Please fill in what I didnt do, I did about half of it already. If answer is incorrect be free to correct it. Thank you!

3 4 5 7 8 9 10 11 12 Vaughan Company makes AMAZING SUPER DUPER Widgets. You and your team are about to prepare the detailed budgets for the third quarter, July through September. Using the budget template and information given in this workbook, prepare the master budget for third quarter including: a) a sales budget for each month and the quarter b) a production budget for each month and the quarter c) a RM budget for each month and the quarter d) a DL budget for each month and the quarter e) a FOH budget for each month and the quarter f) an ending FG Inventory budget for 9/30/2021 8) a selling & administrative budget for each month and the quarter h) a cash budget for each month (but not quarter) 1) a budgeted income statement for each month and the quarter j) a budgeted balance sheet for 9/30/2021 Do not worry about taxes. Assume that there are no cash dividends to be paid in 2021 and there will be no purchases of P P and E. 13 14 15 16 312 18 19 1. Group Vaughan Company makes AMAZING SUPER DUPER Widgets. Management is now preparing detailed budgets for the third quarter, July through September, and has assembled the following information to assist in budget preparation: Sales Budget The marketing department has estimated sales as follows for the remainder of the year: (Actual sales in June were 6,000 units) July 4,000 October 4,000 August 20,000 November 6,000 September 12,000 December 8,000 The selling price of a SUPER DUPER widget is $80 and all sales are on account. Based on past experience, sales are collected in the following pattern: 20% in the month of sale 75% in month following the sale 5% are never collected (uncollectible) Total 3rd Quarter July August September Vaughan Company Sales Budget 3rd Quarter Sales in Units Selling Price per Unit Total Sales in $ 4,000 80 320.000 20,000 80 1,600,000 12,000 80 960,000 36,000 80 2.880,000 Cash Collections June's Cash Collections July's Cash Collections August's Cash Collections September's Cash Collections Total Cash Collections 360,000 64,000 240.000 320,000 1,200,000 192,000 $ 424,000 S 560,000 $ 1,392,000 $ 360,000 304,000 1,520,000 192,000 2.376,000 2. Production Budget The company maintains a finished goods inventory equal to 10% of the following month's sales. The inventory of finished goods on July 1 is as it should be Vaughan Company Production Budget Total 3rd Quarter August September 3rd Quarter July 4.000 2.000 36,000 600 2 Budgeted Sales in Units Add: Desired Ending Inventory Total Needs Less: Beginning Inventory Required Production 20,000 1.200 21.200 (2.000) 19,200 6,000 (400) 5,600 12.000 400 12,400 (1/200) 11.200 3 36.400 (100) 36,000 55 56 3. 58 59 60 61 63 64 65 68 49.8 Raw Materials Purchasing Budget Each unit of SUPER DUPER widget requires 0.6 pounds of WHAM compound. To prevent shortages, the company would like the inventory of WHAM compound on hand at the end of each month to equal 40% of the following month's production needs. The inventory on July 1 is 1.344 pounds. WHAM compound costs $12.00 per pound and Vaughan pays for 80% of its purchases in the month of purchase the remander is paid in the following month. S41.184 of WHAM compound was purchased in June and 80% was paid for in June, Vaughan Company RM Purchasing Budget Total 3rd Quarter July August September 3rd Quarter Required Production 5,600 19,200 11.200 36.000 RM per Unit 0.60 10.60 10.60 0.60 Production Needs 3360 11.520 5.720 21.600 Add: Desired Ending Inventory 4,608 1.200 1.008 Total Needs 968 14.208 7.920 22.458 Less: Beginning Inventory (4.608) (2.689) (1341) RM to be purchased 9.600 5.232 21.114 Cost of RM per pound 12 12 12 12 Cost of RM to be purchased 5 79.488 $ 115.200 IS 60.7845 253,728 69 20 72 73 74 2.685 75 75 77 01.341 70 79 80 81 Cash Disbursements for RM 8,237 32 8.237 63 590 54 15,898 92.160 June's RM Purchases July's RM Purchases August's RM Purchases September's RM Purchases Total Disbursements The next Radat in the 36 23.0-10 18,384 18.3841 71.424s 29,488 115,200 