KENSIC COMPANY April SALES BUDGET May June Total July 20.000 34.000 51000 105.000 45.000 Units Sales price per unit Total Sales April Total July August PRODUCTION BUDGET May June 34.000 51.000 10200 9000 20.000 6800 30.000 105.000 9000 45.000 6000 44.200 60.000 114.000 51.000 30.000 Sales in Units Desired units of ndina inventory Desired Total Units Less: desired units of eginning inventory Total production units 26.800 4000 6800 10200 4000 9000 6000 22.800 37.400 49.800 110.000 42.000 24.000 Quarter July Units to be produced x 4 lbs. Total material needs dd: desired end. Inv. DIRECT MATERIALS BUDGET (No. 208) April Mav June 22800 37400 49800 4 4 4 91200 149600 199200 110000 4 440000 42.000 4 168000 74800 99600 84000 84000 Less: Beainning 46000 74800 99600 46000 46000 74800 99600 46000 Less: Beainnina Inventory Total materals to be Durchased 120000 174400 183600 478000 X $5.00 $5.00 $5.00 $5.00 $5.00 Total cost of purchases $600.000.00 $872.000.00 $918.000.00 62.390.000.00 DIRECT MATERIALS BUDGET (No. 311) April May June Quarter July Units to be produced x 9 feet Total material needs 9 9 9 9 9 Add: Desired end. Inv. Subtotal Less: Beainnina Inventory Total materials to be purchased x $2.00 $2.00 $2.00 $2.00 $2.00 Total cost of purchased SCHEDULE OF CASH PAYMENTS FOR DIRECT MATERIALS April Mav June Quarter $351.200 $351.200 Accounts Pavable 3/31 April $548.400 $548.400 $1.096.800 May $809.800 $809.800 $1.619.600 June $883.800 $883.800 Total $899.600 $1,358,200 $1,693,600 $3.951,400 DIRECT LABOR BUDGET April May June Quarter Units to be produced X.25 (Shapina) 23 0.25 37 0.25 50 0.25 110 0.25 Hrs. Shapina Dept. x $18.00 $18.00 $18.00 $18.00 $18.00 Labor cost Shapina dept. 102.600.00 168.300.00 224.100.00 495.000.00 x .70 (Assemblv) 0.7 0.7 0.7 0.7 Hrs. Assembly Dept. x $16.00 15960 $16.00 26180 $16.00 34860 $16.00 77000 $16.00 Labor cost for Assembly dept. 255360 418880 557760 2132000 x. 10 (Finishina) 0.1 0.1 0.1 0.1 Hrs. Finishina Dept. 2280 3740 4980 11000 Hrs. Finishing Dept. x $20.00 2280 $20.00 3740 $20.00 4980 $20.00 11000 $20.00 Labor cost Finishing dept. 45600 74800 99600 220000 Total Labor Cost $403.560.00 $661.980.00 $881.460.00 $1.947.000.00 MANUFACTURING OVERHEAD BUDGET April Mav June Quarter Variable Overhead: Utilities Indirect Labor Supplies Other $40.612.50 $22.087.50 $11.400.00 $5.700.00 $66.618.75 $36.231.25 $18.700.00 $9.350.00 $88.706.25 $195.937.50 $48.243.75 $106.562.50 $24.900.00 $55.000.00 $12.450.00 $27.500.00 Total Variable Overhead $79.800.00 $130.900.00 $174.300.00 $385.000.00 Fixed Overhead Total Overhead less: depreciation Total Overhead paid in cash SCHEDULE OF EXPECTED CASH COLLECTIONS April May June Quarter $75.000.00 $75.000.00 $210.000.00 $105.000.00 $315.000.00 ebruary (10) March (.20:10) pril (.70:20:10) 51.077.832.01 $307.952.00 $153.976.00 $1.539.760.00 May (.70:20) $1.832.314.00 $523.518.00 $2.355.832.00 une (.70) $2.748.471.00$2.748.471.00 Totals 51.362.832.00 $2.245.266.00 $3.4 965.00$7.034.063.00 Material 311: Materials per Finished Component: 9 feet Cost per foot: $2.00 Inventory at March 31: 69,000 feet Material No. 208 is sometimes in short supply. Therefore, the East Division requires that enough of the material be on hand at the end of each month to provide for 50% of the following month's production needs. Material No. 311 is easier to get, so only one-third of the following month's production needs must be on hand at the end of each month. Direct Labor: The East Division has three department through which the components must past before they are completed. Information relating to direct labor in these departments given below: Department: Shaping Direct Labor Hours per Finished Component: .25 Cost per Direct Labor Hour: $18.00 Department: Assembly Direct Labor Hours per Finished Component: .70 Cost per Direct Labor Hour: $16.00 Department: Finishing Direct Labor Hours per Finished Component: .10 Cost per Direct Labor Hour: $20.00 Direct labor is adjusted to the workload each month. Manufacturing Overhead: East Division manufactured 32,000 components during the first three months of the current year. The actual variable overhead costs incurred during this three-month period are shown below. Each Division's controller believes that the variable overhead costs incurred during the last nine months of the year will be at the same rate per component as experienced during the first three months. Utilities $57,000 Indirect Labor $31,000 Supplies $16,000 Other $8,000 Total variable overhead $112,000 The East Division has planned fixed manufacturing overhead costs for the entire year as follows: Supervision $872,000 Property Taxes $143,000 Depreciation $2,910,000 Insurance $631,000 Other $72,000 Total fixed manufacturing Overhead $4,628,000 Finished Goods Inventory: The desired monthly ending inventory of completed components is 20% of the next month's estimated sales. The East Division has 4,000 units in the finished goods