stainless steel Burner subassemblies Shelves Direct materials used in production: Direct Materials required to produce one Backyard Chef Grill: Grates Stainless steel Burner subassemblies Shelves Direct Materials required to produce one Master Chef grill: Grates Stainless steel Burner subassemblies Shelves Anticipated purchase price for direct materials: Grates Stainless steel Burner subassemblies Shelves 300 units 1,800 lbs. 150 units 300 units 230 units 1,200 lbs. 325 units 285 units 3 units per unit of product 24 lbs. per unit of product 2 units per unit of product 4 units per unit of product 6 units per unit of product 42 lbs. per unit of product 4 units per unit of product 5 units per unit of product $14 per unit $7 per lb. $115 per unit $8 per unit Because of their excellent relationships with the vendors, they pay the following percentages when placing their order: Grates: 10% Stainless Steel: 25% Burner subassemblies 5% Shelves 2%, if pay the entire balance within 35 days. Direct labor requirements for one grill: Backyard Chef: Stamping Department 0.60 hr. at $17 per hr. Forming Department 0.80 hr. at $14 per hr. Assembly Department 2.0 hrs. at $12 per hr. Master Chef: Stamping Department .80 hr. at $17 per hr. Forming Department 1.50 hrs. at $14 per hr. Assembly Department 2.50 hrs. at $12 per hr. Outdoor Chef Grill Company budgeted the following fixed costs for anticipated production in January. The list below includes fixed MOH expenses and Fixed S&A expenses. Please categorize the fixed cost as MOH or 581A (Period) prior to completing any calculations. Advertising Expenses $24,000 Sales monthly salary {not commission]: $7,500 Factory Insurance $2,000 Production Supervisor Salary $9,900 Executive officer salaries $25,000 Indirect Labor Salaries for Quality Control $2,800 Factory Depreciation $4,000 Corporate Office Building Depreciation $3,100 Hint. The sum of the FMOH costs above will appear in MOH Budget. The sum of the Fixed SELA (Period) costs will appear in the S&A Budget. Hint. For non-cash expenses, please divided the fixed non-cash expenses between Master and Backyard. Total estimated VMOH expenses are $41,000 forthe month of January. VMOH expenses are allocated to the products based on a single PDDR rate using the allocation base, TOTAL DL HOURS. Requirement: Please calculate a PDDR for the company using Total DL hours. Hint, you will only have one PDOR for the company. There will NOT be two separate PDORs forthe Backyard and Master product. Variable 581A expenses are allocated at rate of $3 per grill. h. Other Information: a. Income Tax Rate is 35% b. Minimum Cash Balance $500,000 is. Beginning Cash Balance $750,000