please help-project 2, q 2

Required information [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 sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2022 and reports a balance sheet at December 31, 2021 as follows: Endless Mountain Company Balance Sheet December 31, 2021 Assets Current assets Cash $ 46,200 Accounts receivable (net) 26e, eee Raw materials inventory (4,500 yards) 11,250 Finished goods Inventory (1,500 units) 32.250 Total current assets $ 349,700 Plant and equipment: Buildings and equipment 900,000 Accumulated depreciation (292.000) Plant and equipment, net 608,000 Total assets 5.957,700 Liabilities and Stockholders! Equity $ 349,700 Endless Mountain Company Balance Sheet December 31, 2021 Assets Current assets: Cash $ 46,200 Accounts receivable (net) 260,000 Raw materials inventory (4,500 yards) 11,250 Finished goods inventory (1,500 units) 32,250 Total current assets plant and equipment: Buildings and equipment 900,000 Accumulated depreciation (292,000) Plant and equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Stockholders' equity Common stock $ 419,800 Retained earnings 379.900 Total stockholders' equity Total 1 abilities and stockholders' equity 608,000 $. 957,700 $ 158,000 799,700 5.957,709 The company's chief financial officer (CFO), in consultation with various managers across the organization has developed the following set of assumptions to help create the 2022 budget The company's chief financial officer (CFO), in consultation with various managers across the organization has developed the following set of assumptions to help create the 2022 budget 1. The budgeted unit sales are 12,000 units, 37,000 units 15,000 units, and 25,000 units for quarters 1-4, respectively Notice that the company experiences peak sales in the second and fourth quarters. The budgeted selling price for the year is $32 per unit. The budgeted unit sales for the first quarter of 2023 is 13,000 units. 2. All sales are on credit. 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 quarter. 3. Each quarter's ending finished goods inventory should equal 15% of the next quarter's unit sales. 4. Each unit of finished goods requires 35 yards of raw material that costs $3.00 per yard. Each quarter's ending raw materials inventory should equal 10% of the next quarter's production needs. The estimated ending raw materials inventory on December 31, 2022 is 5,000 yards 5. Seventy percent of each quarter's purchases are paid for in the quarter of purchase. The remaining 30% of each quarter's purchases are paid in the following quarter. 6. Direct laborers are paid S18 an hour and each unit of finished goods requires 0.25 direct labor-hours to complete. All direct labor costs are paid in the quarter incurred. 7. The budgeted 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 number of direct labor-hours is used as the allocation base for the budgeted plantwide overhead rate. All overhead costs (excluding depreciation) are paid in the quarter incurred 8. The budgeted variable selling and administrative expense is $125 per unit sold. The fixed selling and administrative expenses per quarter include advertising ($25.000). executive salaries (564,000), insurance ($12,000), property tax www.puim LUULE yuuuuuu..HLEIUNUL direct labor costs are paid in the quarter incurred. 7. The budgeted 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 number of direct labor-hours is used as the allocation base for the budgeted plantwide overhead rate. All overhead costs (excluding depreciation) are paid in the quarter incurred. 8. The budgeted variable selling and administrative expense is $1.25 per unit sold. The fixed selling and administrative expenses per quarter include advertising ($25,000). executive salaries ($64,000), insurance ($12,000), property tax ($8,000) and depreciation expense ($8,000). All 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 borrowings take place on the first day of the quarter. To the extent possible, 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 borrowings 10 Dividends of $15,000 will be declared and paid in each quarter, 11. The company uses a last-in, first-out (LIFO) inventory flow assumption. This means that the most recently purchased raw materials are the first out to production and the most recently completed finished goods are the "first-out" to customers Required: The company's CFO has asked you to prepare the 2022 master budget. To fulfill this request, prepare the following budget schedules and financial statements. 