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Sales and Marketing Glow products are sold to retailers for $ 5 0 each, and the sales have been in demand due to Covid -
Sales and Marketing Glow products are sold to retailers for $ each, and the sales have been in demand due to Covid However, the marketing department has been conservative toward the end of the year due to market saturation. The marketing department has just sent you their forecasted quarter sales and marketing budget. Quarter Q Q Q Q Q Q Sales in Unit Advertising $ $ $ $ $ $ Production and Inventory Ending finished goods inventories should equal of the next quarter's unit sales. Glow currently does its assembly production inhouse. Each unit consists of LED panels, and the cost of each is $ Each unit needs one labour hour from assembly to finish package. The hourly pay rate for the assembling workers is $ per hour. The production manager also required the desired direct material ending inventory to of the next quarter's production. Product and Period Costs Below is a display of the Glow division quarterly manufacture overhead and selling and administrative expenses: Manufacture Overhead Variable: Indirect labour $ per labour hour Indirect Materials $ per labour hour Fixed: Wages and Salaries $ Utilities $ Maintenance $ Insurance $ Depreciation $ Rent $ Selling and Administrative Variable: Sales Commissions $ per unit Fixed quarterly: Wages and Salaries $ Utilities $ Insurance $ Depreciation $ Miscellaneous $ Cash, Accounts Receivable and Accounts Payable The company desires a minimum ending cash balance each quarter of $ All sales to the distributors are made on credit terms with no discount for now and payable within days. The Glow has determined that only of sales are collected by the end of the quarter in which the sale occurred. The rest is collected in the quarter following the sale. Purchases are paid for in the following manner: in the quarter of the purchase and the remaining paid in the quarter following the purchase. Additional Information Labour, manufacturing overhead, and Selling and Administrative expenses are all paid during the month, in cash, except depreciation of course Glow will make a warehouse purchase during the second quarter of for $ cash. Glow's balance sheet at the end of the fourth quarter last year is shown below: Assets Cash $ Accounts receivable $uncollected from Q last year Liabilities Accounts payable $unpaid from Q last year An agreement with Bank of the West allows Glow to borrow up to a total loan amount of $maximum amount The interest rate on these loans is annually Required: Prepare a master budget for Include the following budget schedules and financial statements as if there is no income tax Master Budget Cash Budget. Show the cash budget by quarter. Budgeted Income statement by quarter and annual
Sales and Marketing
Glow products are sold to retailers for $ each, and the sales have been in demand due to Covid
However, the marketing department has been conservative toward the end of the year due to market
saturation. The marketing department has just sent you their forecasted quarter sales and marketing
budget.
Quarter Q Q Q Q Q Q
Sales in Unit
Advertising $ $ $ $ $ $
Production and Inventory
Ending finished goods inventories should equal of the next quarter's unit sales. Glow currently
does its assembly production inhouse. Each unit consists of LED panels, and the cost of each is $
Each unit needs one labour hour from assembly to finish package. The hourly pay rate for the
assembling workers is $ per hour.
The production manager also required the desired direct material ending inventory to of the next
quarter's production.
Product and Period Costs
Below is a display of the Glow division quarterly manufacture overhead and selling and
administrative expenses:
Manufacture Overhead Variable:
Indirect labour $ per labour hour
Indirect Materials $ per labour hour
Fixed:
Wages and Salaries $
Utilities $
Maintenance $
Insurance $
Depreciation $
Rent $
Selling and Administrative
Variable:
Sales Commissions $ per unit
Fixed quarterly:
Wages and Salaries $
Utilities $
Insurance $
Depreciation $
Miscellaneous $
Cash, Accounts Receivable and Accounts Payable
The company desires a minimum ending cash balance each quarter of $ All sales to the
distributors are made on credit terms with no discount for now and payable within days. The Glow
has determined that only of sales are collected by the end of the quarter in which the sale
occurred. The rest is collected in the quarter following the sale.
Purchases are paid for in the following manner: in the quarter of the purchase and the remaining
paid in the quarter following the purchase.
Additional Information
Labour, manufacturing overhead, and Selling and Administrative expenses are all paid
during the month, in cash, except depreciation of course Glow will make
a warehouse purchase during the second quarter of for $ cash. Glow's
balance sheet at the end of the fourth quarter last year is shown below:
Assets
Cash $
Accounts receivable $uncollected from Q last year
Liabilities
Accounts payable $unpaid from Q last year
An agreement with Bank of the West allows Glow to borrow up to a total loan amount of
$maximum amount The interest rate on these loans is annually
Required:
Prepare a master budget for Include the following budget schedules and financial statements as if
there is no income tax Master Budget Cash Budget. Show the cash budget by quarter. Budgeted
Income statement by quarter and annual
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