here is the question

ON YOUR CANVAS TIMELINE FOR CHAPTER 20 YOU WILL SEE AN ITEM MARKED "QUIZ 3 & 4 - 50 POINTS 11/10 - 11/13/21" WHEN YOU OPEN THIS ITEM YOU WILL SEE 13 PAGES OF BUDGET INFORMATION FOR ROYAL COMPANY (WATCH THE DATES). THIS BUDGET IS FOR THE QUARTER ENDED JUNE 30. FROM THE INFORMATION PROVIDED YOU ARE TO PREPARE A BUDGETED INCOME STATEMENT FOR THE QUARTER ENDED JUNE 30 AND A BUDGETED BALANCE SHEET AS OF JUNE 30.

BOTH OF THESE STATEMENTS ARE TO BE PREPARED IN PROPER FORM. THE STATEMENTS ARE TO BE UPLOADED IN XLS, DOC OR PDF FORMAT ONLY. YOU HAVE ABOUT FOUR DAYS TO COMPLETE AND SUBMIT THIS QUIZ NO LATER THAN 11:59PM, 11/13/21. THIS QUIZ WILL REPRESENT QUIZZES 3 & 4 AND IS WORTH 50 POINTS.

and here is what was given.

please help me thank you.

Royal Company is preparing budgets for the second quarter ending June 30. Budgeted sales of the companys only product for the next five months are: April ...... 20,000 units May ....... 50,000 units June ...... 30,000 units July ....... 25,000 units August ... 15,000 units The selling price is $10 per unit. The following elements of the master budget will be prepared in this example: 1. Sales budget (with a schedule of expected cash collections). 2. Production budget. 3. Direct materials budget (with a schedule of expected cash disbursements for materials). 4. Direct labor budget. 5. Manufacturing overhead budget. 6. Ending finished goods inventory budget. 7. Selling and administrative expense budget. 8. Cash budget. 9. Budgeted income statement. 10. Budgeted balance sheet.

SALES BUDGET April May June Quarter Budgeted sales (units) ... 20,000 50,000 30,000 100,000 Selling price per unit ...... $10 $10 $10 $10 Total sales .................... $200,000 $500,000 $300,000 $1,000,000 SCHEDULE OF EXPECTED CASH COLLECTIONS Additional data: All sales are on account. The company collects 70% of these credit sales in the month of the sale; 25% are collected in the month following sale; and the remaining 5% are uncollectible. The accounts receivable balance on March 31 was $30,000. All of this balance was collectible. April May June Quarter Accounts receivable beginning balance .......... $ 30,000 $ 30,000 April sales 70% $200,000 ........... 140,000 140,000 25% $200,000 ........... $ 50,000 50,000 May sales 70% $500,000 ........... 350,000 350,000 25% $500,000 ........... $125,000 125,000 June sales 70% $300,000 ........... 210,000 210,000 Total cash collections ........ $170,000 $400,000 $335,000 $905,000 25% of the $300,000 will be your 6/30 AR balance.

PRODUCTION BUDGET Additional data: The company desires to have inventory on hand at the end of each month equal to 20% of the following months budgeted unit sales. On March 31, 4,000 units were on hand. April May June July Budgeted sales ...................... 20,000 50,000 30,000 25,000 Add desired ending inventory .. 10,000 6,000 5,000 3,000* Total needs ............................ 30,000 56,000 35,000 28,000 Less beginning inventory ......... 4,000 10,000 6,000 5,000 Required production ............... 26,000 46,000 29,000 23,000 * Budgeted sales in August = 15,000 units. Desired ending inventory in July = 15,000 units 20% = 3,000 units. 6/30 inventory of finished goods is the 5,000 units