1. Quarterly sales budget including a schedule of expected cash collections 2. Quarterly production budget. 3. Quarterly direct materials budget including a schedule of expected cash disbursements for purchases of materials, 4. Quarterly direct labor budget 5. Quarterly manufacturing overhead budget 6. Ending finished goods inventory budget at December 31, 2022 7. Quarterly selling and administrative expense budget. 8 Quarterly cash budget. 9. Income statement for the year ended December 31, 2022 10. Balance sheet at December 31, 2022 Endless Mountain Company Sales Budget For the Year Ended December 31, 2022 Quarter 1 2 3 12,000 37,000 15,000 $ 32 $ 32 $ 32 $ $ 384,000 $ 480,000 1,184,000 Schedule of Expected Cash Collections 25.000 32 Budgeted unit sales Selling price per unit Sales Year 89.000 s 32 $ 2.848.000 S 800,000 Beginning accounts receivable First quarter sales Second quarter sales Third-quarter sales Fouth-sales Year Budgeted unit sales Selling price per unit Sales 25,000 32 $ 2 3 12.000 37,000 15,000 $ 32 $ 32 $ 32 $ $ 384,000 1.184,000 $ 480,000 Schedule of Expected Cash Collections 89,000 $ 32 $ 2,848.000 $ 800,000 Beginning accounts receivable First-quarter sales Second-quarter sales Third-quarter sales Fourth-quarter sales Total cash collections S s 0 0 0 Required 2 > 3 No Year 22 3630 00 SIS $ 5 $ $ $ Quarter 2 8.4250 3 5 25 275 $ 150.000 175 275 20 000 155 275 $ 1 4,0130 3S 12,039 $ 150.000 162.039 20.000 142,039 Budgeted direct labor hours Variable manufacturing overhead per direct labor-hour Variable manufacturing overhead Ebred manufacturing overhead Total manufacturing overhead Less depreciation Cash disbursements for manufacturing overhead Total manufacturing overhead Budgeted direct labor hours Predetermined overhead rate for the year > 4 5.800 0 3 17.400 150,000 167 400 20,000 147 100 4,1250 3 12,375 150.000 162375 20,000 142.375 67,069 600,000 667 089 20,000 647,089 667088 22 363 29 83 GA $ Production cost per unit 3.50 yards Direct materials $ 3.00 CA 10.50 0.25 $ 18.00 Direct labor hours per yard per hour per hour 4.50 0.25 $ 29.83 7.46 hours $ 22.46 Manufacturing overhead Unit product cost Budgeted finished goods inventory Units from prior year's production Unit product cost Cost from prior year's production Units from current year's production Unit product cost Cost from current year's production Cost of ending finished goods Inventory $ 1,500 $ 2150 32.250 89,450 X 5 22.46 $ 2.009.047 $ 2,041 297 Nu Endless Mountain Company Selling and Administrative Expense Budget For the Year Ended December 31, 2022 Quarter 2 3 + 12.000 37.000 15,000 25.000 $ 15.000.00 46.250.00 $ 18.750 00 3 5 31.250.00 $ 180.000.000 1.711.250 000 201 250 000 761 250 000 Year 89.000 $111.250.00 9.901 250.000 Budgeted unit sales Variable selling and administrative expense per unit Sales Fedtelling and administrative expenses Advertising Executive salaries Insurance Property taxes 25.000 64.000 12.000 8.000 25.000 64,000 12000 8.000 25000 64,000 12.000 5000 25000 64000 12000 8000 100.000 256.000 40.000 32.000 000 Endless Mountain Company Budgeted Income Statement For the Year Ended December 31, 2022 (Absorption costing basis) Sales $ 2,848,000 Cost of goods sold 1,998,724 Gross margin 849,276 Selling and administrative expenses 588,892 X Net operating income 260.384 Selling and administrative expenses & 60,000 X Net income $ 200,384 Endless Mountain Company Budgeted Balance Sheet December 31, 2022 Assets Current assets: Cash $ 319,243 200,000 Accounts receivable Raw materials inventory Finished goods inventory 12,750 42,363 X $ 574,356 Total current assets Plant and equipment: Buildings and equipment Accumulated depreciation 