Please help me solve Requirement 6-10
Requirement 1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total Decker Manufacturing Cash Collections Budget For the Quarter Ended March 31 Month January February March Quarter 34860 41580 40320 116760 Cash sales 46150 64740 77220 188110 Credits sales 81010 106320 117540 304870 Total cash collections Requirement 2. Prepare a production budget. (Hint: Unit sales Sales in dollars/ Selling price per unit.) Decker Manufacturing Production Budget For the Quarter Ended March 31 Month January February March Quarter 8300 9900 9600 27800 Unit sales 990 960 900 2850 Plus: Desired ending inventory 9290 10860 10500 30650 Total needed 960 830 990 2780 Less: Beginning inventory 8460 9870 9540 2870 Units to produce Requirement 3. Prepare a direct materials budget. (Round your answers to the nearest whole dollar.) Decker Manufacturing Direct Materials Budget For the Quarter Ended March 31 Month February January March Quarter 9540 8460 Units to be produced 9870 27870 3 3 9 Multiply by: Quantity (pounds) of DM needed per unit 25380 28620 83610 29610 Quantity (pounds) needed for production 5922 5724 5400 17046 Plus: Desired ending inventory of DM 34020 31302 35334 100656 Total quantity (pounds) needed 5922 5076 16722 5734 Less: Beginning inventory of DM 26226 29412 28296 83934 Quantity (pounds) to purchase 61 2. 2 Multiply by: Cost per pound 26224 29410 28294 83928 Total cost of DM purchases Requirement 4. Prepare a cash payments budget for the direct material purchases from Requirement 3. (Round your answers to the nearest whole dollar.) Decker Manufacturing Cash Payments for Direct Materials Budget For the Quarter Ended March 31 Month January February March Quarter 5245 5882 5659 16786 20% of current month DM purchases 4300 20979 23528 87507 80% of last month's DM purchases 48245 26861 29187 104293 Total cash payments Requirement 5. Prepare a cash payments budget for direct labor. Decker Manufacturing Cash Payments for Direct Labor Budget For the Quarter Ended March 31 Month January February March Quarter 3807 4442 4293 12542 Total cost of direct labor Requirement 6. Prepare a cash payments budget for manufacturing overhead costs. (Round your answers to the nearest whole dollar.) Decker Manufacturing Cash Payments for Manufacturing Overhead Budget For the Quarter Ended March 31 Month January February March Quarter Variable manufacturing overhead costs Rent (fixed) Other fixed MOH Cash payments for manufacturing overhead Requirement 7. Prepare a cash payments budget for operating expenses. (Round your answers to the nearest whole dollar.) Decker Manufacturing Cash Payments for Operating Expenses Budget For the Quarter Ended March 31 Month January February March Quarter Variable operating expenses Fixed operating expenses Cash payments for operating expenses Requirement 8. Prepare a combined cash budget. (If a box is not used in the table leave the box empty; do not enter a zero. Use parentheses or a minus sign for negative cash balances and financing payments.) Decker Manufacturing Combined Cash Budget For the Quarter Ended March 31 February January March Quarter Beginning cash balance Plus: Cash collections Total cash available Less: cash payments: Direct material purchases Direct labor Manufacturing overhead costs Operating expenses x payment Equipment purchases Total cash payments Ending cash balance before financing Financing: Plus: New borrowings Less: Debt repayments Less: Interest payments Total financing Ending cash balance Requirement 9. Calculate the budgeted manufacturing cost per unit (assume that fixed manufacturing overhead is budgeted to be $0.70 per unit for the year). (Round your answer to the nearest cent.) Decker Manufacturing Budgeted Manufacturing Cost per Unit For the Quarter Ended March 31 Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead costs per unit Fixed manufacturing overhead costs per unit Budgeted cost of manufacturing one unit Requirement 10. Prepare a budgeted income statement for the quarter ending March 31. (Hint: Cost of goods sold Budgeted cost of manufacturing one unit x Number of units sold.) (Round your answers to the nearest whole dollar.) Decker Manufacturing Budgeted Income Statement For the Quarter Ended March 31 Sales revenue Less: Cost of goods sold Gross profit Less: Operating expenses Less: Depreciation expense Operating income Less: Interest expense Less: Income tax expense Net income X Data Table Current Assets as of December 31 (prior year): Cash 4,600 Accounts receivable, net 48,000 $ 15,100 Inventory 123,000 Property, plant, and equipment, net Accounts payable 43,000 Capital stock $ 126,500 Retained earnings $ 23,200 a.Actual sales in December were $71,000. 