Home Insert Formulas Data Review View Draw Arial Page Layout 12 www General - - F68 x fe A 1 Lab 7 Template for Chapter 20 2 Master Budget for a Manufacturer 4 Budget Assumptions 5 1. Projected January unit sales 11,000 6 - Assumed month-over-month increase in unit sales: 5% 7 - Selling price per unit: $22 2. Monthly sales will be 25% cash sales and 75% credit sales (collected in the month following the sales). 3. Ending finished goods Inventory should equal 80% of the next month's expected unit sales. 04. Ending raw materials Inventory should equal 50% of the next month's expected raw material needs. 15. The product's manufacturing cost is $12.65 per unit, including: 3- $7.35 per unit for materials (0.5 lbs. $14.70 per b.) All purchases are on credit, and paid the following month. - $3.75 per unit for direct labor (0.25 hour $15 per hour rate) - $1.10 per unit for variable overhead - $0.45 per unit for fixed overhead (consisting entirely of $5,000 per month for depreciation expense) 6. Sales commissions are 10% of sales, and are paid in the month of the sales. 7. The sales manager's monthly salary is $4,000 in January, and $5,000 each month thereafter. 8. Monthly general & administrative expenses include $12,000 in salaries and 0.8% monthly interest on a long-term $200,000 note (due next year) 9. Minimum monthly ending cash balance should be $50,000. If necessary, the company borrows enough cash to reach the minimum. Any borrowed short-term notes require a 1% interest payment at month-end (before any repayments/borrowings). Ifanding cash exceeds the minimum of $50,000, the excess is applied to repay any outstanding short-term note. There are currently no outstanding short-term notes 10. Dividends of $120,000 are declared and paid in February. 11. Equipment purchases of $75,000 are scheduled for March. Required - Prepare the following budget schedules: January 11,000 February 11,550 $22 $254,100 1. Sales Budget Projected Monthly Unit Sales Selling Price Per Unit Total Budgeted Sales March 12,128 $22 $266,805 1st Quarter 34,678 22 $762,905 22 $242,000 March 1st Quarter anuary February Production Budget Ch. 20 Template Lab for Chapter 20 Tentorate - ACC 21412 Home Insert Data Review View . Draw Aria Page Layout 12 Formulas A A wrap Test General $ % - Conditionat 768 x fc 1 Lab Template for Chapter 20 2 Master Budget for a Manufacturer 4 Budget Assumptions 5 1. Projected January unit : 11,000 - Assumed month-over-month increase in unitats 5% 7 - Selling price per unit $22 2. Monthly sales will be 25% cash sales and 75% credit sales collected in the month following the sales 3. Ending finished goods inventory should equal 80% of the next month's expected unit les 10 4. Ending raw materials inventory should equal 50% of the next month's expected material needs 11 5. The product's manufacturing costs $12.65 per unit, including 12 - 57.35 per unit for materials (0.5 lbs. $14.70 per b) A purchases are on credit and paid the following month 13 - $3.75 per unit for direct labor (0.25 hour $15 per hour rate) 14 - $1.10 per unit for variable overhead 15 - $0.45 per unit for fred overhead consisting entirely of $5,000 per month for depreciation expense) 166. Sales commissions are 10% of sales and are paid in the month of the sales 17 7. The sales manager's monthly salary is $4.000 in January, and $5,000 each month thereafter 18 Monthly general administrative penses include $12.000 in salaries and 0.8% monthly interest on a long term $200,000 note (due ned year) 15 . Minimum monthly ending cash balance should be 50.000 necessary, the company borrows enough cash to reach the 20 minimum. Any borrowed short-term os requirea interest payment a month and before any repayments borrowings) Wending cash exceeds 2 the minimum of $50.000, the si l ed to repay any outstanding short-term note. There are currently no outstanding short-term notes 2 10. Dividends of $120.000 are declared and paid in February 11. Equipment purchases of $75.000 we scheduled for March 25 Required. Prepare the following budget schedules 21. Sales Budget 30 Projected Morty Unit Sales Selling PricePerUnit 1 Total Budgeted Sales Jangay Eebuary 11 00011550 March 1st Quarter 12.128 34 878 $22 5266.8053762.905 5242.000 $254.100 12. Production Budget J an Feb March MacBook Air for Chapter 20 ACC 21412 Home Insert Dr Page Layout Formulas Data Review View 1 Th Parte General 2 AA A 13 Wrap Test we O 3 w $ % Cena I : x C 770 x 35 2. Production Budget Marsh fat Quarter 37 Projected Next Month's Unt Sales 38 Targeted Ending Inventory Desired Ending Inventory 40 Current Period's Unit Sales 41 Batimated Units of Production Loss Beginning inventory Targeted Units to be produced January 11 550 BO 9,240 11.000 20 240 February 12,128 80% 9,702 115 21 252 12128 22315 10.187 15 4485 11.8401201212613 1. Dic Material Budget January 11.40 February 2012 March 12 613 38485 6306 Target Use Produced Ma g urament per Unit 50 Matere dedor Production 11 Asid Targeted Ending story 52 Total Reed (s) 5 Loss Beginning inventory 4 Materials to Be Purchased ) 56 Material Price per Pound ST Estimated cost of Direct Materials Purchase 18.232 2,500 20,332 8.400 3153 $95,521 $14.70 590,493 $14.70 377 219 $14.70 5263,233 60 4. Direct Labor Budget January 11.540 0.25 200 2 Targeted Units to Be Produced sa Labor Regurament per Unpours) 4 Total Labor Hours Needed 405 February March 12.012 12.813 0.25 0.25 3003153 Laborat per hour 7 Estimated cost of Direct Labor $15.00 $15.00 $1500 400 404547272 MacBook Air Las 7 fo Chapter 20 Template - ACC 21412) Review View Home Insert Draw Ariel T FOX Page Layout Formulas 12 A A - O-A Data = E 13 Wap Test Marge Coster General $ -% Cacao 70 5. Factory Overhead Budget January 72 Targeted Units to Be Produced 73 Variable Factory Overhead Rate 74 Budgetad Variable Overhead 75 Budget Fed Overhead 7 Budgeted Total Overhead February March 7 & Seling. General & Administrative Expense Budget 81 Total Budgeted Sales 82 Commissions Sales Commissions January February March Quarter * Budget ing Expenses Interest on Long-Term Note Pay * Buded General d e Expenses Total Budgeted Sling. General Admin Expense Budget 7. Schedule of Cash Recept January e ita Marsh It Quarter Total Budgeted Sales Estimated Ending Accounts Rec Cash Race - Cash Sales - Olection of Prior More Recea Estimated Cash to Be Collected $175.000 MacBook Air Lab? for Chapter 20 Template - ACC 21412) Home Insert Draw Page Layout Formules Date Review View O A TUL & 5 - % 9 Cantonal For Call 170 x 10 & Schedule of Cash Payments for Materials 10 Cash Payments for Prior Month's Material Purchases January $83.818 February March ft Quarter 101. Cash Budget January $50,000 February March 110 Beginning Cash Balance 111 Add: Cash Receipts from Customers 112 Total Cash Available 113 Les Cah Payments for 114 - Direct Materials 115 - Direct Labor 116 - Variable Overhead 117 - Sales Commissions 11- Sales Sales 110 - Administrative Salaries 21. Interest on Long-Term Note Payable 122 Interest on Short-Term Note Payable Purchase of Equipment 134 Total Cash Payments 120 Preliminary Cash Balance 127 Borrowing repayments required to maintainimum cash 128 Ending Cash Balance Short-term note balance, End of Month MacBook Air