please answer all the questions in detail

a) Sodor Inc. is a manufacturer of toy trains. Each train sells for $15. Sodor's estimated sales for the first five months of the 2019 fiscal year are as follows: Month January February March April May Sales in Units 15,000 18,000 21,000 27,000 25,000 Prepare the sales budget for the first quarter. Sodor Inc. Sales Budget For the Quarter Ended March 31, 2019 January February March Period End b) When compiling the annual budget, the production manager insists that extra inventory should be on hand in care actual sales are higher than budgeted. The production manager has determined that 15% of the following month's budgeted sales should be sufficient for the extra inventory Ending inventory at December 31, 2018 was 3,000 units Prepare the production budget for the first quarter. Sodor Inc. bi When compiling the annual budget, the production manager insists that extra inventory should be on hand in case actual sales are higher than budgeted. The production manager has determined that 15% of the following month's budgeted sales should be sufficient for the extra inventory. Ending Inventory at December 31, 2018 was 3.000 units Prepare the production budget for the first quarter. Sodor Inc. Production Budget For the Quarter Ended March 31, 2019 January February March Period End Each toy train requires 3 pounds (lbs) of materials and each pound costs $0.50. Management budgets for extra materials in the event that there is a shortage from suppliers. Management would like to have 20% of the following month's production needs in ending inventory each month. Ending inventory of train materials at December 31, 2018 is 9.500 lbs. Prepare the direct materials budget and purchasing budget for the first quartet, Sodor Inc Direct Material Purchases Budget For the Quarter Ended March 31, 2019 January February March Period End Sodor Inc. Purchasing Budget For the Quarter Ended March 31, 2019 January February March Period End d) Sodor's sales history indicates that 35% of sales will be for cash and 65% of sales will be on credit Using the information from the sales budget, the forecasted cash and credit sales can be determined: Sodor Inc. Forecasted Cash Sales and Credit Sales For the Quarter Ended March 31, 2019 January February March Period End Sodor has reviewed past collection history and has determined that credit sales will be collected as follows: 70% is collected in the month of sale and 30% is collected the following months. The total credit sales for the month of December 31, 2018 were $125.000 Prepare the budgeted schedule of cash receipts for the first quarter . 1 Normal 1 No Spaci... Heading 1 Heading 2 Title Subtit Paragraph Styles Schedule of Cash Receipts For the Quarter Ended March 31, 2019 January February March Period End e) Sodor will pay for 60% of its purchases of material in the month the material is purchased, and the remaining 40% in the following month. The total credit purchases for the month of December 31, 2018 were $35.000 Prepare the budgeted schedule of cash disbursements for the first quarter. Sodor Inc. Schedule of Cash Disbursements For the Quarter Ended March 31, 2019 January February March Period End DOLL Chapter 7 wo solutions - Microsoft Word Marling Review View Title | . et 1 Normal 11 No Space Heading 1 Heading 2 Subtitle Paragraph Styles ) Prepare a cash budget for the first quarter. Assume the following: 1) Sodor started the year with $20,000 in its bank account and must maintain a minimum cash balance of $10,000 at the end of each month. Sodor has access to an open line of credit with the bank to borrow money if needed. To keep things simple, ignore interest calculations on the bank borrowings. Also, loan borrowings are taken in multiples of $1,000 3) Sodor maintains that they will repay debts as soon as possible with any excess cash that becomes available. 4) Sodor has budgeted the following for 2019 Payment for operating expenses 5105,000 each month Depreciation expense is $5.400 a month, Sodor will need to purchase new machinery. The total cost of the machinery is $180,000. Sodor will pay $100.000 in January and $80,000 in February Cash dividends of S75,000 will be paid to shareholders in February and March Sodor Inc. Cash Budget For the Quarter Ended March 31, 2019 January February March Period End DE DOLL