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 upcom ing year are budgeted to be as follows: January 99,600 February 118,800 March $115,200 April 108,000 May 103,200 b.Sales are 35% cash and 65% credit. All credit sales are collected in the month following the sale. c. Decker 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 $2.00 per pound. Ending inventory of direct materials should be 20% of next month's production needs. e.Most of the labor at the manufacturing facility is indirect, but there is some direct labor incurred. The direct labor hours per unit is 0.05. The direct labor rate per hour is $9 per hour. All direct labor is paid for in the month in which the work is performed. The direct labor total cost for each of the upcoming three months is as follows: January $ 3,807 February 4,442 March 4,293 f. Monthly manufacturing overhead costs are $5,500 for factory rent, $2,900 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. g.Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Decker Manufacturing will purchase equipment for $5,000 (cash), while February's cash expenditure will be $12,200 and March's cash expenditure will be $16,600 h. Operating expenses are budgeted to be $1.25 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. i. Depreciation on the building and equipment for the general and administrative offices is budgeted to be $5,000 for the entire quarter, which includes depreciation on new acquisitions. j. Decker Manufacturing has a policy that the ending cash balance in each month must be at least $4,000. 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 thesse loans is 1% per month simple interest (not compounded). The company would pay down on the line of credit balance in increments of $1,000 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 k. The company's income tax rate is projected to be 30% of operating income less interest expense. The company pays $10,000 cash at the end of February in estimated taxes Requirement 1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total Decker Manufacturing Cash Collections Budget For the Quarter Ended March 31 Month January February March Quarter 34860 41580 40320 116760 Cash sales 46150 64740 77220 188110 Credits sales 81010 106320 117540 304870 Total cash collections Requirement 2. Prepare a production budget. (Hint: Unit sales Sales in dollars/ Selling price per unit.) Decker Manufacturing Production Budget For the Quarter Ended March 31 Month January February March Quarter 8300 9900 9600 27800 Unit sales 990 960 900 2850 Plus: Desired ending inventory 9290 10860 10500 30650 Total needed 960 830 990 2780 Less: Beginning inventory 8460 9870 9540 2870 Units to produce Requirement 3. Prepare a direct materials budget. (Round your answers to the nearest whole dollar.) Decker Manufacturing Direct Materials Budget For the Quarter Ended March 31 Month February January March Quarter 9540 8460 Units to be produced 9870 27870 3 3 9 Multiply by: Quantity (pounds) of DM needed per unit 25380 28620 83610 29610 Quantity (pounds) needed for production 5922 5724 5400 17046 Plus: Desired ending inventory of DM 34020 31302 35334 100656 Total quantity (pounds) needed 5922 5076 16722 5734 Less: Beginning inventory of DM 26226 29412 28296 83934 Quantity (pounds) to purchase 61 2. 2 Multiply by: Cost per pound 26224 29410 28294 83928 Total cost of DM purchases Requirement 4. Prepare a cash payments budget for the direct material purchases from Requirement 3. (Round your answers to the nearest whole dollar.) Decker Manufacturing Cash Payments for Direct Materials Budget For the Quarter Ended March 31 Month January February March Quarter 5245 5882 5659 16786 20% of current month DM purchases 4300 20979 23528 87507 80% of last month's DM purchases 48245 26861 29187 104293 Total cash payments Requirement 5. Prepare a cash payments budget for direct labor. Decker Manufacturing Cash Payments for Direct Labor Budget For the Quarter Ended March 31 Month January February March Quarter 3807 4442 4293 12542 Total cost of direct labor Requirement 6. Prepare a cash payments budget for manufacturing overhead costs. (Round your answers to the nearest whole dollar.) Decker