Answered step by step
Verified Expert Solution
Question
1 Approved Answer
i also uploaded the info of last picture as it is not clear, please help me to solve the ques Metal Parts Inc. Master Budget
i also uploaded the info of last picture as it is not clear, please help me to solve the ques Metal Parts Inc. Master Budget Student Name: Stundet Number: Data Input Area Selling Price per Unit DLH per Unit % of next months sales for FG Inventory Pounds of Metal per Unit Cost of one pound of Metal Cost per DLR Variable MOH MOH - Fixed Variable S/A per unit Fixed S/A per month Minimum Cash Balance Interest Rate on Line of Credit Monthly Depreciation Month of Next month Month After Accounts Payable payment pattern Wages payable payment pattern Customer collections payment pattern Sales Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 Total Jan Feb Mar Sales (Units) Selling Price per Unit Sales Production Budget Sales (Units) Desired Ending Inventory Less: Beginning Inventory Production Requirements Schedule of Cash Collections Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 Total Month of Sale Prior Month Two Months prior Total Collections DM Requirements Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 Total Production Requirements (Units) Pounds Required Add desired Ending Inventory Total Required Less Beginning DM to be purchased Cash Payments budget for RM DM to be purchased Cost per pound Total Cost of DM Payments in month of purchase Month after month of purchase Total Payments on DM Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 Total DL Requirements Production requirements (units) DLH per unit DLH required Cash Payments budget for DL DLH Required Cost per DLH Total Cost Amount paid in month earned Amount paid in next month Total Cash disbursement for DL MOH Budget Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 Total DLH Var MOH per DLH Varialbe MOH Fixed MOH Total MOH Expense Less: Depreciation Cash expenditure of MOH Sales and Administration Budget Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 Total Sales (Units) S/A per unit sold Variable S/A Fixed S/A Total S/A Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 Total Cash Budget Beginning Balance Collections Total Available Disbursements DM DL MOH S/A Capital Dividends Total Disbursements Balance before financing Borrowing Repayments Loan Balance Total Interest Ending Balance PDOH Cost per Unit of production Quantity Price Total Units Cost per Unit Total DM DL MOH Cost per Unit Income Statement 2024 Balance Sheet December 2024 Decemer 2023 Y/Y Change Sales Cash 2,000,000 Cogs Accounts Rec 162,300 Gross Margin RM Inventory 62,160 FG Inventory 67,839.14 S&A Land 4,000,000 Bad Debt Equipment 6,000,000 Operating Profit Acc. Dep'n -2,240,000 Total Assets 10,052,299 Interest Exp Net Income Accounts Pay 25,200 Wages Pay 12,075 Bank Line of Credit - Total Liabilities 37,275 Common Shares 5,000,000 Retained Earnings 5,015,024 Total Equity 10,015,024 Total Liab & Equity 10,052,299 Master Budget Assignment Metal Parts Inc. is preparing its monthly budget for 2024. The following estimates and information are available. - They have 5,920 pounds of metal already in inventory. To prepare for supply disruptions of metal, the company likes to keep monthly ending inventory of metal high enough to meet the next two month's production requirements. In practice, their attempts at this might not always work out. - Direct labour costs \$23 per hour. - Accounts payable are paid 60% in the month of purchase and 40% in the following month. - Each pound of metal costs $10.50 - In December 2023, 6000 pounds of metal were purchased and 1,050 hours of Direct Labour worked. - Sales are estimated as follows: - Metal Parts Inc, keeps a minimum amount of the following: Cash A minimum of $2.000.000 Finished units Ending inventory cqual to 25% of next meath's sales requinemento - Inventory of finished units from December 2023 is equal to the targeted inventory policy. - All sales are on account. - Selling and Administration expenses are $8 per unit and $40,000 per month. There is no depreciation included in this figure. - Dividends of $500,000 will be declared in December. - Each unit requires 5 hours of direct labour and 16 pounds of metal to make. - Customer collections are received 45% in the month of sale, 40% in the next month, and 13% in the second month following the sale. No further collections are received. - The company uses the absorption method of costing 40% in the next month, and 13% in the second month following