Requirements 1-10
, Requirements Prepare a production budget. (Hint: Unit sales = Sales in dollars I Selling price per unit.) Prepare a direct materials budget. Prepare a cash payments budget for the direct material purchases from Requirement 3. (Use the accounts payable balance at December 31 of prior year for the prior month payment in January.) Prepare a cash payments budget for direct labor. Prepare a cash payments budget for manufacturing overhead costs. Prepare a cash payments budget for operating expenses. Prepare a combined cash budget. Calculate the budgeted manufacturing cost per unit (assume that xed manufacturing overhead is budgeted to be $0.90 per unit for the year). 10. Prepare a budgeted income statement for the quarter ending March 31. (Hint: Cost of goods sold = Budgeted cost of manufacturing one unit x Number of units sold.) 1 . 1. 3. A. PPS?!" Prepare a schedule of cash collections for January, February, and March, and for the quarter in total. Print Done 0 Data Table Current Assets as of Deoem ber 31 (prior year): Cas h ........................... 5 4,460 46,000 Unit sales Accounts receivable, net Plus: Desired ending inventory Inventory ........................ 5 15,300 Total needed Property, plant, and equipment, net .......... 5 122,000 Enter any number in the edit el Accounts payable ....................... 5 43,000 Capital stock . S 123,500 Retained earnings . 5 22,600 o More Info a.Actual sales in December were $76,000. Selling price per unit is projected to remain stable at $9 per unit throughout the budget period. Sales for the rst ve months of the upcoming year are budgeted to be as follows: January .$ 80,100 February ....... S 89,100 82,800 85,500 77,400 b.Sales are 30% cash and 70% credit. All credit sales are collected in the month following the sale. c.Dickson Manufacturing has a policy that states that each month's ending inventory of nished goods should be 10% of the following month's sales (in units). d.Of each month's direct material purchases. 20% are paid for in the month of purchase, while the remainder is paid for in the month following purchase. Two pounds of direct material is needed per unit at $1 .50 per pound. Ending inventory of direct materials should be 20% of next month's production needs. e.Most of the labor at the manufacturing facility is Indlrect, but there is some direct labor incurred. The direct labor hours per unit is 0.03. The direct labor rate per hour is $13 per hour. All direct labor is paid for in the month in which the work is performed. The direct labor total cost for each of the upcoming three months is as follows: January ....... $ 3,510 February ....... 5 3,834 March ......... S 3,600 f. Monthly manufacturing overhead costs are $6,500 for factory rent, $2,900 for other xed manufacturing expenses, and $1.40 per unit for variable manufacturing ovemead. No depreciation is included in these gures.All expenses are paid in the month in which they are incurred. g.Computer equipment for the administrative ofces will be purchased in the upcoming quarter. In January, Dickson Manufacturing will purchase equipment for $5.800 (cash), while Februarys cash expenditure will be $11,600 and March's cash mm Print Done
