I need requirements 6, 7, and 10 please!
Operating Budget, Comprehensive Analysis Ponderosa, Inc., produces wiring harness assemblies used in the production of semi-trailer trucks. The wiring harness assemblies are sold to various truck manufacturers around the world. Projected sales in units for the coming five months are given below. January 10,000 February 10,500 March 13,000 16,000 April May 18,500 The following data pertain to production policies and manufacturing specifications followed by Ponderosa: a. Finished goods inventory on January 1 is 900 units. The desired ending inventory for each month is 20 percent of the next month's sales. b. The data on materials used are as follows: Direct Material Per-Unit Usage Unit Cost Part #K298 2 $4 Part #C30 3 7 Inventory policy dictates that sufficient materials be on hand at the beginning of the month to satisfy 30 percent of the next month's production needs. This is exactly the amount of material on hand on January 1. c. The direct labor used per unit of output is one and one-half hours. The average direct labor cost per hour is $20. . . d. Overhead each month is estimated using a flexible budget formula. (Activity is measured in direct labor hours.) Fixed Cost Variable Cost Component Component Supplies $ $1.00 Power 0.20 Maintenance 1.10 12,500 14,000 Supervision Depreciation Taxes 45,000 4,300 Other 86,000 1.60 e. Monthly selling and administrative expenses are also estimated using a flexible budgeting formula. (Activity is measured in units sold.) Fixed Costs Variable Costs Salaries $ 88,500 Commissions $1.40 Depreciation 25,000 Shipping 3.60 Other 137,000 1.60 f. The unit selling price of the wiring harness assembly is $110. g. In February, the company plans to purchase land for future expansion. The land costs $68,000. h. All sales and purchases are for cash. The cash balance on January 1 equals $62,900. The firm wants to have an ending cash balance of at least $25,000. If a cash shortage develops, sufficient cash is borrowed to cover the shortage and provide the desired ending balance. Any cash borrowed must be borrowed in $1,000 increments and is repaid the following month, as is the interest due. The interest rate is 12 percent per annum. Required: 6. Selling and administrative expense budget. Round your answers to the nearest cent, if required. January February March Total Planned sales 10,000 10,500 13,800 X 34,300 X Variable selling & administrative expense per $ 6.6 $ 6.6 6.6 $ 6.6 unit Total variable expense 66,000 69,300 91,080 X $ 226,380 X Fixed selling & administrative expense: Salaries 88,600 X 88,600 X $ 88,600 $ 265,800 X Depreciation 25,000 25,000 25,000 75,000 Other 137,000 137,000 137,000 411,000 Total fixed expenses $ 250,600 $ 250,600 X $ 250,600 $ 751,800 X Total selling & administrative expenses $ 316,600 X $ 319,900 X $ 341,680 $ 978,180 X 7. Ending finished goods inventory budget. Round intermediate calculations to the nearest cent. Round your answers to the nearest cent, if required. Unit cost computation: Direct materials: Part K298 8 Part C30 21 Direct labor 30 Overhead: Variable 5.85 Fixed 13.27 Total unit cost 78.12 Number of units 3,200 Finished goods $ 249,986 X 10. Cash budget Enter a negative balance as a negative amount, and if an amount is zero enter "0". January February March Total Beginning balance 62,700 X $ 28,228 X $ 25,906 x $ 62,700 Cash receipts 1,100,000 1,155,000 1,518,000 X 3,773,000 Total cash available 1,162,700 X 1,183,228 X 1,543,906 X $ 3,835,700 X Disbursements: Purchases 324,452 X $ 350,436 X $ 432,622 X $ 1,107,510 DL payroll 336,000 334,800 X 427,200 X 1,098,000 Overhead 182,420 182,186 X 200,204 X 564,810 Marketing & admin 291,600 X 294,900 X 316,680 X 903,180 Land 68,000 68,000 Total disbursements 1,134,472 X 1,230,322 X 1,376,706 X 3,741,500 X Ending balance 28,228 X $ -47,094 $ 167,200 X $ 94,200 Financing: Borrowed/repaid 0 73,000 X -73,000 X 0 Interest paid 0 0 -1,460 X -1,460 Ending cash balance 28,228 X $ 25,906 X $ 92,740 X $ 92,740
