I need help with this project ASAP. Its accounting 203-chapter 8 (Master Budgeting). Can i get solutions done step by step with working! THANKS!!

ACCOUNTING 203 CHAPTER 8(Master Budgeting) The East Division of Kensic Company manufactures a vital component that is used in one of Kensic's major product lines. The East Division has been experiencing some difficulty in coordinating activities between its various departments, which has resulted in some shortages of the component at critical times. To overcome the shortages, the manager of East Division has decided to initiate a monthly budgeting system that is integrated between departments. The first budget is to be for the second quarter of the current year (April, May and June). To assist in developing the budget figures, the divisional controller has accumulated the following information. Sales: Sales through the first three months of the current year were 30,000 units. Actual sales in units for January, February, and March, and planned sales in units over the next five months, are given below: January (actual) February (actual) March (actual) April (planned) May (planned) June (planned) July (planned) August (planned) 6,000 10,000 14,000 20,000 35,000 50,000 45,000 30,000 In total, the East Division expects to produce and sell 250,000 units during the current year. Direct Material: Two different materials are used in production of the component. Data regarding these materials are given below: Direct at Material No. 208 No. 311 Units of Direct Materials per Finished Component 4 pounds 9 feet Cost per lb/ft $5.00 2.00 Inventory March 31 46,000 pounds 69,000 feet Material No. 208 is sometimes in short supply. Therefore, the East Division requires that enough of the material be on hand at the end of each month to provide for 50% of the following month's production needs. Material No. 311 is easier to get, so only one-third of the following month's production needs must be on hand at the end of each month. Direct Labor: The East Division has three department through which the components must past before they are completed. Information relating to direct labor in these departments is given below: Department Shaping Assembly Finishing Direct Labor-Hours Per Finished Component .25 .70 .10 Cost per Direct Labor-Hour $18.00 16.00 20.00 Direct labor is adjusted to the workload each month. Manufacturing Overhead: East Division manufactured 32,000 components during the first three months of the current year. The actual variable overhead costs incurred during this three-month period are shown below. Each Division's controller believes that the variable overhead costs incurred during the last nine months of the year will be at the same rate per component as experienced during the first three months. Utilities Indirect Labor Supplies Other $ 57,000 31,000 16,000 8,000 Total variable overhead $112,000 The actual fixed manufacturing overhead costs incurred during the first three months amounted to $1,170,000. The East Division has planned fixed manufacturing overhead costs for the entire year as follows: Supervision $ 872,000 Property Taxes Depreciation Insurance Other Total fixed manufacturing Overhead 143,000 2,910,000 631,000 72,000 $4,628,000 Finished Goods Inventory: The desired monthly ending inventory of completed components is 20% of the next month's estimated sales. The East Division has 4,000 units in the finished goods inventory on March 31. Selling and Administrative Expenses: Selling and Administrative Expenses are budgeted at $400,000 per month plus 1% of total credit sales for the month. REQUIRED: 1. Prepare a production budget for the East Division for the second quarter ending June 30. Show computations by month and in total for the quarter. (5 pts.) _____ 2. Prepare a direct materials purchases budget in units and dollars for each type of material for the second quarter ending June 30. Again show computations by month and in total for the quarter. (5 pts.) _____ 3. Prepare a schedule of cash payments for direct materials for the second quarter. Assume that all direct materials are purchased on account and the East Division pays for of the amount purchased in the month of purchase and the other in the month following the purchase. The balance in the Accounts Payable account at 3/31 was $351,200. (5 pts.) _____ 4. Prepare a direct labor budget in hours and in dollars for the second quarter ending June 30. Again show computations by month in total for the quarter. (5 pts.) _____ 5. Prepare a manufacturing overhead budget for the second quarter. Show computations by month and in total for the quarter. (5 pts.) _____ 6. Compute a new \"selling price per unit\" for the East Division that will enable them to accumulate a balance of $100,000 in their cash account by the end of the second quarter. Assume that the cash balance at March 31 was $10,000. (5 pts.) _____ 7. Using the selling price per unit computed in #6 prepare a sales budget for the second quarter. Show computations by month and in total for the quarter. (5 pts.) _____ 8. Prepare a schedule of expected cash collections for the second quarter using the selling price per unit calculated in question #6. Assume that the East Division collects on its credit sales as follows; 70% in the month of sale, 20% in the month following the credit sale, 10% in the second month following the credit sale. To compute the balance in Accounts Receivable at 3/31 assume that the selling price per unit prior to 3/31 was $75.00. (5 pts.) _____ 9. Prepare a cash budget for the second quarter in month and in total for the East Division. (10 pts.) KENSIC COMPANY April Units Sales price per unit Total Sales 20,000 April Sales in Units Desired units of ending inventory 20,000 SALES BUDGET May June 45,000 Total July August 50,000 105,000 45,000 30,000 June 35,000 105,000 June PRODUCTION BUDGET May July 50000 35,000 Total Quarter July 4 Desired Total Units Less: desired units of beginning inventory Total production units DIRECT MATERIALS BUDGET (No. 208) April May Units to be produced x 4 lbs. Total material needs 4 4 4 4 $5.00 $5.00 $5.00 $5.00 Add: desired end. Inv. Less: Beginning Inventory Total materals to be purchased x $5.00 Total cost of purchases DIRECT MATERIALS BUDGET (No. 311) April May June Units to be produced x 9 feet Total material needs Quarter July 9 9 9 9 $2.00 $2.00 $2.00 $2.00 Add: Desired end. Inv. Subtotal Less: Beginning Inventory Total materials to be purchased x $2.00 Total cost of purchased SCHEDULE OF CASH PAYMENTS FOR DIRECT MATERIALS April May June Quarter Accounts Payable 3/31 April May June Total DIRECT LABOR BUDGET April May Units to be produced x .25 (Shaping) Hrs. Shaping Dept. x $18.00 June Quarter 0.25 0.25 0.25 0.25 $18.00 $18.00 $18.00 $18.00 9 Labor cost Shaping dept. x .70 (Assembly) 0.7 0.7 0.7 0.7 Hrs. Assembly Dept. x $16.00 $16.00 $16.00 $16.00 $16.00 x .10 (Finishing) 0.1 0.1 0.1 0.1 Hrs. Finishing Dept. x $20.00 $20.00 $20.00 $20.00 $20.00 Labor cost for Assembly dept. Labor cost Finishing dept. Total Labor Cost MANUFACTURING OVERHEAD BUDGET April May June Quarter April CASH BUDGET May Quarter February SALES BUDGET March Variable Overhead: Utilities Indirect Labor Supplies Other Total Variable Overhead Fixed Overhead Total Overhead less: depreciation Total Overhead paid in cash June Total Cash Receipts Cash Payments: Material Purchases Direct Labor Overhead Fixed Sell. & Admin. Variable Sell. & Admin. Total Cash Payments Excess (deficiency) of cash Beg. Balance of cash Endng Balance of cash Units Sales price per unit Total Sales 10,000 $75.00 $750,000.00 14,000 $75.00 $1,050,000.00 (Repeated) April 20000 $0.00 SCHEDULE OF EXPECTED CASH COLLECTIONS April May June February (.10) March (.20; .10) April (.70;.20;.10) May (.70;.20) June (.70) Totals May June 35,000 50,000 $0.00 Quarter $0.00 Quarter 105000 $0.00