I am working on CTA5 for acct 202, I have the following questions:

1. a.i Schedule of Cash Payments; Manufacturing Overhead (Q1-Tota): Variable MOH, Utilities-Ins-Prop Taxes)

2. a.i Schedule of Cash Payments; Total Cash Payments (before interest)

3. a.e Manufacturing Overhead Budget; DL Hours (Q1-Total), Predetermined OH Allocation rate per DL (total)

4. a.f. Cost of Good sold budget; Calculations for COGS Budget: DM cost per laptop, DL cost per laptop

MOH cost per laptop, Total projected manufacturing cost per laptop.

5. a.f (q1-total); Beg. Inventory, Laptops produced and sold, Total budgeted cost of goods sold

Master Budgets									270
								a.a Sales Budget
As an accounting intern with Nerdzy Computer Co., you have been asked to help out with the budgeting process for this year. As you already know, Nerdzy is currently selling two products, basic and premium laptops, however, they want you to prepare the budgets assuming that only the premium laptop will be produced so that they can compare how the budget would be impacted if they were to eliminate the basic laptop line. Nerdzy Computer Co. is selling all of the computers to retailers, and all sales are on account. Using the balance sheet and additional information below you will need to: a. Prepare Nerdzy's operating budget and cash budget for the year by quarter. Required schedules and budgets include: a. Sales budget b. Production budget c. Direct materials budget d. Direct labor budget e. Manufacturing overhead budget f. Cost of goods sold budget g. Selling and administrative expense budget h. Schedule of cash receipts i. Schedule of cash payments j. Cash budget
Nerdzy Computer Company
Sales Budget
For the Year Ended December 31, 2021
			Q1		Q2		Q3		Q4		Total
	Budgeted laptops to be sold		1,000	*	1,200	1	1,400	1	1,600	1	5,200
	Sales Price per laptop		70	*	70	*	70	*	70	*	70
	Total Sales		$ 70,000	1	$ 84,000	1	$ 98,000	1	$ 112,000	1	$ 364,000
a.b Production Budget
Nerdzy Computer Company
Production Budget
For the Year Ended December 31, 2021
			Q1		Q2		Q3		Q4		Total
	Budgeted laptops to be sold		1,000	*	1,200	1	1,400	1	1,600	1	5,200
	Plus: Desired laptops in ending inventory		480	1	560	1	640	1	720	1	720
	Total laptops needed		1,480	1	1,760	1	2,040	1	2,320	1	7,600
	Less: Laptops in beginning inventory		300	*	480	1	560	1	640	1	300
	Budgeted computers to be produced		1,180	1	1,280	1	1,480	1	1,680	1	5,620
Additional Information							a.c Direct Materials Budget
a.	Budgeted sales are 1,000 laptops for the first quarter and are expected to increase by 200 laptops per quarter. Cash sales are expected to make up 10% of total sales, the remainder will be on account. The expected sales price per computer is $70.	Nerdzy Computer Company
	Direct Materials Budget
	For the Year Ended December 31, 2021
b.	Finished goods inventory on December 31, 2020, consists of 300 computers at $36 each.							Q1		Q2		Q3		Q4		Total
c.	Desired ending finished goods inventory is 40% of the next quarter's sales; first-quarter sales for 2020 are expected to be 1,800 computers; FIFO inventory costing is used.		Budgeted laptops to be produced		1,180	1	1,280	1	1,480	1	1,680	1	5,620
		Direct materials per laptop		2.50	*	2.50	*	2.50	*	2.50	*	2.50
d.	Raw Materials Inventory on December 31, 2020, consists of 750 pieces of the required component used to manufacture the laptops.		Direct materials needed for production		2,950	1	3,200	1	3,700	1	4,200	1	14,050
		Plus: Desired DM in end inventory		1,280	1	1,480	1	1,680	1	1,875	*	1,875
e.	Direct materials requirements are 2.5 pieces of material per computer. The cost of each piece is $4.				Total DM needed		4,230	1	4,680	1	5,380	1	6,075	*	15,925
f.	Desired ending Raw Materials Inventory is 40% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2021, is 750 computer pieces; indirect materials are insignificant and not considered for budgeting purposes.		Less: DM in beg. Inv		750	*	1,280	1	1,480	1	1,680	1	750
		Budgeted purchases of DM		3,480	1	3,400	1	3,900	1	4,395	*	15,175
		DM cost per item		4	*	4	*	4	*	4	*	4
g.	Each computer requires 0.30 hours of direct labor; direct labor costs average $20 per hour.					Budgeted purchases of DM		$ 13,920	1	$ 13,600	1	$ 15,600	1	$ 17,580	*	$ 60,700
h.	Variable manufacturing overhead is $3 per computer.														*		*
