Page of 12 - ZOOM + Revenues Budget For Month of December, 2015 Units Selling Price Total Revenues Regular $ Deluxe Total Production Budget For the Month of December, 2015 Product Regular Deluxe Budgeted unit sales Add: target ending finished goods inventory Total required units Deduct: beginning finished goods inventory Units of finished goods to be produced Direct Materials Usage Budget in Quntity and Dollars For the Month of December, 2015 Material Units Faux Leather Genuine Leather Satin Lining Total Physical Units Budget Direct Materials Required for: Regula Deluxe Total quantity of direct materials to be used Cost Budget Available from beginning direct materials inventory under a FIFO cost-flow assumption)Page of 12 - ZOOM + Direct Materials Usage Budget in Quntity and Dollars For the Month of December, 2015 Material Units Faux Leather Genuine Leather Satin Lining Total Physical Units Budget Direct Materials Required for: Regula Deluxe Total quantity of direct materials to be used Cost Budget Available from beginning direct materials inventory (under a FIFO cost-flow assumption) To be purchased this period Direct Materials to be used this period - S - S - Direct Materials Purchases Budget For the Month of December, 2015 Material Units Faux Leather Genuine Leather Satin Lining Total Physical Units Budget To be used in production Add: Target ending direct material inventory Total requirements Deduct: beginning direct material inventory Purchases to be made Cost Budget Direct Materials to be used this period Direct Manufacturing Labor Costs Budget For the Month of December 2015 Output Units Direct Manufacturing Total Hourly WagePage of 12 - ZOOM + lak Direct Manufacturing Labor Costs Budget For the Month of December 2015 Output Units Direct Manufacturing Total Hourly Wage Produced Labor-Hours per Unit Hours Rate Total Regular Delux 0 Total Manufacturing Overhead Costs Budget For the Month of December 2015 Regular Deluxe Total Machine Setup Processing Inspection Total Unit Costs of Ending Finished Goods Inventory For the Month of December, 2015 Regular Deluxe Cost per Input per Total Input per Unit of Output Total Unit of Input Unit of Output Faux Leather Genuine Leather Satin Lining Direct manufacturing labor Machine setup Processing InspectionPage of 12 - ZOOM + lak For the Month of December 2015 Regular Deluxe Total Machine Setup Processing Inspection Total Unit Costs of Ending Finished Goods Inventory For the Month of December, 2015 Regular Deluxe Cost per Input per Input per Total Total Unit of Input Unit of Output Unit of Output Faux Leather Genuine Leather Satin Lining Direct manufacturing labor Machine setup Processing Inspection Total Ending Inventories Budget December, 2015 Quanity Cost/unit Total Direct Materials Faux Leather Genuine Leather Satin Lining Finished Goods Regular Deluxe Total ending inventory Cost of Goods Sold Budget For the Month of December, 2015 Beginning finished goods inventory, December 1 Direct materials used (requirement c) Direct manufacturing labor (requirement d) Manufacturing overhead (requirement e)Page of 12 - ZOOM + lak Cost of Goods Sold Budget For the Month of December, 2015 Beginning finished goods inventory, December 1 Direct materials used (requirement c) Direct manufacturing labor (requirement d) Manufacturing overhead (requirement e) Cost of goods manufactured Cost of goods available for sale Deduct ending finished goods inventory, December 30 (requirement f) Cost of goods sold Nonmanufacturing Costs Budget For the Month of December, 2015 Total Marketing and General Administration Shipping Total Cash Budget December 31, 201 Cash balance, December 1 (from Balance Sheet) Add receipts Collections from November accounts receivable Collections from December accounts receivable Total collection from customers Total cash available for needs (x) Deduct cash disbursements Direct material purchases in November Direct material purchases in December Direct manufacturing labor Manufacturing overhead Nonmanufacturing costsPage 10 > of 12 - ZOOM + lak Cash Budget December 31, 2015 Cash balance, December 1 (from Balance Sheet) Add receipts Collections from November accounts receivable Collections from December accounts receivable Total collection from customers Total cash available for needs (x) Deduct cash disbursements Direct material purchases in November Direct material purchases in December Direct manufacturing labor Manufacturing overhead Nonmanufacturing costs Taxes Dividends Total disbursements (y) Financing interst (z) Ending cash balance, December 31 (x) -(y) - (z) Budgeted Income Statement For the Month of December, 2015 Revenues Bad debt expense Net revenues Cost of goods sold Gross margin Operating (nonmanufacturing) costs Interest expense (for December) Net income Budgeted Balance Sheet Balance Sheet December, 2015 November, 2015 Assets AssetsPage of 12 - ZOOM + lak Budgeted Income Statement For the Month of December, 2015 Revenues Bad debt expense Net revenues Cost of goods sold Gross margin Operating (nonmanufacturing) costs Interest expense (for December) Net income Budgeted Balance Sheet Balance Sheet December, 2015 November, 2015 Assets Assets Cash Cash 9.435 Accounts Receivable Accounts Receivable 324,000 Less: Allowance for uncollectable Less: Allowance for uncollectable 16,200 307,800 Inventories: Inventories Direct Materials Direct Materials 9.900 Finished Goods Finished Goods 52.454 62,354 Fixed Assets Fixed Assets 