inventory on March 31. Selling and Administrative Expenses: Selling and Administrative Expenses are budgeted at $400,000 per month plus 1% of total credit sales for the month. REQUIRED: Prepare a production budget for the East Division for the second quarter ending June 30. Show computations by month and in total for the quarter. (10 pts.) Prepare a direct materials purchases budget in units and dollars for each type of material for the second quarter ending June 30. Again show computations by month and in total for the quarter. (10 pts.) Prepare a schedule of cash payments for direct materials for the second quarter. Assume that all direct materials are purchased on account and the East Division pays for 12 of the amount purchased in the month of purchase and the other 72 in the month following the purchase. The balance in the Accounts Payable account at 3/31 was $351,200. (10 pts.) Prepare a direct labor budget in hours and in dollars for the second quarter ending June 30. Again show computations by month in total for the quarter. (5 pts.) Prepare a manufacturing overhead budget for the second quarter. Show computations by month and in total for the quarter. (5 pts.) Compute a new "selling price per unit" for the East Division that will enable them to accumulate a balance of $100,000 in their cash account by the end of the second quarter. Assume that the cash balance at March 31 was $10,000. (5 pts.) Using the selling price per unit computed in #6 prepare a sales budget for the second quarter. Show computations by month and in total for the quarter. (5 pts.) Prepare a schedule of expected cash collections for the second quarter using the selling price per unit calculated in question #6. Assume that the East Division collects on its credit sales as follows; 70% in the month of sale, 20% in the month following the credit sale, 10% in the second month following the credit sale. To compute the balance in Accounts Receivable at 3/31 assume that the selling price per unit prior to 3/31 was $75.00. (10 pts.) Prepare a cash budget for the second quarter in month and in total for the East Division. (15 pts.) Participation (25 pts.) I will award these points by looking at the participation activity on each team's home page in Canvas and the activity on Google Sheets. If you communicate as a team outside of Canvas or Google Sheets please tell me what teammates participated by leaving me a note in the discussions area of your team homepage in Canvas. KENSIC COMPANY April SALES BUDGET May June Total July 20.000 34.000 51000 105.000 45.000 Units Sales price per unit Total Sales April Total July August PRODUCTION BUDGET May June 34.000 51.000 10200 9000 20.000 6800 30.000 105.000 9000 45.000 6000 44.200 60.000 114.000 51.000 30.000 Sales in Units Desired units of ndina inventory Desired Total Units Less: desired units of eginning inventory Total production units 26.800 4000 6800 10200 4000 9000 6000 22.800 37.400 49.800 110.000 42.000 24.000 Quarter July Units to be produced x 4 lbs. Total material needs dd: desired end. Inv. DIRECT MATERIALS BUDGET (No. 208) April Mav June 22800 37400 49800 4 4 4 91200 149600 199200 110000 4 440000 42.000 4 168000 74800 99600 84000 84000 Less: Beainning 46000 74800 99600 46000 46000 74800 99600 46000 Less: Beainnina Inventory Total materals to be Durchased 120000 174400 183600 478000 X $5.00 $5.00 $5.00 $5.00 $5.00 Total cost of purchases $600.000.00 $872.000.00 $918.000.00 62.390.000.00 DIRECT MATERIALS BUDGET (No. 311) April May June Quarter July Units to be produced x 9 feet Total material needs 9 9 9 9 9 Add: Desired end. Inv. Subtotal Less: Beainnina Inventory Total materials to be purchased x $2.00 $2.00 $2.00 $2.00 $2.00 Total cost of purchased SCHEDULE OF CASH PAYMENTS FOR DIRECT MATERIALS April Mav June Quarter $351.200 $351.200 Accounts Pavable 3/31 April $548.400 $548.400 $1.096.800 May $809.800 $809.800 $1.619.600 June $883.800 $883.800 Total $899.600 $1,358,200 $1,693,600 $3.951,400 DIRECT LABOR BUDGET April May June Quarter Units to be produced X.25 (Shapina) 23 0.25 37 0.25 50 0.25 110 0.25 Hrs. Shapina Dept. x $18.00 $18.00 $18.00 $18.00 $18.00 Labor cost Shapina dept. 102.600.00 168.300.00 224.100.00 495.000.00 x .70 (Assemblv) 0.7 0.7 0.7 0.7 Hrs. Assembly Dept. x $16.00 15960 $16.00 26180 $16.00 34860 $16.00 77000 $16.00 Labor cost for Assembly dept. 255360 418880 557760 2132000 x. 10 (Finishina) 0.1 0.1 0.1 0.1 Hrs. Finishina Dept. 2280 3740 4980 11000 Hrs. Finishing Dept. x $20.00 2280 $20.00 3740 $20.00 4980 $20.00 11000 $20.00 Labor cost Finishing dept. 45600 74800 99600 220000 Total Labor Cost $403.560.00 $661.980.00 $881.460.00 $1.947.000.00 MANUFACTURING OVERHEAD BUDGET April Mav June Quarter Variable Overhead: Utilities Indirect Labor Supplies Other $40.612.50 $22.087.50 $11.400.00 $5.700.00 $66.618.75 $36.231.25 $18.700.00 $9.350.00 $88.706.25 $195.937.50 $48.243.75 $106.562.50 $24.900.00 $55.000.00 $12.450.00 $27.500.00 