the sale. No further collections are received. - The company uses the absorption method of costing finished goods inventory and cost of goods sold. The allocate manufacturing overhead on the basis of direct labour hours. - Due to payroll processing times, half of the wages earned by workers is paid in the month of production, and the other half is paid in the following month. - Metal Parts Inc. has a very flexible work force that allows them to scale up or down without cost each month. - The selling price per unit is $1,500 - Overhead is $500,000 per month plus $2 per direct labour hour. Overhead costs are all paid in the month they occur, and there is $100,000 per month in depreciation included. - The balance sheet as at December 31, 2023 is below: - $750,000 of the equipment will be sold in March. This will have no effect on monthly depreciation because it was no longer a depreciable asset. - $750,000 of the equipment will be sold in March. This will have no effect on monthly depreciation because it was no longer a depreciable asset. - Another $400,000 of equipment will be purchased in June and will not be in service until 2025. - The company has a line of credit at the bank for up to $10 million at an interest rate of 4%. Borrowing happens on the first day of the month and repayments are made, when available, at the end of each month. Interest is calculated and deducted from the bank account at the end of each month based on the loan balance outstanding. - Since the interest deducted from the bank account, it is ok to allow the ending bank balance to be below the minimum by the amount of interest expense in the month. For example, if interest expense on the line of credit is $5,000 in a month, the ending balance can be left as $1,995,000 after the interest is deducted. That is close enough to the minimum for our purposes. Required: Using the Excel template provided, complete the monthly master budget including monthly cash projections, with year-end balance sheet and income statement. A template has been provided for you to work with. All formulas should be linked to the data input area or other cells. Direct input of numbers in the body of the document should be avoided. Note: You must use the Excel file provided. Feel free to work together, but keep your work separate and submit only your own work. Late files are not accepted for any reason. Master Budget Assignment Metal Parts Inc. is preparing its monthly budget for 2024. The following estimates and information are available. - They have 5,920 pounds of metal already in inventory. To prepare for supply disruptions of metal, the company likes to keep monthly ending inventory of metal high enough to meet the next two month's production requirements. In practice, their attempts at this might not always work out. - Direct labour costs \$23 per hour. - Accounts payable are paid 60% in the month of purchase and 40% in the following month. - Each pound of metal costs $10.50 - In December 2023, 6000 pounds of metal were purchased and 1,050 hours of Direct Labour worked. - Sales are estimated as follows: - Metal Parts Inc, keeps a minimum amount of the following: Cash A minimum of $2.000.000 Finished units Ending inventory cqual to 25% of next meath's sales requinemento - Inventory of finished units from December 2023 is equal to the targeted inventory policy. - All sales are on account. - Selling and Administration expenses are $8 per unit and $40,000 per month. There is no depreciation included in this figure. - Dividends of $500,000 will be declared in December. - Each unit requires 5 hours of direct labour and 16 pounds of metal to make. - Customer collections are received 45% in the month of sale, 40% in the next month, and 13% in the second month following the sale. No further collections are received. - The company uses the absorption method of costing 40% in the next month, and 13% in the second month following the sale. No further collections are received. - The company uses the absorption method of costing finished goods inventory and cost of goods sold. The allocate manufacturing overhead on the basis of direct labour hours. - Due to payroll processing times, half of the wages earned by workers is paid in the month of production, and the other half is paid in the following month. - Metal Parts Inc. has a very flexible work force that allows them to scale up or down without cost each month. - The selling price per unit is $1,500 - Overhead is $500,000 per month plus $2 per direct labour hour. Overhead costs are