Please use template (:

Exercise 20-8 Manufacturing: Direct materials budget P1 Ramos Co. provides the following sales forecast and production budget for the next four months: Sales (units).... Budgeted production (units) April May June July 500 580 530 600 442 570 544 540 The company plans for finished goods inventory of 120 units at the end of June. In addition, each finished unit requires 5 pounds of direct materials and the company wants to end each month with direct materials inventory equal to 30% of next month's production needs. Beginning direct materials inventory for April was 663 pounds. Direct materials cost $2 per pound. Each finished unit requires 0.50 hours of direct labor at the rate of $16 per hour. The company budgets variable overhead at the rate of $20 per direct labor hour and budgets fixed overhead of $8,000 per month. Prepare a direct materials budget for April, May, and June. Exercise 20-22 Manufacturing: Cash budget P2 Use the following information to prepare the September cash budget for PTO Manufacturi Co. The following information relates to expected cash receipts and cash payments for the month ended September 30. a. Beginning cash balance, September 1, $40,000. b. Budgeted cash receipts from sales in September, $255,000. c. Raw materials are purchased on account. Purchase amounts are: August (actual), $80,0 and September (budgeted), $110,000. Payments for direct materials are made as follow 65% in the month of purchase and 35% in the month following purchase. d. Budgeted cash payments for direct labor in September, $40,000. e. Budgeted depreciation expense for September, $4,000. f. Other cash expenses budgeted for September, $60,000. g. Accrued income taxes payable in September, $10,000. h. Bank loan interest payable in September, $1,000. Exercise 20-8 RAMOS CO. Direct Materials Budget For April, May, and June April Budgeted production (units) May June x 5 5 Materials requirements per unit............ Materials needed for production (lbs.) .. Add budgeted ending inventory........... Total materials requirements (lbs..... Deduct beginning inventory (lbs.) Materials to be purchased (lbs.) Materials price per pound Total cost of material purchases 2 2 Exercise 20-22 PTO MANUFACTURING COMPANY Cash Budget For Month Ended September 30 Beginning cash balance Cash receipts from sales. Total cash available Cash payments Direct Direct labor Other expenses Accrued taxes.. Interest on bank loan Total cash Ending cash balance