Hello!

I was told: "As per chegg guidelines, only first 4 questions are required to be solved. Please post other questions as a separate question."

Hence, I'm posting the last 3 questions. (I have pointed out the questions to be solved...i, j and k. Selling and administrative expenses budget, Budgeted income statement and Cash budget.)

Also, I have included the solutions of a,b,c,d,e,f,g and h.

I'd really appreciate if you could answer from i to k.

Thank you.

Manju Paints (MAPS) Manju Paints (MAPS)) manufactures a paint additive that has been very successful in the metallic paint line of automotive paints. The company prides itself in making the paints that car owners buy, better. MAPS is in the process of preparing its master budget for the First Quarter of 2022 and has presented you with the following information. The company has a December 31st fiscal year-end. 1. The budgeted December 31, 2021 balance sheet for the company is shown below. MAPS Limited Budgeted Balance Sheet December 31, 2021 Assets $$ Cash 5,080 Accounts receivable (net) 26,500 Raw materials inventory 800 Finished goods inventory 2,104 Prepaid insurance (on factory) 1,200 Total Current Assets 35,684 Factory Building & Equipment 300,000 Accumulated depreciation (20,000) Total Non-Current Assets 280,000 Total assets $315,684 2/3 $$ 2,148 30,000 35,000 Liabilities & Stockholders' Equity Accounts payable Dividends payable Notes payable (due February 28, 2022) Total Current Liabilities Total liabilities Common Shares Retained earnings Total Shareholders' Equity Total Liabilities & SHE 67,148 $ 67,148 $100,000 148,536 248,536 $315,684 2. The Accounts Receivable balance at December 31, 2021 represents the remaining balances of November and December credit sales, net of any allowance for doubtful accounts. Sales were $70,000 in November and $65,000 in December. Estimated sales in units for January through May 2022 are shown below. 3. January 10,000 February 12,000 March 13,000 April 13,000 May 10,000 ... MAPS continued MAPS continued 4. Currently, each unit sells for $12. The company expects the selling price to increase to $13 per unit from March 1, 2022. 5. The collection pattern for accounts receivable is as follows: 68% in the month of sale; 20% in the first month after the month of sale; 10% in the second month after the month of sale. The remaining 2% of credit sales are never collected. The company expects to achieve a 70-20-8 (%) collection pattern starting with the March 1, 2022 sales. 6. Each unit of additive has the following standard quantities and costs for direct materials and direct labor: Direct materials | 1.2 kilograms at $.80 per kilogram Direct labour 15 minutes at $12 per hour Direct material costs and direct labor costs are expected to increase by 15% as from March 1, 2022. 7. 8. Variable overhead is applied to the product on a machine hour basis. It takes twelve (12) minutes of machine time to process one unit of finished additive. The variable overhead rate is $1.50 per machine hour. The rate will increase to $2.25 per machine hour from March 1, 2022. Total annual fixed overhead is budgeted at $120,000; it is applied to the production of the month at $1.00 per unit based on an expected annual production of 120,000 units. Budgeted fixed overhead per year is made up of the following costs: Salaries $ 60,000 Utilities 32,400 Insurance - factory 2,400 Depreciation- factory building & equipment 25,200 Total $120,000 9. Actual fixed overhead is incurred evenly throughout the year and payments for fixed overhead are also made evenly throughout the year, if necessary. For periodic financial statements, any under-applied overhead is added to expenses and any over-applied overhead is deducted from expenses. There is no beginning inventory of Work in Process. All work in process is completed in the period in which it is started. Direct materials inventory at the beginning of January 2022 will consist of 1,000 kilograms at a standard cost of $.80 per kilogram. There will be 400 units of additive in finished goods inventory at the beginning of January 2022 carried at a standard cost of $5.26 per unit: Direct Materials, $.96; Direct Labor, $3.00; Variable Overhead, $.30; and Fixed Overhead, $1.00. 10. Accounts Payable relates solely to direct materials purchases. All direct material purchases are initially on account. Accounts payable are paid 60% in the month of purchase and 40% in the month after purchase. No discounts are received for prompt payment. Starting with its March 2022 purchases, the company will be making payments on accounts payable at 50% in the month of purchase and 50% in the month after purchase. Any outstanding dividends payable will be paid at the end of January 2022. 