DIRECT MATERIALS BUDGET Additional data: 5 pounds of material are required per unit of product. Management desires to have materials on hand at the end of each month equal to 10% of the following months production needs. The beginning materials inventory was 13,000 pounds. The material costs $0.40 per pound. April May June Quarter Required production in units .... 26,000 46,000 29,000 101,000 Raw materials per unit (pounds) 5 5 5 5 Production needs (pounds) ....... 130,000 230,000 145,000 505,000 Add desired ending inventory (pounds)* ............................. 23,000 14,500 11,500 11,500 Total needs (pounds) ................ 153,000 244,500 156,500 516,500 Less beginning inventory (pounds) ............................... 13,000 23,000 14,500 13,000 Raw materials to be purchased (pounds) ............................... 140,000 221,500 142,000 503,500 Cost of raw materials to be purchased at $0.40 per pound $56,000 $88,600 $56,800 $201,400 * For June: 23,000 units produced in July 5 pounds per unit = 115,000 pounds; 115,000 pounds 10% = 11,500 pounds June 30 raw materials inventory 11,500 pounds

SCHEDULE OF EXPECTED CASH DISBURSEMENTS FOR MATERIAL Additional data: Half of a months purchases are paid for in the month of purchase; the other half is paid for in the following month. No discounts are given for early payment. The accounts payable balance on March 31 was $12,000. April May June Quarter Accounts payable beginning balance ........................... $12,000 $ 12,000 April purchases: 50% $56,000 ............... 28,000 28,000 50% $56,000 ............... $28,000 28,000 May purchases: 50% $88,600 ............... 44,300 44,300 50% $88,600 ............... $44,300 44,300 June purchases: 50% $56,800 ............... 28,400 28,400 Total cash disbursements for materials .................... $40,000 $72,300 $72,700 $185,000 The June 30 AP will be the other half of the $56,800 ($28,400).

DIRECT LABOR BUDGET Additional data: Each unit produced requires 0.05 hour of direct labor. Each hour of direct labor costs the company $10. Management fully adjusts the workforce to the workload each month. April May June Quarter Required production ........ 26,000 46,000 29,000 101,000 Direct labor-hours per unit 0.05 0.05 0.05 0.05 Total direct laborhours needed .......................... 1,300 2,300 1,450 5,050 Direct labor cost per hour . $10 $10 $10 $10 Total direct labor cost ....... $13,000 $23,000 $14,500 $50,500 Note: Many companies do not fully adjust their direct labor workforce every month and in such companies direct labor behaves more like a fixed cost, with additional cost if overtime is necessary.

MANUFACTURING OVERHEAD BUDGET Additional data: Variable manufacturing overhead is $20 per direct labor-hour. Fixed manufacturing overhead is $50,500 per month. This includes $20,500 in depreciation, which is not a cash outflow. April May June Quarter Budgeted direct labor-hours .... 1,300 2,300 1,450 5,050 Variable manufacturing overhead rate ...................... $20 $20 $20 $20 Variable manufacturing overhead ............................. $26,000 $46,000 $29,000 $101,000 Fixed manufacturing overhead 50,500 50,500 50,500 151,500 Total manufacturing overhead . 76,500 96,500 79,500 252,500 Less depreciation .................... 20,500 20,500 20,500 61,500 Cash disbursements for manufacturing overhead ....... $56,000 $76,000 $59,000 $191,000

ENDING FINISHED GOODS INVENTORY BUDGET Additional data: Royal Company uses absorption costing in its budgeted income statement and balance sheet. Manufacturing overhead is applied to units of product on the basis of direct labor-hours. The company has no work in process inventories. Computation of absorption unit product cost: Quantity Cost Total Direct materials ............. 5 pounds $0.40 per pound $2.00 Direct labor ................... 0.05 hours $10.00 per hour 0.50 Manufacturing overhead . 0.05 hours $50.00 per hour* 2.50 Unit product cost ........... $5.00 * Total manufacturing overheadPredetermined = overhead rate Total direct labor hours $252,500= = $50.00 per hour5,050 hours Budgeted ending finished goods inventory: Ending finished goods inventory in units ............... 5,000 Unit product cost [see above] .............................. $5 Ending finished goods inventory in dollars ............ $25,000

