More Info a.Actual sales in December were $71,000. Selling price per unit is projected to remain stable at $12 per unit throughout the budget period. Sales for the first five months of the upcoming year are budgeted to be as follows: January February March April May $ 99,600 $ 118,800 $ 115,200 $ 108,000 $ 103,200 b. Sales are 35% cash and 65% credit. All credit sales are collected in the month following the sale c. Dalton Manufacturing has a policy that states that each month's ending inventory of finished goods should be 10% of the following month's sales (in units). d.Of each month's direct material purchases, 20% are paid for in the month of purchase, while the remainder is paid for in the month following purchase. Three pounds of direct material is needed per unit at $2.00 per pound. Ending inventory of direct materials should be 20% 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 0.05. The direct labor rate per hour is S9 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: $ 3,807 $4,442 $4,293 January February March f. Monthly manufacturing overhead costs are $5,500 for factory rent, $2,900 for other fixed manufacturing expenses, and $1.10 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 upcorning quarter. In January, Dalton Manufacturing will purchase equipment for S5,000 (cash), while February's cash expenditure will be $12,200 and March's cash expenditure will be 516,600 h.Operating expenses are budgeted to be $1.25 per unit sold plus fixed operating expenses of $1,800 per month. All operating i. Depreciation on the building and equipment for the general and administrative offices is budgeted to be $5,000 for the entire j. Dalton 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 expenses are paid in the month in which they are incurred. No depreciation is included in these figures quarter, which includes depreciation on new acquisitions. 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 $110,000. 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 y the accumulated interest at the end of the quarter on the funds borrowed during the quarter Print Done