just confused and milestone one completed and first one on milestone 2

You have been hired by the McClosky Corporation and they manufacture industrial dye. The company is preparing its 20X9 master budget and has presented you with the following information: A. The projected December 31, 20X8, balance sheet for the company is as follows: Assets Cash $ 6,080 Accounts Receivable 29,500 Raw Materials Inventory 1,000 Finished Goods Inventory 3,200 Prepaid Insurance 1,800 Building $ 350,000 Accum Depreciation (25,000) 325,000 Total Assets $ 366,580 Liabilities and Equity Notes Payable $ 25,000 Accounts Payable 2,650 Dividends Payable 12,000 Total Liabilities $ 39,650 Common Stock $ 200,000 Paid-In Capital 40,000 Retained Earnings 86,930 326,930 Total Liabilities and Stockholders Equity $ 366,580 Other Information that is being provided to you: B. The Accounts Receivable balance at 12/31/20X8 represents the balances of November and December credit sales. Sales were $90,000 and $85,000 respectively. C. Estimated sales in gallons of dye for January through May 20X9 are as follows: January 9,000 February 11,000 March 16,000 April 14,000 May 13,000 June 12,000 Each gallon of dye sells for $ 15 D. The collection pattern for accounts receivable is as follows: 70 percent in the month of sale, 20 percent in the first month after the sale, and 10 percent in the second month after the sale. McClosky does not provide cash discounts and they are not expecting any bad debts. E. Each gallon of dye has the following standard quantities and costs for direct material and direct labor: 1.4 gallons of direct material (some evaporation takes place during processing) X $.90 per gallon $ 1.26 0.5 direct labor X $ 8 per hour 4.00 F. Variable overhead is applied to the product on a machine-hour basis. Processing one gallon of dye takes five hours of machine time. The variable overhead is $0.08 per machine hour. Variable overhead consists of utility costs. Total annual fixed overhead is $150,000; it is applied at $ 1 per gallon based on expected annual capacity of 150,000 gallons. Fixed overhead per year is made up of the following costs: Salaries $ 110,000 Utilities 15,000 Insurance 1,800 Depreciation-factory 23,200 Fixed overhead is incurred evenly throughout the year. G. There is no beginning Work-in-Process Inventory. All work is completed in the period in which it is started. Raw Material Inventory at the beginning of the year consists of 1,100 gallons of direct material at a standard cost of $.90 per gallon. There are 500 gallons of dye in Finished Goods Inventory at the beginning of the year carried at a standard cost of $6.28 per gallon; direct material, $.98, direct labor, $4.00; variable overhead $ .30; fixed overhead , $1,00 H. Accounts Payable relates to raw material and is paid 60 percent in the month of purchase and 40 percent in the month after purchase. No discounts are received for prompt payment. I. The dividend will be paid in January 20X9. J. A new piece of equipment will be purchased in March 20X9 and the cost is $12,000. Payment of 80 percent will be made in March and 20 percent in April. The equipment has a useful life of three years and will be placed in service on March 1. K. The note payable has a 12 percent interest rate; interest is paid at the end of each month. The principle of the note is repaid as cash is available to do so. L. The McClosky management team wishes to maintain a minimum cash balance of $5,500. Investments and borrowing are made in $100 amounts. (Even $100 amounts). Interest on any borrowings are expected to be 12 percent per year, and investments will earn 4 percent per year. M. The ending finished goods inventory should include 5 percent of next months sales. This will not be true at the beginning of 20X9 due to a miscalculation in sales for the month of December. The ending inventory of raw materials should be 5 percent of next months needs. N. Selling and administration costs per month are as follows: salaries $25,000; rent, $7,000 and utilities, $800. These costs are paid in cash as they are incurred. O. The companys tax rate is 20 percent. Please note: You will be preparing a master budget for the first of 20X9 and the supporting schedules listed below: Requirements: Milestone 1: Please prepare the following budgets: A. Sales Budget(refer to the images) B. Production Budget(refer to the images) C. Purchases Budget(refer to the images) Milestone 2: Please prepare the following budgets: D. Labor Budget(refer to the images) E. Variable Overhead Budget F. Fixed Overhead Budget G. Budgeted Cost of Goods Manufactured H. Budgeted Income Statement Milestone 3: I. Budgeted Balance Sheet J. Cash Budget K. Budget Presentation and please address the following questions: (1) The sales manager would like to increase the sales price by 10 next quarter, what will be the projected revenues be for the 2nd quarter. (2) The production manager would like to purchase new equipment for next quarter due to the fact that their competitor has purchased equipment

which cost $50,000. Will the company be able to make the purchase or will you need more information? (3) The CEO feels that the cash budget is not necessary, please explain to the CEO why cash budgeting is important to the organization. (4) Please explain the to the management team how a competitors actions can affect business planning.

i just need help with milestone 3

there is no additional information, that is why i am confused

Before this is answered, i only need milestone 3 answered, i am unable to do milestone 2 because it would be late now and the professor will not grade it. ALSO THIS IS ALL THE INFORMATION THAT IS GIVEN. I AM CONFUSED ABOUT IT BECAUSE OF THE LACK OF INFORMATION.