SELLING AND ADMINISTRATIVE EXPENSE BUDGET Additional data: Variable selling and administrative expenses are $0.50 per unit sold. Fixed selling and administrative expenses are $70,000 per month and include $10,000 in depreciation. April May June Quarter Budgeted sales in units ....... 20,000 50,000 30,000 100,000 Variable selling and administrative expense per unit ............................ $0.50 $0.50 $0.50 $0.50 Variable selling and administrative expense ...... $10,000 $25,000 $15,000 $ 50,000 Fixed selling and administrative expense ...... 70,000 70,000 70,000 210,000 Total selling and administrative expense ...... 80,000 95,000 85,000 260,000 Less depreciation ................. 10,000 10,000 10,000 30,000 Cash disbursements for selling and administrative expenses .......................... $70,000 $85,000 $75,000 $230,000

CASH BUDGET Additional data: 1. A line of credit is available at a local bank that allows the company to borrow up to $75,000. a. All borrowing occurs at the beginning of the month, and all repayments occur at the end of the month. b. The interest rate is 1% per month. c. The company does not have to make any payments until the end of the quarter. 2. Royal Company desires a cash balance of at least $30,000 at the end of each month. The cash balance at the beginning of April was $40,000. 3. Cash dividends of $51,000 are to be paid to stockholders in April. 4. Equipment purchases of $143,700 are scheduled for May and $48,800 for June. This equipment will be installed and tested during the second quarter and will not become operational until July, when depreciation charges will commence.

CASH BUDGET Royal Company Cash Budget For the Quarter Ending June 30 April May June Quarter Cash balance, beginning ....... $ 40,000 $ 30,000 $ 30,000 $ 40,000 Add receipts: Cash collections .................... 170,000 400,000 335,000 905,000 Total cash available .............. 210,000 430,000 365,000 945,000 Less disbursements: Direct materials .................... 40,000 72,300 72,700 185,000 Direct labor ........................... 13,000 23,000 14,500 50,500 Manufacturing overhead .... 56,000 76,000 59,000 191,000 Selling & administrative ....... 70,000 85,000 75,000 230,000 Equipment purchases ......... 0 143,700 48,800 192,500 Dividends .......................... 51,000 0 0 51,000 Total disbursements ............. 230,000 400,000 270,000 900,000 Excess (deficiency) of cash available over disbursements ................... (20,000) 30,000 95,000 45,000 Financing: Borrowings ........................ 50,000 0 0 50,000 Repayments ...................... 0 0 (50,000) (50,000) Interest* ........................... 0 0 ( 1,500) ( 1,500) Total financing ..................... 50,000 0 (51,500) ( 1,500) Cash balance, ending ............ $ 30,000 $ 30,000 $ 43,500 $ 43,500 * $50,000 1% 3 = $1,500.

BEGINNING BALANCE SHEET Royal Company Balance Sheet March 31 Current assets: Cash ............................................... $ 40,000 (a) Accounts receivable.......................... 30,000 (b) Raw materials inventory ................... 5,200 (c) Finished goods inventory .................. 20,000 (d) $ 95,200 Plant and equipment: Land ............................................... 400,000 (e) Buildings and equipment .................. 1,610,000 (f) Accumulated depreciation ................. (750,000) (g) 1,260,000 Total assets ........................................ $1,355,200 Liabilities: Accounts payable ............................. $ 12,000 (h) Stockholders equity: Common stock ................................. $ 200,000 (i) Retained earnings ............................ 1,143,200 (j) 1,343,200 Total liabilities and stockholders equity $1,355,200 (a) Given (f) Given (b) Given (g) Given (c) Given (h) See MATERIALS DISBURSE- MENTS (d) Given (i) Given (e) Given (j) Given