Required information [The following information applies to the questions displayed below] Jeffrey Vaughi, president of Frame-it Company, was just conciuding a budget meeting with his senior staff. It was November of 20x0, and the group was discussing preparation of the firm's master budget for 20x1. Five decided to go ahead and purchase the industrial robot we've been talking about. Well make the acquisition on January 2 of next yoar, and I expect it will take most of the year to train the personnel and reorganize the production process to take full advantage of the new equipment. in response to a question about financing the acquisition, Vaughn replied as follows. "The robot will cost $1,100,000. We'll finance it with a one-year $1,100,000 loan from Shark Bank and Trust Company. I've negotiated a repayment schedule of fout equal installments on the last doy of each quarter. The interest rate will be 10 percent, and interest payments will be quarterly as well." With that the meeting broke up, and the budget process wes on. Frame-It Company is a manufacturer of metal picture frames. The firm's two product lines are designated as S (small frames; 57 inches) and L (Lerge frames; 810 inches). The primary raw materials are flexible metal strips and 9 -inch by 24.inch glass sheets. Each S frame requires a 2-foot metal strip; an L frame requires a 3-foot strip. Allowing for normal breakage and scrap glass, Frame-t can get either four 5 frames or two L frames out of a glass sheet, Other raw materials. such as cardboard backing, are insignificant in cost and are treated as indirect materials. Emily Jackson, Frame-it's controller, is in charge of preparing the master budget for 20x. She has gathered the following information: 1. Sales in the fourth quarter of 200 are expected to be 60,000s frartes and 50.000L frames. The sales manager predicts that over the next two years, sales in each product line will grow by 6,000 units each quart quarter. For example. S frame sales in the first quarter of 20x are expected to be 66,000 units. 2. Frame--t's soles history indicotes that 70 percent of alf sales are on credit, with the remainder of the sates in cash. The collected during the quarter in which the company's collection experience shows that 80 percent of the credit sales are collected during the quartering whiche assume the company is sale is made, while the remaining 20 percent is collected able to collect 100 percent of its accounts receivabie). These prices are expected to hold constant throughout 20xt. 4. Frame-tt's production manager attempts to end each quarter with an attempt is made to end each quarter with 20 percent to cover 20 percent of the following quarter's saies. Moreover, an athempt is made to end each quarter wilion. Since metal 5 trips are purchased locally, Frame-It of the glass sheets needed for the following quarter's predu buys them on a just-in-time basis; inventery is negigible. 5. All of Frame-lt's direct-material purchases are made on account ond 20 percent is daid in the next auarter. or the glass sneets neeoed ior the toilowing quarters production. since metal strips are purcnaseo iocatry, rrame-it buys them on a just-in-time basis; inventory is negilgible. 5. All of Frame-lt's direct-material purchases are made on account, and 80 percent of each quarter's purchases are paid in cash during the same quarter as the purchase. The other 20 percent is pold in the next quarter. 6. Indirect materials are purchased as needed and paid for in cash. Work-in-process inventory is negligible. 7. Projected production costs in 20x1 are as follows: 8. The predetermined overhead rate is $10 per direct-labor hout. The following production overhead costs are budgeted for 201 All of these costs will be paid in cash during the quarter incurred except for the depreciation chatges. 9. Frame-lt's quarteriy selling and administrative expenses are $105,000, paid in cash. 10. Jackson anticipates that dividends of $55,000 will be declared and paid in cash each quarter. 11. Frame-It's projected balance sheet as of December 31,200, follows: 4. Prepare Frameatt Company's direct-material budget for Q4(200) and 20x1. (Round "Glass quantity per unit (sheets)" answers to 2 decimal places.) Required information [The following information applies to the questions displayed below] Jeffrey Vaughi, president of Frame-it Company, was just conciuding a budget meeting with his senior staff. It was November of 20x0, and the group was discussing preparation of the firm's master budget for 20x1. Five decided to go ahead and purchase the industrial robot we've been talking about. Well make the acquisition on January 2 of next yoar, and I expect it will take most of the year to train the personnel and reorganize the production process to take full advantage of the new equipment. in response to a question about financing the acquisition, Vaughn replied as follows. "The robot will cost $1,100,000. We'll finance it with a one-year $1,100,000 loan from Shark Bank and Trust Company. I've negotiated a repayment schedule of fout equal installments on the last doy of each quarter. The interest rate will be 10 percent, and interest payments will be quarterly as well." With that the meeting broke up, and the budget process wes on. Frame-It Company is a manufacturer of metal picture frames. The firm's two product lines are designated as S (small frames; 57 inches) and L (Lerge frames; 810 inches). The primary raw materials are flexible metal strips and 9 -inch by 24.inch glass sheets. Each S frame requires a 2-foot metal strip; an L frame requires a 3-foot strip. Allowing for normal breakage and scrap glass, Frame-t can get either four 5 frames or two L frames out of a glass sheet, Other raw materials. such as cardboard backing, are insignificant in cost and are treated as indirect materials. Emily Jackson, Frame-it's controller, is in charge of preparing the master budget for 20x. She has gathered the following information: 1. Sales in the fourth quarter of 200 are expected to be 60,000s frartes and 50.000L frames. The sales manager predicts that over the next two years, sales in each product line will grow by 6,000 units each quart quarter. For example. S frame sales in the first quarter of 20x are expected to be 66,000 units. 2. Frame--t's soles history indicotes that 70 percent of alf sales are on credit, with the remainder of the sates in cash. The collected during the quarter in which the company's collection experience shows that 80 percent of the credit sales are collected during the quartering whiche assume the company is sale is made, while the remaining 20 percent is collected able to collect 100 percent of its accounts receivabie). These prices are expected to hold constant throughout 20xt. 4. Frame-tt's production manager attempts to end each quarter with an attempt is made to end each quarter with 20 percent to cover 20 percent of the following quarter's saies. Moreover, an athempt is made to end each quarter wilion. Since metal 5 trips are purchased locally, Frame-It of the glass sheets needed for the following quarter's predu buys them on a just-in-time basis; inventery is negigible. 5. All of Frame-lt's direct-material purchases are made on account ond 20 percent is daid in the next auarter. or the glass sneets neeoed ior the toilowing quarters production. since metal strips are purcnaseo iocatry, rrame-it buys them on a just-in-time basis; inventory is negilgible. 5. All of Frame-lt's direct-material purchases are made on account, and 80 percent of each quarter's purchases are paid in cash during the same quarter as the purchase. The other 20 percent is pold in the next quarter. 6. Indirect materials are purchased as needed and paid for in cash. Work-in-process inventory is negligible. 7. Projected production costs in 20x1 are as follows: 8. The predetermined overhead rate is $10 per direct-labor hout. The following production overhead costs are budgeted for 201 All of these costs will be paid in cash during the quarter incurred except for the depreciation chatges. 9. Frame-lt's quarteriy selling and administrative expenses are $105,000, paid in cash. 10. Jackson anticipates that dividends of $55,000 will be declared and paid in cash each quarter. 11. Frame-It's projected balance sheet as of December 31,200, follows: 4. Prepare Frameatt Company's direct-material budget for Q4(200) and 20x1. (Round "Glass quantity per unit (sheets)" answers to 2 decimal places.)