I have a rather large accounting problem it has 5 different sections to it. I am uploading the file and would appreciate help and direction withit. Thank you!!

Hansell Company's management wants to prepare budgets for one of its products, duraflex, for July 2013. The firm sells the product for $80.00 per unit and has the following expected sales ( in units) for these months in 2013: April 4,600 May June 4,650 July 4,860 August September 5,400 6,300 7,200 The production process requires 3.7 pounds of dura-1000 and 1.8 pounds of flexplas. The firm's policy is to maintain an ending inventory each month equal to 9% of the following month's budgeted sales, but in no case less than 450 units. All materials inventories are to be maintained at 4% of the production needs for the next month, but not to exceed 900 pounds. The firm expects all inventories at the end of June to be within the guidelines. The purchase department expects the materials to cost $1.10 per pound and $4.60 per pound for dura-1000 and flexplas, respectively. The production process requires direct labor at two skill levels. The rate for labor at the K102 level is $49.00 per hour and for the K175 level is $17.00 per hour. The K102 level can process one batch of dura-flex per hour; each batch consists of 95 units. The manufacturing of duraflex also requires 0.09 of an hour of K175 workers' time for each unit manufactured. Variable manufacturing overhead is $1,120 per batch plus $67 per direct labor-hour. The company uses an actual cost system with a LIFO costflow assumption. In addition to variable overhead, the firm has a monthly fixed factory overhead of $45,000, of which $20,600 is depreciation expense. The firm pays all manufacturing labor and factory overhead when incurred. Hansell Company expects its trial balance on June 30 to be as follows: HANSELL COMPANY Budgeted Balances June 30, 2013 Cash $32,000 Accounts receivable $76,000 Allowance for bad debts Inventory $3,200 $23,600 Plant, property, and equipment $578,000 Accumulated depreciation $291,000 Accounts payable $83,600 Wages and salaries payable $19,500 Note payable (short term bank borrowing) $75,600 Stockholders' equity $236,700 Typically, cash sales represent 18% of sales while credit sales represent 82%. Credit sales terms are 2/10, n/30. Hansell bills customers on the first day of the month following the month of sale. Experience has shown that 54% of the billings will be collected within the discount period, 22% by the end of the month after sales, 19% by the end of the second month after the sale, and 5% will ultimately be uncollectible. The firm writes off uncollectible accounts after 12 months. The purchase terms for materials are 2/15, n/60. The firm makes all payments within the discount period. Experience has shown that 68% of the purchases are paid in the month of the purchase and the remainder are paid in the month immediately following. In addition to variable overhead, the firm has a monthly fixed factory overhead of $45,000, of which $20,600 is depreciation expense. The firm pays all manufacturing labor and factory overhead when incurred. Total budgeted marketing, distribution, customer service, and administrative costs for 2013 are $2,010,000. Of this amount, $1,140,000 is considered fixed and includes depreciation expense of $103,700. The remainder varies with sales. The budgeted total sales for 2013 are $3.940 million. All marketing and administrative costs are paid in the month incurred. The management of Hansell wishes to contribute to charitable organizations 9% of Operating Income. Management desires to maintain an end-of-month minimum cash balance of $32,000. The firm has an agreement with a local bank to borrow its short-term needs in multiples of $900 up to $89,000 at an annual interest rate of 11%. Borrowings are assumed to occur at the beginning of the month. Bank borrowing at July 15 $75,600. Required On the basis of the preceding data and projections, prepare the following budgets: a. Sales budget for July ( in dollars). b. Production budget for July ( in units). c. Production budget for August ( in units). d. Direct materials purchases budget for July ( in pounds). e. Direct materials purchases budget for July ( in dollars). f. Direct manufacturing labor budget for July ( in dollars). g. Prepare the cash budget for July 2013. h. Prepare the budgeted income statement for July 2013. Hansell Company's management wants to prepare budgets for one of its products, duraflex, for July 2013. The firm sells the product for $80.00 per unit and has the