Hello! I know this is lengthy, but a great majority of the work is already done. I really just need help with the areas left blank in A.f, A.g, A.h, and A.i. I have just been struggling with this assignment and don't understand those specific boxes in the sections mentioned that I left blank. Thank you in advance!
a. c. a.c Additional Information a. Budgeted sales are 1,000 laptops for the first quarter and are expected to increase by 200 laptops per quarter. Cash sales are expected to make up 10% of total sales, the remainder will be on account. The expected sales price per computer is $70. b. Finished goods inventory on December 31, 2020, consists of 300 computers at $36 each. Desired ending finished goods inventory is 40% of the next quarter's sales; first-quarter sales for 2020 are expected to be 1,800 computers; FIFO inventory costing is used. d. Raw Materials Inventory on December 31, 2020, consists of 750 pieces of the required component used to manufacture the laptops. e. Direct materials requirements are 25 pieces of material per computer. The cost of each piece is $4. f. Desired ending Raw Materials Inventory is 40% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2021, is 750 computer pieces; indirect materials are insignificant and not considered for budgeting purposes. 8. Each computer requires 0.30 hours of direct labor; direct labor costs average $20 per hour. h. Variable manufacturing overhead is $3 per computer. i. Fixed manufacturing overhead includes $6,000 per quarter in depreciation and $10,860 per quarter for other costs, such as utilities, insurance, and property taxes. 1. Fixed selling and administrative expenses include $8,000 per quarter for salaries; 54,800 per quarter for rent; $1,950 per quarter for insurance; and $2,000 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 2% of sales. 1. Capital expenditures include $25,000 for new manufacturing equipment to be purchased and paid in the first quarter. m. Cash receipts for sales on account are 70% in the quarter of the sale and 30% in the quarter following the sale; December 31, 2020, Accounts Receivable is received in the first quarter of 2021; uncollectible accounts are considered insignificant and not considered for budgeting n. Direct materials purchases are paid 50% in the quarter purchased and 50% in the following quarter December 31, 2020, Accounts Payable is paid in the first quarter of 2021. 0. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. p. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. q. Nerdzy desires to maintain a minimum cash balance of $20,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter; principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 12% per year and paid at the beginning of the quarter based on the amount a.e Nerdzy Computer Company Balance Sheet December 31, 2020 Assets Current Assets Cash A/R Raw Materials Inventory Finished Goods Inventory Total Current Assets Plant Property & Equipment Equipment Less: Accumulated Depreciation Total Assets 20,000 30,000 3,000 10,800 63,800 168,000 (39,000) 129,000 192,800 Liabilities Current Liabilities: Accounts Payable 16,000 Stockholders' Equity Common Stock, no par Retained Earnings Total stockholders' equity Total Liabilities and Stockholders' Equity 130,000 46,800 176,800 192,800 a.a Sales Budget Nerdzy Computer Company Sales Budget For the Year Ended December 31, 2021 01 O2 03 04 Total Budgeted laptops to be sold 1,000.00 1,200 1,400 1,600 5,200 Sales Price per laptop 70.00 70.00 70.00 70.00 70.00 Tocal Sales $ 70,000 $ 84,000 $ 98,000 $ 112,000 $364,000 a.b Production Budget Nerdzy Computer Company Production Budget For the Year Ended December 31, 2021 Q1 Q2 03 Budgeted laptops to be sold 1,000 1,200 Plus: Desired laptops in ending inven 480 560 Total laptops needed 1,075 1,275 Less: Laptops in beginning inventory 300.00 480 Budgeted computers to be produced 1,180 1280 04 1,400 640 1,475 560 1,480 Total 1,600 5,200 720 300 1,675 5,500 640 300.00 1.680 5,620 3.c Direct Materials Budget Nerdzy Computer Company Direct Materials Budget For the Year Ended December 31, 2021 Q1 Q2 Q3 Q4 Total Budgeted laptops to be produced 1,180 1,280 1,480 1,680 5,620 Direct materials per laptop 2.50 2.50 2.50 2.50 2.50 Direct materials needed for productic 2,950 3,200 3,700 4,200 14,050 Plus: Desired DM in end inventory 1,280 1,480 1,480 1,680,00 750.00 Total DM needed 4,230 4,680 5,830 4,950 14,800 Less: DM in beg. Inv 750.00 1,280 1,480 1,680 750.00 Budgeted purchases of DM 3,480 3,40 3,900 3,270 14,050 DM cost per item 4.00 4.00 4.00 4.00 4.00 Budgeted purchases of DM 13,920 $ 13,600 $ 15,600 S 13,080 S 56,200 