900.000 (404.000) Required information [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 sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2022 and reports a balance sheet at December 31, 2021 as follows: Endless Mountain Company Balance Sheet December 31, 2021 Assets Current assets Cash $ 46,200 Accounts receivable (net) 26e, eee Raw materials inventory (4,500 yards) 11,250 Finished goods Inventory (1,500 units) 32.250 Total current assets $ 349,700 Plant and equipment: Buildings and equipment 900,000 Accumulated depreciation (292.000) Plant and equipment, net 608,000 Total assets 5.957,700 Liabilities and Stockholders! Equity $ 349,700 Endless Mountain Company Balance Sheet December 31, 2021 Assets Current assets: Cash $ 46,200 Accounts receivable (net) 260,000 Raw materials inventory (4,500 yards) 11,250 Finished goods inventory (1,500 units) 32,250 Total current assets plant and equipment: Buildings and equipment 900,000 Accumulated depreciation (292,000) Plant and equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Stockholders' equity Common stock $ 419,800 Retained earnings 379.900 Total stockholders' equity Total 1 abilities and stockholders' equity 608,000 $. 957,700 $ 158,000 799,700 5.957,709 The company's chief financial officer (CFO), in consultation with various managers across the organization has developed the following set of assumptions to help create the 2022 budget The company's chief financial officer (CFO), in consultation with various managers across the organization has developed the following set of assumptions to help create the 2022 budget 1. The budgeted unit sales are 12,000 units, 37,000 units 15,000 units, and 25,000 units for quarters 1-4, respectively Notice that the company experiences peak sales in the second and fourth quarters. The budgeted selling price for the year is $32 per unit. The budgeted unit sales for the first quarter of 2023 is 13,000 units. 2. All sales are on credit. 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 quarter. 3. Each quarter's ending finished goods inventory should equal 15% of the next quarter's unit sales. 4. Each unit of finished goods requires 35 yards of raw material that costs $3.00 per yard. Each quarter's ending raw materials inventory should equal 10% of the next quarter's production needs. The estimated ending raw materials inventory on December 31, 2022 is 5,000 yards 5. Seventy percent of each quarter's purchases are paid for in the quarter of purchase. The remaining 30% of each quarter's purchases are paid in the following quarter. 6. Direct laborers are paid S18 an hour and each unit of finished goods requires 0.25 direct labor-hours to complete. All direct labor costs are paid in the quarter incurred. 7. The budgeted 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 number of direct labor-hours is used as the allocation base for the budgeted plantwide overhead rate. All overhead costs (excluding depreciation) are paid in the quarter incurred 8. The budgeted variable selling and administrative expense is $125 per unit sold. The fixed selling and administrative expenses per quarter include advertising ($25.000). executive salaries (564,000), insurance ($12,000), property tax www.puim LUULE yuuuuuu..HLEIUNUL direct labor costs are paid in the quarter incurred. 7. The budgeted 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 number of direct labor-hours is used as the allocation base for the budgeted plantwide overhead rate. All overhead costs (excluding depreciation) are paid in the quarter incurred. 8. The budgeted variable selling and administrative expense is $1.25 per unit sold. The fixed selling and administrative expenses per quarter include advertising ($25,000). executive salaries ($64,000), insurance ($12,000), property tax ($8,000) and depreciation expense ($8,000). All 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 borrowings take place on the first day of the quarter. To the extent possible, 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 borrowings 10 Dividends of $15,000 will be declared and paid in each quarter, 11. The company uses a last-in, first-out (LIFO) inventory flow assumption. This means that the most recently purchased raw materials are the first out to production and the most recently completed finished goods are the "first-out" to customers Required: The company's CFO has asked you to prepare the 2022 master budget. To fulfill this request, prepare the following budget schedules and financial statements. 