Hey
Can someone please help me solve this question especially from the last parts thats part 11 all the way to Note G as shown in the question. I did some but pretty sure they have somethings wrong in them.
To prepare a master budget for April, May, and June, management gathers the following information. a. Sales for March total 20,500 units. Budgeted sales in units follow: April, 20,500; May, 19,500; June, 20,000 ; and July, 20,500 . The product's selling price is $24.00 per unit and its total product cost is $19.85 per unit. b. Raw materials inventory consists solely of direct materials that cost $20 per pound. Compuny policy calls for a given month's ending materials inventory to equal 50% of the next month's direct materials requirements. The March 31 raw materials inventory is 4,925 pounds. The budgeted June 30 ending raw materials inventory is 4,000 pounds. Bach finished unit requires 0.50 pound of direct materials. c. Company policy calls for a given month's ending finished goods inventory to equal 80% of the next month's budgeted unit sales. The March 31 finished goods inventory is 16,400 units. d. Each finished unit requires 0.50 hour of direct lator at a rate of $15 per hour. e. The predetermined variable overhead rate is $2.70 per direct labor hour. Depreciution of $20,000 per month is the only fixed factory overhead item. 4. Sales commissions of 8% of sales are paid in the month of the sales. The sales manager's monthly salary is $3,000. g. Monthly general and administrative expenses include $12,000 for administrative salaries and 0.996 monthly interest on the long-term note payuble. h. The company budgets 30% of sales to be for cash and the remaining 70% on credit. Credit sales are collected in full in the month following the sale (no credit sales are collected in the month of sale). Onapter 20 Master Buogets and Planning [continued from previous page] I. All raw materials purchases are on credit, and accounts payable are solely tied to nw materials purchases. Raw materials purchases are fully paid in the next month (none are paid in the month of purchase). j. The minimum ending cash balance for all months is $40,000. If necessary, the company borrows enough cash using a loan to reach the minimum. Loans require an interest payment of 19 at each month-end (before any repayment). If the month-end preliminary cash balance exceods the minimum, the excess will be used to repay any loane. k. Dividends of $10,000 are budgeted to be declared and paid in May. 1. No cash payments for income taxes aro budgeted in the second calendar quarter. Income tax will be assessed at 35% in the quarter and budgeted to be paid in the third calendar quarter. m. Equipment purchases of $100,000 are budgeted for the last day of June. Required Prepare the following budgets for the months of April. May, and June, except as noted below. 1. Sales budget. 8. Schedule of cash receipts. 2. Production budget. 9. Schedule of cash payments for direct miterials. 3. Direct materials budget. 10. Cash budget. 4. Direet labor budget. 11. Budgeted income statement for second quarter (not 5. Factory overhead bodget. monthly). 6. Selling expense budget. 12. Budgeted balance sheet at June 30 . 7. General and administrutive 13 Sumpoty futhit. Items- Part 1-Sales Budget Part 2 - Production Budget Part 3 - Direct Materials Budget Part 4 - Direct Labor Budget Part 5 - Factory Overhead Budget Part 6-Selling Expense Budget Part7-General&AdministrativeBudgetPart8-scheduleofCashReceiptsfromSales1020 Part8-ScheduleofCashReceiptsfromSalesPart9-ScheduleofCashPaymentsforDirectMaterials2020 Part 10-Cash Budget 50 Part 11 - Budgeted Income Statement Part 12-Budgeted Balance Sheet Note A-Accounts Receivable Note B - Raw Materials inventory Note C-Finished Goods Note E-Accumulated Depreciation Note F-Accounts Payable Note G - Budgeted Statement of Retained Earnings Total Points 10 10 10 10 10 10 10 330