all paid in the month they occur, and there is $100,000 per month in depreciation included. - The balance sheet as at December 31, 2023 is below: - $750,000 of the equipment will be sold in March. This will have no effect on monthly depreciation because it was no longer a depreciable asset. - $750,000 of the equipment will be sold in March. This will have no effect on monthly depreciation because it was no longer a depreciable asset. - Another $400,000 of equipment will be purchased in June and will not be in service until 2025. - The company has a line of credit at the bank for up to $10 million at an interest rate of 4%. Borrowing happens on the first day of the month and repayments are made, when available, at the end of each month. Interest is calculated and deducted from the bank account at the end of each month based on the loan balance outstanding. - Since the interest deducted from the bank account, it is ok to allow the ending bank balance to be below the minimum by the amount of interest expense in the month. For example, if interest expense on the line of credit is $5,000 in a month, the ending balance can be left as $1,995,000 after the interest is deducted. That is close enough to the minimum for our purposes. Required: Using the Excel template provided, complete the monthly master budget including monthly cash projections, with year-end balance sheet and income statement. A template has been provided for you to work with. All formulas should be linked to the data input area or other cells. Direct input of numbers in the body of the document should be avoided. Note: You must use the Excel file provided. Feel free to work together, but keep your work separate and submit only your own work. Late files are not accepted for any reason
Metal Parts Inc. Master Budget Student Name:
Stundet Number:
Data Input Area
Selling Price per Unit
DLH per Unit
% of next months sales for FG Inventory
Pounds of Metal per Unit
Cost of one pound of Metal
Cost per DLR
Variable MOH
MOH - Fixed
Variable S/A per unit
Fixed S/A per month
Minimum Cash Balance
Interest Rate on Line of Credit
Monthly Depreciation
Month of Next month Month After
Accounts Payable payment pattern
Wages payable payment pattern
Customer collections payment pattern
Sales
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 Total Jan Feb Mar
Sales (Units)
Selling Price per Unit
Sales
Production Budget
Sales (Units)
Desired Ending Inventory
Less: Beginning Inventory
Production Requirements
Schedule of Cash Collections Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 Total
Month of Sale
Prior Month
Two Months prior
Total Collections
DM Requirements Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 Total
Production Requirements (Units)
Pounds Required
Add desired Ending Inventory
Total Required
Less Beginning
DM to be purchased
Cash Payments budget for RM
DM to be purchased
Cost per pound
Total Cost of DM
Payments in month of purchase
Month after month of purchase
Total Payments on DM
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 Total
DL Requirements
Production requirements (units)
DLH per unit
DLH required
Cash Payments budget for DL
DLH Required
Cost per DLH
Total Cost
Amount paid in month earned
Amount paid in next month
Total Cash disbursement for DL
MOH Budget Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 Total
DLH
Var MOH per DLH
Varialbe MOH
Fixed MOH
Total MOH Expense
Less: Depreciation
Cash expenditure of MOH
Sales and Administration Budget Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 Total
Sales (Units)
S/A per unit sold
Variable S/A
Fixed S/A
Total S/A
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024 Total
Cash Budget
Beginning Balance
Collections
Total Available
Disbursements
DM
DL
MOH
S/A
Capital
Dividends
Total Disbursements
Balance before financing
Borrowing
Repayments
Loan Balance Total
Interest
Ending Balance
PDOH
Cost per Unit of production Quantity Price Total Units Cost per Unit Total
DM
DL
MOH
Cost per Unit
Income Statement 2024 Balance Sheet December 2024 Decemer 2023 Y/Y Change
Sales Cash 2,000,000
Cogs Accounts Rec 162,300
Gross Margin RM Inventory 62,160
FG Inventory 67,839.14
S&A Land 4,000,000
Bad Debt Equipment 6,000,000
Operating Profit Acc. Dep'n -2,240,000
Total Assets 10,052,299
Interest Exp
Net Income
Accounts Pay 25,200
Wages Pay 12,075
Bank Line of Credit -
Total Liabilities 37,275
Common Shares 5,000,000
Retained Earnings 5,015,024
Total Equity 10,015,024
Total Liab & Equity 10,052,299
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started