Instructions 1. Use the given information to create a Given Data Worksheet in the provided Master Budget Excel file. a. 2. For the first quarter of 2024 prepare the following budgets or schedules using the appropriate supplied worksheet. Prepare a sales budget. b. Prepare a schedule of cash collections from customers (round totals to nearest dollar). c. Prepare a production budget. d. Prepare a direct materials budget (round to nearest dollar). e. Prepare a schedule of cash disbursement for inventory purchases. (round totals to nearest dollar). f. Prepare a direct labor budget (For calculations, round to the nearest hour.) g Prepare a manufacturing overhead budget. (round amounts to the nearest dollar. h. Prepare a selling and administrative budget. i. Prepare a cash budget. j. Prepare a budgeted income statement. k. Prepare a budgeted balance sheet. 3. Each worksheet should only contain cell references or formulas for ANY number except ZEROES. Students are allowed to manually input zeroes (0)s and time for interest. 4. Where appropriate, schedules or budgets should reference the budget or schedule that "feeds" the information to it. For example, the Production Budget should get the required Sales Units from the Sales Budget instead of getting it from the Given Data Worksheet. 5. You need to round your calculations of raw materials per unit, direct labor per unit and manufacturing overhead per unit to two (2) decimal places. (hint: your total product cost per unit equals $3.96) 6. Check Figures: Ending Cash as of 3/31/2024 - $1,455,744 Ending Raw Materials as of 3/31/2024 - $9,469 (rounded to 0 decimal places) Net Income - $1,915,802 Total Assets as of 3/31/2024 - $3,365,613 Brooks Corporation is preparing its budget for the coming year, 2024. The first step is to plan for the first quarter of that coming year. Brooks gathered the following information from the managers: 1) Sales and Production Unit sales for November (2023): Unit sales for December (2023): Expected unit sales for January (2024): Expected unit sales for February (2024): Expected unit sales for March (2024): Expected unit sales for April (2024): Expected unit sales for May (2024): Unit selling price 112,500 102,100 113,000 112,500 116,000 125,000 137,500 $12 Additional Information: Brooks likes to keep 10% of the next month's unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2023, totaled $183,780. Month of Sale Collection Month after Sale Collection AR, 12/31/2023 balance 85% 15% 183,780 Desired Ending Inventory 10% 2) Direct Materials Brooks likes to keep 5% of the materials needed for the next month in its ending inventory. In 2024, 60% is paid in the month of purchase, and 40% is paid in the month after purchase. Accounts Payable on December 31, 2023, totaled $120,595 and will all be paid in January. Raw Materials on December 31, 2023, totaled 11,295 pounds. Cost of materials is $0.75 per pound and each unit requires 2 pounds. 5% 60% Desired Ending Inventory Payment for RM in month of Purchase Payment for RM in month following Cost of material per pound Pounds per unit AP, 12/31/2023 Balance RM, 12/31/2023 Balance 40% $0.75 2 120,595 11,295 3) Direct Labor (needs to be converted to decimal of a hour) Labor requires 12 minutes per unit for completion and is paid at a rate of $8 per hour. 12 Number of Minutes per Unit Hours per Unit Cost per Direct Labor Hour 0.20 $8.00 4) Manufacturing Overhead Indirect materials: Indirect labor : Utilities: Maintenance: Salaries: Depreciation: Property taxes: Insurance: Janitorial: 0.30 cents per labor hour 0.50 cents per labor hour 0.45 cents per labor hour 0.25 cents per labor hour 42,000 dollars per month 16,800 dollars per month 2,675 dollars per month 1,200 dollars per month 1,300 dollars per month 5) Selling and Administrative Variable selling and administrative cost per unit $1.60 Fixed Expenses Number of Months in a Quarter Advertising: Insurance: Salaries: Depreciation: Other fixed costs: $15,000 a month $1,400 a month $72,000 a month $2,500 a month $3,000 a month 6) Other Information The Cash balance on December 31, 2023, totaled $100,500, but management has decided it would like to maintain a cash balance of at least $800,000 beginning on January 31, 2024. Dividends are paid each month at the rate of $2.50 per share for 5,000 shares outstanding. The company has an open line of credit with Romney's Bank. The terms of the agreement requires borrowing to at 8% interest. Brooks borrows on the first day of the month and repays on the last day of the month. A $500,000 equipment purchase is planned for February. Beginning Building and Equipment, net is $1,200,000. Beginning Retained Earnings is $ 1,316, 891. Beginning Capital Stock is $100,000. 100,500 800,000 2.50 per outstanding share 2 12 Cash, 12/31/2023 Balance Minimum Cash Balance needed for 1/31/2024 Dividends per month Number of Months for Loan Number of Months per Year Annual Interest Rate Number of Outstanding Shares Beginning Building & Equipment, net February Equipment Purchase Beginning Retained Earnings Beginning Capital Stock 8% 5,000 1,200,000 500,000 1,316,891 100,000