following expected sales ( in units) for these months in 2013: April 4,600 May June 4,650 July 4,860 August September 5,400 6,300 7,200 The production process requires 3.7 pounds of dura-1000 and 1.8 pounds of flexplas. The firm's policy is to maintain an ending inventory each month equal to 9% of the following month's budgeted sales, but in no case less than 450 units. All materials inventories are to be maintained at 4% of the production needs for the next month, but not to exceed 900 pounds. The firm expects all inventories at the end of June to be within the guidelines. The purchase department expects the materials to cost $1.10 per pound and $4.60 per pound for dura-1000 and flexplas, respectively. The production process requires direct labor at two skill levels. The rate for labor at the K102 level is $49.00 per hour and for the K175 level is $17.00 per hour. The K102 level can process one batch of dura-flex per hour; each batch consists of 95 units. The manufacturing of duraflex also requires 0.09 of an hour of K175 workers' time for each unit manufactured. Variable manufacturing overhead is $1,120 per batch plus $67 per direct labor-hour. The company uses an actual cost system with a LIFO costflow assumption. In addition to variable overhead, the firm has a monthly fixed factory overhead of $45,000, of which $20,600 is depreciation expense. The firm pays all manufacturing labor and factory overhead when incurred. Hansell Company expects its trial balance on June 30 to be as follows: HANSELL COMPANY Budgeted Balances June 30, 2013 Cash $32,000 Accounts receivable $76,000 Allowance for bad debts Inventory $3,200 $23,600 Plant, property, and equipment $578,000 Accumulated depreciation $291,000 Accounts payable $83,600 Wages and salaries payable $19,500 Note payable (short term bank borrowing) $75,600 Stockholders' equity $236,700 Typically, cash sales represent 18% of sales while credit sales represent 82%. Credit sales terms are 2/10, n/30. Hansell bills customers on the first day of the month following the month of sale. Experience has shown that 54% of the billings will be collected within the discount period, 22% by the end of the month after sales, 19% by the end of the second month after the sale, and 5% will ultimately be uncollectible. The firm writes off uncollectible accounts after 12 months. The purchase terms for materials are 2/15, n/60. The firm makes all payments within the discount period. Experience has shown that 68% of the purchases are paid in the month of the purchase and the remainder are paid in the month immediately following. In addition to variable overhead, the firm has a monthly fixed factory overhead of $45,000, of which $20,600 is depreciation expense. The firm pays all manufacturing labor and factory overhead when incurred. Total budgeted marketing, distribution, customer service, and administrative costs for 2013 are $2,010,000. Of this amount, $1,140,000 is considered fixed and includes depreciation expense of $103,700. The remainder varies with sales. The budgeted total sales for 2013 are $3.940 million. All marketing and administrative costs are paid in the month incurred. The management of Hansell wishes to contribute to charitable organizations 9% of Operating Income. Management desires to maintain an end-of-month minimum cash balance of $32,000. The firm has an agreement with a local bank to borrow its short-term needs in multiples of $900 up to $89,000 at an annual interest rate of 11%. Borrowings are assumed to occur at the beginning of the month. Bank borrowing at July 15 $75,600. Required On the basis of the preceding data and projections, prepare the following budgets: a. Sales budget for July ( in dollars). b. Production budget for July ( in units). c. Production budget for August ( in units). d. Direct materials purchases budget for July ( in pounds). e. Direct materials purchases budget for July ( in dollars). f. Direct manufacturing labor budget for July ( in dollars). g. Prepare the cash budget for July 2013. h. Prepare the budgeted income statement for July 2013. Sales Budget (in dollars). HANSEll COMPANY Sales Budget For July 2013 Budgeted sales in units Budgeted selling price per unit Budgeted sales b. HANSEll COMPANY Production Budget (in units) For July 2013 Desired ending inventory (July 31) (The higher of 450 and 6300 x 0.09) Budgeted sales for July 2013 Total units needed for July 2013 Beginning inventory (July 1) (The higher of450 and 5400 x 0.09) Units to manufacture in July c. 567 5,400 5,967 567 450 486 5,481 + 486 450 - HANSEll COMPANY