OPTIMA, INC.
General information:
Selling price of bamboo rocking horses			$33.50
Linear feet of bamboo required per rocking horse			3
Cost of bamboo per foot			$2.00
Hours required to build			0.50
Average hourly direct labor rate			$15.00
Additional information:
Ending finished goods inventory (percentage of the next quarter's sales)					40%
Ending raw materials inventory (percentage of the next quarter's production)					30%
					Quarters/Year
Variable manufacturing overhead rate per direct labor hour				$8.00
Estimated quarterly fixed manufacturing overhead				$275,000.00	4
Estimated monthly selling and administrative expenses:
Variable				$6.00
Fixed				$200,000.00
Expected number of frames sold in following quarters:
4th Quarter 2019	55,000
1st Quarter 2020	65,000
2nd Quarter 2020	70,000
3rd Quarter 2020	75,000
4th Quarter 2020	90,000
1st Quarter 2015	90,000
2nd Quarter 2015	75,000
Additional information:
Cash on hand at April 1					$250,000
Percentage of sales in cash					80%
Percentage of credit sales collected during quarter of sale					50%
Percentage of credit sales collected in quarter following sale					50%
Percentage of direct material purchases paid in quarter purchased					80%
Percentage of direct material purchases paid in following quarter					20%
Depreciation included in quarterly fixed manufacturing overhead					$75,000
Depreciation included in quarterly fixed selling and administartive expenses					$50,000
Amount expected to be paid for a piece of equipment (purchased in 4th Quarter)					$750,000
Minimum cash balance required					$40,000
Borrowing increments					$1
Quarterly dividend payments					$250,000
Regarding Inventory:
Work-in-process has a zero beginning and ending balance.
Raw Materials Inventory dollar amounts need to be rolled forward to get the ending balance: (Beginning + Produced - Sold = Ending)
								Raw Materials Inventory dollar amounts need to be rolled forward to get the ending balance: (Beginning + Purchased - Used = Ending)
Optima Company
Balance Sheet
12/31/2019
Assets
Cash			$	250,000.00
Finished goods invenotry				650,000.00
Direct materials inventory				120,000.00
Accounts receivable				225,000.00
Plant, Property, and equipment, net				3,500,000.00
Total assets				4,745,000.00
Liabilities and Stockholders' Equity
Accounts Payable			$	90,000.00
Capital Stock				3,000,000.00
Retained earnings				1,655,000.00
Total liabilities and stockholders equity				4,745,000.00

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B F G H 4 D E Sales Budget for the year ending December 31, 2020 Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4 5 6 Total 7 2 Points 8 Budgeted Sales (Units) Unit Price Total Sales 9 10 11 12 13 Optima Company Production Budget for the year ending December 31, 2020 Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4 14 15 Total 16 3 Points 17 Budgeted Sales (Units) Desired Ending Inventory (Units) Less: Beginning Inventory (Units) Budgeted Production (Units) 18 19 20 21 22 23 Optima Company Direct Materials Purchases Budget for the year ending December 31, 2020 Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4 24 25 Total 26 4 Points Budgeted Production (Units) Materials per unit 27