Jamison and Co makes lightweight yoga mats. Jamison is preparing its budget for the second quarter of 2022.

1.Each mat sells for $22. Sales in units are as follows:

February12,000$264,000

March12,000264,000

April13,500297,000

May 15,000330,000

June15,500341,000

July 16,000352,000

In order to prevent stockouts they maintain an ending inventory at the end of each month.That inventory is 30% of the following month's sales.

2.The mats are made of a compound made of rubber and plastic which comes in a variety of colors and is made in India.Jamison buys the compound, rolls it flat, cuts the mats and stamps its logo on each one.Each mat requires 1.5 square yards of compound.

Because the compound comes from India, they require that a 20% inventory of the following months production.The compound costs $3 per square yard.Materials needed for production in July are $25,125.

3.Each mat requires .3 hours of direct labor and Jamison pays its assembly line workers $15 per hour. Variable overhead includes inexpensive cording that is attached to the mats and is included in the Variable OH application rate of $12 per direct labor hour.Fixed manufacturing overhead is applied at $8 per direct labor hour.

4.Delivery expenses are 8% of sales and sales commissions are another 4%.Fixed general and administrative are $24,000 per month and 50% of that amount is depreciation.

5.Sales are 30% cash and 70% on credit.Credit sales are collected as follows:

a.10% in the month of sale

b.50% in the month following sale

c.10%in the second month following sale

6.Payments for Purchases are made 25% in the month of purchase and 75% in the month following purchase. Purchases for March total $57,375

7.Jamison requires that a minimum of $20,000 remain in the bank at all times.If the balance drops below $20,000 Jamison borrows from it's line of credit in increments of $10,000.It pays all borrowings back as soon as possible. There are no borrowings on the line of credit on April 1. The beginning cash balance on April 1 is $21,000.

8.Jamison expects to purchase new equipment in April totaling $25,000 and pays a $10,000 dividend in the last month of each quarter.

Requirements:

Using the template provided, master budget and financial budgets for Jamison for the months of April-June 2022, showing quarterly totals.These should include the following:

a.Sales Budget

b.Production Budget

c.Materials purchases budget

d.Direct labor Budget

e.Manufacturing Overhead

f.Selling, General and Administrative Budget

g.Cost of Goods Sold Budget

h.Budgeted Income Statement

i.Cash receipts budget

j.Cash payments budget

k.Cash budget

All blue cells are for data input.Green cells are for formula input. use Excel formulas whenever possible.

Jamison Budget Template(1) A16 X V fx Sales A B C D E F G Selling General and Administrative Budget April May June Total W N H Total Sales Delivery & Sales Commissions Total Selling Expenses Fixed G&A Expenses 6 Total Selling General and Administrative Exp CO LD Cost of Goods Sold: April May June Total 10 # Units Sold 11 Cost Per Unit (See below) 12 Cost of Goods Sold 13 14 15 Income Statement April May June Total 16 Sales 17 Cost of Goods Sold 18 Gross Profit 19 Selling General and Administrative 20 Operating Income 21 22 23 24 25 Cost of Goods Sold: 26 Materials 27 Direct Labor 28 VOH 29 FOH 30 Total Cost per Mat Solo 31 32 33 34 Income Statement Budgets Cash Budgets + Ready IT Count: 5 + 100%O *Jamison Budget Template(1) B20 X VFX A B C D F 1 Cash Receipts Budget April May June Total Cash Sales (30%%) AR Collections: Month of Sale (10%) Month after Sale (50%) Second Month after sale (10%) Total Cash Collected LD 60 10 Cash Payments Budget: April May June Total 11 Materials Purchases 12 Month of Purchase (25%) 13 2nd Month of Purchase (75%) 14 Total Materials Purchases 15 Direct Labor 16 Variable Overhead 17 Fixed Overhead 18 Selling Expenses 19 General & Administrative 20 Less Depreciation: 1 General & Administrative 22 Cash paid for Equipment 23 Cash Paid for Dividends 24 Total Cash Payments 25 26 27 28 Cash Budget April May June Total 29 Cash Balance, Beginning of Period 30 Cash Receipts 31 Cash Payments 32 Cash Balance Before Financing 33 Cash Borrowed or (Repaid] 34 Ending Cash Balance 35 36 37 38 Income Statement Budgets Cash Budgets + Ready