I have trouble computing the cash payment for Direct Labor Budget, combined cash budget, and income statement

Operating and Financial Budgets. Pat has become concerned about the profitability and cash needs for the business as it grows to prepare some budgets for the second quarter of 2020: the three months of April, May, and June budete for materials. total. Pat would like to be in the process with a production hudent and related purchases budgets for mate since the first quarter of the year is the slowest in terms of sales. Pat has asked you to also produce a cash budget to cach month and the quarter in total in order to ensure he has adequate cash. He would also like you to prepared budgeted quarterly income statement. The following sales-related information is provided: ish needs for the business as it grows. You have been asked 0: the three months of April, May, and June and the quarter in April 6.000 Budeeted 2020 Unit Sales: Pans May June 11,000 1 1 July 13,000 7,000 ,000 Additional information for your budget preparation is as follows: a) Given the sales mix expected for 2020, the weighted average sales price per pan for the budget period will be 542.00. b) All sales are on account (credit) and are collected 45% in the month of sale and 35% in the month care following the month of sate Accounts receivable from March 2020 credits sales is expected to be $394,000 on 3/31/20. POC) Perfect Pans has a policy that each month's endine inventory of finished goods (pans) should be 20% of the following month's sales in units. Ending inventory on March 31, 2020 followed this pattern. DB) Ending inventory of materials should be 15% of the next month's production needs in pounds. On average, each pan will take 10 pounds of material. The expected price for material is 50.32 per pound. Considering the July production schedule, the desired ending inventory of materials in June is 22.500 pounds. -Com e) Materials purchases are paid 40% in the month of purchase and 60% in the month following the month of purchase. Accounts Payable for purchases on 1-is expected to be $23.100. 3/31/20 Each unit produced will take 0.25 DLH. The estimated wage rate for the rest of 2020 is $35.00 per hour. Direct labor costs are paid 70% In the month in which the work is performed and 30% in the following month. Amounts owed (wages payable) for direct labor were expected to be $54,000 on 3/31/20. This amount will be paid in March April g) Overhead estimated for 2020 was revised and is budgeted to be $3,444,000, based on 38,000 DLH, resulting in an overhead rate of $88.00 per direct labor hour. Variable overhead for the plant is budgeted at $20.00 per direct labor hour for April, May, and June respectively. Variable overhead is paid in the month incurred. The budgeted overhead rate for fixed overhead (including depreciation) is $68.00 per DLH. Depreciation on the plant (included in total MOH) is $1,800,000 per year per month. Other fixed overhead, exclusive of depreciation, is paid in the month incurred, and is 5884,400 per year or $73.700 per month. h) In addition to the wages described above, Pat will pay his sales representative a salary of $4,500 per month plus 1% of sales, paid in the month incurred. Pat hired someone to take over the plant management duties, so Pat's time is now entirely devoted to general administration. Pat's 2020 salary will be $12,000 per month. April i) Pat will incur a $36,000 cash expenditure in March for trade show travel and registration J) Pat plans to pay cash of $14,000 each month in the quarter for a series of advertisements in cooking magazines. k) Depreciation on the fixed assets used for selling and administration will be $1,000 per month. Rent on administrative space will be $4,200 per month. The rent for the second AND third quarter of the year (six months) will be prepaid in April. 1) Pat intends to purchase equipment costing $172.000 for packaging pans in June. The equipment will be installed in June but use of the equipment will not begin until July, so no depreciation will be taken on the new equipment in the second quarter of the year. m) Pat will pay a cash dividend of $125,000 in April. n) Perfect Pans has a line of credit with a local bank and a nolicy that the ending cash balance each must be at least $20,000. The cash balance on March 31, 2020 was expected to be $20,200. can borrow in increments of $1,000 at the beginning of the month. The firm pays accumulated interest 1% per month at the end of each quarter and will use any excess cash above the minimum balance to pay down on the line of credit balance at the end of the quarter. o) The tax rate for Perfect Pans is 30% of income before tax (operating income less interest). A tax payment of $22,000 will be made in April. is all adsit payments for labor budget for the months of April May, and June and for the quarter in total. 