Score: 0 of 1 pt 9 of 9 (2 complete) HW Score: 11.11%, 1 of 9 pts Question Help 0 P9-57A (similar to) Dickson Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Dickson Manufacturing's operations: (Click the icon to view the data.) (Click the icon to view additional data.) Read the requirements. Month Requirement 1. Prepare a schedule of cash collections for January, February, and March, and for the quarte More Info Dickson Manufacturing Cash Collections Budget For the Quarter Ended March 31 a.Actual sales in December were $70,000. Selling price per unit is projected to remain stable at $10 per unit throughout the budget period. Sales for the first five months of the upcoming year are budgeted to be as follows: January ......$ 80.00 January February March Quarter February ......$ 92,000 Cash sales March ....... $ 99,000 Credits sales April ..........$ 97,000 Total cash collections May ..........$ 85,000 b. Sales are 30% cash and 70% credit. All credit sales are collected in the month following the sale. Data Table c. Dickson Manufacturing has a policy that states that each month's ending inventory of finished goods should be 25% 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 $2.00 per pound. Ending inventory of direct materials should be 10% of next month's production needs. Current Assets as of December 31 (prior year): 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 0.01. The direct labor rate per hour is $12 per hour. All cirect labor is paid for in the month in which the work is performed. The Cash S 4,500 direct labor total cost for each of the upcoming three months is as follows: Accounts receivable, net S 47,000 January $ 996 Inventory S 15,600 February $ 1,125 Property, plant, and equipment, net S 122,000 March .........$ 1,182 Accounts payable S 42,400 f. Monthly manufacturing overhead costs are $5,000 for factory rent, $3,000 for other fixed manufacturing expenses, and $1.20 per Capital stock S 125,500 unit for variable manufacturing overhead. No depreciation is included in these figures. All expenses are paid in the month in which they are incurred. Retained eamings S 22,900 g.Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Dickson Manufacturing will purchase equipment for S5,000 (cash), while February's cash expenditure will be $12,000 and March's cash expenditure will be $16,000. Print Done h. Operating expenses are budgeted to be $1.00 per unit sold plus fixed operating expenses of $1,000 per month. All operating