THE PICTURE THAT IS ATTACHED IS ALL I HAVE.

(Master Budget Preparation)

You have been hired by the McClosky Corporation and they manufacture industrial dye. The company is preparing its 20X9 master budget and has presented you with the following information: A. The projected December 31, 20X8, balance sheet for the company is as follows: Assets Cash $ 6,080 Accounts Receivable 29,500 Raw Materials Inventory 1,000 Finished Goods Inventory 3,200 Prepaid Insurance 1,800 Building $ 350,000 Accum Depreciation (25,000) 325,000 Total Assets $ 366,580 Liabilities and Equity Notes Payable $ 25,000 Accounts Payable 2,650 Dividends Payable 12,000 Total Liabilities $ 39,650 Common Stock $ 200,000 Paid-In Capital 40,000 Retained Earnings 86,930 326,930 Total Liabilities and Stockholders Equity $ 366,580 Other Information that is being provided to you: B. The Accounts Receivable balance at 12/31/20X8 represents the balances of November and December credit sales. Sales were $90,000 and $85,000 respectively.

C. Estimated sales in gallons of dye for January through May 20X9 are as follows: January 9,000 February 11,000 March 16,000 April 14,000 May 13,000 June 12,000 Each gallon of dye sells for $ 15 D. The collection pattern for accounts receivable is as follows: 70 percent in the month of sale, 20 percent in the first month after the sale, and 10 percent in the second month after the sale. McClosky does not provide cash discounts and they are not expecting any bad debts.

E. Each gallon of dye has the following standard quantities and costs for direct material and direct labor: 1.4 gallons of direct material (some evaporation takes place during processing) X $.90 per gallon $ 1.26 0.5 direct labor X $ 8 per hour 4.00 F. Variable overhead is applied to the product on a machine-hour basis. Processing one gallon of dye takes five hours of machine time. The variable overhead is $0.08 per machine hour.

Variable overhead consists of utility costs. Total annual fixed overhead is $150,000; it is applied at $ 1 per gallon based on expected annual capacity of 150,000 gallons.

Fixed overhead per year is made up of the following costs: Salaries $ 110,000 Utilities 15,000 Insurance 1,800 Depreciation-factory 23,200 Fixed overhead is incurred evenly throughout the year. G. There is no beginning Work-in-Process Inventory. All work is completed in the period in which it is started. Raw Material Inventory at the beginning of the year consists of 1,100 gallons of direct material at a standard cost of $.90 per gallon. There are 500 gallons of dye in Finished Goods Inventory at the beginning of the year carried at a standard cost of $6.28 per gallon; direct material, $.98, direct labor, $4.00; variable overhead $ .30; fixed overhead , $1,00 H. Accounts Payable relates to raw material and is paid 60 percent in the month of purchase and 40 percent in the month after purchase. No discounts are received for prompt payment. I. The dividend will be paid in January 20X9. J. A new piece of equipment will be purchased in March 20X9 and the cost is $12,000. Payment of 80 percent will be made in March and 20 percent in April. The equipment has a useful life of three years and will be placed in service on March 1. K. The note payable has a 12 percent interest rate; interest is paid at the end of each month. The principle of the note is repaid as cash is available to do so. L. The McClosky management team wishes to maintain a minimum cash balance of $5,500. Investments and borrowing are made in $100 amounts. (Even $100 amounts). Interest on any borrowings are expected to be 12 percent per year, and investments will earn 4 percent per year. M. The ending finished goods inventory should include 5 percent of next months sales. This will not be true at the beginning of 20X9 due to a miscalculation in sales for the month of December. The ending inventory of raw materials should be 5 percent of next months needs. N. Selling and administration costs per month are as follows: salaries $25,000; rent, $7,000 and utilities, $800. These costs are paid in cash as they are incurred. O. The companys tax rate is 20 percent. Please note: You will be preparing a master budget for the first of 20X9 and the supporting schedules listed below: Requirements: Milestone 2: Please prepare the following budgets: E. Variable Overhead Budget F. Fixed Overhead Budget G. Budgeted Cost of Goods Manufactured H. Budgeted Income Statement Milestone 3: I. Budgeted Balance Sheet J. Cash Budget K. Budget Presentation and please address the following questions: (1) The sales manager would like to increase the sales price by 10 next quarter, what will be the projected revenues be for the 2nd quarter. (2) The production manager would like to purchase new equipment for next quarter due to the fact that their competitor has purchased equipment which cost $50,000. Will the company be able to make the purchase or will you need more information? (3) The CEO feels that the cash budget is not necessary, please explain to the CEO why cash budgeting is important to the organization. (4) Please explain the to the management team how a competitors actions can affect business planning.

