Hardin Fabrications is preparing its cash budget for the third quarter.

Cash balance on July $1$ $$116,500$

Sales collected in cash $40\%$

Sales collected on credit $60\%$

A$/$R balance on July $1$ $ $89,000$

$\%$ of credit sales collected in the month of sale $20\%$

$\%$ of credit sales collected in the following month $80\%$

All expenses are paid for as they occur, with the exception of Direct Materials, which is all paid for with a revolving line of credit.

Accounts Payable balance on July $1$ $$95,000$

$\%$ of Accounts Payable paid in the month of purchase $30\%$

$\%$ of Accounts Payable paid in the following month $70\%$

Amount of monthly overhead that is depreciation and amortization $$15,000$

Sales Budget

July August September Total

Unit Sales $2,2502,1001,6506,000$

Price per Unit $ $220\mathrm{.}00$ $ $220\mathrm{.}00$ $ $220\mathrm{.}00$ $ $220\mathrm{.}00$

Total Sales $ $495,000$ $ $462,000$ $ $363,000$ $ $1,320,000$

Direct Materials Purchases Budget

July August September Total

Total Production $2,3801,9652,1156,460$

Direct Materials per Unit $3\mathrm{.}503\mathrm{.}503\mathrm{.}503\mathrm{.}50$

Materials Required for Production $8,3306,8787,40322,610$

Add: Desired Ending Inventory $1,719\mathrm{.}381,850\mathrm{.}632,327\mathrm{.}502,327\mathrm{.}50$

Total Material Needs $10,049\mathrm{.}388,728\mathrm{.}139,730\mathrm{.}0024,937\mathrm{.}50$

Less: Beginning Inventory $1,0001,719\mathrm{.}381,850\mathrm{.}631,000$

Total Purchases $9,0497,0097,87923,938$

Cost per Steel Ingot $ $17\mathrm{.}00$ $ $17\mathrm{.}00$ $ $17\mathrm{.}00$ $ $17\mathrm{.}00$

Total Cost of Direct Materials $ $153,839$ $ $119,149$ $ $133,949$ $ $406,938$

Direct Labor Budget

July August September Total

Total Production $ $2,380$ $ $1,965$ $ $2,115$ $ $6,460$

Direct Labor Hours Per Unit $1\mathrm{.}501\mathrm{.}501\mathrm{.}501\mathrm{.}50$

Total Direct Labor Hours Needed for Production $3,5702,9483,1739,690$

Cost per Direct Labor Hour $ $19\mathrm{.}00$ $ $19\mathrm{.}00$ $ $19\mathrm{.}00$ $ $19\mathrm{.}00$

Total Cost of Direct Labor $ $60,690$ $ $50,108$ $ $53,933$ $ $164,730$

Manufacturing Overhead Budget

July August September Total

Total Production $2,3801,9652,1156,460$

Variable Overhead per Unit Produced $ $40$ $ $40$ $ $40$ $ $40$

Total Variable Overhead $95,20078,60084,600258,400$

Fixed Overhead per Unit $ $3\mathrm{.}84$ $ $3\mathrm{.}84$ $ $3\mathrm{.}84$ $ $3\mathrm{.}84$

Total Fixed Overhead $9,1397,5468,12224,806$

Total Overhead $ $104,339$ $ $86,146$ $ $92,722$ $ $283,206$

Selling and Administrative Expense Budget

July August September Total

Sales Units $ $2,250$ $ $2,100$ $ $1,650$ $ $6,000$

Variable Selling Expense per Unit $ $18$ $ $18$ $ $18$ $ $18$

Total Variable Selling Expense $ $40,500$ $ $37,800$ $ $29,700$ $ $108,000$

Fixed Administrative Expense $($for the month$)$ $ $10,417$ $ $10,417$ $ $10,417$ $ $31,250$

Total Selling and Administrative Expense $ $50,917$ $ $48,217$ $ $40,117$ $ $139,250$

Required:

Prepare a Schedule of Cash Collections.

Prepare a Schedule of Cash Disbursements.

Prepare a Cash Budget.

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