Requirements 8, 9, 10. 
8. 9. Prepare a combined cash budget Calculate the budgeted manufacturing cost per unit (assume that fixed manufacturing overhead is budgeted to be $0.80 per unit for the year) 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.) 10. Print Done i Data Table Current Assets as of December 31 (prior year): 4,460 . 52,000 .. .15,100 121,00 Cash " Accounts receivable, net Inventory.... Property, plant, and equipment, net .. Capital stock Retained earnings S 125,000 $22,800 Print Done 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 first five months of the upcoming year are budgeted to be as follows: January . .. $80,100 February . 89,100 March ...$ 82,800 April .. $ 85,500 b. Sales are 30% cash and 70% credit. All credit sales are collected in the month following the c.Darley Manufacturing has a policy that states that each month's ending inventory of d.Of each month's direct material purchases, 20% are paid for in the month of purchase, sale. finished goods shouldbe 10% of the following month's sales (in units). 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 indirect, 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 ..3,834 March $ 3,600 f. Monthly manufacturing overhead costs are $6,500 for factory rent, $2,900 for other fixed ufacturina exnenses and.$1 Print Done 1 More Info 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. 3,834 March... . . 3,600 f. Monthly manufacturing overhead costs are $6,500 for factory rent, $2,900 for other fixed manufacturing expenses, and $1.40 per unit for variable manufacturing overhead. No depreciation is included in these figures. All expenses are paid in the month in which they are incurred. g.Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Darley Manufacturing will purchase equipment for $5,800 (cash), while February's cash expenditure will be $11,600 and March's cash expenditure will be $15,800. h.Operating expenses are budgeted to be $1.20 per unit sold plus fixed operating expenses of $1,400 per month. All operating expenses are paid in the month in which they are incurred. No depreciation is included in these figures. i. Depreciation on the building and equipment for the general and administrative offices is budgeted to be $4,400 for the entire quarter, which includes depreciation on new acquisitions. j. Darley Manufacturing has a policy that the ending cash balance in each month must be at least $4,400. It has a line of credit with a local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $130,000. The interest rate on these loans is 1% per month simple interest (not compounded). The company would pay down on the line of credit balance in increments of $1,000 if it has excess funds at the end of the quarter. The company would also pay the accumulated interest at the end of the quarter on the funds borrowed during the quarter k.The company's income tax rate is projected to be 30% of operating income less interest expense. The company pays $10,800 cash at the end of February in estimated taxes. PrintDone P9-57A (similar to) 53,200 56,070 62,370 171,640 77,230 S 82,800 87.210 $ 247,240 31 Unit sales 8,900 28,000 990 920 950 950 EEI (Click the kcon to view the data) Read the Plus: Desired ending inventory 990 9.890 10,820 10,150 28,950 Units to produce 9,000 9,830 28,060 Units to be produced 9,830 18,000 19,660 18,460 56,120 Quantity (pounds) needed for production Total quantity (pounds) needed Quantity (pounds) to purchase 3,692 3.764 21,932 23,352 22,224 59.884 3,600 3,6923.600 3,6003,932 19,420 18,332 18,532 56,284 1.50 S 27.498 $ 29,130 S 27,798 $ 84,426 to purchase 1.50 1.50 43,000 21,998 23,304 88,302 5007 824 28.864105,188 S 48,500 $ 27,824 $ 28,864 $ 105,188 Cash Payments for Direct Labor Budget S3,510 $ 3,834 $ 3,600 10,944 2,900 2,900 8,700 $ 22,000 $ 23,162 $ 22,322 67,484 Cash Payments for Operating Expenses Budget Cash Payments for Operating Expenses Budget 1,400 1,400 1,400 4.200 S 12,080 13,280 S 12,440 37.800 772 3510 Financing
