a.Actual sales in December were $76,000 Selling price per unit is projected to remain stable at $9 per unit throughout the budget period Sales for the first five months of the upcoming year are budgeted to be as follows January $ 80, 100 February ....... $ 89 100 March ...... $ 82,800 April . $ 85,500 May ........$ 77,400 b.Sales are 30% cash and 70% credit All credit sales are collected in the month following the sale c.Dalley Manufacturing has a policy that states that each month's ending inventory of finished goods should be 10% of the following month's sales (in units) d.of each month's direct material purchases, 20% are paid for in the month of purchase, while the remainder is paid for in the month following purchase. Two pounds of direct material is needed per unit at $1.50 per pound. Ending inventory of direct materials should be 20% of next month's production needs e. Most of the labor at the manufacturing facility is indirect, but there is some direct labor incurred The direct labor hours per unit is 0.03 The direct labor rate per hour is $13 per hour All direct labor is paid for in the month in which the work is performed The direct labor total cost for each of the upcoming three months is as follows January 3,510 February ......$ 3,834 March $ 3,600 1. Monthly manufacturing overhead costs are $6,500 for factory rent, $2,900 for other fixed manufacturing expenses, and S1 40 per unit for variable manufacturing overhead No depreciation is included in these figures. All expenses are paid in the month $ THOUT TONOWY Porchase. Two pounds or une terras e per un to per pound Com VETUT UT UTEC materials should be 20% of next month's production needs e. Most of the labor at the manufacturing facility is indirect, but there is some direct labor incurred. The direct labor hours per unit is 0.03 The direct labor rate per hour is $13 per hour All direct labor is paid for in the month in which the work is performed The direct labor total cost for each of the upcoming three months is as follows: January ........$ 3510 February ...$ 3,834 March 3,600 1. Monthly manufacturing overhead costs are $6,500 for factory rent, $2,900 for other fixed manufacturing experises, and $140 per unit for variable manufacturing overhead. No depreciation is included in these figures. All expenses are paid in the month in which they are incurred g.Computer equipment for the administrative offices will be purchased in the upcoming quarter In January, Dalley Manufacturing will purchase equipment for $5,800 (cash), while February's cash expenditure will be $11 600 and March's cash expendituro will be $15,800 h. Operating expenses are budgeted to be $1 20 per unit sold plus fixed operating expenses of 1,400 per month. All operating expenses are paid in the month in which they are incurred No depreciation is included in these figures 1. Depreciation on the building and equipment for the general and administrative offices is budgeted to be S4 600 for the entre quarter, which includes depreciation on new acquisitions J. Dalley Manufacturing has a policy that the ending cash balance in each month must be at least 54,400 it has a line of credit with a local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $160,000 The interest rate on these loans is 1% per month simple interest (not compounded) The company would pay down on the line of credit balance in increments of $1,000 if it has excess funds at the end of the quarter. The company would also pay the accumulated interest at the end of the quarter on the funds borrowed during the quarter k. The company's income tax rate is projected to be 30% of operating incomo loss interest expense. The company pays $10,800 cash at the end of February in estimated taxes, Requirements. Predarea nombrary and Machado Dalley Macturing Cash Collections Budget For the Quarter Ended March 1 M January February March Quarte Data Table Doctor Car 1 5 Acco Inwy Theo Acco cathedon Requirement2.abs Seting posport Dallery Man Production Det For the Game Ended for 15 $ $ 23.00 February March Our Print Done Tiening: 281 Requirement 2. Prepare a production budget (Hint Unit sales - Sales in dollars - Selling price per unit) Dalley Manufacturing, Production Budget For the Quarter Ended March 31 Month February January March Quarter Unit sales Plus Desired ending inventory Total needed Less Beginning inventory Units to produce Requirement 3. Prepare a direct materials budget (Round your answers to the nearest whole dollar) Quarter Requirement 3. Prepare a direct materials budget. (Round your answers to the nearest whole dollar) Dalley Manufacturing Direct Materials Budget For the Quarter Ended March 31 Month January February March Units to be produced Multiply by Quantity (pounds) of DM needed per unit Quantity (pounds) needed for production Plus Desired ending inventory of DM Total quantity (pounds) needed Less Beginning inventory of DM Quantity (pounds) to purchase Multiply by Cost per pound Total cost of DM purchases Requirement 4. Prepare a cash payments budget for the doct mana purchases from Requcomont 3. Use the accounts payable balance st December 31 of peorynar for the pre month payment in January Dailey Manufacturing Cash Payments for Direct Materials Budget For the Quarter Ended March 31 Month January February 2016 of current month OM purchases 009 last monts DM purchases Totalmente March Quarter Requirements. Prepare a cash payments budget for direct labor Dalley Manufacturing Cash Payments for Direct Labor Budget For the Quarter Ended March 31 Mouth January February Total costo deacto March Quarter Requirement 6. Prepare a cash payments budget for manufacturing overhead costs (Round your answers to the nearest whole dollar) Dalley Manufacturing Cash