Manufacturing Cash Payments for Manufacturing Overhead Budget For the Quarter Ended March 31 Month January February March Quarter Variable manufacturing overhead costs Rent (fixed) Other fixed MOH Cash payments for manufacturing overhead Requirement 7. Prepare a cash payments budget for operating expenses. (Round your answers to the nearest whole dollar.) Decker Manufacturing Cash Payments for Operating Expenses Budget For the Quarter Ended March 31 Month January February March Quarter Variable operating expenses Fixed operating expenses Cash payments for operating expenses Requirement 8. Prepare a combined cash budget. (If a box is not used in the table leave the box empty; do not enter a zero. Use parentheses or a minus sign for negative cash balances and financing payments.) Decker Manufacturing Combined Cash Budget For the Quarter Ended March 31 February January March Quarter Beginning cash balance Plus: Cash collections Total cash available Less: cash payments: Direct material purchases Direct labor Manufacturing overhead costs Operating expenses x payment Equipment purchases Total cash payments Ending cash balance before financing Financing: Plus: New borrowings Less: Debt repayments Less: Interest payments Total financing Ending cash balance Requirement 9. Calculate the budgeted manufacturing cost per unit (assume that fixed manufacturing overhead is budgeted to be $0.70 per unit for the year). (Round your answer to the nearest cent.) Decker Manufacturing Budgeted Manufacturing Cost per Unit For the Quarter Ended March 31 Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead costs per unit Fixed manufacturing overhead costs per unit Budgeted cost of manufacturing one unit Requirement 10. Prepare a budgeted income statement for the quarter ending March 31. (Hint: Cost of goods sold Budgeted cost of manufacturing one unit x Number of units sold.) (Round your answers to the nearest whole dollar.) Decker Manufacturing Budgeted Income Statement For the Quarter Ended March 31 Sales revenue Less: Cost of goods sold Gross profit Less: Operating expenses Less: Depreciation expense Operating income Less: Interest expense Less: Income tax expense Net income X Data Table Current Assets as of December 31 (prior year): Cash 4,600 Accounts receivable, net 48,000 $ 15,100 Inventory 123,000 Property, plant, and equipment, net Accounts payable 43,000 Capital stock $ 126,500 Retained earnings $ 23,200 a.Actual sales in December were $71,000. 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 upcom ing year are budgeted to be as follows: January 99,600 February 118,800 March $115,200 April 108,000 May 103,200 b.Sales are 35% cash and 65% credit. All credit sales are collected in the month following the sale. c. Decker 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 $2.00 per pound. Ending inventory of direct materials should be 20% of next month's production needs. e.Most of the labor at the manufacturing facility is indirect, but there is some direct labor incurred. The direct labor hours per unit is 0.05. The direct labor rate per hour is $9 per hour. All direct labor is paid for in the month in which the work is performed. The direct labor total cost for each of the upcoming three months is as follows: January $ 3,807 February 4,442 March 4,293 f. Monthly manufacturing overhead costs are $5,500 for factory rent, $2,900 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. g.Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Decker Manufacturing will purchase equipment for $5,000 (cash), while February's cash expenditure will be $12,200 and March's cash expenditure will be $16,600 h. Operating expenses are budgeted to be $1.25 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. i. Depreciation on the building and equipment for the general and administrative offices is budgeted to be $5,000 for the entire quarter, which includes depreciation on new acquisitions. j. Decker Manufacturing has a policy that the ending cash balance in each month must be at least $4,000. 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 thesse loans is 1% per month simple interest (not compounded). The company would pay down on the line of credit balance in increments of $1,000 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 k. The company's income tax rate is projected to be 30% of operating income less interest expense. The company pays $10,000 cash at the end of February in estimated taxes
