***PLEASE DO THE REQUIREMENTS ALL OF THEM 1 to 10 and INCLUDE ALL FORMULAS for ALL CALCULATIONS. Thank you****

Devon Manufacturing is preparing its master budget for the first quarter of the upcoming year. The below data table and more data pertain to Devon Manufacturing's operations:

REQUIREMENTS

1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total.

2. Prepare a production budget. (Hint: Unit sales = Sales in dollars / Selling price per unit.)

3. Prepare a direct materials budget.

4. Prepare a cash payments budget for the direct material purchases from Requirement 3.

5. Prepare a cash payments budget for manufacturing overhead costs.

6. Prepare a cash payments budget for operating expenses.

7. Prepare a combined cash budget.

8. Calculate the budgeted manufacturing cost per unit (assume that fixed manufacturing overhead is budgeted to be per $0.80 unit for the year).

9. Prepare a budgeted income statement for the quarter ending March 31.

10. Prepare a partial balance sheet for march 31. Follow the same format as the original balance sheet provided for Dec 31, adding loans payable and income tax payable

DATA TABLE

Current Assets as of December 31 (prior year):

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,640

Accounts receivable, net . . . . . . . . . . $ 57,600

Inventory . . . . . . . . . . . . . . . . . . . . . . . $ 15,600

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Property, plant, and equipment, net . .. . $ 121,500

Accounts payable . . . . . . . . . . . . . . .. $ 42,800

Capital stock . . . . .. . . . . . . . . . . . . . . $ 124,500

Retained earnings .. . . . . . . . . . . . . . .. $ 22,800

MORE DATA

a. Actual sales in December were $72,000. Selling price per unit is projected to remain stable at $12 per unit throughout the budget period. Sales for the first five months of the upcoming year are budgeted to be as follows:

January . . . . . . . . $ 104,000

February . . . . . . . $ 108,000

March . . . . . . . . . $ 112,800

April . . . . . . . . . . $ 109,200

May . . . . . . . . . . $ 105,600

b. Sales are 20% cash and 80% credit. All credit sales are collected in the month following the sale.

c. Devon Manufacturing has a policy that states that each month's ending inventory of finished goods should be 10% of the following month's sales (in units).

d. Of each month's direct material purchases, 20% are paid for in the month of purchase, while the remainder is paid for in the month following purchase. Three pounds of direct material is needed per unit at $2 per pound. Ending inventory of direct materials should be 30% of next month's production needs.

e. Monthly manufacturing overhead costs are $4,500 for factory rent, $2,800 for other fixed manufacturing expenses, and $1.10 per unit for variable manufacturing overhead. No depreciation is included in these figures. All expenses are paid in the month in which they are incurred.

f. Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Devon Manufacturing will purchase equipment for $6,000(cash), while February's cash expenditure will be $12,800 and March's cash expenditure will be $15,600.

g. Operating expenses are budgeted to be $1.30 per unit sold plus fixed operating expenses of $1,800 per month. All operating expenses are paid in the month in which they are incurred.

h. Depreciation on the building and equipment for the general and administrative offices is budgeted to be $4,600 for the entire quarter, which includes depreciation on new acquisitions.

i. Devon Manufacturing has a policy that the ending cash balance in each month must be at least $4,200. It has a line of credit with a local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of$130,000 . The interest rate on these loans is 2% per month simple interest (not compounded). The company would pay down on the line of credit balance if it has excess funds at the end of the quarter. The company would also pay the accumulated interest at the end of the quarter on the funds borrowed during the quarter.

j. The company's income tax rate is projected to be 30% of operating income less interest expense. The company pays $10,800 cash at the end of February in estimated taxes.