Production Budget (in units) For August 2013 Desired ending inventory (7200 x 0.09) Budgeted sales Total units needed Beginning inventory Units to manufacture in August d. $ $ 5,400 80 432,000 648 6,300 6,948 567 6,381 + - HANSEll COMPANY Direct Materials Purchases Budget (in pounds) For July 2013 Direct Materials Dura-tOOO 3.7 5481 20279.7 510 e. 900 21,180 510 10,376 395 Per unit requirement in pounds Budgeted production Materials required for budgeted production Add: Target inventories (lower of900 or4 percent of August production needs) 1,048 Total materials requirements Less: Expected beginning inventories (lower of 900 or 4 percent) 811 Direct materials to be purchased Flexplas 1.8 5481 9865.8 811 20,369 395 9,981 HANSEll COMPANY Direct Materials Purchases Budget (in dollars) For July 2013 Budgeted Purchases (Pounds) 20,369 9,981 Dura-lOOO Flexplas Budgeted purchases Expected Purchase Price per Unit $ 1.10 $ 4.60 Total $ 22,406 $ 45,913 $ 68,319 HANSEll COMPANY Direct Manufacturing labor Budget For July 2013 f. Direct Labor-Hours per Batch Kl02 Hours K17SHours Total Number of Batches 58 58 1.00 8.55 per unit 2. CASH BUDGET AND INCOME STATEMENT Hansell Company expects its trial balance on June 30 to be as follows: HANSELL COMPANY Budget Trial Balance Total Hours 58 496 554 2.05 Rate per Hour $ 49.00 $ 17.00 $ $ $ 2,827 8,430 11,257 30-Jun-13 Debit Cash Accounts receivable Allowance for bad debts Inventory Plants, property, and equipment Accumulated depreciation Accounts payable Wages and salaries payable Note payable Stockholders' equity $ $ Credit 32,000 76,000 $ $ $ $ Typically, cash sales represent 18 percent of sales and credit sales represent 82 percent. 18% Sales terms are 2/10, n/30. Hansell bills customers on the first day of each following month 3,200 $ $ $ $ $ $ 291,000 83,600 19,500 75,600 236,700 709,600 23,600 578,000 709,600 82% 2% 98% Experience has shown that 54 percent of the billings will be' collected within the discount period. 22 percent by the end of the month after sales, 19 percent by the end of the second month after the sale, and 5 percent will be uncollectible. The firm writes off uncollectible accounts after 12 months. 54% 22% 19% 5% The term of purchses for materials is 2/15, n/60. The firm makes all payments within the discount period. Experience has shown that 68 percent of the purchases are paid in the month of the purchase and the remainder are paid in the month immediately following. 2% 98% 68% 32% In July 2013, the firm budgeted purchases dura-1000 flexplas. $ 22,406 $ 45,913 Variable Manyfacturing OH Fixed OH cash and dep . The firm pays all manufacturing labor and factory overhead when incurred. 102542 $ 24,400 $ 20,600 $ Total budgeted marketing, distribution, customer service, and administrative costs for 2013 are. Fixed Dep Fixed Cash ex Variable Monthly Fixed cash exp Annual budgted production Variable S & A per unit $ 2,010,000 $ 1,140,000 $ 103,700 $ 1,036,300 $ 870,000 $ 86,358 $ 3940000 $ 0.22 management desires to maintain a minimum cash balance of $40,000. The firm has an agreement with a local bank to borrow its short-term needs in multiples of $900 up to $89,000 at an interest rate of 12 percent. $ $ 900 $ 89,000 2. Cash Budget and Budgeted Income Statement HANSEll COMPANY Cash Budget Jul-13 Cash Available Cash balance, beginning Add: Cash receipts July cash sales CR $ Collections of receivables From sales in June Collection within the discount period Collection after the discount period $ 32,000 354,240 18% $ 77,760 $ $ 191,289.60 77,932.80 $ 13,297 From sales in June $ 360,279 Total cash available in July $ 392,279 Cash Disbursement Materials purchases June purchases July purchases 83600 46457 32,000 45,000 8,642 Direct manufacturing labor Variable factory overhead Fixed factory overhead 11257 102542 24400 Variable marketing, customer services, and administrative expenses 1205.82 Fixed marketing, customer services, and administrative expenses 86358 Total disbursements $ 355,820 Cash balance before financing $ 36,460 Financing Amount to borrow Cash balance, July 31,2013 0 $ 36,460 HANSELL COMPANY Budget Income Statement Jul-13 Sales Cost of goods sold* Gross margin Selling and administrative expenses Variable Fixed Net income $ $ 432,000 177984 254,016 $ 1188 95000 157,828 *Cost per unit Direct materials Dura-lOOO Flexplas Direct labor Factory overhead Applied based on batch Applied based on direct labor-hour Cost per unit $ $ 4.07 8.28 2.05 $ $ $ 11.79 6.77 32.96 Hansell Company's management wants to prepare budgets for one of its products, duraflex, for