Question 1 6 Answer saved Marked out of 15.00 P Flag question Developing a Master Budget for a Manufacturing Organization Jacobs Incorporated manufactures a product with a selling price of $50 per unit. Units and monthly cost data follow: Variable: Selling and administrative $5 per unit sold Direct materials 10 per unit manufactured Direct labor 10 per unit manufactured Variable manufacturing overhead 5 per unit manufactured Fixed: Selling and administrative $20,000 per month Manufacturing (including depreciation of $10,000) 30,000 per month Jacobs pays all bills in the month incurred. All sales are on account with 50 percent collected the month of sale and the balance collected the following month. There are no sales discounts or bad debtsjacobs desires to maintain an ending finished goods inventory equal to 20 percent ofthe following month's sales and a raw materials inventory equal to 10 percent of the following months productionjanuaryl inventories are in line with these policies. Actual unit sales for December and budgeted unit sales forJanuary, February, and March are as follows: jACOBS INCORPORATED Sales Budget For the Months ofJanuary. February. and March Month December january February March Sales - Units 5,250 6,000 8,000 8,000 Sales-Dollars $262,500 $300,000 $400,000 $400,000 Additional information: - TheJanuary 1 beginning cash is projected as $6,000. 0 Each unit of finished product requires one unit of raw materials 0 For the purpose of operational budgeting, units in theJanuaryl inventory of finished goods are valued at variable manufacturing cost. . 0 Jacobs intends to pay a cash dividend of $9,000 inJanuary. Additional information: 0 TheJanuary 1 beginning cash is projected as $6,000. 0 For the purpose of operational budgeting, units in thejanuary 1 inventory of finished goods are valued at variable manufacturing cost. 0 Each unit of finished product requires one unit of raw materials. - jacobs intends to pay a cash dividend of $9,000 in January. NOTE: For the entire problem - do not use any negative signs with your answers unless appropriate for net income(|oss) or ending balance. Part A Part B Part C Part D Part E (a) A production budget forJanuary and February. jACOBS INCORPORATED Production Budget For the Months ofJanuary and February January February March Requirements for current sales 6,000 8,000 8,000 Desired ending inventory 0 0 Total requirements 0 0 Less beginning inventory (1,200) (1,600) Production requirements 0 0 0 Previous Save Answers Finish attempt... 0