L. C. Body Boards Inc. Budgeting Project As the head accountant for L. C. Bedy Boards Inc., you are responsible for preparing the company's master budget for the first quarter of 20XX. The administrative and divisional managers have prepared the appropriate information (found below) for you to prepare the budget. In addition to the compiled information, you will also find the budgets, reports, questions, and statements required by the CFO. Step 1 L. C. Body Boards Inc. produces Body Boards for sale at local surf shops. The company is in the process of creating = master budget for the first quarter of 20300 Sales results from the prior year are: Last Year Units Sold January 190,000 February 210,000 March 215,000 April 198,000 May 184,000 Unit Sales are to expected increase 14% above last year's sales and each unit sells for $33.00. All sales are on credit. The company expects to collect 70% of sales in the month of sale, s 28% of sales in the month following the sale, * 2% percent will be uncollectzble (Bad Debt Debts Expense i3 recognized in the month of sale). The company gives credit terms of 2/ EOM, n/EOM second month. Accounts receivable at the end of last year totaled 485,000 This represents the collectable amount of December sales that will be collected in January Management prefers to maintain ending finished goods mventory equal to 12% of next month's sales. The Finished Goods Inventory on December 31 of the prior year was 32,500 units. REQUIRED: ) Prepare a sales and cash collections budget for L. C. Body Boards Inc. (For all budgets show amounts for January, February, March, and the total for quarter, also all budgets need to be to two decimal places) b)Prepare a production budget for L. C_ Body Boards Inc. L. C. Body Boards Inc. Budgeting Project Step 2 L. C. Body Boards Inc. is now preparing the budget for direct materials purchases, direct labor, and manufacturing overhead. Each unit production requires 6 pounds Foam X 5_pound Plastic Z. L.C. Body Boards pays $3.73 per pound $10 per pound. Management prefers to maintain ending raw materials inventory equal to materials 30% of needed production for the next month. Faw Material mventory en December 31 for Foam X was 383,000 pounds and for Plastic Z was 32,000 pounds. All direct materials are purchased on credit. L. C. Body Boards pays 72% of purchases in the month of purchase and 28% the following month. L. C. Body Beards pays zll invoices in a timely manner and receives a 1% cash discount on all of the raw materials purchases. The accounts payable on December 31 were 1,650,000. Each unit of production requires 0. direct labor hours at a cost of $21.00 per hour Wariable overhead costs are: Indirect materials 5 0.27 per unit Indirect Labor $ 1.20 per unit Other $ 1.12 per unit Fixed overhead costs per month: Salaries $196,000 Rent $18.000 Depreciation 24.000 REQUIRED: &) Prepare two direct materials budgets, one for the Foam X and the other for the Plastic Z for L. C. Body Boards b) Prepare 2 single cash disbursements budget for the material purchases for L. C. Body Boards ) Prepare 2 schedule showing the cost of ending inventory for raw materials as of March 31, 20xx. d) Prepare a direct labor budget for L. C. Body Boards Inc. Show the cash disbursements for labor at the bottom of the budget ) Prepare 2 manufacturing overhead budget for L. C. Body Boards Inc. Show cash disbursements for overhead at the bettom of the budget. Show a caleulation of the per unit cost of the manufzcturing overhead ROUNDED to 3 decimal places. (Note vou must use the excel round function for this calculation) f) Prepare a schedule for the cost of Finished Goods Inventory as of March 31, 20xx. L.C body boards inc Direct Materials Budget - Foam First Quarter of year 2024 Quarter 1 2 3 4 Total Budgeted production (Pounds) Raw materials needed per pound Production needs per pound Add desired ending inventary per pound [N S Total needs (pounds) Less begin inventory of raw materials Raw Materials to be purchased Cost of raw materials Costof raw materials to be purchased Direct Materials cost per pound L .C Body Boards Inc. Direct Labor Budget First Quarter of year 2024 Quarter 3 Required production of product Direct Labor hours Total Direct Labor Hours needed Direct Labor cost per hour Total Direct Labor cost Direct labor cost per pound