July 2013. The firm sells the product for $80.00 per unit and has the following expected sales ( in units) for these months in 2013: April 4,600 May June 4,650 July 4,860 August September 5,400 6,300 7,200 The production process requires 3.7 pounds of dura-1000 and 1.8 pounds of flexplas. The firm's policy is to maintain an ending inventory each month equal to 9% of the following month's budgeted sales, but in no case less than 450 units. All materials inventories are to be maintained at 4% of the production needs for the next month, but not to exceed 900 pounds. The firm expects all inventories at the end of June to be within the guidelines. The purchase department expects the materials to cost $1.10 per pound and $4.60 per pound for dura-1000 and flexplas, respectively. The production process requires direct labor at two skill levels. The rate for labor at the K102 level is $49.00 per hour and for the K175 level is $17.00 per hour. The K102 level can process one batch of dura-flex per hour; each batch consists of 95 units. The manufacturing of duraflex also requires 0.09 of an hour of K175 workers' time for each unit manufactured. Variable manufacturing overhead is $1,120 per batch plus $67 per direct labor-hour. The company uses an actual cost system with a LIFO costflow assumption. In addition to variable overhead, the firm has a monthly fixed factory overhead of $45,000, of which $20,600 is depreciation expense. The firm pays all manufacturing labor and factory overhead when incurred. Hansell Company expects its trial balance on June 30 to be as follows: HANSELL COMPANY Budgeted Balances June 30, 2013 Cash $32,000 Accounts receivable $76,000 Allowance for bad debts Inventory $3,200 $23,600 Plant, property, and equipment $578,000 Accumulated depreciation $291,000 Accounts payable $83,600 Wages and salaries payable $19,500 Note payable (short term bank borrowing) $75,600 Stockholders' equity $236,700 Typically, cash sales represent 18% of sales while credit sales represent 82%. Credit sales terms are 2/10, n/30. Hansell bills customers on the first day of the month following the month of sale. Experience has shown that 54% of the billings will be collected within the discount period, 22% by the end of the month after sales, 19% by the end of the second month after the sale, and 5% will ultimately be uncollectible. The firm writes off uncollectible accounts after 12 months. The purchase terms for materials are 2/15, n/60. The firm makes all payments within the discount period. Experience has shown that 68% of the purchases are paid in the month of the purchase and the remainder are paid in the month immediately following. In addition to variable overhead, the firm has a monthly fixed factory overhead of $45,000, of which $20,600 is depreciation expense. The firm pays all manufacturing labor and factory overhead when incurred. Total budgeted marketing, distribution, customer service, and administrative costs for 2013 are $2,010,000. Of this amount, $1,140,000 is considered fixed and includes depreciation expense of $103,700. The remainder varies with sales. The budgeted total sales for 2013 are $3.940 million. All marketing and administrative costs are paid in the month incurred. The management of Hansell wishes to contribute to charitable organizations 9% of Operating Income. Management desires to maintain an end-of-month minimum cash balance of $32,000. The firm has an agreement with a local bank to borrow its short-term needs in multiples of $900 up to $89,000 at an annual interest rate of 11%. Borrowings are assumed to occur at the beginning of the month. Bank borrowing at July 15 $75,600. Required On the basis of the preceding data and projections, prepare the following budgets: a. Sales budget for July ( in dollars). b. Production budget for July ( in units). c. Production budget for August ( in units). d. Direct materials purchases budget for July ( in pounds). e. Direct materials purchases budget for July ( in dollars). f. Direct manufacturing labor budget for July ( in dollars). g. Prepare the cash budget for July 2013. h. Prepare the budgeted income statement for July 2013. Sales Budget (in dollars). HANSEll COMPANY Sales Budget For July 2013 Budgeted sales in units Budgeted selling price per unit Budgeted sales b. HANSEll COMPANY Production Budget (in units) For July 2013 Desired ending inventory (July 31) (The higher of 450 and 6300 x 0.09) Budgeted sales for July 2013 Total units needed for July 2013 Beginning inventory (July 1) (The higher of450 and 5400 x 0.09) Units to