i.	Fixed manufacturing overhead includes $6,000 per quarter in depreciation and $10,860 per quarter for other costs, such as utilities, insurance, and property taxes.	a.d Direct Labor Budget
	Nerdzy Computer Company
j.	Fixed selling and administrative expenses include $8,000 per quarter for salaries; $4,800 per quarter for rent; $1,950 per quarter for insurance; and $2,000 per quarter for depreciation.	Direct Labor Budget
	For the Year Ended December 31, 2021
k.	Variable selling and administrative expenses include supplies at 2% of sales.				Q1		Q2		Q3		Q4		Total
l.	Capital expenditures include $25,000 for new manufacturing equipment to be purchased and paid in the first quarter.		Budgeted laptops to be produced		1,180	1	1,280	1	1,480	1	1,680	1	5,620
		Direct Labor hours per laptop		0.30	*	0.30	*	0.30	*	0.30	*	0.30
m.	Cash receipts for sales on account are 70% in the quarter of the sale and 30% in the quarter following the sale; December 31, 2020, Accounts Receivable is received in the first quarter of 2021; uncollectible accounts are considered insignificant and not considered for budgeting purposes.		Direct Labor hours needed for production		354	1	384	1	444	1	504	1	1,686
		Direct Labor cost per hour		20	*	20	*	20	*	20	*	20
		Budgeted direct labor cost		$ 7,080	1	$ 7,680	1	$ 8,880	1	$ 10,080	1	$ 33,720
n.	Direct materials purchases are paid 50% in the quarter purchased and 50% in the following quarter; December 31, 2020, Accounts Payable is paid in the first quarter of 2021.
	a.e Manufacturing Overhead Budget
o.	Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred.	Nerdzy Computer Company
	Manufacturing Overhead Budget
p.	Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred.				For the Year Ended December 31, 2021
q.	Nerdzy desires to maintain a minimum cash balance of $20,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter; principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 12% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter.				Q1		Q2		Q3		Q4		Total
		Budgeted laptops to be produced		1,180	1	1,280	1	1,480	1	1,680	1	5,620
		Variable OH cost per laptop		3	*	3	*	3	*	3	*	3
		Budgeted variable overhead		$ 3,540	1	$ 3,840	1	$ 4,440	1	$ 5,040	1	$ 16,860
									Budgeted Fixed OH
Nerdzy Computer Company				Depreciation		6,000	*	6,000	*	6,000	*	6,000	*	24,000
Balance Sheet				Utilities, Insurance, prop tax		10,860	*	10,860	*	10,860	*	10,860	*	43,440
December 31, 2020				Total budgeted fixed OH		16,860	1	16,860	1	16,860	1	16,860	1	67,440
									Budgeted manufacturing OH costs		20,400	1	20,700	1	21,300	1	21,900	1	84,300
Assets
Current Assets								DL Hours		300	*	360	*	420	*	480	*	1,560
Cash				20,000					Predetermined OH allocation rate per DL hour		*		*		*		*
A/R				30,000
Raw Materials Inventory			3,000				a.f Cost of Goods Sold Budget
Finished Goods Inventory			10,800
Total Current Assets				63,800			Calculations for COGS Budget
Plant Property & Equipment								DM cost per laptop				$ 52,000.0	*
Equipment			168,000					DL Cost per laptop				$ 31,200.0	*
Less: Accumulated Depreciation		(39,000)	129,000				MOH cost per laptop				$ 83,040.0	*
Total Assets				192,800				Total projected manufacturing cost per laptop				$ 166,240	*
Liabilities							Nerdzy Computer Company
Current Liabilities:							Cost of Goods Sold Budget
Accounts Payable				16,000			For the Year Ended December 31, 2021
											Q1		Q2		Q3		Q4		Total
Stockholders' Equity								Beg. Inventory,			*
Common Stock, no par			130,000					Laptops produced & sold			*		*		*		*
Retained Earnings			46,800					Total Budgeted cost of goods sold			*		*		*		*
Total stockholders' equity				176,800
Total Liabilities and Stockholders' Equity			192,800			a.g Selling & Admin Budget
								Nerdzy Computer Company
								Selling & Administrative Expense Budget
								For the Year Ended December 31, 2021
											Q1		Q2		Q3		Q4		Total
									Salaries Expense		$ 8,000	1	$ 8,000	1	$ 8,000	1	$ 8,000	1	$ 32,000
									Rent Expense		4,800	1	4,800	1	4,800	1	4,800	1	19,200
									Insurance Expense		1,950	1	1,950	1	1,950	1	1,950	1	7,800
									Depreciation Expense		2,000	1	2,000	1	2,000	1	2,000	1	8,000
									Supplies Expense		1,400	1	1,680	1	1,960	1	2,240	1	7,280
