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how to create a master budget? i need help HMN, Inc is preparing budgets for the quarter ending June 30. Information needed for sales budget
how to create a master budget?
HMN, Inc is preparing budgets for the quarter ending June 30. Information needed for sales budget (Quarter): - The selling price is KD 2 per unit. - Budgeted sales for the quarter are 100000 units. - Budgeted sales for the following quarter are 125000 units. Information needed for cash collection budzet (Quarter): - Sales are collected as 70% in the quarter of sales and 30% in the following quarter. - Sales of the last quarter: KD 180000 Information needed for Production budget (Quarter): - Beginning inventory is 5000 units. - The company wishes to keep an ending inventory of 5% of the following quarter's sales. Information needed for Direct Material bud get (Quarter): - 1Kg of direct material are required per unit of product. - Desired ending inventory of direct material for the quarter is 10000 units. - Beginning inventory of direct material is 5000 units. - Material cost is KD0.10 per Kg. Information needed for cash disbursements budget (Quarter): - Purchases of direct material are paid as 60% in the quarter of purchases and 20% in the following quarter. - Purchases of the last quarter: KD 20000 Information needed for Direct Labor budzet (Quarter): - Each unit of product requires 0.1 hours of direct labor. - The labor wage rate is KD 3 per hour. Information needed for Manufacturing Overhead and Selling and administrative budzets [Quarter]: - Indirect labor KD 30000. - Cost of commissions, advertising, and transportation per unit KD 0.2 - Indirect material KD 20000. - Office Rent KD 20000. - Factory Utilities KD 7000. - Factory Rent KD 15000. - Administrative salaries KD 10000 3 of 3 eeded for Cost of Goods Manufactured budget (Quarter): - No beginning and ending Work-In.Process inventory are present. Information needed for Cost Of Goods Sold (Quarter): - Beginning Finished-goods inventory is KD 10130. - Ending Finished-goods inventory KD 40520. Required: Prepare the following budgets for the quarter: 1. Sales Budget. (5 points) 2. Cash collections from sales Budget. (10 points) 3. Production Budget. (10 points) 4. Direct Material Budget. (10 points) 5. Cash disbursements for materials purchases Budget. (10 points) 6. Direct Labor Budget. (5 points) 7. Manufacturing Overhead Budget. (5 points) 8. Selling and Administrative Budget. (5 points) 9. Cost Of Goods Manufactured Budget. (5 points) 10.Cost Of Goods Sold Budget. (5 points) 11.Budgeted income Statement. (5 points) i need help
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