Introduction We are Telsa's car accessories segment Need to do a forecast for the seat cover product line The seat cover product line has its own balance sheet and income statement Sales Budget and Cash Collections Forecast Sales (units) January February March April May 10,000 35,000 15,000 10,000 25,000 Selling price: $75.00 per seat cover Sales are collected in the following pattern: Same Month 1 Month Later 2 Months Later 60% 30% 1096 All accounts receivable at the end of December will be collected in January Inventory Production and Raw Materials Details Desired ending inventory of seat covers is 20% of next month's sales Inventory on December 31 was 2,270 seat covers The fabric required for each seat cover costs $16.00 The fabric required to be in ending inventory at the end of each month is 10% of next month's requirement All A/P on December 31 will be paid in January 40% of the cost of fabric is paid in the month of purchase, 60% the next month Direct Labour and Manufacturing Overhead Details It takes 0.75 hours to make each seat cover We pay our production employees $25 per hour The direct labour payments are made in the same month the employees earned the wages. Fixed overhead is $160,000 per month (including $34,000 of depreciation) Variable overhead is $8.00 per direct labour hour You will need to calculate the predetermined overhead rate Administrative and Selling Expense Details Variable administrative and selling expenses are $5.00 per unit sold Fixed administrative and selling expenses are: Advertising: $ 65,000 Admin Salaries $ 130,000 Insurance: $ 28,000 Office depreciation: $ 41,000 Other cash payments: February equipment purchase: $ 123,000 February dividends paid: $ 55,000 Cash Management Details We have an unlimited capacity short-term demand loan which automatically covers any cash deficiency (Short-term Bank Loan on the B/S) Amounts are borrowed at the start of the nonth, repaid at the end of the month Interest is paid based on the amount of principal repaid We require a minimum cash balance of $45,000 Interest is charged at 10% per year Required Tasks Start with the file provided (on Moodle) and produce the following in this order on one Excel tab: 1. Opening balance sheet 10. Selling and administrative budget 2. Sales budget 11. Cash budget 3. Schedule of cash collections 12. Cost of goods manufactured 4. Production budget budget 5. Direct materials budget 13. Budgeted income statement (with 6. Schedule of cash payments detailed COGS calculation) 7. Direct labour budget 14. Budgeted statement of retained 8. Manufacturing overhead budget earnings 9. Ending finished goods inventory 15. Budgeted balance sheet budget C CHECK FIGURES Total cash collections for the quarter Total required production for the quarter (units) Raw materials to be purchased for the quarter March 31st, 2022 Ending cash balance Total cost of goods manufactured for the quarter Total assets for the quarter ended March 31 Figure Schedule Expected cash 4,147,500 collections 59,730 Production 957,380 Direct materials 316,123 Cash budget 2,913,998 Schedule of COGM 2,484,995 Balance sheet