Husker Corporation is a manufacturing company that produces one product. Corporation is working on their 1st quarter budget and needs your help. The master budget will be based on the following information: a. Unit sales for the upcoming year are projected as follows: Jan. 250, Feb. 300, March 300, April 350 and May 275. b. The selling price is $30 per unit. C. Husker Corporation's desired ending inventory for finished goods is 20% of next month's sales. d. Each finished good takes 1/2 hour of direct labor and 3 units of direct materials. Employees are paid $9.50 per hour, and one unit of direct materials costs $2.50. e. At the end of each month, Husker Corp. plans to have 30% of the direct materials needed for the next month's production units. f. Fixed overhead totals $42,000 for the entire year. Of this total, $12,000 represents depreciation. All other fixed expenses are paid for in cash in the month incurred. The fixed overhead rate per unit is $4.50/unit (note this is based on estimates for the entire year). 9. Variable overhead is budgeted at $2 per unit produced. All variable overhead expenses are paid for in the month incurred. h. Fixed selling and administrative expenses total $2,400 per year, including $600 depreciation per year 1. Variable selling and administrative expenses are budgeted at $1.50 per unit sold. All selling and administrative expenses are paid for in the month incurred. j. All sales are credit sales. Husker Corp. collects 65% of all sales within the month of the sale and the other 35% is collected in the following month. There are no bad debts. Accounts receivable at year end totaled $2,362.50. k. Husker Corp. buys direct materials on account. Half of the purchases are paid for in the month of acquisition, and the remaining half are paid for in the following month. Accounts payable at the end of last year totaled $1,000.00. 1. In March, $2,000 of equipment will be purchased with cash. m. The beginning cash balance at the beginning of the budgeted year is $12,000. G 37 Overhead Budget Jan. Feb. 38 Dec. March 1st Quarter Units to produce 39 Multiply by: variable overhead 40 (rate =Variable 41 overhead 42 Fixed Overhead Total Overhead 43 Budget 44 45 Requirement #6 46 "Note, be careful here y Dec Operating Expenses Budget Jan. Feb. March 1st Quarter Unit sales 48 Multiply by: variable op. exp. 49 rate So-Variable op exp. "Note, be careful here you + Fixed op. exp 51 -Total op. exp. 52 Budget 53 54 Requirement #7 55 Sales Budgeted Income Statement for the 1st quarter Ist Otr SALES TOTAL 56 ECGS Budgeted manufacturing cost per unit (cell"59")X unit sales(cell "4" Budgeted manufact DM per unit +DL per unit +VOH per unit 57 Gross profit 58 -Op. Exp. + FOH per unit Sheet1 + Note, be careful here you have to sum across all 5 months to Faxed op. exp 51 Total op. exp. 52 Budget 53 54 Requirement a 7 Budgeted Income Statement for the 1st quarter ist CEP SALES TOTAL > Sales 56 CGS Budgeted manufacturing cost per unit cell"9"Xunit les cell "14") Budgeted manufacturing cost per unit DM per unit Cost per +DL per unit Laborato +VOH per unit VOH ratet +FOH per unit FOHL 57 Gross profit 58 EOD. Exo. -Total per unit cost Net Income 59 60 61 Requirement #8 62 63 Beg Cash +Sales collected in 5 current month Cash Budget Jan. Dec Feb. March April "The ending cash balance of one month becomes the beginning +Sales collected from prior month 66 57 LOM Current Month "Remember All is the amount not e DM Prior Month Remember hithe amount not -DL -OH- 70 71 Op. Exp... *Note, make sure the total entered here does not include ***Note, make sure the Op. De total entered here does not in 72 Equipment Sheet B 1 1 Merge Formatting Table Styles Format D G C SALUSTON DL per unit CGS Gross profit Budited account Couper decom Laborrate XDL non perunt Vrat badan units produced FOR venti) O. LUD. -VOH per unit FOH per unit Total per unit cost Net Income Recurement Cash Budget Clan Dee March Be Cash Apr 1 mendicando ponth became the lineuhvace the following month Sales collected in Current Sales collected From pre month embert is one con OM Pro Month Jember A short for acuta OL OH. Op. Exp 22 Equipment at, make sure the Otteluntered here does not include deprecinien That is a non-cash expense Note, make sure the optap total entered here does not include depredanian Matina non-cash exp Ending Cash 71 74 75 -7 8 Op. Exp. +FC =TC Net Income 59 50 51 Requirement #8 52 53 Cash Budget Dec. Jan. Feb. March 1st Quarter "The 64 Beg. Cash Sales collected in 65 current month Sales collected 66 from prior month 67 DM Current Month -DM Prior Month 68 69 -DL 70 -OH *** **NC 71 -Op. Exp. *** ***NC 72 Equipment Ending Cash 73 74 75 76 77 