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Homework: 9-57A Score: 0 of 5 pts P9-57A (similar to) KClick the icon to view the data) Read the tequirements the first quarter of the upcoming year. The following data pertain to Dickson Manufacturing's operations: ick the icon to view Data Table r January, Februa Current Assets as of December 31 (prior year) Cash 4.600 S48,000 15,100 120.500 S 43 000 $126,000 S22.600 Accounts receivable, net Inventory roperty plant, and equipment, net March Qu Accounts payable Capital stock Retained earnings Done tsmaMore info period. Sales for the first five months of the upcoming year are budgeted to be as follows $ 99.600 $ 118,800 s 115.200 108,000 $ 103200 on Ma ollect February March April b-Sales are 35% cash and 65% credit All credit sales are collected in the month following the sale C. Dickson Manufacturing has a policy that states that each month's ending nventory of finished goods should be 10% of the following month's sales (in units) should be 20% of next month's production needs 0.05 The direct labor rate per hour is $9 per hour. All direct labor is paid for in the month in which the work is performed The d of each month's direct material purchases 20% are paid for in the month of purchase while the remainder is paid for in the month Three pounds of direct material is needed per unit at $2.00 per pound. Ending inventory of direct materials e.Most of the labor at the manufacturing facility is indirect, but there is some direct labor incurred. The direct labor hours per unit is direct labor total cost for each of the upcoming three months is as follows s and th Print Done g More Info -x d.Of each month's direct material purchase. Three pounds of direct material is needed per unit at $2.00 per pound Ending inventory of direct materials should be 20% of next month's needs facility is indirect, but there is some direct labor incurred The direct labor hours per unit is le of ca e.Most of the labor at the manufact 0.05. The direct labor rate per hour is $9 per hour. All direct labor is paid for in the month in which the work is performed. The direct labor total cost for each of the upcoming three months is as follows: Col S 3,807 4442 $ 4293 February March f. Monthly manufacturing overhead costs are 55,500 for factory rent, $2.900 for other fixed manufacturing expenses, and $1.10 per unit for variable manufacturing overhead. No depreclation is included in these figures. All expenses are paid in the month in which they are incurred the a will purchase equipment for $5,000 (cash), while February's cash expenditure will be $12,200 and March's cash expendilure will be $16,600 h.Operating expenses are budgeted to be $1.25 per unit sold plus fixed operating expenses of $1 800 per month Al operating expenses are paid in the month in which they are incurred No depreciation is included in these figures i. Depreciation on the building and equipment for the general and administrative offices is budgeted to be $5 000 for the entire Print one 1 of 1 (0 complete) More Info ma S 4,442 4,293 March f.Monthly manufacturing overhead costs are $5,500 for factory rent $2,900 for other fxed manufacturing expenses, and $1.10 per unit for variable m they are incurred overhead No depreciation is included in these figures. All expenses are paid in the month in which lect g.Computer equipment for the administrative offices will be purchased in the upcoming quarter.In January Dickson Manufacturing will purchase equipment for $5,000 (cash) whie February's cash expenditure will be $12 200 and March's cash expenditure will be $16,600 expenses are paid in the month in which they are incurred. No depreciation is included in these figures quarter, which includes depreciation on new a h.Operating expenses are budgeted to be $1 25 per unit sold plus fixed operating expenses of $1.800 per month All operating i. Depreciation on the building and e j. Dickson Man t for the general and administrative offices is budgeted to be $5,000 for the entire has a policy that the ending cash balance in each month must be at least $4,000. It has a line of credit with ). The company would pay a local bank The company can borrow in increments of $1,000 at the beginning of each month up to a total outstanding loan balance of$120 000 The interest rate on these loans is 1% per month simple interest (not co down on the line of credit balance in increments of $1,000 if it has excess funds at the end of the quarter. The company would also pay the accumulated interest at the end of the quarter on the funds borrowed during the quarter k,The company's income tax rate is projected to be 30% of operating income less interest expense The company pays S10.000 cash at the end of February in estimated taxes nd Print Done 1 ot 1 (0 e) 1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total. 2. Prepare a production budget. (Hint Unit sales Sales in dollars/Selling price per unit) 3. Prepare a direct materials budget 4. Prepare a cash payments budget for the direct material purchases from Requirement 3 5. Prepare a cash payments budget for direct labor 6. Prepare a cash payments budget for manufacturing overhead costs 7. Prepare a cash payments budget for operating expenses 8. Prepare a combined cash budget 9. Calculate the budgeted manufacturing cost per unit (assume that fixed manufacturing overhead is budgeted to be S0.70 per unit for the year) 10. Prepare a budgeted income statement for the quarter ending March 31: (Hint Cost of goods sold- Budgeted cost of manufacturing one unit x Number of units sold) Print Done Clear All
