Sanyang Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Sanyang Manufacturing's operations: $ $ Current Assets Dec. 31 Cash Acct Rec Inventory Property Plant Equip Accts Payable Capital Stock Retained Earnings $ $ $ $ $ 4,460 49,000 15,600 121,500 43,000 127,000 22,800 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 February March April May $ 80,100 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. Sanyang Manufacturing has a policy stating that each month's ending inventory of finished goods should be 10% of the following month's sales (in units). D. Of each month's direct materials 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 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 manufacturing expenses und $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. 6. Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, the company will purchase equipment for S5,800 (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 54,900 for the entire quarter, which includes depreciation on new acquisitions J. Sanyang Manufacturing has a policy that the ending cash balance in each month must be at least 54,400. The company has a line of credit with a local bank. It can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $160,000. 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 S1,000 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. 7. Prepare a combined cash budget. February March Quarter Combined Cash Budget For the Quarter Ended March 31 Beginning cash balance January Plus: Cash collections Total cash available Less cash payments: Direct material purchases Direct labor Manufacturing overhead costs Operating expenses Tax payment Equipment purchases Total cash payments Ending cash balance before financing Financing Plus: New borrowings Less: Debt repayments Less: Interest payments Ending cash balance % Calculate the budgeted manufacturing cost per unit (assume that fixed manufacturing overhead is budgeted to be 30.70 per unit for the year) Budgeted Manufacturing Cost per Unit Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead costs per unit Fixed manufacturing overhead costs per unit Budgeted cost of manufacturing one unit 9. Prepare a budgeted income statement for the quarter ending March 31