I have done all the steps except for budgeted cash recipts from sales and cash payments for materials purchases. Follow the last 2 pages for templates that need to be used. Only need help wity cash receipts and cash disbursments.
Concepts A G Assets Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment Accumulated depreciation Equipment, net NABAR MANUFACTURING Estimated Balance Sheet June 30, 2019 Liabilities and Equity $ 40,000 Accounts payable $ 51.400 249.000 Income taxes payable 10,000 35.000 Short-term notes payable 24.000 24LOSO Total current liabilities 85.400 565.980 Long-term note payable 30.000 720,000 Total liabilities 385.400 Common stock 600.000 4MO, Retained earnings 60 No Total stockholders' equity 580 Total liabilities and equity $1.04. Total assets To prepare a master budget for July, August, and September of 2019, management gathers the following information: a. Sales were 20,000 units in June. Forecasted sales in units are as follows: July 21,000: August, 19.000; September, 20,000; and October, 24,000. The product's selling price is $17 per unit and its total product cost is $14.35 per unit. b. Company policy calls for a given month's ending finished goods inventory to equal 70% of the next month's expected unit sales. The June 30 finished goods inventory is 16,800 units, which does not comply with the policy e. Company policy calls for a given month's ending raw materials inventory to equal 20% of the next month's materials requirements The June 30 raw materials inventory is 4.375 units (which also fails to meet the policy). The budgeted September 30 raw materials entions 6 To prepare a master budget for July, August, and September of 2019, management gathers the following information: a. Sales were 20,000 units in June. Forecasted sales in units are as follows: July 21,000; August 19,000; September, 20,000, and October, 24,000. The product's selling price is $17 per unit and its total product cost is $14.35 per unit. b. Company policy calls for a given month's ending finished goods inventory to equal 70% of the next month's expected unit sales. The June 30 finished goods inventory is 16,800 units, which does not comply with the policy. c. Company policy calls for a given month's ending raw materials inventory to equal 20% of the next month's materials requirements. The June 30 raw materials inventory is 4.375 units (which also fails to meet the policy). The budgeted September 30 raw materials inventory is 1980 units. Raw materials cost $8 per unit. Each finished unit requires 0.50 units of raw materials d. Each finished unit requires 0.50 hours of direct laborat a rate of $16 per hour e. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $9.70 per direct labor hour. Depreciation of $20,000 per month is treated as fixed factory overhead. f. Monthly general and administrative expenses include $9,000 administrative salaries and 0.9 monthly interest on the long-term note payable & Sales representatives commissions are 10% of sales and are paid in the month of the sales. The sales manager's monthly salary is $3.500. h. The company expects 30% of sales to be for cash and the remaining 70% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale). i. All raw materials purchases are on credit, and no payables arise from any other transactions One month's raw materials purchases are fully paid in the next month. J. Dividends of $20,000 are to be declared and paid in August k. Income taxes payable at June 30 will be paid in July, Income tax expense will be assessed at 35 in the quarter and paid in October 1. Equipment purchases of $100,000 are budgeted for the last day of September The minimum aulinesch halene fra sll the icon fare the man wachina che note payable & Sales representatives commissions are 10% of sales and are paid in the month of the sales. The sales manager's monthly lary is $3.500. h. The company expects 30% of sales to be for cash and the remaining 70% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale). i. All raw materials purchases are on credit, and no payables arise from any other transactions. One month's raw materials purchases are fully paid in the next month. j. Dividends of $20,000 are to be declared and paid in August k. Income taxes payable at June 30 will be paid in July, Income tax expense will be assessed at 35% in the quarter and paid in October L Equipment purchases of $100.000 are bodgeted for the last day of September m. The minimum ending cash balance for all months is $40,000. If necessary, the company borrows enough cash using a short-term note to reach the minimum Short-term wrotes require an interest payment of 1% at each month-end before any repayment). If the ending cash balance exceeds the minimum, the excess will be applied to repaying the short-term notes payable balance Required Prepare the following budgets and other financial information as required. All budgets and other financial information should be prepared for the third calendar quarter, except as otherwise noted below. Round calculations to the nearest whole dollar 1. Sales budget 2. Production budget Check OO 700 3. Raw materials budget Cost of us 4. Direct labor budget Required Prepare the following budgets and other financial information as required. All budgets and other financial information should be prepared for the third calendar quarter, except as otherwise noted below. Round calculations to the nearest whole dollar 1. Sales budget 2. Production budget Check 2 Units to produce 17500, August 19,700 3. Raw materials budget. Qi Cost of uw materials purchases: Ju 550.760 4. Direct labor budget. 5. Factory overhead budget. To overhead cost August. 546.595 6. Selling expense budget 5. General and administrative expense budget 8. Cashbudget. Encing cable y 596.35 August, 20 9. Budgeted income statement for the entire quarter (not for each month separately). 10. Budgeted balance sheet as of September 30, 2019. Budgeted to set Sep 30 1054320 Problem 27-SR Merchandisine: Prewinn and analysis of nurse hudtspan E D Master Budget F H Budgeted Cash Receipts from Sales 1 Chapter 22 2 3 4 June July August September Quarter 5 6 7 Sales Less: Ending accounts receivable (70%) Cash Receipts from: Cash sales (30% of sales) Collections of prior months receivables Total cash receipts 0 0 8 9 0 0 $0 0 10 $0 $0 $0 11 12 13 14 15 16 17 M o C D Master Budget Cash Payments for Materials Purchases 1 Chapter 22 2 3 July Quarter September August 4 5 6 7 Materials purchases Cash disbursments for Current month purchases (0) Prior month purchases (100%) Total cash disbursed $0 $0 $0 $0 10 12 13 10 15
