Please fill in the highlighted blank and the table.
Use this information for the questions IE-9 through IE-12 The following information applies to the questions displayed below Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sels its product to retalers throughout the northeastern quadrant of the United States. it is in the process of creating a master budget for 2017 and reports a balance sheet at December 31, 2016 as follows Endless Mountain Company Balance Sheet December 31, 2016 Current assets: Cash Accounts receivable (net Raw materials Inventory (4.500 yerds) Rished goods inventory ,500 units) S 46.200 260000 1,250 32.250 S 349,700 Totel current assets Plant and equipment 900,000 (292.000 Buldings and equipmen Plant and equipment, net Total assets 608,000 5957200 Liabilses and Stockholders Equity Current labiities Accounts peyable s 158.000 Stockholders' equty Common stock Retained earnings 419,800 379.900 Total stockholders equity Total labinies and stockholders' equity 799700 $ 957700 The company's chief financial officer (CFO, in consultation with various managers across the organization has developed the folowing set of assumptions to help create the 2017 budget unit sales are 12.000 units, 37000 units, 15,000 units, and 25,000 units for quarters 1-4, respectively, Notice that 1 The budgeted unit sales are the company experiences peak sales in the second and fourth quarters. The budgeted selling price foir the year is $32 per unit. The budgeted unit sales for the first quarter of 2018 is 13.000 units 2. All sales are on credt. Uncollectible accounts are negligible and can be ignored. Seventy five percent of all credit sales are collected in the quarter of the sale and 25% are collected in the subsequent ouanet 3. Each quarter's ending finished goods inventory should equal ISS of the next quarters unt sales 4. Each unit of finished goods requires 3.5 yards of raw material that costs $3.00 per yard. Each quarters ending raw materials inventory should equal 0% of the next quarter's production needs. The estimated ening raw materiais inventory on December 31, 2017 is 5,000 yards 5. Seventy percent of each quarters 6. Direct laborers are paid $18 an hour and each unit of finished goods requires 0.25 direct labor-hours to complete. All direct 7. The budgeted purchases are paid for i the unter of purcuse. The re nan ng 30% of each quarter's purchases are paid in the following quarter labor costs are paid in the quarter incurred variable manufacturing overhead per direct labor-hour is $3.00 The quarterly fixed manufacturing overhead is $150,000 including $20,000 of depreciation on equipment. The the budgeted plantwide overhead rate. All overhead costs (excluding depreciation) are paid in the quarter incurred number of direct labor-hours is used as the allocation base for i $125 per unit sold. The fixed selling and administrative expenses 8. The budgeted variable selling and administrative expense is $25.000), executive salarles (564.000L insurance ($12000 property tax ($8.000), and per quarter include advertising ( depreciation expense ($8.000) Al selling and administrative expenses (excluding depreciation) are paid in the quarter incurred 9. The company plans to maintain a minimum cash balance at the end of each quarter of $30.000. Assume that any borrowing take place on the first day of the quarter To the extent passible, the company will repay principal and interest on any borrowings on the last day of the fourth quarter. The company's lender imposes a simple interest rate of 3% per quarter on any 10. Dividends of $15,000 will be declared and paid in each quarter 1. The company uses a last-in, first-out (LIFO) i nventory flow assumption. This means that the most recently purchased raw "first-out' to customers materials are the "first-out" to production and the most recently completed finished goods are the
