Skubas, Inc., manufactures and sells snowboards. Skubas manufactures a single model, the Pipex. In late 2020, Skubas's management accountant gathered the following data to prepare budgets for January 2021: (Click the icon to view the budgeted balances and additional information pertaining to the cash budget.) A (Click the icon to view the additional variable and fixed manufacturing cost information.) Click the icon to view the materials and labor requirements, the direct materials in information.) (Click the icon to view the following selected January 2021 budgets: Revenue, Dire manufacturing labor cost, Variable manufacturing overhead and Ending inventory.) Read the requirements. Requirement 1. Prepare a cash budget for January 2021. Show supporting schedules for the calculation of collection of receivables and payments of accounts payable, and for disbursements for fixed manufactu (nonmanufacturing) overhead. Begin by preparing the supporting schedule for the calculation of collection of receivables. Schedule of Cash Collections From December 2020 sales From January 2021 sales Total collections Data Table Budgeted balances at January 31, 2021 are as follows: Cash ? Accounts receivable ? Inventory ? Property, plant, and equipment (net) $ 857,000 Accounts payable ? Long-term liabilities 185,000 Stockholders' equity ? Selected budgeted information for December 2020 follows: Cash balance, December 31, 2020 $ 17,000 Budgeted sales 1,720,000 Budgeted materials purchases 600,000 Customer invoices are payable within 30 days. From past experience, Skubas's accountant projects 45% of invoices will be collected in the month invoiced, and 55% will be collected in the following month. Accounts payable relates only to the purchase of direct materials. Direct materials are purchased on credit with 35% of direct materials purchases paid during the month of the purchase, and 65% paid in the month following purchase. Fixed manufacturing overhead costs include $37,000 of depreciation costs and fixed operating (nonmanufacturing) overhead costs include $12,000 of depreciation costs. Direct manufacturing labor and the remaining manufacturing and operating (nonmanufacturing) overhead costs are Print Done i More Info Variable manufacturing overhead is $17 per direct manufacturing labor-hour. There are also $54,000 in fixed manufacturing overhead costs budgeted for January 2021. Skubas combines both variable and fixed manufacturing overhead into a single rate based on direct manufacturing labor-hours. Variable marketing costs are allocated at the rate of $320 per sales visit. The marketing plan calls for 41 sales visits during January 2021. Finally, there are $38,000 in fixed operating (nonmanufacturing) costs budgeted for January 2021. Print Done Data Table Materials and Labor Requirements Direct materials Wood 14 board feet (b.f.) per snowboard 12 yards per snowboard Fiberglass Direct manufacturing labor 5 hours per snowboard Skubas' CEO expects to sell 3,500 snowboards during January 2021 at an estimated retail price of $950 per board. Further, the CEO expects 2021 beginning inventory of 800 snowboards and would like to end January 2021 with 900 snowboards in stock. Direct Materials Inventories Beginning Inventory Ending Inventory January January 1, 2021 31, 2021 Wood 2,070 b.f. 1,570 b.f. Fiberglass 1,070 yards 2,070 yards Other data include: 2020 Unit Price 2021 Unit Price Wood $ 35.00 per b.f. $ 37.00 per b.f. Fiberglass $ 11.00 per yard $ 12.00 per yard Direct manufacturing labor $ 31.00 per hour $ 32.00 per hour Print Done Reference X $, the budg End Revenue Budget For January 2021 Units Selling price Total revenues lents Snowboards 3,500 $ 950 $ 3,325,000 al Direct Materials Purchases Budget For January 2021 Materials Wood Fiberglass Total 50,400 b.f. Physical Units Budget To be used in production Add target ending inventory Total requirement 1,570 b.f. 51,970 b.f. 43,200 yards 2,070 yards 45,270 yards 1,070 yards 44,200 yards Deduct beginning inventory 2,070 b.f. 49,900 Purchases to be made b.f. Cost Budget $ 1,846,300 $ 530,400 Purchases $ 2,376,700 Direct Manufacturing Labor Costs Budget Print Done