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Panther Graduation Supplies Company makes diploma covers in one style, but in Regular and Deluxe materials. The Regular covers are made of faux leather and the Deluxe covers are made of genuine leather. Panther Graduation Supplies Company is preparing its budget for December 2025 and has estimated sales based on past experience. The following is information for the month of December 2025: Input Quantities per Unit of Output (per diploma cover) Inventory Information (Direct Materials) Panther Graduation Supplies Company accounts for Direct Materials using FIFO cost flow assumption. Sales and Inventory Information (Finished Goods) Page 1 ACG 4341 Fall 2023 Comprehensive Budgeting Project Panther Graduation Supplies Company uses the FIFO cost flow assumption for finished goods inventory. Diploma covers are made in batches of 50 units. Panther incurs manufacturing overhead costs. marketing and general administrative, and shipping costs. Besides materials and labor, manufacturing costs include setup, processing, and inspection costs. Panther ships 40 diploma covers per shipment. Panther uses activity-based costing and has classified all overhead costs for the month of December as follows: 1. Prepare each of the following for December 2025 : a. Revenues budget b. Production budget in units c. Direct material usage budget and direct material purchases budget in both units and dollars; (round to dollars) d. Direct manufacturing labor cost budget e. Manufacturing overhead cost budgets for setup, processing, and inspection activities f. Budgeted unit cost of ending finished goods inventory and ending inventories budget g. Cost of goods sold budget h. Marketing and general administration and shipping costs budget 2. Panther's balance sheet for November 30,2025 is as follows: PantherGraduation Supplies Company Balance Sheet November 30,2025 Use the balance sheet and the following information to prepare a cash budget for Panther for December 2025: (Round to dollars) - All sales are on account, 60% are collected in the month of the sale, 38% are collected the following month, and 2% are never collected and written off as bad debts. - All purchases of materials are on account. Panther pays for 80% of purchases in the month of purchase and 20% in the following month. - All other costs are paid in the month incurred, including the declaration and payment of a $15,000 cash dividend in December 2025 - Panther is making monthly interest payments of 0.5% ( 6% per year) on a $150,000 longterm loan - Panther plans to pay the $10,800 of taxes (owed as of November 30 ) in the month of December. Income tax expense for December is zero - 30% of processing, setup, and inspection costs and 10% of marketing and general administration and shipping costs are depreciation. 3. Prepare a budgeted income statement and a budgeted balance sheet for Panther as of December 31, 2025 Page 3
