help with 4 and 5 please explain
For the Quarter Ended March 31 Month March January 3460 February 9870 Quarter 27870 9540 3 3 3 3 25380 28620 83610 29610 5724 5922 5376 5376 Units to be produced Multiply by: Quantity (pounds) of DM needed per unit Quantity (pounds) needed for production Plus: Desired ending inventory of DM Total quantity (pounds) needed Less: Beginning inventory of DM Quantity (pounds) to purchase Multiply by: Cost per pound 31302 35334 33996 88986 5076 5076 5922 5724 26226 29412 28272 83910 2 2 2 52452 58824 56544 167820 Total cost of DM purchases Requirements. Prepes cash payments budget for the direct material purth from Requirement (Une the accountable andet December 1 operatore property in the a whole Dalton Manufacturing Cash Payments for Direct Materiale udost For the Quarter Ended March 31 Month January February March Quarte 20% of Our er oft mort Requirements. Prepare a cash payments budget for direct to Dution Manting Cash Pay for Direct Labor Budget For the Quarter Ended March Month Juary February Total cost of director March Quarter ry of dir ree ema X labor ho k is perfc Current Assets as of December 31 (prior year): gov xpenses, aid in the Dalton Mar sh expendi Cash $ 4,600 Accounts receivable, net $ 52,000 factu Inventory .... $ 15,200 for the Property, plant, and equipment, net 120,000 for $9 Accounts payable 43,000 are b Capital stock 125,500 Retained earnings $ 23,100 Suildir es de g has Print Done pany erest ance in increments of $1,000 if it has excess funds at the end of the Anatar The # the honth. All o 1,700 for the has a line o outstanding hpany would More Info a. Actual sales in December were $71,000. Selling price per unit is projected to remain stable at $12 per unit throughout the budget period. Sales for the first five months of the upcoming year are budgeted to be as follows: January $ 99,600 February $ 118,800 March $ 115,200 April $ 108,000 May $ 103,200 b.Sales are 35% cash and 65% credit. All credit sales are collected in the month following the sale. c.Dalton Manufacturing has a policy that states that each month's ending inventory of finished goods should be 10% of the following month's sales (in units). 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 following 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 production needs. 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 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: January 3,807 February 4.442 March 4.293 1. Monthly manufacturing overhead costs are $5,500 for factory rent, $2,900 for other fixed manufacturing expenses, and $1.10 per unit for variable manufacturing overhead. No depreciation is included in those figures. All expenses are paid in the month in which they are incurred g.Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Dalton Manufacturing will purchase equipment for $5,000 (cash), while February's cash expenditure will be $12,200 and March's cash expenditure will be Essen ca Print Done .. c.Dalton Manufacturing has a policy that states that each month's ending inventory of finished goods should be 10% of the following month's sales (in units) 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 following 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 production needs. 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 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: January $ 3,807 February $ 4,442 March 4,293 1. Monthly manufacturing overhead costs are $5,500 for factory rent, $2,900 for other fixed manufacturing expenses, and $1.10 per unit for variable manufacturing overhead. No depreciation is included in these figures. All expenses are paid in the month in which they are incurred g.Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Dalton Manufacturing wil purchase equipment for $5,000 (cash), while February's cash expenditure will be $12,200 and March's cash expenditure 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. All operating expenses are paid in the month in which they are incurred. No depreciation is included in these figures. 1. Depreciation on the building and equipment for the general and administrative offices is budgeted to be $4.700 for the entire quarter, which includes depreciation on new acquisitions. J.Dalton Manufacturing has a policy that the ending cash balance in each month must be at least 54,000. It has a line of credit with 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 $125,000. The interest rate on these loans is 1% per month simple interest (not compounded). The company would pay 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 $10,000 cash at the end of February in estimated taxes. 90 n Ha ar nca Print Done
