Pump Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Pump Manufacturing's operations: (Click the icon to view the data.) (Click the icon to view additional data.) Requirements Requirement 1. Prepare a schedule of cash collections for January, February, and March and for the quarter in total. (Round your answers to the nearest whole dollar.) Pump Manufacturing Cash Collection Budget March Quarter Cash sales January February $ 19,360 $ 20,020 $ 60,000 77,440 21,560$ 80,080 60,940 217,520 Credits sales $ 79,360 $ 97,460 $ 101,640$ 278,460 Total cash collections Requirement 2. Prepare a production budget. (Hint: Unit sales - Sales in dollars / Selling price per unit.) Pump Manufacturing Production Budget March Quarter January 8,800 2,275 February 9,100 Unit sales 9,800 1 27,700 2,250 Plus: Desired ending inventory 2,450 2,250 Total needed 11,075 11,550 (2,275) 1 12,050 (2,450) 29,950 (2,200) Less: Beginning inventory (2,200) 8,875 9,275 Units to produce 9,600 27,750 h and for the quarter in total. (Round your answers to the nearest whole do Additional data Data Table Current Assets as of December 31 (prior year): Cash $ 4,640 a. Actual sales in December were $75,000. Selling price per unit is projected to remain stable at $11 per unit throughout the budget period. Sales for the first five months of the upcoming year are budgeted to be as follows: January ........ $ $ 96,800 February......... S 100,100 March $ 107,800 April $ 99,000 May............$ 95,700 b. Sales are 20% cash and 80% credit. All credit sales are collected in the month following the sale. c. Rittle Manufacturing has a policy that states that each month's ending inventory of finished goods should be 25% of the following month's sales in units). d. Of each month's direct material purchases, 10% are paid for in the month of purchase, while the remainder is paid for in the month following purchase. Two kilograms of direct material is needed per unit at $2.40/kg, Ending inventory of direct materials should be 30% of next month's production needs. e. Monthly manufacturing conversion costs are $4,500 for factory rent, $2,900 for other fixed manufacturing expenses, and $1.60 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. f. Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January. Rittle Manufacturing will purchase equipment for $6,200 (cash), while February's cash expenditure will be $11,600 and March's cash expenditure will be $17.000 g. Operating expenses are budgeted to be $1.10 per unit sold plus fixed operating expenses of $1,200 per month. All operating expenses are paid in the month in which they are incurred. h. Depreciation on the building and equipment for the general and administrative offices is budgeted to be $5,900 for the entire quarter, which includes depreciation on new acquisitions. i. Rittle Manufacturing has a policy that the ending cash balance in each month must be at least $4,800. It has a line of credit with a local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $160,000. The interest rate on these loans is 2% per month simple interest (not compounded). Rittle Manufacturing pays down on the line of credit balance if it has excess funds at the end of the quarter. The company also pays the accumulated interest at the end of the quarter on the funds borrowed during the quarter. j. The company's income tax rate is projected to be 30% of operating income less interest expense. The company pays $11,600 cash at the end of February in estimated taxes. $ 47,000 15,500 $ $ 120,000 Accounts receivable, net Inventory Property, plant, and equipment, net. Accounts payable Capital stack Retained earnings $ $ 42,000 124,500 22,900 $ Print Done Print Done Requirement 3. Prepare a direct materials budget. (Round your answers to the nearest whole dollar. For cost per kg, round your answers to the nearest cent. Abbreviation used: DM = direct material.) Pump Manufacturing Direct Materials Budget March Quarter January 8,875 February 9,275 Units to be produced 9,600 27,750 2 x kg of DM needed per unit Quantity (kg) needed for production 17,750 18,550 5,760 19,200 5,355 