No. 5 Master Budget (LO 4 - 25 Mark) GOE Ltd. is preparing budgets for the quarter ending March 31, 2021. Budgeted sales for the next five months are: Month Budgeted Sales January 52.500 units February 60.000 units March 80.000 units April May 90.000 units 100.000 units The selling price is $ 15 per unit. All sales are on account. GOE's collection pattern as follow: 60% collected in the month of sale, 20% collected in 1 month after sale, 15% collected in 2 month after sale, 5% uncollectible. The Dec 31st 2020 Account Receivable balance of $ 50.000 will be collected in full. The management of GOE Ltd. wants ending inventory to be equal to 20% of the following month's budgeted sales in units. On December 31st 2020, 0.500 units were on hand with cost $58.800. Every unit product required 5 pounds of material. Management wants materials on hand at the end of each month equal to 15% of the following month's production. On December 31st 2020, 20.000 pounds of material are on hand. Material cost is $0,5 per pound. The December 31st 2020 Accounts Payable balance is $20.000. A 70% of a month's purchase is paid in the month of purchase, and the 30% is paid in the following month. Each unit of products requires 0,1 hours of direct labor-hours (DLH). The company has a "no layoff" policy so all employee will be paid for 40 hours of work each week with the rate of $12 hour regardless of the hours worked. For the next three months, the direct labor workforce per month. will be paid for a minimum of 1.600 hours per FM-BINUS-AA-FPU-78/V2RO Manufacturing overhead (MOH) is applied to units of product on the basis of DLH. The variable MOH rate is $10 per DLH. Fixed MOH is $60.000 per month, which includes $10.000 of depreciation. The selling and administrative expense budget is divided into variables and fixed components. The variable selling and administrative expenses are $1,2 per unit sold. Fixed Selling and administrative expenses are $50.000 per month. The fixed selling and administrative expenses include $10.000 depreciation expense. Assume the following information for cash budget: a. Maintains a 12% open line of credit for $50.000, b. Maintains a minimum cash balance of $30.000, c. Borrows on the first day of the month and repays loans on the last day of the month of quarter 1. d. Pays a cash dividend of $549.000 in January 2021. e. Purchases $215.250 of Land in February 2021 and $150.000 in March 2021 (both purchases paid in cash) f. On January 1" 2021 cash balance of $455.250 The following account balances prior to preparing its budgeted financial statements: a. Land b. Machinery $ 134.750 $ 500.000 $ 500.000 d. Common Stock $ 1.000.000 c. Equipment e. Retained Earnings Required: (Max 10@2 point) $ 688.800 a. Sales budget and expected cash collection b. Production budget c. Direct material budget and expected cash disbursement for material d. Direct labor budget e. Manufacturing overhead budget f. Ending finished goods inventory budget g. Selling and administrative expenses budget h. Cash budget i. Budgeted income statement j. Budgeted financial position statement