Husker Corporation is a manufacturing company that produces one product. The

Corporation is working on their $1$st 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 $$9\mathrm{.}50$ per hour, and one unit of direct materials costs $$2\mathrm{.}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\mathrm{.}50/$unit $($note this is based on

estimates for the entire year$).$

g$.$ 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.

i$.$ Variable selling and administrative expenses are budgeted at $$1\mathrm{.}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\mathrm{.}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\mathrm{.}00.$

l$.$ 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.$