Martin Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Martin Manufacturing's operations: (Click the icon to view the data.) Read the requirements. (Click the icon to view additional data.) Requirement 1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total. Martin Manufacturing Cash Collections Budget For the Quarter Ended March 31 Month January February March Quarter Cash sales 24,000 $ Credits sales 49,000 27,600 $ 56,000 29,700 $ 81,300 64,400 169,400 $ 73,000 $ 83,600 $ Total cash collections 94,100 $250,700 Requirement 2. Prepare a production budget. (Hint: Unit sales Sales in dollars + Selling price per unit.) Martin Manufacturing Production Budget For the Quarter Ended March 31 Martin Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data to Martin Manufacturingle Data table Current Assets as of December 31 (prior year): Cash Accounts receivable, net Inventory Property, plant, and equipment, net. Accounts payable.. Capital stock.. Retained earnings.. Print Done tional data.) $ 4,500 d March, and for the quarter in $ 47,000 15,700 120,000 42,400 $ 124,000 23,100 8881 00 00 00 Selling price per unit.) Production Budget For the Quarter Ended March 31 e C D C - X Ve More info a. Actual sales in December were $70,000. Selling price per unit is projected to remain stable at $10 per unit throughout the budget period. Sales for the first five months of the upcoming year are budgeted to be as follows: January ... $ 80,000 February $ 92,000 March........ $ 99,000 April May. $ 97,000 $ 85,000 b.Sales are 30% cash and 70% credit. All credit sales are collected in the month following the sale. c. Martin Manufacturing has a policy that states that each month's ending inventory of finished goods should be 25% of the following month's sales (in units). d. Of each month's direct material purchases, 50% are paid for in the month of purchase, while the remainder is paid for in the month following purchase. Two pounds of direct material is needed per unit at $2.00 per pound. Ending inventory of direct materials should be 10% of next month's production needs. e. Most of the labor at the manufacturing facility is indirect, but there is some direct labor incurred. The direct labor hours per unit is 0.01. The direct labor rate per hour is $12 per hour. All direct labor is paid for in the month in which the work is performed. The direct labor total cost for each of the upcoming three months is as follows: January........ February $ 996 $ 1,125 March......... $ 1,182 Print Done De ota ue O O C 0 Question 2 DO.R3A HW Score 41 95% 10.310625 More info e. Most of the labor at the manufacturing facility is indirect, but there is some direct labor incurred. The direct labor hours per unit is 0.01. The direct labor rate per hour is $12 per hour. All direct labor is paid for in the month in which the work is performed. The direct labor total cost for each of the upcoming three months is as follows: January $ 996 February.... $ 1,125 March...... $ 1,182 f. Monthly manufacturing overhead costs are $5,000 for factory rent, $3,000 for other fixed manufacturing expenses, and $1.20 per unit for variable manufacturing overhead. No depreciation is included in these figures. All expenses are paid in the month in which they are incurred. g.Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Martin Manufacturing will purchase equipment for $5,000 (cash), while February's cash expenditure will be $12,000 and March's cash expenditure will be $16,000. h.Operating expenses are budgeted to be $1.00 per unit sold plus fixed operating expenses of $1,000 per month. All operating expenses are paid in the month in which they are incurred. No depreciation is included in these figures. i. Depreciation on the building and equipment for the general and administrative offices is budgeted to be $4,600 for the entire quarter, which includes depreciation on new acquisitions. j. Martin Manufacturing has a policy that the ending cash balance in each month must be at least $4,000. It has a line of credit with a local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $150,000. The interest rate on these loans is 1% per month simple interest (not compounded). The company would pay down on the line of credit balance in increments of $1,000 if it has excess funds at the end of the quarter. The company would also pay the accumulated interest at the end of the quarter on the funds borrowed during the quarter. k. The company's income tax rate is projected to be 30% of operating income less interest expense. The company pays $10,000 cash at the end of February in estimated taxes. elp me surve uns VIUGU Get more p Print Done stion estion Requirements 1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total. 