11. ... MAPS continued MAPS continued 12. A new piece of equipment costing $50,000 will be purchased on March 31, 2022. Payment for 80% of the cost will be made in March and 20% in May. The equipment will have a ten-year useful life and no residual value. 13. The note payable has an 8% interest rate; interest is paid at the end of each month. 14. 15. MAPS's management has set a minimum cash balance at $5,000. Borrowing (repayments) can be made in even $1,000 amounts from (to) the Mando Bank at an interest rate of 6% per year. Borrowing (if necessary in the month) will be the beginning of the month while repayment (when the company is in a position to do so) will be at the end of the month. Interest on any borrowing must be paid monthly at the end of the month. The ending inventory of finished goods should be 10% of the next month's sales requirements. The ending inventory of raw materials should be 10% of the raw materials required for the next month's production. These requirements may not be met on January 1, 2022, but must be met during the budgeting period. Fixed selling and administrative expenses per month are as follows: salaries, $15,000; rent, $9,000; and utilities, $1,500. These costs are paid in cash in the month in which they are incurred. 16. a. b. Required: Prepare an appropriate report to MAPS's management detailing the company's budgeted activities for the first quarter of 2022. Budgeted information should be provided for each month, and the quarter as a whole, in columnar form. The following component budgets must be included (and submitted): Sales budget Production budget Direct materials purchases budget Direct labor budget Manufacturing Overhead budget f. Cost of Goods manufactured budget Finished goods budget Cost of goods sold budget Selling and administrative expenses budget Budgeted Income Statement Cash budget c d. e. g h. Also provide a Budgeted Balance Sheet at the end of the first quarter. Unlike the other requirements above (a-k), the Budgeted Balance Sheet submitted should ONLY be the one at the end of the first quarter of the 2022 (no need for monthly information in this case). All hand-in materials must be computer generated (spreadsheets for your budgets and word processors for other write-ups). In the presentation of your work to management, draw management's attention to any highlights of your report that you think they should be aware of. 1 Manju Paints(MAPS) Sales Budget For the First Quarter January February 10000 12000 $12 $12 $120,000 $144,000 Sales in Units Selling Price per unit Total Sales March 13000 $12 $156,000 Quarter 35000 $12 $420,000 2 Manju Paints(MAPS) Production Budget For the First Quarter January February March Expected Unit Sales 10000 12000 13000 Add: Desired Ending Finished Goods Inventory 1200 1300 1300 Total Units Required 11200 13300 14300 Less: Beginning Inventory 400 1200 1300 Units to be Produced 10800 12100 13000 Quarter 35000 3800 38800 2900 35900 Manju Paints Direct materials Purchase Budget For the First Quarter 3 April 10800 1.2 June 13000 1.2 Production unit Units of raw material needed per unit of Finished Goods Units of Raw materials needed to meet Production Add: Desired ending inventory Total Raw material needed Less: Beginning Inventory Units of Raw Materials to be purchased Cost per unit of Raw materials Cost of Raw materials Purchased 12960 1452 14412 1000 13412 $0.80 $10,730 May 12100 1.2 14520 1560 16080 1452 14628 $0.80 $11,702 15600 1524 17124 1560 15564 $0.92 $14,319 Quarter 35900 1.2 43080 4536 47616 4012 43604 $36,751 Manju Paints Direct Labor Budget For the First Quarter 4 June 13000 0.25 Production units Labor hours per unit Total Labor hours Labor Cost per hour Total Direct Labor Cost April 10800 0.25 2700 $12.00 $32,400 May 12100 0.25 3025 $12.00 $36,300 Quarter 35900 0.25 8975 3250 $13.80 $44,850 $113,550 A B C D E F 1 2 3 4 5 6 7 8 Quarter 35900 0.20 March 13000 0.20 2600 $2.250 $5,850 7180 9 $12,720 10 11 12 $13,000 $18,850 $35,900 $48,620 Manju Paints Manufacturing overhead Budget January February Required production in units 10800 12100 Machine hour per (1260) 0.20 0.20 Total Machine hours 2160 2420 Variable MOH rate $1.500 $1.500 Variable MOH costs $3,240 $3,630 Fixed MOH Costs (Production Units x $1) $10,800 $12, 100 Total MOH costs $14,040 $15.730 Manju Paints Cost of Goods Manufactured Budget January February Direct Materials Raw Material Inventory Beginning $800 $1,162 Add: Raw Material Purchases $10,730 $11,702 Raw Material available for production $11,530 $12,864 Less: Raw Material Inventory ending $1,162 $1,248 Direct Material Used $10,368 $11,616 Direct labor $32,400 $36,300 Manufacturing overhead $14,040 $15,730 March Quarter 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 $1,248 $14,319 $15,567 $1,402 $14, 165 $44,850 $18,850 $800 $36,751 $37,551 $1,402 $36,149 $1,13,550 $48,620 $77,865 $0 $77,865 $0 $77,865 13000 $5.990 $1,98,319 $0 $1,98,319 $0 $1,98,319 889 88 898 839 8 a AAA 888988881988NSARONNO TR= OVO AWN Total Manufacturing costs $56,808 $63,646 Add: Work in process Inventory Beginning $0 $0 Total cost of Work in process $56,808 $63,646 Less: Work in process Inventory Ending $0 $0 Cost of goods Manufactured $56,808 $63,646 No.of units 10800 12100 Manufacturing cost per unit $5.260 $5.260 Manju Paints Finished Goods Sold Budget January Eebruary Finished Goods Beginning $2,104 $6,312 (+)Cost of goods Manufactured $56,808 $63,646 (- Cost of Goods sold $52,600 $63.120 Finished Goods Ending $6,312 $6,838 March $6,838 $77,865 $76,916 $7,787 Quarter $2,104 $1,98,319 $1,92,636 $7,787 Manju Paints Finished Goods Sold Budget (In Units) January February 400 1200 10800 12100 1200 1300 10000 12000 400 1200 9600 10800 Finished Goods Beginning (+)units Manufactured (-) Finished Goods Ending Goods sold From Beginning Inventory From Manufactured 46 47 48 49 March 1300 13000 1300 13000 1300 11700 Puarter 400 35900 1300 35000 March Puarter 54 Manju Paints Cost of Goods Sold Budget January Eebruary Goods sold From Beginning Inventory 400 1200 Cost of above units 5.26 $5.260 Cost of Goods sold from Beg Inve 2104 $6,312.04 55 1300 $5.260 $6,837.96 $15,254.00 0 Goods sold From Manufactured during period Cost per unit Cost of Goods sold from Goods m Cost of Goods Sold 9600 $5.260 $50,496.36 $52,600.36 10800 $5.260 $56,807.64 $63,119.69 11700 $5.990 $70,078.43 $76,916.39 $1,77,382.43 $1,92,636.43 B D E F February March Quarter 4 2 3 4 5 6 7 Required production in units Machine hour per (12/60) Total Machine hours Variable MOH rate Variable MOH costs Fixed MOH Costs (Production Units x $1 ) Total MOH costs 10800 = 12/60 -C4C5 1.5 C Manufacturing overhead Budget January 12100 = 12/60 -D4 DS 1.5 =D6*D7 13000 = 12/60 =E40ES 2.25 -E6E7 =SUMC4:54 = 12/60 =F4F5 8 -C6C7 =SUMC8E8) 9 10 =C41 -C8+c9 =D41 =D8+D9 =E41 =E8+E9 =SUMC9E9 =F8+F9 Manju Paints Cost of Goods Manufactured Budget January February March Quarter 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Direct Materials Raw Material Inventory Beginning Add: Raw Material Purchases Raw Material available for production Less: Raw Material Inventory ending Direct Material Used Direct labor Manufacturing overhead -1000*0.8 10730 I=C16+C17 =1452*0,8 =C18-019 32400 -C10 -C19 11702 =D16017 -1560-0.8 D18-019 36300 -D10 -D19 14319 -E16+E17 = 1524-0.92 =E18-E19 44850 =E10 -C16 -C17-D174E17 =F16-F17 -E19 =F18-F19 =C21-D21+E21 -C22-D22-E22 Total Manufacturing costs Add: Work in process Inventory Beginning Total cost of Work in process Less: Work in process Inventory Ending Cost of goods Manufactured No.of units Manufacturing cost per unit -C20+C21-C22 10 =C24+C25 lo =C26-C27 10800 -C28/C29 =D20-021D22 lo =D24+D25 0 =D26-D27 =E20-E21-E22 10 =E24-E25 0 -E26-E27 13000 I-E28/E29 -F20-F21+F22 0 =F24-F25 0 =F26-F27 12100 |-D28/D29 March 32 33 34 35 36 37 38 Finished Goods Beginning (+) Cost of goods Manufactured (-Cost of Goods sold Finished Goods Ending =D38 =E28 76916 =E35+E36-E37 Quarter =C35 =F28 =C37-D37+E37 =F35+F36-F37 Manju Paints Finished Goods Sold Budget January February -400*5.26 =C38 =C28 =D28 52600 63120 I=C35+C36-C37 =D35-D36-D37 Manju Paints Finished Goods Sold Budget (In Units) January February 400 =C45 10800 12100 1200 1300 =C43+C44-C45 =D43-144-145 =C43 =D43 =C46-C47 =D46-D47 March Finished Goods Beginning (+)units Manufactured (-)Finished Goods Ending Goods sold From Beginning Inventory From Manufactured =D45 13000 1300 -E43 E44-E45 =E43 =E46-E47 Quarter 400 -C44-044+E44 1300 -F43-F44-F45 40 41 42 43 44 45 46 47 48 43 50 51 52 53 54 55 56 57 58 59 60 61 62 Manju Paints Cost of Goods Sold Budget January February March Quarter Goods sold From Beginning Inventory Cost of above units Cost of Goods sold from Beg Inventory 400 5.26 -C54*055 1200 =C30 - D540D55 1300 =D30 -E54E55 CS6 D56+E56 =F53+F54-F58 Goods sold From Manufactured during period Cost per unit Cost of Goods sold from Goods mfd Cost of Goods Sold 9600 I=C30 =C59*C60 -C56+C61 10800 =D30 =D59D60 =D56 D61 11700 =E30 =E59 E60 =E56+E61 =C61-061+E61 =F56+F61