Question You have been hired as the Controller for the crayon department of Crayola Canada [CC) The Crayon Department in Canada will begin operations on January 01, 2024, The first tank you have been assigned is the creation of the 2024 bulget Your CFO has provided you with some notes detailing the department's operations (one below ] and would like you to use the notes in prepare all ten (10] schedules of the 2024 budget Crayola Canada has a calendar fiscal year (January = December) Sales 1. Sales will be 150.000 bases per month except for August [225,000 boxes] and Spermber (335,000 hopes] 2. Monthly sales in 2025 will be 10% higher than monthly sales In 2024 A box of crayons will sell for $1 1:49 in January and Increase In price 2.VN each month for the rest of the year. 65# of sales are collected in the months of the sale, 25 16 the following month, and 104 In the second month after the sale 5. To emure a consistent supply of crayons, Inventory at the end of each month must be 15%% of the next month's Intel budgeted sales. Costs - Production 6, Each box contains IB crayons Each crayon in made of one polat live (1 5) grams of mus Faith crayon contains point seven five (0.75] grams of colored dye 1.Each crayon contains one [1] paper sleeve 10. Each gram of was costs Billeen cents ($0.15) 1 1 Each gram of dye costs twelve cents ($0.12] 12 Each paper sleeve goats turi cents ($0 02] 13. The box the crayons are packaged in, coits six cents (50 04] 14. Each bex comes with a crayon sharpener, which costs twenty eight cents ($0 24) 15. All direct material coats are pald for the month after they are purchased fee for materials are paid for in job) 16, Each employee can produce 34 crayons a minute 17. Employees are paid $3500 per hour 18: All employees are paid on the 15" and 20 of every month 19. The production warehour supervisor recches a salary of $100,000 per year 20. There are A [eight) employees who are directly Involved with the manufacturing of the crayons 21. The production fad ity has a fixed-rate utilities contract with Enmax where they will pay $3,800 per month from May to September and $4,600 per month from Catcher in April 22. Variable Manufacturing Overhead will be $500 per day. The factory operates 365 days per year, so every day per month must be accounted for 13. The executive team receives a bonka of $0.925 for every bok of crayons produced 24. The shipping cost is $0.55 for every box of crayons sold Costs - Equipment 25. CC has two types of assets, production arts and administration micha 26. The production asset is the manufacturing equipment 27- The administration asset is the administration building. 28. The depreciation on the manufacturing equipment is $12,500 per month 29. OC will'sse straight-line depreciation on all production and administration assets 30. CC will purchase manufacturing equipment in January at a cost of $510,000 Costs - Buildings 31. There are tivo buildings that CC utilizes in the operations of their company 32: The first building, the administration building was purchased in January for $750,000 32. The second building the production facility is currently being rented for $81000 per month 34. In October 2024, CC plans to renovate the lunchroom of their administration building, The renovation will cost $50,000 and construction will be completed at the end of September. The renovation will be paid for In cash after the project has been completed [September) 35. The depreciation on the administration building will be $5,000 per month until September 2024, then it will jump to $8,000 per month when the lunchroom has been renovated 36. Insurance for the administration building is $2,000 per month 37. Insurance for the production facility is $5,000 per month Costs . Other 38. The administration team receives salaries totaling $50,000 per month 39. Two marketing campaigns will be run on Canadian television, the first one will run from January to june, where ads will be rus consistently each month for $5,000 per month. The second one will be a"Back to School" campaign which will run in August and will cost $15,090 for the month 40. Payment for all marketing campaigns will be made in December 2024 41. OC has access to a line of credit from the Bank of Montreal, which carries an interest rate of 8.CH Notes 42 CC would like to keep a cash balance of at least $ 15,060 at the end of every month 43. Of will pay dividends of $4,000,090 in November 2024