Makails Chocolate Limited is a manufacturer of premium chocolate bars. The manager of the company

has provided you with the following information & asked for your assistance in preparing the master budget

the last quarter of $2024.$

$1.$ Budgeted sales for the October $2024$ to January $2025$ are as follows:

October $12,500$

November $13,500$

December $14,000$

January $12,000$

The selling price is $$100/$ unit

Sales are $100\%$ on credit and $75\%$ are collected in month of sale & $25\%$ in month following the sale.

$2.$ Accounts receivable are expected to be $$325,000$ on September $30,2024$ & will be collected in October.

$3.$ At the end of September $30$ there are expected to be $1,875$ units of finished goods inventory on hand.

The desired ending inventory of finished goods is $15\%$ of the next month's budgeted sales.

$4.$ Makails Chocolate pays for $50\%$ of their direct materials in the month of purchase & $50\%$ in the following

month. The Accounts payable balance is expected to be $$196,200$ at September $30$ & will be

paid in October.

$5.$ The cost per kg of direct materials is $$3\mathrm{.}00.$

$6.$ The company plans to pay a dividend of $$20,000$ in October.

$7.$ Each unit produced requires $1\mathrm{.}25$ hours of direct labour at a cost of $$25/$hour$.$

They plan to purchase equipment costing $$50,000$ in December.

$8.$ Makails Chocolate Limited plans to purchase equipment costing $$71,800$ in November for cash.

$9.$ The company wishes to maintain a minimum cash balance of $$12,000$ at the end of each month.

$9.$ The company has an agreement with the local bank that allows them to borrow up to $$100,000.$

The interest rate on the loans is $12\%$ and there are no loans outstanding at September $30.$ All

borrowing is done at the start of the month and all repayments are made at the end of the month.

Interest is paid at the same time the loan is paid back.

$10.$ The cash balance at September $30,2024$ is budgeted to be $$15,000.$

$11.$ The cost of goods sold for the quarter is $$3,187,200$

Required:

$1.$ Using the excel file included in the assignment complete the following budgets for the

the last quarter of $2024($October$,$ November & December$)$ for Makails Chocolate Limited:

Sales Budget & Schedule of Expected Cash Collections

Production Budget

Direct Materials $-$ Cash Disbursements Budget

Direct Labour Budget

Cash Budget

Note $-$ Some of the parts of the master budget have been completed for you.

$2.$ Complete the budgeted income statement for the quarter ended December $31,2024.$

$3.$ What will the accounts receivable & accounts payable balances be at December $31,2024?$