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Please answer E-G. Please answer E-G. P22-42. Developing a Master Budget for a Manufacturing Organization: Challenge Problem Electric Monkey Computer Accessories assembles a computer networking
Please answer E-G.
Please answer E-G.
P22-42. Developing a Master Budget for a Manufacturing Organization: Challenge Problem Electric Monkey Computer Accessories assembles a computer networking device from kits of imported components. You have been asked to develop a quarterly and annual operating budget and pro-forma income statements for 2017. You have obtained the following information: Beginning-of-year balances Cash $50,000.00 Accounts receivable (previous quarter's sales).......... $61,200 Raw materials .... ..... 653 kits Finished goods ........... 510 units Accounts payable............... . ...... . $33,255.00 Borrowed funds.......... $20,000.00 Desired end-of-year inventory balances Raw materials ..... 500 kits Finished goods ................. .. 270 units Desired end-of-quarter balances Cash $20,000.00 Raw materials as a portion of the following quarter's production ....... 0.2 Finished goods as a portion of the following quarter's sales......... 015 Manufacturing costs Standard cost per unit Units Unit price Total Raw materials ..... . ........................... 1 kit $50.00 $50.00 Direct labor hours at rate........ . 0.8 hour $25.00 20.00 Variable overhead/labor hour......... 0.8 hour $10.00 8.00 Total standard variable cost ........................ $78.00 continued Fixed cost per quarter Cash $50,000.00 Depreciation .......... ........... 10,000.00 Total .................. ............................. $60,000.00 ....... $6.00 Selling and administrative costs Variable cost per unit........ Fixed costs per quarter Cash ......... Depreciation ................... Total .................... $25,000.00 5,000.00 $30,000.00 Interest rate per quarter. ....... 0.04 Portion of sales collected Quarter of sale....... 0.75 Subsequent quarter. ..................... 0.24 Bad debts.............. .. 0.01 Portion of purchases paid Quarter of purchase. 0.70 Subsequent quarter. 0.30 Unit selling price... .. $150.00 Sales forecast First Second Third Fourth Unit sales ................................ 3,400 2,500 3,000 4100 Additional information All cash payments except purchases are made quarterly as incurred. All borrowings occur at the start of a quarter. All repayments on borrowings occur at the end of a quarter. . At the time the principal is repaid, interest is paid on the portion of principal that is repaid. Borrowings and repayments may be made in any amount. Required a.A sales budget for each quarter and the year. (Hint: Use of spreadsheet software strongly recom- mended for this problem.) b.A production budget for each quarter and the year. c. A purchases budget for each quarter and the year. d.A manufacturing cost budget for each quarter and the year. e. A selling and administrative expense budget for each quarter and the year. f. A cash budget for each quarter and the year. g. A pro-forma contribution income statement for each quarter and the yearStep by Step Solution
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