1. Quarterly sales budget including a schedule of expected cash collections 2. Quarterly production budget. 3. Quarterly direct materials budget including a schedule of expected cash disbursements for purchases of materials, 4. Quarterly direct labor budget 5. Quarterly manufacturing overhead budget 6. Ending finished goods inventory budget at December 31, 2022 7. Quarterly selling and administrative expense budget. 8 Quarterly cash budget. 9. Income statement for the year ended December 31, 2022 10. Balance sheet at December 31, 2022 Endless Mountain Company Sales Budget For the Year Ended December 31, 2022 Quarter 1 2 3 12,000 37,000 15,000 $ 32 $ 32 $ 32 $ $ 384,000 $ 480,000 1,184,000 Schedule of Expected Cash Collections 25.000 32 Budgeted unit sales Selling price per unit Sales Year 89.000 s 32 $ 2.848.000 S 800,000 Beginning accounts receivable First quarter sales Second quarter sales Third-quarter sales Fouth-sales Year Budgeted unit sales Selling price per unit Sales 25,000 32 $ 2 3 12.000 37,000 15,000 $ 32 $ 32 $ 32 $ $ 384,000 1.184,000 $ 480,000 Schedule of Expected Cash Collections 89,000 $ 32 $ 2,848.000 $ 800,000 Beginning accounts receivable First-quarter sales Second-quarter sales Third-quarter sales Fourth-quarter sales Total cash collections S s 0 0 0 Required 2 > 3 No Year 22 3630 00 SIS $ 5 $ $ $ Quarter 2 8.4250 3 5 25 275 $ 150.000 175 275 20 000 155 275 $ 1 4,0130 3S 12,039 $ 150.000 162.039 20.000 142,039 Budgeted direct labor hours Variable manufacturing overhead per direct labor-hour Variable manufacturing overhead Ebred manufacturing overhead Total manufacturing overhead Less depreciation Cash disbursements for manufacturing overhead Total manufacturing overhead Budgeted direct labor hours Predetermined overhead rate for the year > 4 5.800 0 3 17.400 150,000 167 400 20,000 147 100 4,1250 3 12,375 150.000 162375 20,000 142.375 67,069 600,000 667 089 20,000 647,089 667088 22 363 29 83 GA $ Production cost per unit 3.50 yards Direct materials $ 3.00 CA 10.50 0.25 $ 18.00 Direct labor hours per yard per hour per hour 4.50 0.25 $ 29.83 7.46 hours $ 22.46 Manufacturing overhead Unit product cost Budgeted finished goods inventory Units from prior year's production Unit product cost Cost from prior year's production Units from current year's production Unit product cost Cost from current year's production Cost of ending finished goods Inventory $ 1,500 $ 2150 32.250 89,450 X 5 22.46 $ 2.009.047 $ 2,041 297 Nu Endless Mountain Company Selling and Administrative Expense Budget For the Year Ended December 31, 2022 Quarter 2 3 + 12.000 37.000 15,000 25.000 $ 15.000.00 46.250.00 $ 18.750 00 3 5 31.250.00 $ 180.000.000 1.711.250 000 201 250 000 761 250 000 Year 89.000 $111.250.00 9.901 250.000 Budgeted unit sales Variable selling and administrative expense per unit Sales Fedtelling and administrative expenses Advertising Executive salaries Insurance Property taxes 25.000 64.000 12.000 8.000 25.000 64,000 12000 8.000 25000 64,000 12.000 5000 25000 64000 12000 8000 100.000 256.000 40.000 32.000 000 Endless Mountain Company Budgeted Income Statement For the Year Ended December 31, 2022 (Absorption costing basis) Sales $ 2,848,000 Cost of goods sold 1,998,724 Gross margin 849,276 Selling and administrative expenses 588,892 X Net operating income 260.384 Selling and administrative expenses & 60,000 X Net income $ 200,384 Endless Mountain Company Budgeted Balance Sheet December 31, 2022 Assets Current assets: Cash $ 319,243 200,000 Accounts receivable Raw materials inventory Finished goods inventory 12,750 42,363 X $ 574,356 Total current assets Plant and equipment: Buildings and equipment Accumulated depreciation 900.000 (404.000)