48,384 18.384 251,309 $ 71.827$ 108,0585 4. The next Budget is the Direct Labor Budget. Let's assume that each unit takes 2 DLH to make and each DLH costs $15. Let's further assume that labor is paid in the month incurred. Vaughan Company DL Budget 3rd Quarter Total 3rd Quarter July August September 36,000 Budgeted Production in Units DLH per Unit Total DLH needed Cost per DLH Total Direct Labor Cost 5,600 2 11,200 15 168,000 19,200 2 38,400 15 11,200 2 22.400 15 12.000 2 00 576,000 336,000 1,080,000 01 5. Next we will prepare our FOH budget FOH is applied based on DLH. Estimated variable FOH is expected to be $500,000 and estimated DLH are expected to be 250,000. Fixed FOH is estimated to be $7,200 per month with $5,000 of that amount being depreciation of factory equipment and building. Like DL, assume that FOH is paid in the month incurred. Vaughan Company FOH Budget 3rd Quarter Total 3rd Quarter July August September 11,200 22.400 V2.000 $ 14 44.800 38,400 12 | $ 76.800 7/200 84,000 144.000 Budgeted DLH Variable FOH rate Total Budgeted Variable FOH Total Budgeted Fixed FOH Total Budgeted FOH Less: Depreciation Cash Needed for FOH 15 22,400 7,200 29,600 V200 21.600 116 52.000 165600 12 118 119 120 121 Total FOH per Budget Budgeted DLH this period Predetermined FOH per DLH 1222 723 6. Now we need to prepare the Ending FG Inventory Budget. Vaughan Company Ending FG Inventory Budget 3rd Quarter Cost Total Quantity Cost Per Unit: Direct Materials Direct Labor FOH Unit Cost Ending Inventory in Units Cost Per Unit Ending FG Inventory 7. a Now it is time for the Selling and Administrative Budget It too will be divided into a variable portion and a fixed portion. Assume that variable S&A costs are S3 per unit plus bad debt expense. Further assume that monthly Fixed Costs are as follows: Advertising $4,000, Executive Salaries $20,000, Other $5,000, and Office depreciation is $3,000. S&A are paid in the month incurred Total July August September 3rd Quarter 2 3 4 Vaughan Company S&A Budget 3rd Quarter Budgeted Sales Variable S&A Expenses Budgeted Variable S&A Exp. Budgeted Fixed S&A Expenses: Advertising Executive Salaries Other Depreciation Total Fixed S&A Expenses Total Budgeted S&A Expenses Less: Depreciation Less: Bad Debt Expense Budgeted Cash S&A Expenses 5 -6 ? 53 59 50 61 62 63 8. From here we go to the cash budget. We need to know cash receipts, cash disbursements, Cash flows/deficit, and the financing section. Vaughan's cash guidelines are as follows: They have a line of credit that can be accessed in $1,000 increments at an annual interest rate of 18%. Money will be borrowed on the last day of a given month and paid back on the last day of the month when it can be. Minimum cash balance required by Vaughan is $50,000. The beginning cash balance on July 1 is $50,000. Interest is paid when money is paid back. Vaughan Company Cash Budget 3rd Quarter July August September 2 Beginning Cash Balance Add: Cash Receipts Total Cash Available Less: Disbursements Direct Materials Direct Labor FOH S&A Expenses Total Disbursements Cash Balance (Deficit) Borrowings RePayments Interest Ending Cash Balance 3 85 186 188 189 190 191 9. From here we move on to the Budgeted Income Statement 192 193 194 Vaughan Company Budgeted Income Statement 3rd Quarter Total 3rd Quarter July 195 194 192 August September 190 199 200 Sales Less: CGS Gross Margit Less: S&A Expenses Net Operating Income Less Interest Expense Net Income 201 202 200 10. And last but not least, we have the budgeted Balance Sheet! We need to know what our balance sheet looked like on July 1, so here goes: Vaughan Company Balance Sheet 7/1/Year 2XXX Liabilities & SE: A/P (given) s 8,237 Assets: Cash (given) A/R (given) RM Inventory (1,344 $12.00) FG Inventory (400 41.80) Land Building&Equipment Less A/D Total Assets $ 50,000 360,000 16,128 16,720 15,000 200,000 (45,000) $ 612,848 Common Stock Retained Earnings Total Liab & SE: $ 400,000 204,611 612,848 Vaughan Company Budgeted Balance Sheet 9/30/Year 2XXX Liabilities & SE: A/P Assets: Cash A/R RM Inventory FG Inventory Land Building&Equipment Less A/D