a. sales budget March Total January 9000 16000 Sales units Sales price per unit Sales amount February 11000 $ 15.00 $1,65,000 $ $ $ 1,35,000 2,40,000 $5,40,000 Production Budget March Total Sales units Add : Closing Stock Required Total Goods Required Less : Opening Stock Production Required 3 Direct Material Budget January 9000 550 9550 500 9050 February 11000 800 11800 550 11250 16000 700 16700 800 15900 36000 700 36700 500 36200 April 14000 650 14650 700 13950 March 36200 Production Required Raw Material Per unit Raw Material for Production Add : Closing Stock Required Total Material Required Less : Opening Stock Material to be purchased Rate per gallon chase cost 4 Direct Labor Budget January 9050 1.4 12670 787.5 13457.5 1100 12357.5 February 11250 1.4 15750 1113 16863 787.5 16075,51 15900 1.4 22260 976.5 23236.5 1113 2 2123.51 50680 976.5 51656.5 1100 50556.5 $ $11.121.75 $14.467.95 $ 19.911.15 $45.500.85 Total 36200 0.5 Production Required Labor hours per unit Total Labor Hours Required Labor Rate per hour Labor Amount January 9050 0.5 4525 $ $ 36,200 February 1 1250 0.5 5 625 $ $ 45,000 March 1 5900 0.5 7 950 $ $ 63,600 18100 $ 1,44,800 Direct Labor Budget Production Required Labor hours per unit Total Labor Hours Required 1 Labor Rate per hour bor Amount January February March Total 9050 1 1250 15900 36200 0.5|| 0.5 0.51 0.5 4 525 5625 7950 18100 $ 8.00 $ 8.00 $ 8.00 $ 8.00 I$ 36,200 $ 45,000 $ 63,600 $ 1,44,800 Sales primeran LLLLL BIS - RESERVE 2 MNR 31SRS $31.121.25 $144.7.95 $ 19,911.15 0 P T uy February March Roured 0505 BRAS 4 horas 15 38200 45.000 .000 15 144,00 a. sales budget March Total January 9000 16000 Sales units Sales price per unit Sales amount February 11000 $ 15.00 $1,65,000 $ $ $ 1,35,000 2,40,000 $5,40,000 Production Budget March Total Sales units Add : Closing Stock Required Total Goods Required Less : Opening Stock Production Required 3 Direct Material Budget January 9000 550 9550 500 9050 February 11000 800 11800 550 11250 16000 700 16700 800 15900 36000 700 36700 500 36200 April 14000 650 14650 700 13950 March 36200 Production Required Raw Material Per unit Raw Material for Production Add : Closing Stock Required Total Material Required Less : Opening Stock Material to be purchased Rate per gallon chase cost 4 Direct Labor Budget January 9050 1.4 12670 787.5 13457.5 1100 12357.5 February 11250 1.4 15750 1113 16863 787.5 16075,51 15900 1.4 22260 976.5 23236.5 1113 2 2123.51 50680 976.5 51656.5 1100 50556.5 $ $11.121.75 $14.467.95 $ 19.911.15 $45.500.85 Total 36200 0.5 Production Required Labor hours per unit Total Labor Hours Required Labor Rate per hour Labor Amount January 9050 0.5 4525 $ $ 36,200 February 1 1250 0.5 5 625 $ $ 45,000 March 1 5900 0.5 7 950 $ $ 63,600 18100 $ 1,44,800 Direct Labor Budget Production Required Labor hours per unit Total Labor Hours Required 1 Labor Rate per hour bor Amount January February March Total 9050 1 1250 15900 36200 0.5|| 0.5 0.51 0.5 4 525 5625 7950 18100 $ 8.00 $ 8.00 $ 8.00 $ 8.00 I$ 36,200 $ 45,000 $ 63,600 $ 1,44,800 Sales primeran LLLLL BIS - RESERVE 2 MNR 31SRS $31.121.25 $144.7.95 $ 19,911.15 0 P T uy February March Roured 0505 BRAS 4 horas 15 38200 45.000 .000 15 144,00