55,500 5,355 5,565 Plus: Desired ending inventory of DM Total quantity (kg) needed 23,315 24,310 (5,565) 24,555 (5,760) 60,855 (5,325) (5,325) Less: Beginning inventory of DM Quantity (kg) to purchase 18,745 18,795 17,990 2.40 $ 55,530 2.40 $ 2.40 $ 2.40 $ x Cost per kg $ 43,176 $ 44,988 $ 45,108 $ 133,272 Total cost of DM purchases Requirement 4. Prepare a cash payments budget for the direct material purchases from Requirement 3. (Leave any unused cells blank. Round your answers to the nearest cent.) Pump Manufacturing Cash Payments for Direct Material Purchases Budget January February March Quarter December purchases (from Accounts Payable) $ 42,000.00 $ 42,000.00 January purchases $ 4,317.60' $ 38,858.40 $ 43,176.00 February purchases $ 4,498.80 $ 40,489.20 $ 44,988.00 March purchases $ 4,510.80 $ 4,510.80 $ 46,317.60 $ 43,357.20 $ 45,000.00 $ 134,674.80 Total disbursements Requirement 5. Prepare a cash payments budget for conversion costs. (Round your answers to the nearest whole dollar.) Quarter Pump Manufacturing Cash Payments for Conversion Costs Budget January February March Variable conversion costs $ 14,200 $ 14,840 $ 15,360 $ Rent (fixed) 4,500 4,500 4,500 Other fixed MOH 2,900 2,900 2,900 $ 21,600 $ 22,240 $ Total payments for conversion costs 22,760 $ 44,400 13,500 8,700 66,600 Requirement 6. Prepare a cash payments budget for operating expenses. (Round your answers to the nearest whole dollar.) Quarter Pump Manufacturing Cash Payments for Operating Expenses Budget January February March Variable operating expenses $ 9,680 $ 10,010 $ 10,780 $ Fixed operating expenses 1,200 1,200 1,200 $ 10,880 $ 11,210 $ Total payments for operating expenses 11,980 $ 30,470 3,600 34,070 Requirement 7. Prepare a combined cash budget. (Leave any unused cells blank. Use parentheses or a minus sign for negative cash balances and financing payments. Round your answers to the nearest cent.) Pump Manufacturing Combined Cash Budget January February March Quarter $ 4,640.00 $ 5,002.40 $ 5.455.20 $ 4,640.00 79,360.00 97,460.00 101,640.00 278.460.00 84,000.00 102,462.40 107,095.20 283,100.00 $ 46,317.60 21,600,00 10,880.00 6,200.00 Cash balance, beginning Add cash collections Total cash available Less cash disbursements: Direct material purchases Conversion costs Operating expenses Equipment purchases Tax payment Total cash payments Excess (deficiency) of cash Financing: Borrowings Repayments Interest payments Total financing Ending cash balance 43,357.20 45,000.00 134,674.80 22,240.00 22,760.00 66,600,00 11,210.00 11,980.00 34,070.00 11,600.00 17,000.00 34,800.00 11,600.00 11,600.00 100,007.20 96.740.00 281.744.80 2.455.20 10,355.20 1,355.20 $ 84,997.60 (997.60) 6,000.00 3,000.00 9,000.00 (5,000.00) (5,000.00) (480.00) ) (480.00) 3.000.00 (5,480.00) 3,520.00 5,455.20 $ 4,875.20 $ 4,875.20 6,000.00 $ 5,002,40$ Requirement 8. Calculate the budgeted manufacturing cost per unit. (Assume that fixed manufacturing overhead is budgeted to be $0.70 per unit for the year.) (Round your answers to the nearest cent.) 4.80 Pump Manufacturing Budgeted Manufacturing Cost per Unit Direct materials cost per unit $ Conversion costs per unit Fixed manufacturing overhead per unit $ Budgeted cost of manufacturing each unit 1.60 0.70 7.10 Requirement 9. Prepare a budgeted income statement for the quarter ending March 31. (Hint: Cost of goods sold = Budgeted cost of manufacturing each unit x Number of units sold.) Pump Manufacturing Budgeted Income Statement For the Quarter Ending March 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Operating income Less: interest expense $ 304,700 (196,670) 108,030 (34,070) (5,500) 68,460 (480) (20,394) $ 47,586 Less: provision for income taxes Net income Requirement 10. Prepare a partial budgeted balance sheet for March 31. Include Loans Payable and Income Tax Payable. (Round your answers to the nearest whole dollar.) Pump Manufacturing Partial Budgeted Balance Statement March 31 Cash Accounts receivable, net Inventory Property, plant and equipment, net Accounts payable Income tax payable Financing payable Capital stock Retained earnings