Individual Case Study 2 Master det. Cash Bustand.Budete Income Statement After two years study at UCW, you finally graduate and start a job as Junior accountant at Princ Your manager is responsible for the nationwide distribution of pre package froren putza. Because of the pandemic spread and economic recession, the company has rapidly increased its revenue and the promet growth forces the management team to improve their efficiency and manage their production effectively to capite this opportunity. You have just been given responsibility for all planning and budging of the entire production division in C. Today is your first day, you have just given an assignment to prepare master budget for the manager, who needs to present the budget and discus the financial objectives with the shareholders tomorrow. During your job interview, you clearly stated that you gained managerial accounting knowledge and hand on experience during your MBA study. Your first sigment is to prepare a master budget for the next fiscal year, starting April 1, 2021. Your co- woners have left a pile of files on your desk induding the past sale records, product information mantecture schedule and supplier pricing it. Now, you realized that you should have pay more ention during the lecture. Now, you do not know where to start Fortunately, you remember that you tepta spreadsheet template of the master budget in your computer from accounting course last year Operating Budget The marketing department has forwarded you with forecasted sales volumes for the next 12 months see below Date Urts Date Units AR 2011 500.000 OCT, 2021 500.000 MAY 2011 520,000 NOV. 2021 515.000 UNE, 2021 515,000 DEC 2022 530,000 JULY 2001 520,000 LAN, 2022 520,000 AUG, 2021 500,000 FEB, 2022 530,000 56P, 2021 520,000 MAR, 2022 500,000 APR, 2022 es volume is expected to be 530,000 units To meet its monthly sales, the company has mandated that monthly ending finished goods inventories are supposed to be equal to 25% of the nest month's sales in units. Riza Painc currently does its wassembly production in house Each is consists of 2 pounds of flour and the cost of each pound 50 10. Each uniteeds 10 sbour hour from raw material preparation to finished packageThe hourly rate to the sembling workers 512 per hour. The production manager also required desvedirect material ending inventory, which is enough for of the next month production. The production is in April 2022 are estimated to be 70.000 units. The inauna's are sold teren for 53 ech Also, the cost content provide you with Manufacture Overhead Cost and selling and Administrative Expens het well see below Manufacture Overhead Variable costs Indirect Labour 5 0.10 per hour direct Materials $ 0.20 per hour Salaries 5 22.000 U $10.000 Insurance 5 1,200 Deprecation 5 2.000 $ 0.50 per unit Selling and Administrative Vartable penes Shipping Fred Expenses Wars US IG Depreciation Miscellaneous 5 $ 5 $ $ 25.000 14.000 2.000 1.500 5.000 Ahara merting with your current controller and treasure you have informed that the company desires a minimum ending cash balance each month on 51,000,000. The controller stated that only 60of a month's sales are collected by the end of the month and the remaining are collected in the flowing month Badets have been regible, supporting the credit terms as wool in Aont 2021 RP will short term investment for $200,000 and the company has no plan to reinvest. All purchases are pud for in the following manner. So in the month of the purchase and the remaining SON pd in the month following the purchase. Alates to the distributors are made on credit terms with no discount for now, and all within 3 days. Labour, Mandecture Overheat and selling and Administrative respeiding the month, in cach, except for depreciation of coorselera will make a purchase of a parcel of land during the month of May 2020 for $1.000.000 in cash Pusheet the end of the March 2011 is shown below CA 630.000 Account 0.009 Uncated in March Lates 85.000 und in MICH Individual Case Study 2 Master det. Cash Bustand.Budete Income Statement After two years study at UCW, you finally graduate and start a job as Junior accountant at Princ Your manager is responsible for the nationwide distribution of pre package froren putza. Because of the pandemic spread and economic recession, the company has rapidly increased its revenue and the promet growth forces the management team to improve their efficiency and manage their production effectively to capite this opportunity. You have just been given responsibility for all planning and budging of the entire production division in C. Today is your first day, you have just given an assignment to prepare master budget for the manager, who needs to present the budget and discus the financial objectives with the shareholders tomorrow. During your job interview, you clearly stated that you gained managerial accounting knowledge and hand on experience during your MBA study. Your first sigment is to prepare a master budget for the next fiscal year, starting April 1, 2021. Your co- woners have left a pile of files on your desk induding the past sale records, product information mantecture schedule and supplier pricing it. Now, you realized that you should have pay more ention during the lecture. Now, you do not know where to start Fortunately, you remember that you tepta spreadsheet template of the master budget in your computer from accounting course last year Operating Budget The marketing department has forwarded you with forecasted sales volumes for the next 12 months see below Date Urts Date Units AR 2011 500.000 OCT, 2021 500.000 MAY 2011 520,000 NOV. 2021 515.000 UNE, 2021 515,000 DEC 2022 530,000 JULY 2001 520,000 LAN, 2022 520,000 AUG, 2021 500,000 FEB, 2022 530,000 56P, 2021 520,000 MAR, 2022 500,000 APR, 2022 es volume is expected to be 530,000 units To meet its monthly sales, the company has mandated that monthly ending finished goods inventories are supposed to be equal to 25% of the nest month's sales in units. Riza Painc currently does its wassembly production in house Each is consists of 2 pounds of flour and the cost of each pound 50 10. Each uniteeds 10 sbour hour from raw material preparation to finished packageThe hourly rate to the sembling workers 512 per hour. The production manager also required desvedirect material ending inventory, which is enough for of the next month production. The production is in April 2022 are estimated to be 70.000 units. The inauna's are sold teren for 53 ech Also, the cost content provide you with Manufacture Overhead Cost and selling and Administrative Expens het well see below Manufacture Overhead Variable costs Indirect Labour 5 0.10 per hour direct Materials $ 0.20 per hour Salaries 5 22.000 U $10.000 Insurance 5 1,200 Deprecation 5 2.000 $ 0.50 per unit Selling and Administrative Vartable penes Shipping Fred Expenses Wars US IG Depreciation Miscellaneous 5 $ 5 $ $ 25.000 14.000 2.000 1.500 5.000 Ahara merting with your current controller and treasure you have informed that the company desires a minimum ending cash balance each month on 51,000,000. The controller stated that only 60of a month's sales are collected by the end of the month and the remaining are collected in the flowing month Badets have been regible, supporting the credit terms as wool in Aont 2021 RP will short term investment for $200,000 and the company has no plan to reinvest. All purchases are pud for in the following manner. So in the month of the purchase and the remaining SON pd in the month following the purchase. Alates to the distributors are made on credit terms with no discount for now, and all within 3 days. Labour, Mandecture Overheat and selling and Administrative respeiding the month, in cach, except for depreciation of coorselera will make a purchase of a parcel of land during the month of May 2020 for $1.000.000 in cash Pusheet the end of the March 2011 is shown below CA 630.000 Account 0.009 Uncated in March Lates 85.000 und in MICH