Illustrative Problem: The following data is available for Mya Company: Mya Company Balance Sheet December 31, 2020 Current Assets Cash..... Accounts Receivable.. ASSETS Raw Materials inventory(21,000 pounds).. Finished Goods Inventory(2,000 units).. Total Current Assets..... Non-Current Assets Land... Buildings and Equipment.... Accumulated Depreciation.... Total Non-Current Assets Total Assets P 42,500 90,000 4,200 26.000 30.200 162,700 80,000 700,000 (292,000) 408,000 488,000 P 650,700 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts Payable (raw materials)... Stockholders' Equity Common Stock, no par.. Retained Earnings... Total Liabilities and Stockholders' Equity P 25,800 ...P175,000 449,900 624,900 P650,700 Additional Information: 1. The company's selling price is P 20 per unit and plans to sell 100,000 units for 2021, broken down as follows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 10,000 30,000 40,000 20,000 2. At Mya,, experience has shown that 70% of sales are collected in the quarter in which the sale is made and the remaining 30% are collected in the following quarter 3. The company believes that an ending inventory of 20% of the next quarter's sales strikes the appropriate balance between inventory carrying costs and the cost of not carrying sufficient inventories. The company plans to sell 15,000 units in the 1st and 2nd quarter of 2022. 4. The company uses only 1 raw material for its product. The other raw materials are relatively insignificant and are included in variable manufacturing overhead. One unit of finished product requires 15 pounds of raw materials at a cost of P 0.20 per pound. The management of Mya desires to maintain ending inventories of raw materials equal to 10% of the following quarter's production needs. 5. Cash payments for purchases are as follows: 50% paid for in the quarter of purchase and the remaining 50% paid for in the 2nd quarter. 6. Each unit of finished product requires 0.8 hours of direct labor time and cost P 7.50 per hour. 7. AT Mya, the variable manufacturing overhead is P 2 per direct labor hour and the fixed manufacturing overhead is P 60,600 per quarter of which P 15,000 is depreciation. All overhead costs involving cash disbursements are paid for in the quarter incurred. 8. Budgeted variable selling and administrative expense per unit is P 1.80. Budgeted fixed selling and administrative expenses are as follows: Advertising Executive Salaries Insurance Property Taxes Depreciation P 20,000 per quarter P 55,000 per quarter P 1,900 to be paid in the 2nd quarter and P 37,750 in the 3rd Qrt. P 18,150 to be paid in the 4th quarter P 10,000 per quarter 9. An open line of credit was opened with BPI Bank to bolster the company's cash position. Interest on any loans taken out with this line of credit would have an interest charge of 10% per year. For simplicity, assume that all borrowings and repayments are in round P 1,000 amounts and that all borrowings occur at the beginning of a quarter and all repayments are made at the end of a quarter. Interest payments are based on amounts to be repaid during the period. The company requires a minimum cash balance of P 40,000. 10. The company plans to purchase equipment in 2021 as follows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter P 50,000 40,000 20,000 20,000 11. Dividends to be paid every quarter amount to P 8,000. Required: Prepare the Master Budget for Mya Company for 2021.