Total Assets Common Stock Retained Earnings Total Liab & SE: 3 4 5 7 8 9 10 11 12 Vaughan Company makes AMAZING SUPER DUPER Widgets. You and your team are about to prepare the detailed budgets for the third quarter, July through September. Using the budget template and information given in this workbook, prepare the master budget for third quarter including: a) a sales budget for each month and the quarter b) a production budget for each month and the quarter c) a RM budget for each month and the quarter d) a DL budget for each month and the quarter e) a FOH budget for each month and the quarter f) an ending FG Inventory budget for 9/30/2021 8) a selling & administrative budget for each month and the quarter h) a cash budget for each month (but not quarter) 1) a budgeted income statement for each month and the quarter j) a budgeted balance sheet for 9/30/2021 Do not worry about taxes. Assume that there are no cash dividends to be paid in 2021 and there will be no purchases of P P and E. 13 14 15 16 312 18 19 1. Group Vaughan Company makes AMAZING SUPER DUPER Widgets. Management is now preparing detailed budgets for the third quarter, July through September, and has assembled the following information to assist in budget preparation: Sales Budget The marketing department has estimated sales as follows for the remainder of the year: (Actual sales in June were 6,000 units) July 4,000 October 4,000 August 20,000 November 6,000 September 12,000 December 8,000 The selling price of a SUPER DUPER widget is $80 and all sales are on account. Based on past experience, sales are collected in the following pattern: 20% in the month of sale 75% in month following the sale 5% are never collected (uncollectible) Total 3rd Quarter July August September Vaughan Company Sales Budget 3rd Quarter Sales in Units Selling Price per Unit Total Sales in $ 4,000 80 320.000 20,000 80 1,600,000 12,000 80 960,000 36,000 80 2.880,000 Cash Collections June's Cash Collections July's Cash Collections August's Cash Collections September's Cash Collections Total Cash Collections 360,000 64,000 240.000 320,000 1,200,000 192,000 $ 424,000 S 560,000 $ 1,392,000 $ 360,000 304,000 1,520,000 192,000 2.376,000 2. Production Budget The company maintains a finished goods inventory equal to 10% of the following month's sales. The inventory of finished goods on July 1 is as it should be Vaughan Company Production Budget Total 3rd Quarter August September 3rd Quarter July 4.000 2.000 36,000 600 2 Budgeted Sales in Units Add: Desired Ending Inventory Total Needs Less: Beginning Inventory Required Production 20,000 1.200 21.200 (2.000) 19,200 6,000 (400) 5,600 12.000 400 12,400 (1/200) 11.200 3 36.400 (100) 36,000 55 56 3. 58 59 60 61 63 64 65 68 49.8 Raw Materials Purchasing Budget Each unit of SUPER DUPER widget requires 0.6 pounds of WHAM compound. To prevent shortages, the company would like the inventory of WHAM compound on hand at the end of each month to equal 40% of the following month's production needs. The inventory on July 1 is 1.344 pounds. WHAM compound costs $12.00 per pound and Vaughan pays for 80% of its purchases in the month of purchase the remander is paid in the following month. S41.184 of WHAM compound was purchased in June and 80% was paid for in June, Vaughan Company RM Purchasing Budget Total 3rd Quarter July August September 3rd Quarter Required Production 5,600 19,200 11.200 36.000 RM per Unit 0.60 10.60 10.60 0.60 Production Needs 3360 11.520 5.720 21.600 Add: Desired Ending Inventory 4,608 1.200 1.008 Total Needs 968 14.208 7.920 22.458 Less: Beginning Inventory (4.608) (2.689) (1341) RM to be purchased 9.600 5.232 21.114 Cost of RM per pound 12 12 12 12 Cost of RM to be purchased 5 79.488 $ 115.200 IS 60.7845 253,728 69 20 72 73 74 2.685 75 75 77 01.341 70 79 80 81 Cash Disbursements for RM 8,237 32 8.237 63 590 54 15,898 92.160 June's RM Purchases July's RM Purchases August's RM Purchases September's RM Purchases Total Disbursements The next Radat in the 36 23.0-10 18,384 18.3841 71.424s 29,488 115,200 48,384 18.384 251,309 $ 71.827$ 108,0585 4. The next Budget