6. Using the information from parts 3. through 5. and the additional information presented above, prepare a combined cash budget for the months of April, May, and June and for the quarter in total. Any cash flows that are not summarized in requirements 3. through 5. should be shown as separate line items in the budget. 7. Prepare a schedule calculating the budgeted manufacturing cost per unit using the information provided above. Use the variable and fixed manufacturing overhead rates to calculate overhead cost per unit. Remember th the rates are expressed per DLH, not per unit. 8. Prepare a budgeted income statement for the second quarter of 2020. Compute cost of goods sold using budgeted manufacturing cost per unit calculated in 7. above. You do not need to do a separate schedule of cost of goods manufactured and sold. Calculate the following amounts that would appear on the 6/30/2020 balance sheet: Accounts Receivable Accounts Payable for Material and Labor Direct Materials Inventory in Dollars Cash Quarter Perfect Pans Production Budget - Pans For the Quarter Ended June 30, 2020 April May June budgeted Unit sales 3.000 1. Plus Desired Endimin 7.200 2.100D Total Needed DO 9.200 Less: Benin Inventoru LUD Number of unit's to Rodye 6. 200 2.300 L400 24.000 260.00 1.200 25.400 Perfect Pans Direct Materials Budget For the Quarter Ended June 30, 2020 15% April May June Budgeted Boduction 1.200 7.00 1,400 Puids per unit 10 10 Raw Materials needed in funds 62,000 78.000 114.000 Plus: Desired Ending w. of OM 11.200 17,100 21.50 Total Quality needed 32.100 95, 100 13.10. SDO Less: Beginning Invof DM 9.2010 11.400 17. OD Direct matenal purchases 64.400 83,700 119.400 Xtimas cost per pund 0.31 0.32 Dollar value of quads purchased 20.108 26,784 38,208 Quarter 25,000 10 254.000 22.500 270.500 9.3110 267,200 0.32 85,504 Quarter Perfect Pans Rended Cash Payments for Direct Materials For the Quarter Ended June 30, 2020 April May June 40% of current month OM 1431 10.31415733 60% of a moths DM purchase 23.100 12.3.65 30 Total cash powments for DM 21 Zuz 23.0931 253 purchas 34 240 5.1.535 budeted units in soleske.000 I selling price per unit Ihol budapted sales. Perfect Pans Sales Budget in Units and Dollars For the Quarter Ended June 30, 2020 April May June Quarter 0.000 000 10001 241000 912012002.00 42.00 +262.000 29.04.2000 DO GOOG Cash sales in Current 48% Current month 55% prior month Total cash collection Perfect Pans Cash Collections Budget For the Quarter Ended June 30, 2020 April May June Quarter 252.000 294.000 42.000 1.00%,000 113.400 131..2.00 707,900 453,600 394.000 138.D 117-00 69.200 | 759,400 564,900 2100 2.155.900 Quarter Perfect Pans Direct Labor Budget For the Quarter Ended June 30, 2020 April May June Units Produced 6, 200 7 ,500 11,400 Direct labor hours perunit 0.15 0.25 0.25 Total hours required isso I 1950 7.860 Direct labor cost per hour 35 35 Total direct labor COSE 54.250 168.250 199.350 15,400 0.25 60350 - 35 222.250 Perfect Pans Cash Payments for Direct Labor Budget For the Quarter Ended June 30, 2020 April May June 54.250 Quarter Total cost of direct labur Cash payment for DirecHaber June Quarter Perfect Pans Combined Cash Budget For the Quarter Ended June 30, 2020 April May beamnu sosh balance Plus cash collections Total cash volle ess: innumeris: Direct Labor Monw. Overhead Operatino Expenses Equipment Tax payments Total cosh pauments Ending Cash bal. before finnncing Financing Plus: New BornoINGS less: Debt repaument Less: Interest poumont To Financing Ending Cash balance Bugeted Manufacturing Cost per Unit For the Quarter Ended June 30, 2020 Cost Per Unit Alirect mate r 3.20 Direct labor cast ber init 8.35 Voor. MOH cast per unit Baroela cost of many init 22.95 Perfect Pans Budgeted Income Statement For the Quarter Ended June 30, 2020 1,008,000 (814.6oo) 193,200 Sales Revenue Less: Cost of Goods sold - Gross Profit Less: Operating Expenses Sales Solaries Sales commision Office Salaries Trade sro Expenses Advertisement Expense Depreciatum Expense Rent Expense Interest Expense Total apexatino Expense Income tax 30% Net Income 136,000) _210.000 (14.000) 13.000 (12.6000) 9. Balance sheet values 6/30/2020 S 394.000 Accounts Receivable $ 77, 150 Accounts Payable (material and labor) Direct Materials Inventory (dollars) Cash