master Budgeting

The company's chief financial officer (CFO), in consultation with various managers across the organization has developed the following set of assumptions to help create the 2022 budget: 1. The budgeted unit sales are 12,000 units, 37,000 units, 15,000 units, and 25,000 units for quarters 1-4, respectively Notice that the company experiences peak sales in the second and fourth quarters. The budgeted selling price for the year is $32 per unit. The budgeted unit sales for the first quarter of 2023 is 13,000 units. 2. All sales are on credit Uncollectible accounts are negligible and can be ignored Seventy-five percent of all credit sales are collected in the quarter of the sale and 25% are collected in the subsequent quarter. 3. Each quarter's ending finished goods inventory should equal 15% of the next quarter's unit sales 4 Each unit of finished goods requires 15 yards of raw material that costs $3.00 per yard. Each quarter's ending raw materials inventory should equal 10% of the next quarter's production needs. The estimated ending raw materials Inventory on December 31, 2022 is 5,000 yards. 5. Seventy percent of each quarter's purchases are paid for in the quarter of purchase. The remaining 30% of each quarter's purchases are paid in the following quarter 6. Direct laborers are paid $18 on hour and each unit of finished goods requires o 25 direct labor-hours to complete All direct labor costs are paid in the quarter incurred 7. The budgeted variable manufacturing overhead per direct labor hours $3.00. The quarterly fixed manufacturing overhead is $150,000 including $20,000 of depreciation on equipment. The number of direct labor-nours is used as the allocation base for the budgeted plantwide overhead rate. All overhead costs (excluding depreciation) are paid in the quarter incurred 8. The budgeted variable selling and administrative expense is $125 per unit sold. The fixed selling and administrative expenses per quarter include advertising ($25,000), executive salaries ($64,000). Insurance ($12,000), property tax (58,000), and depreciation expense ($8,000) All selling and administrative expenses (excluding depreciation) are paid in the quarter incurred 9. The company plans to maintain a minimum cash balance at the end of each quarter of $30,000. Assume that any borrowings take place on the first day of the quarter to the extent possible, the company will repay principal and Interest on any borrowings on the last day of the fourth quarter. The company's lender imposes a simple interest rate of 3% per quarter on any borrowings 10. Dividends of $15,000 will be declared and paid in each quarter. 11. The company uses a last-in, first-out (LIFO) inventory flow assumption. This means that the most recently purchased raw materials are the first-out" to production and the most recently completed finished goods are the first-out" to customers and financial statements 1. Quarterly sales budget including a schedule of expected cash collections 2. Quarterly production budget. 3. Quarterly direct materials budget including a schedule of expected cash disbursements for purchases of materials 4. Quarterly direct labor budget 5. Quarterly manufacturing overhead budget. 6. Ending finished goods inventory budget at December 31, 2022. 7. Quarterly selling and administrative expense budget 8. Quarterly cash budget. 9. Income statement for the year ended December 31, 2022 10. Balance sheet at December 31, 2022 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Prepare the quarterly direct labor budget. (Round "Per Unit" to 2 decimal places.) Endless Mountain Company Direct Labor Budget For the Year Ended December 31, 2022 Quarter 2 3 Year Required production in units Direct labor hours per unit Total direct labor-hours needed Direct labor cost per hour Total direct labor cost Prou Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Prepare the quarterly manufacturing overhead budget. (Round "Budgeted direct labor hours" answers to 1 decimal place.) Endless Mountain Company Manufacturing Overhead Budget For the Year Ended December 31, 2022 Quarter 2 Year Budgeted direct labor hours Variable manufacturing overhead per direct labor-hour Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Loss depreciation Cash disbursements for manufacturing overhead Total manufacturing overhead Budgeted direct labor hours Predetermined overhead rate for the year Required information Required: Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 3 Required 9 Required 10 Prepare the ending finished goods inventory budget at December 31, 2022. (Round your answers to 2 decimal places) Endless Mountain Company Ending Finished Goods Inventory Budget (absorption costing basis) For the Year Ended December 31, 2022 Quantity Cost Total 1 Item Production cost per unit Direct materials Direct labor Manufacturing overhead Unit product cost yards hours per yard per hour por hour hours Budgeted finished goods inventory Units from prior year's production Unit product cost Cost from prior year's production Units from current year's production Unit product cost Cost from current year's production Cost of ending finished goods inventory Required: Required 2 Required 3 Required 4 Required 5 Required 6 Requied 7 Required 8 Required 9 Required 10 Prepare the quarterly selling and administrative expense budget. (Round the Variable cost per unit to 2 decimal places.) Your Endless Mountain Company Selling and Administrative Expense Budget For the Year Ended December 31, 2022 Quarter 2 Budgeted unit sales Variable selling and administrative expense por un Sales Food selling and administrative expenses: Advertising Executive salarios Insurance Property taxes Depreciation Total foed selling and administrative expenses Total soling and administrative expontos Loss depreciation Canh disbursements for selling and administrative expenses