is the Direct Labor Budget. Let's assume that each unit takes 2 DLH to make and each DLH costs $15. Let's further assume that labor is paid in the month incurred. Vaughan Company DL Budget 3rd Quarter Total 3rd Quarter July August September 36,000 Budgeted Production in Units DLH per Unit Total DLH needed Cost per DLH Total Direct Labor Cost 5,600 2 11,200 15 168,000 19,200 2 38,400 15 11,200 2 22.400 15 12.000 2 00 576,000 336,000 1,080,000 01 5. Next we will prepare our FOH budget FOH is applied based on DLH. Estimated variable FOH is expected to be $500,000 and estimated DLH are expected to be 250,000. Fixed FOH is estimated to be $7,200 per month with $5,000 of that amount being depreciation of factory equipment and building. Like DL, assume that FOH is paid in the month incurred. Vaughan Company FOH Budget 3rd Quarter Total 3rd Quarter July August September 11,200 22.400 V2.000 $ 14 44.800 38,400 12 | $ 76.800 7/200 84,000 144.000 Budgeted DLH Variable FOH rate Total Budgeted Variable FOH Total Budgeted Fixed FOH Total Budgeted FOH Less: Depreciation Cash Needed for FOH 15 22,400 7,200 29,600 V200 21.600 116 52.000 165600 12 118 119 120 121 Total FOH per Budget Budgeted DLH this period Predetermined FOH per DLH 1222 723 6. Now we need to prepare the Ending FG Inventory Budget. Vaughan Company Ending FG Inventory Budget 3rd Quarter Cost Total Quantity Cost Per Unit: Direct Materials Direct Labor FOH Unit Cost Ending Inventory in Units Cost Per Unit Ending FG Inventory 7. a Now it is time for the Selling and Administrative Budget It too will be divided into a variable portion and a fixed portion. Assume that variable S&A costs are S3 per unit plus bad debt expense. Further assume that monthly Fixed Costs are as follows: Advertising $4,000, Executive Salaries $20,000, Other $5,000, and Office depreciation is $3,000. S&A are paid in the month incurred Total July August September 3rd Quarter 2 3 4 Vaughan Company S&A Budget 3rd Quarter Budgeted Sales Variable S&A Expenses Budgeted Variable S&A Exp. Budgeted Fixed S&A Expenses: Advertising Executive Salaries Other Depreciation Total Fixed S&A Expenses Total Budgeted S&A Expenses Less: Depreciation Less: Bad Debt Expense Budgeted Cash S&A Expenses 5 -6 ? 53 59 50 61 62 63 8. From here we go to the cash budget. We need to know cash receipts, cash disbursements, Cash flows/deficit, and the financing section. Vaughan's cash guidelines are as follows: They have a line of credit that can be accessed in $1,000 increments at an annual interest rate of 18%. Money will be borrowed on the last day of a given month and paid back on the last day of the month when it can be. Minimum cash balance required by Vaughan is $50,000. The beginning cash balance on July 1 is $50,000. Interest is paid when money is paid back. Vaughan Company Cash Budget 3rd Quarter July August September 2 Beginning Cash Balance Add: Cash Receipts Total Cash Available Less: Disbursements Direct Materials Direct Labor FOH S&A Expenses Total Disbursements Cash Balance (Deficit) Borrowings RePayments Interest Ending Cash Balance 3 85 186 188 189 190 191 9. From here we move on to the Budgeted Income Statement 192 193 194 Vaughan Company Budgeted Income Statement 3rd Quarter Total 3rd Quarter July 195 194 192 August September 190 199 200 Sales Less: CGS Gross Margit Less: S&A Expenses Net Operating Income Less Interest Expense Net Income 201 202 200 10. And last but not least, we have the budgeted Balance Sheet! We need to know what our balance sheet looked like on July 1, so here goes: Vaughan Company Balance Sheet 7/1/Year 2XXX Liabilities & SE: A/P (given) s 8,237 Assets: Cash (given) A/R (given) RM Inventory (1,344 $12.00) FG Inventory (400 41.80) Land Building&Equipment Less A/D Total Assets $ 50,000 360,000 16,128 16,720 15,000 200,000 (45,000) $ 612,848 Common Stock Retained Earnings Total Liab & SE: $ 400,000 204,611 612,848 Vaughan Company Budgeted Balance Sheet 9/30/Year 2XXX Liabilities & SE: A/P Assets: Cash A/R RM Inventory FG Inventory Land Building&Equipment Less A/D Total Assets Common Stock Retained Earnings Total Liab & SE