Total Variable Overhead $79.800.00 $130.900.00 $174.300.00 $385.000.00 Fixed Overhead Total Overhead less: depreciation Total Overhead paid in cash SCHEDULE OF EXPECTED CASH COLLECTIONS April May June Quarter $75.000.00 $75.000.00 $210.000.00 $105.000.00 $315.000.00 ebruary (10) March (.20:10) pril (.70:20:10) 51.077.832.01 $307.952.00 $153.976.00 $1.539.760.00 May (.70:20) $1.832.314.00 $523.518.00 $2.355.832.00 une (.70) $2.748.471.00$2.748.471.00 Totals 51.362.832.00 $2.245.266.00 $3.4 965.00$7.034.063.00 Material 311: Materials per Finished Component: 9 feet Cost per foot: $2.00 Inventory at March 31: 69,000 feet Material No. 208 is sometimes in short supply. Therefore, the East Division requires that enough of the material be on hand at the end of each month to provide for 50% of the following month's production needs. Material No. 311 is easier to get, so only one-third of the following month's production needs must be on hand at the end of each month. Direct Labor: The East Division has three department through which the components must past before they are completed. Information relating to direct labor in these departments given below: Department: Shaping Direct Labor Hours per Finished Component: .25 Cost per Direct Labor Hour: $18.00 Department: Assembly Direct Labor Hours per Finished Component: .70 Cost per Direct Labor Hour: $16.00 Department: Finishing Direct Labor Hours per Finished Component: .10 Cost per Direct Labor Hour: $20.00 Direct labor is adjusted to the workload each month. Manufacturing Overhead: East Division manufactured 32,000 components during the first three months of the current year. The actual variable overhead costs incurred during this three-month period are shown below. Each Division's controller believes that the variable overhead costs incurred during the last nine months of the year will be at the same rate per component as experienced during the first three months. Utilities $57,000 Indirect Labor $31,000 Supplies $16,000 Other $8,000 Total variable overhead $112,000 The East Division has planned fixed manufacturing overhead costs for the entire year as follows: Supervision $872,000 Property Taxes $143,000 Depreciation $2,910,000 Insurance $631,000 Other $72,000 Total fixed manufacturing Overhead $4,628,000 Finished Goods Inventory: The desired monthly ending inventory of completed components is 20% of the next month's estimated sales. The East Division has 4,000 units in the finished goods inventory on March 31. Selling and Administrative Expenses: Selling and Administrative Expenses are budgeted at $400,000 per month plus 1% of total credit sales for the month. REQUIRED: Prepare a production budget for the East Division for the second quarter ending June 30. Show computations by month and in total for the quarter. (10 pts.) Prepare a direct materials purchases budget in units and dollars for each type of material for the second quarter ending June 30. Again show computations by month and in total for the quarter. (10 pts.) Prepare a schedule of cash payments for direct materials for the second quarter. Assume that all direct materials are purchased on account and the East Division pays for 12 of the amount purchased in the month of purchase and the other 72 in the month following the purchase. The balance in the Accounts Payable account at 3/31 was $351,200. (10 pts.) Prepare a direct labor budget in hours and in dollars for the second quarter ending June 30. Again show computations by month in total for the quarter. (5 pts.) Prepare a manufacturing overhead budget for the second quarter. Show computations by month and in total for the quarter. (5 pts.) Compute a new "selling price per unit" for the East Division that will enable them to accumulate a balance of $100,000 in their cash account by the end of the second quarter. Assume that the cash balance at March 31 was $10,000. (5 pts.) Using the selling price per unit computed in #6 prepare a sales budget for the second quarter. Show computations by month and in total for the quarter. (5 pts.) Prepare a schedule of expected cash collections for the second quarter using the selling price per unit calculated in question #6. Assume that the East Division collects on its credit sales as follows; 70% in the month of sale, 20% in the month following the credit sale, 10% in the second month following the credit sale. To compute the balance in Accounts Receivable at 3/31 assume that the selling price per unit prior to 3/31 was $75.00. (10 pts.) Prepare a cash budget for the second quarter in month and in total for the East Division. (15 pts.) Participation (25 pts.) I will award these points by looking at the participation activity on each team's home page in Canvas and the activity on Google Sheets. If you communicate as a team outside of Canvas or Google Sheets please tell me what teammates participated by leaving me a note in the discussions area of your team homepage in Canvas