									Total Budgeted S&A Expense		$ 18,150	1	$ 18,430	1	$ 18,710	1	$ 18,990	1	$ 74,280
								a.h Schedule of Cash Receipts
								Schedule of Cash Receipts from Customers
											Q1		Q2		Q3		Q4		Total
									Total Sales		$ 63,000	*	$ 75,600	*	$ 88,200	*	$ 100,800	*	$ 327,600
											*		*		*		*		*
									Cash Receipts from Customers:
									A/R Balance, December 31 2020			*		1		1		1
									Q1 Cash Sales		-	*		1		1		1
									Q1 Credit Sales, Collected in Q1		44,100	1	18,900	*		1		1
									Q1 Credit Sales, Collected in Q2			1		*		1		1
									Q2 Cash Sales			1	52,920	*	22680	*		1
									Q2 Credit Sales, Collected in Q2			1		*		1		1
									Q2 Credit Sales, Collected in Q3			1		1		*		1
									Q3 Cash Sales			1		1	61,740	*	26460	*
									Q3 Credit Sales, Collected in Q3			1		1		*		1
									Q3 Credit Sales, Collected in Q4			1		1		1		*
									Q4 Cash Sales			1		1		1	70,560	*
									Q4 Credit Sales, Collected in Q4		7000	*	8400	*	9800	*	11,200	*
									Total Cash receipts from customers		$ 51,100	*	$ 80,220	1	$ 94,220	1	$ 108,220	1	$ 333,760
											*								*
								a.i Schedule of Cash Payments
									Schedule of Cash Payments
											Q1		Q2		Q3		Q4		Total
									Total DM Purchases		$ 13,920	1	$ 13,600	1	$ 15,600	1	$ 17,580	*	$ 60,700
																	*		*
								Cash Payments		Q1		Q2		Q3		Q4		Total
									Direct Materials:
									Accounts Payable Balance, 12/31/2020		$ -	*		1		1		1
									Q1 purchases, paid in Q1		6,960	1		1		1		1
									Q1 purchases, paid in Q2			1	6,960	1		1		1
									Q2 purchases, paid in Q2			1	6,800	1		1		1
									Q2 purchases, paid in Q3			1		1	6,800	1		1
									Q3 Purchases paid in Q3			1		1	7,800	1		1
									Q3 Purchases paid in Q4			1		1		1	7,800	1
									Q4 Purchases, paid in Q4			1		1		1	8,790	*
									Total Payments for DM		6,960	*	13,760	1	14,600	1	16,590	*	51,910
											*						*		*
									Direct Labor:
									Total Payments for DL		7,080	1	7,680	1	8,880	1	10,080	1	33,720
									Manufacturing Overhead:
									Variable MOH		3,000	*	3,600	*	4,200	*	4,800	*	15,600
									Utilities, Ins, Prop Taxes		16,860	*	16,860	*	16,860	*	16,860	*	67,440
									Total payments for MOH		19,860	*	20,460	*	21,060	*	21,660	*	83,040
											*		*		*		*		*
									S&A Expenses:
									Salaries Expense		8,000	1	8,000	1	8,000	1	8,000	1	32,000
									Rent Expense		4,800	1	4,800	1	4,800	1	4,800	1	19,200
									Insurance Expense		1,950	1	1,950	1	1,950	1	1,950	1	7,800
									Supplies Expense		1,400	1	1,680	1	1,960	1	2,240	1	7,280
									Total Payments for S&A expenses		16,150	1	16,430	1	16,710	1	16,990	1	66,280
									Income Taxes:
									Total payments for income taxes		3,500	1	3,500	1	3,500	1	3,500	1	14,000
									Capital Expenditures:
									Total Payments for Cap. Expenditures		25,000	1	0	1	0	1	0	1	25,000
									Total Cash payments (before interest)		$ 78,550	*	$ 61,830	*	$ 64,750	*	$ 68,820	*	$ 273,950
											*		*		*		*		*
								a.j Cash Budget
								Nerdzy Computer Company
								Cash Budget
								For the Year Ended December 31, 2021
											Q1		Q2		Q3		Q4		Total
									Beg. Cash Balance		$ -	*	$ (18,490)	*	$ 9,160	*	$ 47,890	*	$ -
									Cash receipts		-	*	-	*	-	*	-	*	-
									cash available		-	*	(18,490)	*	9,160	*	47,890	*	-
									Cash payments:		$ 51,100	*	$ 61,730	*	$ 103,380	*	$ 156,110	*	$ 333,760
									Purchases of DM		6,960	*	13,760	1	14,600	1	16,590	*	51,910
									DL		7,080	1	7,680	1	8,880	1	10,080	1	33,720
									MOH		14,400	1	14,700	1	15,300	1	15,900	1	60,300
									S&A Exp		16,150	1	16,430	1	16,710	1	16,990	1	66,280
									Income taxes			*		*		*		*
									Capital Expenditures		25,000	1	-	1		1		1	25,000
									Interest Expense			1		*		1		1
									Total cash payments		(18,490)	*	9,160	*	47,890	*	96,550	*	96,550
									Ending cash balance before financing			*		*		*		*
									minimum cash balance desired			*		*		*		*
									Projected cash excess (deficiency)		(18,490)	*	9,160	*	47,890	*	96,550	*	96,550
									Financing:			1		1		1		1
									Borrowing		-	*	-	1	-	1	-	1	-
									Principal repayments		-	1	-	*	-	1	-	1	-
									Total effects of financing		-	*	-	*	-	1	-	1	-
									Ending Cash Balance		$ (18,490)	*	$ 9,160	*	$ 47,890	*	$ 96,550	*	$ 96,550
											*		*		*		*		*