04 ad Direct Labor Budget Nerdzy Computer Company Direct Labor Budget For the Year Ended December 31, 2021 01 02 03 Budgeted laptops to be produced 1,180 1,280 Direct Labor hours per laptop 0.300 0.300 Direct Labor hours needed for produci 345 384 Direct Labor cost per hour 20.00 20.00 Budgeted direct labor cost s 7,080 S 7,680 $ 1,480 0.300 444 20.00 8,880 S Total 1,680 5,620 0.300 0.300 504 1686 20.00 20.00 1,080533 720 3.00 a.e Manufacturing Overhead Budget Nerdzy Computer Company Manufacturing Overhead Budget For the Year Ended December 31, 2021 Q1 Q2 Q3 Q4 Total Budgeted laptops to be produced 1,180 1,280 1,480 1,680 5,620 Variable OH cost per laptop 3.00 3.00 3.00 3.00 Budgeted variable overhead S 3,540 S 3,840 S 4,440 S 5,040 S 16,860 Budgeted Fixed OH Depreciation 6,000.00 6,000.00 6,000.00 6,000.00 24,000 Utilities, Insurance, prop tax 10,860,00 10,860.00 10,860.00 10,860.00 43,440 Total budgeted fixed OH 16,860 16,860 16,860 16,860 67,440 Budgeted manufacturing OH costs 20,400 20 700 21 300 21,900 84 300 DL Hours 345 384 444 504 1677 Predetermined OH allocation rate per DL hour $20 per DL hour (1677X20)- 33540 af Cost of Goods Sold Budget $ 4 Calculations for COGS Budget DM cost per laptop DL Cost per laptop MOH cost per laptop Total projected manufacturing cost per laptop 67 15 86 S a.f Cost of Goods Sold Budget S 4 Calculations for COGS Budget DM cost per laptop DL Cost per laptop MOH cost per laptop Total projected manufacturing cost per laptop 67 15 86 $ Nerdzy Computer Company Cost of Goods Sold Budget For the Year Ended December 31, 2021 Q1 Q2 03 Beg. Inventory $ 70,000 Laptops produced & sold 1,000 1,200 Total Budgeted cost of goods sold 04 Total $364,000 5,200 1.400 1,600 Q4 Total a.g Selling & Admin Budget Nerdzy Computer Company Selling & Administrative Expense Budget For the Year Ended December 31, 2021 Q1 Q2 Q3 Salaries Expense Rent Expense Insurance Expense Depreciation Expense 6,000 6,000 6,000 Supplies Expense Total Budgeted S&A Expense 6,000 24,000 a.h Schedule of Cash Receipts Schedule of Cash Receipts from Customers 01 Total Sales Q2 03 Q4 Total Cash Receipts from Customers: A/R Balance, December 31 2020 Q1 Cash Sales Q1 Credit Sales, Collected in 01 Q1 Credit Sales, Collected in 02 Q2 Cash Sales Q2 Credit Sales, Collected in Q2 Q2 Credit Sales, Collected in Q3 Q3 Cash Sales Q3 Credit Sales, Collected in Q3 Q3 Credit Sales, Collected in Q4 Q4 Cash Sales Q4 Credit Sales, Collected in 04 Total Cash receipts from customers 30,000 7,000 44,100 18,900 8,400 52,920 22,680 9,800 61,740 26,460 11,200 70,560 $ 81,100 $ 80,220 $ 94,220 $ 108 220 S 363,760 Schedule of Cash Payments Q1 Q2 03 04 Total Total DM Purchases Q2 03 Q4 Total Cash Payments Q1 Direct Materials: Accounts Payable Balance, 12/31/2020 S 16,000 Q1 purchases, paid in 01 6,960 Q1 purchases, paid in Q2 Q2 purchases, paid in 02 Q2 purchases, paid in Q3 Q3 Purchases paid in Q3 Q3 Purchases paid in Q4 Q4 Purchases, paid in Q4 Total Payments for DM 22.960 6,960 6,800 6,800 7,800 7,800 6,540 14,340 13,760 14,600 65,660 Direct Labor: Total Payments for DL 7,080 7,680 8,880 10,080 33,720 Manufacturing Overhead: Variable MOH Utilities, Ins, Prop Taxes Total payments for MOH 3,540 10,860 14,400 3,840 10,860 14,700 4,440 10,860 15,300 5,040 10,860 15,900 16,860 43,440 60,300 S&A Expenses: Salaries Expense Rent Expense Insurance Expense Supplies Expense Total Payments for S&A expenses 32,300 32,860 33,420 33.980 132,560 Income Taxes: Total payments for income taxes 3,500 3,500 3,500 3,500 14,000 Capital Expenditures: Total Payments for Cap. Expenditures 25,000 0 0 0 25,000 Total Cash payments (before interest) aj Cash Budget Nerdzy Computer Company Cash Budget For the Year Ended December 31, 2021 Q1 Q2 Q3 Q4 Total Beg. Cash Balance $ 20,000 $20,860 $ 20,830 $ 30,810 $ 20,000 Cash receipts 81,100 80,220 94,220 108,220 363,760 cash available 101,100 101,230 130,110 179,340 511,780 Cash payments: Purchases of DM 22,960 13,760 14,600 14,340 65,660 DL 7,080 7,680 8,880 10,080 33,720 MOH 14,400 14,700 15,300 15,900 60,300 S&A Exp 32,300 32,860 33,420 33,980 132,560 Income taxes 3,500 3,500 3,500 3,500 14,000 Capital Expenditures 25,000 25,000 Interest Expense (750) (540) (300) (1,590) Total cash payments 89,090 56,070 58,990 60,810 264,960 Ending cash balance before financing 89,090 56,070 58,990 60,810 264,960 minimum cash balance desired 1,000 1,000 1,000 1,000 20,000 Projected cash excess (deficiency) 12,010 45,160 71,120 118,530 246,820 Financing Borrowing 9,000 9,000 Principal repayments 9,270 9,270 Total effects of financing 9,000 9,000 Ending Cash Balance $ 21,010 $ 35,890 $ 71,120 S 118,530 S 246,550