manufacture in July c. 567 5,400 5,967 567 450 486 5,481 + 486 450 - HANSEll COMPANY Production Budget (in units) For August 2013 Desired ending inventory (7200 x 0.09) Budgeted sales Total units needed Beginning inventory Units to manufacture in August d. $ $ 5,400 80 432,000 648 6,300 6,948 567 6,381 + - HANSEll COMPANY Direct Materials Purchases Budget (in pounds) For July 2013 Direct Materials Dura-tOOO 3.7 5481 20279.7 510 e. 900 21,180 510 10,376 395 Per unit requirement in pounds Budgeted production Materials required for budgeted production Add: Target inventories (lower of900 or4 percent of August production needs) 1,048 Total materials requirements Less: Expected beginning inventories (lower of 900 or 4 percent) 811 Direct materials to be purchased Flexplas 1.8 5481 9865.8 811 20,369 395 9,981 HANSEll COMPANY Direct Materials Purchases Budget (in dollars) For July 2013 Budgeted Purchases (Pounds) 20,369 9,981 Dura-lOOO Flexplas Budgeted purchases Expected Purchase Price per Unit $ 1.10 $ 4.60 Total $ 22,406 $ 45,913 $ 68,319 HANSEll COMPANY Direct Manufacturing labor Budget For July 2013 f. Direct Labor-Hours per Batch Kl02 Hours K17SHours Total Number of Batches 58 58 1.00 8.55 per unit 2. CASH BUDGET AND INCOME STATEMENT Hansell Company expects its trial balance on June 30 to be as follows: HANSELL COMPANY Budget Trial Balance Total Hours 58 496 554 2.05 Rate per Hour $ 49.00 $ 17.00 $ $ $ 2,827 8,430 11,257 30-Jun-13 Debit Cash Accounts receivable Allowance for bad debts Inventory Plants, property, and equipment Accumulated depreciation Accounts payable Wages and salaries payable Note payable Stockholders' equity $ $ Credit 32,000 76,000 $ $ $ $ Typically, cash sales represent 18 percent of sales and credit sales represent 82 percent. 18% Sales terms are 2/10, n/30. Hansell bills customers on the first day of each following month 3,200 $ $ $ $ $ $ 291,000 83,600 19,500 75,600 236,700 709,600 23,600 578,000 709,600 82% 2% 98% Experience has shown that 54 percent of the billings will be' collected within the discount period. 22 percent by the end of the month after sales, 19 percent by the end of the second month after the sale, and 5 percent will be uncollectible. The firm writes off uncollectible accounts after 12 months. 54% 22% 19% 5% The term of purchses for materials is 2/15, n/60. The firm makes all payments within the discount period. Experience has shown that 68 percent of the purchases are paid in the month of the purchase and the remainder are paid in the month immediately following. 2% 98% 68% 32% In July 2013, the firm budgeted purchases dura-1000 flexplas. $ 22,406 $ 45,913 Variable Manyfacturing OH Fixed OH cash and dep . The firm pays all manufacturing labor and factory overhead when incurred. 102542 $ 24,400 $ 20,600 $ Total budgeted marketing, distribution, customer service, and administrative costs for 2013 are. Fixed Dep Fixed Cash ex Variable Monthly Fixed cash exp Annual budgted production Variable S & A per unit $ 2,010,000 $ 1,140,000 $ 103,700 $ 1,036,300 $ 870,000 $ 86,358 $ 3940000 $ 0.22 management desires to maintain a minimum cash balance of $40,000. The firm has an agreement with a local bank to borrow its short-term needs in multiples of $900 up to $89,000 at an interest rate of 12 percent. $ $ 900 $ 89,000 2. Cash Budget and Budgeted Income Statement HANSEll COMPANY Cash Budget Jul-13 Cash Available Cash balance, beginning Add: Cash receipts July cash sales CR $ Collections of receivables From sales in June Collection within the discount period Collection after the discount period $ 32,000 354,240 18% $ 77,760 $ $ 191,289.60 77,932.80 $ 13,297 From sales in June $ 360,279 Total cash available in July $ 392,279 Cash Disbursement Materials purchases June purchases July purchases 83600 46457 32,000 45,000 8,642 Direct manufacturing labor Variable factory overhead Fixed factory overhead 11257 102542 24400 Variable marketing, customer services, and administrative expenses 1205.82 Fixed marketing, customer services, and administrative expenses 86358 Total disbursements $ 355,820 Cash balance before financing $ 36,460 Financing Amount to borrow Cash balance, July 31,2013 0 $ 36,460 HANSELL COMPANY Budget Income Statement Jul-13 Sales Cost of goods sold* Gross margin Selling and administrative expenses Variable Fixed Net income $ $ 432,000 177984 254,016 $ 1188 95000 157,828 *Cost per unit Direct materials Dura-lOOO Flexplas Direct labor Factory overhead Applied based on batch Applied based on direct labor-hour Cost per unit $ $ 4.07 8.28 2.05 $ $ $ 11.79 6.77 32.96