Prepare a cash payments budget for the direct material purchases from requirment 3. (Use the payable balance at December 31 of prior year for the prior month payment in January.) Round to nearest dollar amount.

* More Info 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 upcoming 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. Damon 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 $9 per hour. All direct labor is paid for in the month in which the work is performed. The direct labor total cost for each of the upcoming three months is as follows: January .........$ February .......$ 3,807 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, Damon 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. No depreciation is included in these figures. i. Depreciation on the building and equipment for the general and administrative offices is budgeted to be $4,900 for the entire quarter, which includes depreciation on new acquisitions. J. Damon 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 hank The remnanu ran hom in increment of 100 at the honinning of each month into a total utandine inan Print Done A Current Assets as of December 31 (prior year): Cash Accounts receivable, net Inventory Property, plant, and equipment, net... Accounts payable.. Capital stock 4,600 52,000 15,400 121,500 43,000 124,500 22,700 Retained earnings..... Damon Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Damon M Click the icon to view the data.) (Click the icon to view additional data.) Read the requirements Requirement 1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total. Damon Manufacturing Cash Collections Budget For the Quarter Ended March 31 Month January February March Quarter $ 34,860 $ 41,580 $ 40,320 $ 116,760 46,150 64,740 77220 188,110 81,010 $ 106,320 $ 117,540 $ 304,870 Cash sales Credits sales Total cash collections Requirement 2. Prepare a production budget. (Hint: Unit sales - Sales in dollars / Selling price per unit) Damon Manufacturing Production Budget For the Quarter Ended March 31 Month January February Unit sales 8,300 9,900 Plus: Desired ending inventory 990 960 Total needed 9,290 10,860 Less: Beginning inventory 830 Units to produce 8,460 9,870 March 9,600 900 10,500 960 9 ,540 Quarter 27,800 900 28,700 830 27,870 990 Rentiramont Dronare divert materiale hautnat I ndianeware to the nearest la lor Enter any number in the edit fields and then click Check Answer. Damon Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Damon Manufacturing's Click the icon to view the data.) (Click the icon to view additional data.) Read the requirements For the Quarter Ended March 31 Month Units to be produced January 8,460 February 9,870 March 9,540 Quarter 27,870 25,380 5,922 Multiply by: Quantity (pounds) of DM needed per unit Quantity (pounds) needed for production Plus: Desired ending inventory of DM Total quantity (pounds) needed Less: Beginning inventory of DM Quantity (pounds) to purchase 83,610 5,376 31,302 5,076 29,610 5,724 35,334 5,922 29,412 2.00 $ 58,824 $ 28,620 5,376 33,996 5,724 28,272 2.00 $ 56,544 $ 88,986 5,076 83,910 2.00 167,820 Multiply by: Cost per pound Total cost of DM purchases 26,226 2.00 $ 52,452 $ Requirement 4. Prepare a cash payments budget for the direct material purchases from Requirement 3. (Use the accounts payable balance at Decemt Damon Manufacturing Cash Payments for Direct Materials Budget For the Quarter Ended March 31 Month January February March Quarter 20% of current month DM purchases 10490 11765 11309 80% of last month's DM purchases Total cash payments Enter any number in the edit fields and then click Check Answer parts