Question 3 (15 points) 1) Zimmer Canada Inc. has a sales budget is given below for one of its Hip Replacement products manufactured by Zimmer Canada Inc.: January February March April May June 50,000 units 80,000 units 130,000 units 90,000 units 70,000 units 60,000 units The inventory of finished goods at the end of each month must equal 20% of the next month's sales. However, on December 31, the finished goods inventory totaled only 8,000 units. Required: Prepare a production budget for January 2) The following information has also been provided by Zimmer Inc.: All sales are made in cash for $10 per unit. For the month of January, direct material cash costs wer $140,000, direct labour cash costs were $100,000, MOH cash costs were $120,000, cash selling and administration costs were $200,000, depreciation expense on factory equipment was $20,000, depre expense on the office building was $60,000. At the end of December, Zimmer Inc. had a cash balan $40,000. That is the minimum balance required. Zimmer Inc, has a $200,000 line of credit. The int expense is 12% on the outstanding amount borrowed, payable on July 31s and December 31. Ang moda on the laet dan of the me Question 3 (15 points) 1) Zimmer Canada Inc. has a sales budget is given below for one of its Hip Replacement products manufactured by Zimmer Canada Ine: January February March April May June 50,000 units 80,000 units 130,000 units 90,000 units 70,000 units 60,000 units The inventory of finished goods at the end of each month must equal 20% of the next month's sales. However, on December 31, the finished goods inventory totaled only 8,000 units. Required: Prepare a production budget for January. 2) The following information has also been provided by Zimmer Inc.: All sales are made in cash for $10 per unit. For the month of January, direct material cash costs were $140,000, direct labour cash costs were $100,000, MOH cash costs were $120,000, cash selling and administration costs were $200,000, depreciation expense on factory equipment was $20,000, depreciation expense on the office building was $60,000. At the end of December, Zimmer Inc. had a cash balance of $40,000. That is the minimum balance required. Zimmer Inc. has a $200,000 line of credit. The interest expense is 12% on the outstanding amount borrowed, payable on July 31" and December 31st Any amount borrowed is borrowed on the first of the month, and repayments are made on the last day of the month. Required: Prepare a cash budget for January