2. Prepare a production budget. (Hint: Unit sales Sales in dollars + Selling price per unit.) ng dat 3. estion Prepare a direct materials budget. 4. Prepare a cash payments budget for the direct material purchases from Requirement 3. (Use the accounts payable balance at December 31 of prior year for the prior month payment in January.) 5. Prepare a cash payments budget for direct labor. uarter i estion 6. Prepare a cash payments budget for manufacturing overhead costs. estion estion 7. Prepare a cash payments budget for operating expenses. 8. Prepare a combined cash budget. 9. Calculate the budgeted manufacturing cost per unit (assume that fixed manufacturing overhead is budgeted to be $0.80 per unit for the year). 10. Prepare a budgeted income statement for the quarter ending March 31. (Hint: Cost of goods sold = Budgeted cost of manufacturing one unit x Number of units sold.) estion Print Done K Martin Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Martin Manufacturing's operations: (Click the icon to view the data.) Read the tequirement (Click the icon to view additional data.) Requirement 2. Prepare a production budget. (Hint: Unit sales Sales in dollars + Selling price per unit.) Martin Manufacturing Production Budget For the Quarter Ended March 31 Month January February March Quarter rrect Unit sales 8,000 9,200 9,900 27,100 Plus: Desired ending inventory 2,300 2,475 2,425 2,425 Total needed 10,300 11,675) 12,325 29,525 2,000 2,300 2,475 2,000 Less: Beginning inventory 8,300 9,375 9,850 27,525 Units to produce Requirement 3. Prepare a direct materials budget. (Round your answers to the nearest whole dollar.) Martin Manufacturing Direct Materiale Rudnat Read the requirements. Martin Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Martin Manufacturing's operations: (Click the icon to view the data.) (Click the icon to view additional data.) For the Quarter Ended March 31 Month January February March Quarter Units to be produced 8,300 9,375 9,850 27,525 Multiply by: Quantity (pounds) of DM needed per unit 2 2 2 2 Quantity (pounds) needed for production Plus: Desired ending inventory of DM Total quantity (pounds) needed 16,600 18,750 19,700 55,050 rre 1,875 1,970 1,880 1,880 18,475 20,720 21,580 56,930 Less: Beginning inventory of DM 1,660 1,875 1,970 1,660 Quantity (pounds) to purchase Multiply by: Cost per pound Total cost of DM purchases 16,815 18,845 19,610 55,270 $ 2.00 $ 2.00 $ 2.00 $ 2.00 $ 33,630 $ 37,690 $ 39,220 $ 110,540 Requirement 4. Prepare a cash payments budget for the direct material purchases from Requirement 3. (Use the accounts payable balance at December 31 of prior year for the prior month payment in January.) (Round your answers to the nearest whole dollar.) K Martin Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Martin Manufacturing's operations: (Click the icon to view the data.) Read the requirements. (Click the icon to view additional data.) Requirement 4. Prepare a cash payments budget for the direct material purchases from Requirement 3. (Use the accounts payable balance at December 31 of prior year for the prior month payment in January.) (Round your answers to the nearest whole dollar.) Martin Manufacturing Cash Payments for Direct Materials Budget For the Quarter Ended March 31 Month January February March Quarter 20% of current month DM purchases $ 6,726 $ 7,538 $ 80% of last month's DM purchases 42,400 26,904 7,844 $ 30,152 22,108 99,456 $ 49,126 $ 34,442 $ 37.996 $ 121,564 Total cash payments Requirement 5. Prepare a cash payments budget for direct labor. Martin Manufacturing Cash Payments for Direct Labor Budget rrect: K Martin Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Martin Manufacturing's operations: (Click the icon to view the data.) Read the tequirements (Click the icon to view additional data.) wean rayin material For the Quarter Ended March 31 Month January February March Quarter 20% of current month DM purchases $ 6,726 $ 7,538 $ 80% of last month's DM purchases 42,400 26,904 7,844 $ 30,152 22,108 99,456 rrect: 0 Total cash payments $ 49,126 $ 34,442 $ 37,996 $ 121,564 Requirement 5. Prepare a cash payments budget for direct labor. Martin Manufacturing Cash Payments for Direct Labor Budget For the Quarter Ended March 31 Total cost of direct labor January Mon February March Quarter