Husker Corporation is a manufacturing company that produces one product. Corporation is working on their 1st quarter budget and needs your help. The master budget will be based on the following information: a. Unit sales for the upcoming year are projected as follows: Jan. 250, Feb. 300, March 300, April 350 and May 275. b. The selling price is $30 per unit. C. Husker Corporation's desired ending inventory for finished goods is 20% of next month's sales. d. Each finished good takes 1/2 hour of direct labor and 3 units of direct materials. Employees are paid $9.50 per hour, and one unit of direct materials costs $2.50. e. At the end of each month, Husker Corp. plans to have 30% of the direct materials needed for the next month's production units. f. Fixed overhead totals $42,000 for the entire year. Of this total, $12,000 represents depreciation. All other fixed expenses are paid for in cash in the month incurred. The fixed overhead rate per unit is $4.50/unit (note this is based on estimates for the entire year). 9. Variable overhead is budgeted at $2 per unit produced. All variable overhead expenses are paid for in the month incurred. h. Fixed selling and administrative expenses total $2,400 per year, including $600 depreciation per year 1. Variable selling and administrative expenses are budgeted at $1.50 per unit sold. All selling and administrative expenses are paid for in the month incurred. j. All sales are credit sales. Husker Corp. collects 65% of all sales within the month of the sale and the other 35% is collected in the following month. There are no bad debts. Accounts receivable at year end totaled $2,362.50. k. Husker Corp. buys direct materials on account. Half of the purchases are paid for in the month of acquisition, and the remaining half are paid for in the following month. Accounts payable at the end of last year totaled $1,000.00. 1. In March, $2,000 of equipment will be purchased with cash. m. The beginning cash balance at the beginning of the budgeted year is $12,000. G 37 Overhead Budget Jan. Feb. 38 Dec. March 1st Quarter Units to produce 39 Multiply by: variable overhead 40 (rate =Variable 41 overhead 42 Fixed Overhead Total Overhead 43 Budget 44 45 Requirement #6 46 "Note, be careful here y Dec Operating Expenses Budget Jan. Feb. March 1st Quarter Unit sales 48 Multiply by: variable op. exp. 49 rate So-Variable op exp. "Note, be careful here you + Fixed op. exp 51 -Total op. exp. 52 Budget 53 54 Requirement #7 55 Sales Budgeted Income Statement for the 1st quarter Ist Otr SALES TOTAL 56 ECGS Budgeted manufacturing cost per unit (cell"59")X unit sales(cell "4" Budgeted manufact DM per unit +DL per unit +VOH per unit 57 Gross profit 58 -Op. Exp. + FOH per unit Sheet1 + Note, be careful here you have to sum across all 5 months to Faxed op. exp 51 Total op. exp. 52 Budget 53 54 Requirement a 7 Budgeted Income Statement for the 1st quarter ist CEP SALES TOTAL > Sales 56 CGS Budgeted manufacturing cost per unit cell"9"Xunit les cell "14") Budgeted manufacturing cost per unit DM per unit Cost per +DL per unit Laborato +VOH per unit VOH ratet +FOH per unit FOHL 57 Gross profit 58 EOD. Exo. -Total per unit cost Net Income 59 60 61 Requirement #8 62 63 Beg Cash +Sales collected in 5 current month Cash Budget Jan. Dec Feb. March April "The ending cash balance of one month becomes the beginning +Sales collected from prior month 66 57 LOM Current Month "Remember All is the amount not e DM Prior Month Remember hithe amount not -DL -OH- 70 71 Op. Exp... *Note, make sure the total entered here does not include ***Note, make sure the Op. De total entered here does not in 72 Equipment Sheet B 1 1 Merge Formatting Table Styles Format D G C SALUSTON DL per unit CGS Gross profit Budited account Couper decom Laborrate XDL non perunt Vrat badan units produced FOR venti) O. LUD. -VOH per unit FOH per unit Total per unit cost Net Income Recurement Cash Budget Clan Dee March Be Cash Apr 1 mendicando ponth became the lineuhvace the following month Sales collected in Current Sales collected From pre month embert is one con OM Pro Month Jember A short for acuta OL OH. Op. Exp 22 Equipment at, make sure the Otteluntered here does not include deprecinien That is a non-cash expense Note, make sure the optap total entered here does not include depredanian Matina non-cash exp Ending Cash 71 74 75 -7 8 Op. Exp. +FC =TC Net Income 59 50 51 Requirement #8 52 53 Cash Budget Dec. Jan. Feb. March 1st Quarter "The 64 Beg. Cash Sales collected in 65 current month Sales collected 66 from prior month 67 DM Current Month -DM Prior Month 68 69 -DL 70 -OH *** **NC 71 -Op. Exp. *** ***NC 72 Equipment Ending Cash 73 74 75 76 77