Instructions: In this assigment you will create a series of budgets for Wolverine Manafucturing, an aircraft manufacturing company. Below you will find the information you need to create each budget. To the right you will find a template for each budget. Complete each template byfilling in the missing information, as indicated by bordered boxes with an off-white fill. Make sure you have completed all of the budgets before submitting the assignment! Sales Budget Wolverine Manufacturing's aircrafts sell for $150,000 per unit. Develop a sales budget for the first quarter of 20XX. Assume the companywill sell 1 aircraft in the first month of the quarter and then increase sales by 1 aircraft each subsequent month. Ace ancitipates collecting 70% of the sales in cash during each month within the period. The remaining 30% will be collected in the second quarter. Sales nugget First Quarter ZOXX Budgeted sales per unit Selling price per aircraft Total Sales % of sales collected in during the month of sales: % of sales collected in the month following the sale: January February March 1 2 3 $ 150,000.00 $ 150,000.00 5 150,000.00 S 150,000.00 5 300,000.00 S 450,000.00 70% 30% Schedule of ExEcted Cash Collections Calculate the expected cash collection for each month based on the percentage collected during the month of the sale and the percentage collected following the month of the sale. Schedule of Exgcted Cash Collections Accounts Receivable, beginning balance First-month sales Second-month sales Third-month sales Total Cash Collections Janary February March $ 100,000.00 5 105,000.00 5 45,000.00 $ 210,000.00 5 90,000.00 $ 315,000.00 S 205,000.00 S 255,000.00 S 405,000.00 Direct Materials Budget Direct Materials Bu et First uarter ZOXX Wolverine has determined it will produce 1, 2, and 4 aircraft in January, February, January February March April and March respectively. 2500 pounds of raw materials are needed to produce 1 Required production of aircraft 1 2 3 aircraft. Raw materials per aircraft (pounds) I8333 II 25,000 Raw materials needed to meet production 75,000 Develop a direct materials budget for Wolverine Manufacturing. Assume a starting Add desired ending raw materials inventory (10% of next mth) raw materials inventory of 0 in this quarter. Total raw material needs Less beginning raw materials inventory Wolverine would like to have an ending raw materials inventory each month of 10% Raw materials to be purchased of the following month's raw material needs. The cost of raw materials is Cost of raw materials per pound $10/pound. Cost of raw materials to be purchased In April, Wolverine will be filling a special order for 10 aircraft. April's raw % of purchases paid for with cash during the purchase month: materials needs have been included in the chart so you can calculate the desired % of purchase paid for with cash following the purchase month: ending inventory for March. Wolverine will pay for its raw materials with 50% cash due in the month the materials are received and the remaining 50% on credit, due in the second quarter. Schedule of Expected Cash Disbursements for Materials Schedule of Expected Cash Disbursements for Materials Calculate the expected cash disbursement for each month based on the percentage January February March paid during the month the materials are received and the percentage paid following Accounts payable, beginning balance $ 25,000.00 the month the materials are received. First-month purchases Second-month purchases Third-month purchases Total cash disbursements for materials Direct Labor Bugget Direct Labor Bu et t uarter ZOXX 160 direct labor hours are required to build one aircraft. Labor is paid at a rate of January February March $25/hour. Using this information, prepare a direct labor budget for Wolverine Required production of aircraft Manufacturing's first quarter 20XXL Assume direct labor costs must be paid in cash Direct labor hours per aircraft during the month the expense is incurred. Total direct labor hours needed Direct labor cost per hour Total direct labor costs Manufacturing Overhead Budget Manufacturing Overhead Budget First Quarter 20XX Variable manufacturing overhead is based on direct-labor hours and has a rate of January February March $1,000/direct-labor hour Fixed manufacturing overhead is $80,000/month. Budgeted direct-labor hours Depreciation is computed to be $10,000/month, Variable manufacturing overhead rate Variable manufacturing overhead Using this information, prepare a manufacturing overhead budget for the first Fixed manufacturing overhead quarter 20XX. Assume all manufacturing overhead must be paid in cash in the Total manufacturing overhead month the expense is incurred. Less depreciation Cash disbursements for manufacturing overhead Selling and Administrative Exgnse Budget Selling and Administrative Expense Budget First Quarter ZOXX Wolverine Manufacturing incurs a selling and administrative expense of $15,000 January February March per aircraft sold. It also has fixed monthly selling and administrative expenses of $5,000 for advertising, $25,000 for executive salaries, $12,000 for insurance, $15,000 in property taxes, and $13,000 of depreciation. Using this information, prepare a selling and administrative expense budget for the first quarter 20XX. Assume all selling and administrative expenses must be paid in chas in the month the expense is incurred, Budgeted Sales of aircraft Variable selling and administrative expense per aircraft Variable selling and adminstrative expense Fixed selling and administrative expense Advertising Executive salaries Insurance Property taxes Depreciation Total fixed selling and administrative expenses Total selling and administrative expenses Less depreciation Cash disbursements for selling and admininstrative expenses Cash Budget Use the information from all of the previous budgets and schedules to prepare a cash budget for Wolverine Manufacturing. Wolverine will make a cash equipment purchase of $50,000 in January, but no cash equipment purchases will be made through the rest of the first quarter. Assume that the minimum cash balance required each month is $500,000 when calculating the amount to be borrowed. Wolverine starts the quarter with $500,000 in their cash accounts Cash balance, beginning Add Receipts: Collections from customers Total cash available Less disbursements: Direct materials Direct labor Manufacturing overhead Selling and adminstrative expense Equipment purchases Total disbursements Excess (deficiency) of cash available over disbursements Minimum Balance Required Amount to be borrowed Cash balance, ending Cash Budget First Quarter ZOXX January $500,000 February