Payments for Manufacturing Overhead Budget For the Quarter Ended March 31 Month January February March Quarter Variablo manufacturing overhead costs Rent (fixed) Other fixed MOH Cash payments for manufacturing overhead Requirement 7. Prepare a cash payments budget for operating expenses (Round your answers to the nearest whole doll Dalley Manufacturing Cash Payments for Operating Expenses Budget For the Quarter Ended March 31 Month January February March Variable operating expenses Fixed operating expenses Cash payments for operating expenses Quarter Requirement 8. Prepare a combined cash budget (If an input field is not used in the table leave the input neid e March Quarter Dalley Manufacturing Combined Cash Budget For the Quarter Ended March 31 January February Beginning cash balance Plus Cash collections Total cash available Less cash payments Direct material purchases Direct labor Manufacturing overhead costs Operating expenses Tax payment Equipment purchases Total cash payments Ending cash balance before financing Financing DHIR NKARA Total cash payments Ending cash balance before financing Financing Plus New borrowings Less Debt repayments Loss Interest payments Total financing Ending cash balance Requirement 9. Calculate the budgeted manufacturing cost per unit (assume that fixed manufacturing overhead is budgeted to be $0.80 per unit for the year) Dalley Manufacturing Budgeted Manufacturing Cost per Unit For the Quarter Ended March 31 Direct matonals cost per unit Direct labor cost per unit Variable manufacturing overhead costs per unit Fixed manufacturing overhead costs per unit Budgeted cost of manufacturing one unit Data Table $ 4.460 52.000 $ Current Assets as of December 31 (prior year) Cash Accounts receivable net Inventory Property, plant, and equipment, net Accounts payable Capital stock $ 15 400 121,500 $ $ $ $ 43,000 127,000 23.400 Retained earnings Print Done 1 3 G Question & This Test: 100 as possible More Info a. Actual sales in December wero $76,000 Selling price per unit is projected to remain stable at $0 per unit throughout the budget period Sales for the first five months of the upcoming year are budgeted to be as follows January $ 80,100 February $89.100 March 582 800 April $85 500 May $77.400 b. Sales are 30% cash and 70% credit. All credit sales ate collected in the month following the sale c. Dalley Manufacturing has a policy that states that each month's ending inventory of finished goods should be 10% of the following month's sales (in units) d. Of each month's direct material purchases, 20% are paid for in the month of purchase, while the remander speed for in the month following purchase. Two pounds of direct material is needed per unit at $150 per pound. Ending wiventory of direct materials should be 20% of next month's production needs e. Most of the labor at the manufacturing facility is indirect, but there is some direct labor incurred. The direct fabor houts per unit Is 003 The direct labor tate per hour is $13 per hour. All direct labor is paid for in the month in which the work is performed The direct labor total cost for each of the upcoming three months is as follows January 3,510 February $ 3,834 March $ 3,600 1. Monthly manufacturing overhead costs are $6,500 for factory rent, $2,900 for other feed manufacturing expenses, and 51 40 per unit for variable manufacturing overhead. No depreciation is included in these figures. Al expenses are paid in the month $ Print Done Batch 2 Question 8 This Test: 100 ots possibie More Info THOOL OWWWPOICHOSE W POLOS OTROS CICE materials should be 20% of next month's production needs e. Most of the labor at the manufacturing facility is indirect, but there is some direct labor incurred. The direct labor hours per unit is 0.03. The direct labor rate per hours $13 per hour. All direct labor is paid for in the month in which the work is performed The direct labor total cost for each of the upcoming three months is as follows January 5 3,510 February S 3.834 March $ 3.600 1. Monthly manufactunng overhead costs are $6,500 for factory tent $2,900 for other food manufacturing expenses, and $140 per unit for variable manufacturing overhead No depreciation is included in these figures Al expenses are part in the month in which they are incurred g.Computer equipment for the administrative offices will be purchased in the upcoming quarter in January, Daley Manufacturing will purchase equipment for $5,800 (cash) while February's cash expenditure will be $11,600 and March's cash expenditure will be $15,800 h. Operating expenses are budgeted to be 51 20 pet unit sold plus faxed operating expenses of $1.400 per month All operating expenses are paid in the month in which they are incurred No depreciation is included in these figures i. Depreciation on the building and equipment for the general and administrative offices is budgeted to be 4600 for the entire quarter, which includes depreciation on new acquisitions J. Dalley Manufacturing has a policy that the ending cash balance in each month must be at least 54.400 It has a line of credit with a local bank The company can borrow in increments of $5000 at the beginning of each month, up to a fotatoutstanding loan balance of $160,000. The interest rate on these loans is 1% per month sample interest (not compounded) The company would pay down on the line of credit balance in increments of S1000 fit has excess funds at the end of the quarter The company would also pay the accumulated interest at the end of the quarter on the funds borowed during the quarter k. The company's income tax rate is projected to be 30% of operating income less interest expense The company par: 510,800 cash at the end of February in estimated taxes Print Done RI
