I need help solving 7-10 please

In the past, cost of goods sold has been 70% of total sales. The director of marketing below $10,000 plus 15% of cost of goods sold for the following quarter. The marketing director expects sales of $245,000 during the fourth quarter. The January 1 inventory was 9,000 75.000 105.000 90.000 270.000 $ 125,000 $175.000 $ 150,000 $ 450,000 Cash sales, 40% Credit sales, 60% Total sales, revenue $23,125 Requirement Prepare a cost of goods sold, inventory, and purchases budget for each of the first three quarters of the year. Compute cost of goods sold for the entire nine-month period. PROBLEMS Group A P9-57A Comprehensive budgeting problem (Learning Objectives 2 & 3) Martin Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Martin Manufacturing's operations: Current Assets as of December 31 (prior year): Cash $ 4,500 Accounts receivable, net.. $ 47,000 Inventory... $ 15,700 Property, plant, and equipment, net. $120,000 Accounts payable $ 42,400 Capital stock. $124,000 Retained earnings. $ 23,100 a. Actual sales in December were $70,000. Selling price per unit is projected to remain stable at $10 per unit throughout the budget period. Sales for the first five months of the upcoming year are budgeted to be as follows: $ 80,000 $ 92,000 $ 99,000 $ 97,000 $ 85,000 b. Sales are 30% cash and 70% credit. All credit sales are collected in the month follow- January February March April May ing the sale. c. Martin Manufacturing has a policy stating that each month's ending inventory of fin. The Master Budget ished goods should be 25% of the following month's sales (in units). d. Of each month's direct materials purchases, 20% are paid for in the month of pur chase, while the remainder is paid for in the month following purchase. Two pounds of direct material is needed per unit at $2 per poundi. Ending inventory of direct materi- als should be 10% of next month's production needs. e. Most of the labor at the manufacturing facility is indirect, but there is some direct la: bor incurred. The direct labor hours per unit is 0.01. The direct labor rate per hour is $12 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 $ 996 February $1,125 March.. $1,182 f. Monthly manufacturing overhead costs are $5,000 for factory rent, $3,000 for other fixed manufacturing expenses, and $1.20 per unit for variable manufacturing over- head. No depreciation is included in these figures. All expenses are paid in the month in which they are incurred. 9. Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Martin Manufacturing will purchase equipment for $5,000 (cash), while February's cash expenditures will be $12,000 and March's cash expenditures will be $16,000 h. Operating expenses are budgeted to be $1.00 per unit sold plus fixed operating ex- penses of $1,000 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 $4,600 for the entire quarter, which includes depreciation on new acquisitions. J. Martin Manufacturing has a policy that the ending cash balance in each month must be at least $4,000. 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 $150,000. The interest rate on these loans is 1% per month simple inter- est (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 bor rowed during the quarter. k. The company's income tax rate is projected to be 30% of operating income less inter- est expense. The company pays $10,000 cash at the end of February in estimated taxes. Requirements 1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total. Use the following format: Cash Collections Budget For the Quarter Ended March 31 Month January February March Quarter 1 2 3 4 5 Cash sales 6 Credit sales 7 Total cash collections 6. Prepare a cash payments budget for manufacturing overhead costs, using the follow- The Master Budget ing format: 2 Cash Payments for Manufacturing Overhead Budget For the Quarter Ended March 31 Month January February March Quarter 4 5 Variable manufacturing overhead costs 6 Rented 7 Other fixed MOH 8 Cash payments for manufacturing overhead 9 7. Prepare a cash payments budget for operating expenses, using the following format: 1 2 3 4 5 6 Cash Payments for Operating Expenses Budget For the Quarter Ended March 1 Month January February March Quarter Variable operating expenses Fred operating expenses Cash payments for operating expenses 7 8 8. Prepare a combined cash budget, using the following format: March Quarter 1 Combined Cash Budget 2 For the Quarter Ended March 31 3 Month 4 January February 5 Beginning cash balance 6 Plus: Cash collections 7 Total cash available 8 Less cash payments: 9 Direct material purchases 10 Direct labor 11 Manufacturing overhead costs 12 Operating expenses 13 Tax payment 14 Equipment purchases 15 Total cash payments 16 Ending cash balance before financing 18 Plus: New borrowings Less: Debt repayments 19 Less: Interest payments 21 Ending cash balance 22 17 Financing 20 9. Calculate the budgeted manufacturing cost per unit, using the following format (assume that fixed manufacturing overhead is budgeted to be $0.80 per unit for the year): D 2 3 4 Budgeted Manufacturing Cost per Unit Direct materials 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 7 8 APTER 9 10. Prepare a budgeted income statement for the quarter ending March 31, using the fol- lowing format: 1 Budgeted Income Statement 2 For the Quarter Ended March 31 3 4 Sales revenue 5 Less: Cost of goods sold 6 Gross profit 7 Less: Operating expenses 8 Less: Depreciation expense 9 Operating income 10 Less: Interest expense 11 Less: Income tax expense 12 Net income 13 *Hint: Cost of goods sold - Budgeted cost of manufacturing one unit x Number of units sold P9-58A Cash budgets under two alternatives (Learning Objectives 2 & 3) Each autumn, as a hobby, Hannah Olson weaves cotton placemats to sell at a local craft shop. The mats sell for $20 ner entfern weaves tonton Panas 2004 commission and