More Info Dalton Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Dalton Manufacturing's operations: (Click the icon to view the data.) (Click the icon to view additional data.) Read the requirements 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: Requirement 1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total. January ..... $ 99,600 Dalton Manufacturing - X 118,800 February Data Table Cash Collections Budget March $115,200 For the Quarter Ended March 31 108,000 April Month May ....$ 103.200 Current Assets as of December 31 (prior year) January February March Quarter 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 $9 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: Cash 4,600 Cash sales Accounts receivable, net $ 51,000 Credits sales Inventory 15,100 Total cash collections Property, plant, and equipment, net 121,500 Requirement 2. Prepare a production budget. (Hint: Unit sales Sales in dollars / Selling pri Accounts payable 43,000 Capital stock 124.000 Dalton Manufacturing Retained earnings. 3,807 $ 22,900 January. . .... $ Production Budget February $ 4,442 For the Quarter Ended March 31 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. 4,293 Print Done Month January February March Quarter Unit sales g.Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Dalton Manufacturing will purchase equipment for $5,000 (cash), while February's cash expenditure will be $12,200 and March's cash expenditure will be Plus: Desired ending inventory $16.600 Operatio h.Operating expenses are budgeted to be $1.25 per unit sold plus fixed operating expenses of $1,800 per month. All operating Total needed 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 $4,400 for the entire quarter, which includes depreciation on new acquisitions. 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 Less: Beginning inventory Units to produce local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan bolee balance of $110,000. The interest rate on these loans is 1% per month simple interest (not compounded). The company would pay Requirement 3. Prepare a direct materials budget. (Round your answers to the nearest whole dollar.) 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 Dalton Manufacturing nav the accumulatad intoract at the and of the auarter on the funds borrowed durina the auarter Direct Materials Budget Print Done Enter any number in the edit fields and then continue to the next question. More Info Dalton Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Dalton Manufacturing's operations: (Click the icon to view the data.) (Click the icon to view additional data.) Read the requirements 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: Requirement 1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total. January ..... $ 99,600 Dalton Manufacturing - X 118,800 February Data Table Cash Collections Budget March $115,200 For the Quarter Ended March 31 108,000 April Month May ....$ 103.200 Current Assets as of December 31 (prior year) January February March Quarter 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 $9 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: Cash 4,600 Cash sales Accounts receivable, net $ 51,000 Credits sales Inventory 15,100 Total cash collections Property, plant, and equipment, net 121,500 Requirement 2. Prepare a production budget. (Hint: Unit sales Sales in dollars / Selling pri Accounts payable 43,000 Capital stock 124.000 Dalton Manufacturing Retained earnings. 3,807 $ 22,900 January. . .... $ Production Budget February $ 4,442 For the Quarter Ended March 31 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. 4,293 Print Done Month January February March Quarter Unit sales g.Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Dalton Manufacturing will purchase equipment for $5,000 (cash), while February's cash expenditure will be $12,200 and March's cash expenditure will be Plus: Desired ending inventory $16.600 Operatio h.Operating expenses are budgeted to be $1.25 per unit sold plus fixed operating expenses of $1,800 per month. All operating Total needed 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 $4,400 for the entire quarter, which includes depreciation on new acquisitions. 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 Less: Beginning inventory Units to produce local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan bolee balance of $110,000. The interest rate on these loans is 1% per month simple interest (not compounded). The company would pay Requirement 3. Prepare a direct materials budget. (Round your answers to the nearest whole dollar.) 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 Dalton Manufacturing nav the accumulatad intoract at the and of the auarter on the funds borrowed durina the auarter Direct Materials Budget Print Done Enter any number in the edit fields and then continue to the next