Please Prepare all components of MAK’s master budget for the first quarter of the year. (Enter negative amounts using either a negative sign preceding the number e.g. -45. Do not leave any answer field blank. Enter 0 for amounts.)

Sales Budget

Selling and Administrative Expense Budget

Production Budget

Materials Purchases Budget

Direct Labor Budget

Manufacturing Overhead Budget

Ending Inventory and Cost of Goods Sold Budget

Cash Receipts Budget

Cash Payments for Inventory Budget

Cash Budget
 

Mary Alice Kirkpatrick invented a process that converts liquid waste into a sweet-smelling candle that burns off the waste in an environmentally friendly way. MAK, as her friends call her, has turned that invention into a large-scale company and is now preparing the budget for the quarter ended March 31. She has gathered the following information. 1. 2. 3. 4. 5. 6. 7. 8. Brad Harmon, MAK's sales manager, reported that the company sold 60,000 candles in December. He has developed the following sales forecast. The expected sales price is $35 per candle. January 55,000 February 50,000 Total costs March April 45,000 46,000 Depreciation Salaries of sales personnel Advertising Management salaries All sales are made on account. Historically, the company has collected 75% of its sales in the month of sale and 20% in the month following the sale. The remaining 5% of sales are uncollectible. May 48,000 Sales personnel receive a 3% commission on every candle sold in addition to their monthly salaries. The following monthly fixed selling and administrative expenses are planned for the quarter. However, these amounts do not include the depreciation increase resulting from the budgeted equipment purchase in March (see part 8). Monthly Fixed Selling and Administrative Costs $5,000 33,255 12,000 24,000 $74,255 The company requires ending finished goods inventory to equal 15% of the following month's budgeted sales, in units. On December 31, 8,200 candles were on hand. Ten ounces of raw materials are required to create each finished candle. The company wants to have raw materials on hand at the end of each month equal to 20% of the following month's production needs. On December 31, 109,000 ounces of materials were on hand. The raw materials used in production cost $2.00 per ounce. Eighty percent of the month's purchases are paid for in the month of purchase; the rest is paid in the following month. No discount is available. The standard labor allowed for one candle is 18 minutes. The current direct labor rate is $16 per hour. On March 1, the company plans to spend $72,000 to replace its office equipment that is fully depreciated. The new equipment is expected to have a ten-year life, with no residual value.