870,000 Less: Accumulated depreciation Less: Accumulated depreciation 136,335 733,665 Total Assets Total Assets 1,113.254 Liabilitys and Owners' Equity Liabilitys and Owners' Equity Accounts Payable Accounts Payable 15,600 Taxes Payable Taxes Payable 10,800 Interest Payable Interest Payable 750 Long-Term Debt Long-Term Debt 150,000 Common Stock Common Stock 300.00 Retained Earnings Retained Earnings 636,104 Total Liabilities and Owners' Equity Total Liabilities and Owners' Equity 1,113,254X m Comprehensive Budgeting Proje X + Q Not syncing . .. C File | C:/Users/yoanl/Downloads/Comprehensive%20Budgeting%20Project.pdf of 3 Q + [ Page view | A Read aloud | Draw v Highlight Erase | 6 8 Panther Graduation Supplies Company makes diploma covers one style, but in Regular and Deluxe. The Regular covers are made of faux leather and the Deluxe covers are made of genuine leather. Panther Graduation Supplies Company is preparing its budget for December 2015 and has estimated sales based on past experience. The following is information for the month of December 2015; Input Prices Direct Materials Faux leather $5.25/yard Genuine leather $7.50/yard Satin lining $1.50/yard Direct Manufacturing Labor $15/direct manufacturing labor-hour Input Quantities per Unit of Output (per diploma cover) Regular- Deluxe Direct materials Faux leather 1.3 yards 0 Genuine leather 1.5 yards Satin lining yard Direct Manufacturing labor-hours (DLH) 2 hours 3 hour Setup-hours per batch 1 hours hours Inventory Information (Direct Materials) Faux Leather Genuine Leather Satin Lining Beginning inventory 600 yards 800 yards 500 yards Target ending inventory 300 yards 400 yard 250 yards Cost of beginning inventory $3,150 $6,000 $750 Panther Graduation Supplies Company accounts for Direct Materials using FIFO cost flow assumption. Sales and Inventory Information (Finished Goods) Regular Deluxe Expected sales in units (diploma covers) 2,000 3,000 Selling price $60 $100 Target ending inventory (units) 300 600 Beginning inventory (units) 250 650m Comprehensive Budgeting Proje X + X C File | C:/Users/yoanl/Downloads/Comprehensive%20Budgeting%20Project.pdf Q Not syncing . .. 2 of 3 Q - [ Page view | A Read aloud | Draw v Highlight Erase | 6 8 Beginning inventory (dollars) $ 10,757 $ 41,697 Panther Graduation Supplies Company uses FIFO cost flow assumption.\\ for finished goods inventory. Diploma covers are made in batches of 50 units. Panther incurs manufacturing overhead costs, marketing and general administrative, and shipping costs. Besides materials and labor, manufacturing costs include setup, processing, and inspection costs. Panther ships 40 diploma covers per shipment. Panther uses activity-based costing and has classified all overhead costs for the month of December as follows: Cost Type Denominator Activity Rate Manufacturing Setup Setup (hours) $10/setup (hour) Processing Direct manufacturing labor hours (DLH) $1.50/DLH Inspection Number of diploma covers $1.50/cover Non-Manufacturing Marketing and General Administration Sales revenue 10% Shipping Number of shipments $15/shipment Required: 1. Prepare each of the following for December 2015: a. Revenues budget b. Production budget in units c. Direct material usage budget and direct material purchases budget in both units and dollars; round to dollars d. Direct manufacturing labor cost budget e. Manufacturing overhead cost budgets for setup, processing, and inspection activities f. Budgeted unit cost of ending finished goods inventory and ending inventories budget g. Cost of goods sold budget h. Marketing and general administration and shipping costs budgetm Comprehensive Budgeting Proje X + X C File | C:/Users/yoanl/Downloads/Comprehensive%20Budgeting%20Project.pdf Q Not syncing . .. 2 of 3 Q + |[ Page view | A" Read aloud | Draw v Highlight Erase | 6 8 -- 2. Panther's balance sheet for November 30, 2015 is as follows: Panther Graduation Supplies Company Balance Sheet November 30, 2015 Assets Cash 9.435 Accounts Receivable $ 324,000 Less: Allowance for uncollectable 16,200 307,800 Inventories: Direct Materials 9.990 Finished Goods 52,454 Fixed Assets $ 870,000 Less: Accumulated depreciation 136,335 733,665 Total Asset $ 1.1 13,254 Liabilities and Owners' Equity Accounts Payable S 15,600 Taxes Payable 10,800 Interest Payable 750 Long-Term Deb 150,000 Common Stock 300,000 Retained Earnings 636.104 Total Liabilities and Owners' Equity $ 1.113,254 Use the balance sheet and the following information to prepare a cash budget for Panther for December 2015: (Round to dollars " All sales are on account; 60% are collected in the month of the sale, 38% are collected the following month, and 2% are never collected and written off as bad debts. All purchases of materials are on account. Panther pays for 80% of purchases in the month of purchase and 20% in the following month. All other costs are paid in the month incurred, including the declaration and payment of a $15,000 cash dividend in December 2015. Panther is making monthly interest payments of 0.5% (6% per year) on a $150,000 long- term loan. . Panther plans to pay the $10,800 of taxes owed as of November 30 in the month of December. Income tax expense for December is zero. - 30% of processing, setup, and inspection costs and 10% of marketing and general administration and shipping costs are depreciation. 3. Prepare a budgeted income statement for December and a budgeted balance sheet for Panther as of December 31, 2015