Prepare the budgeted income statement for the quarter April, May, and June

You have gathered the following information as of March 31, 2020- B&L Manufacturing Balance Sheet March 31, 2020 Cash Accounts Receivable Inventory Net Capital Assets Total Assets 60,000 624.000 302.587 1.180.000 2.166,587 Accounts Payable 72,000 Common Stock 200,000 Shareholder's Equity (SE) 1.894.587 Total Liabilities and SE 2.166,587 Inventory is made up of the following balances: Raw Materials $ 28,800 6,400 units WIP $100,000 Finished Goods $173.7874.800 units Recent and Projected Sales February March April May June July August September $360,000 480.000 480,000 480.000 360,000 420.000 600.000 600,000 Units 6,000 8.000 8.000 8,000 6.000 7,000 10.000 10,000 Credit accounts are collected 60% in the month following the sale and 40% in the next month following. There are no bad debts. Collections are current: the March A/R balance is made up of uncollected amounts from February and March sales. You may assume no changes to the WIP balances. Each unit produced requires $9.00 of raw materials (representing 2 units of material with a purchase cost of $4.50 per unit) and S20.00 of direct labour (2 hours of direct labour are required for each unit). There is a minimum of 5.000 labour hours per month regardless of how much time is worked. All labour is paid at $10 per hour (ie no overtime is paid.) Overhead is applied on the basis of direct labour hours. Variable overhead is estimated to be $1.50 per direct labour hour. The desired finished goods inventory is 60% of the next month's sales. The desired raw materials inventory is 40% of the next month's production requirements. All purchases are paid in the month following the purchase and all A/P is current Fixed manufacturing overhead is estimated at $30.000 per month including total depreciation per month for manufacturing assets of $5.000. Salaries, wages and commissions average 10% of sales. all other administrative expenses excluding depreciation is 5% of sales. Fixed selling and administrative expenses for rent. property taxes, depreciation and other items are $50,000 per month. Depreciation is $3,000 per month. There is a planned acquisition of a new machine in April for $150,000 which will be paid for in April. A dividend of S100.000 will be paid in June. Any borrowing the company makes are effective at the beginning of the month and all repayments are made at the end of the month. Ignore interest for the purposes of this assignment. The company does not want to begin a month with less than $30,000 in beginning cash. Income taxes can be ignored. x x Expected Cash Collection for the Quarter Ending June 30, 2020 April May June $432,000 $192,000 Quarter $624,000 $288,000 $288,000 $192,000 $192,000 Accounts receivable 3/31 April Sales 60% x $480,000 40% x $480,000 May Sales 60% x $480,000 40% x $480.000 June Sales 2 60% x $360,000 3 40% x $360,000 4 Total cash collection $288,000 $288,000 $432,000 $480,000 $480,000 $1,392,000 in 0 00 Expected ash Collection Production Budget Direct Materials Budge READY BIC LDL EF Expected Cash Disbursement for Materials May June April $72,000 Quarter $72,000 $67,680 $67,680 Accounts payable 3/31 April purchases $4.50 per unit x 15,040 May purchases $4.50 per unit x 13,440 June purchases $4.50 per unit x 14,960 Total cash disbursements $60,480 $60,480 $72,000 $67,680 $60,480 $200,160 IA IB I. D E F G Direct Labour Budget for the Quarter Ending June 30, 2020 April May June Quarter Units of production 8.000 6,800 6,600 21,400 Direct labout per unit 22 - Labour hours required 16,000 13,600 13,200 42,800 Guaranteed labour hours 5.000 5,000 Labour hours paid 16,000 13,600 13,200 42,800 Hourly wage rate $10.00 $10.00 $10.00 $10.00 Total direct labour costs $160,000 $136,000 $132,000 $428,000! 5,000 N Clipboard Font Alignment A D E B C Manufacturing Overhead Budget for the Quarter Ending June 30,2020 Budgeted DLH Variable mfg OH rate Variable mfg OH costs Fixed mfg OH costs Total mfg OH costs Less: noncash costs Cash disbursements for manufacturing overhea April May June Quarter 16,000 13,600 13,200 42,800 $1.50 $1.50 $1.50 $1.50 $24,000 $20,400 $19,800 $64,200 $30,000 $30,000 $30,000 $90,000 $54,000 $50,400 $49.800 $154,200 $5,000 $5,000 $5,000 $15,000 $49,000 $45,400 $44,800 $139,200 x =SUM(B9:09:09) BC DE Selling and Administrative Expense Budget for the Quarter Ending June 30, 2020 Budgeted sales 5 Variable selling and administrative rate Variable expenses Fixed selling and administrative expenses 8. Total selling and administrative expenses 9 Less: noncash expenses 10 Cash selling and administrative expenses April May June Quarter 8,000 8,000 6,000 22,000 $9.00 $9.00 $9.00 $9.00 $72,000 $72,000 $54,000 $198,000 $50,000 $50,000 $50,000 $150,000 $122,000 $122,000 $104,000 $348,000 $3,000 $3,000 $3,000 $9,000 $119,000 $119,000 $101,000 $339,000 12