Skulas Skulas, Inc., manufactures and sells snowboards. Skulas Skulas manufactures a singlemodel, the Pipex. In late 2017 2017, Skulas Skulas's management accountant gathered the following
Skulas
Skulas, Inc., manufactures and sells snowboards. Skulas
Skulas manufactures a singlemodel, the Pipex. In late 2017
2017, Skulas
Skulas's management accountant gathered the following data to prepare budgets for January 2018
2018:
Skulas, Inc., manufactures and sells snowboards. Skulas manufactures a single model, the Pipex. In late 2017, Skulas's management accountant gathered the (Click the icon to view the materials and labor requirements, the direct following data to prepare budgets for January 2018: materials inventories, and additional inventory information.) (Click the icon to view the budgeted balances and additional information (Click the icon to view the following selected January 2018 budgets: Revenue, pertaining to the cash budget.) Direct material purchases, Direct manufacturing labor cost, Variable manufacturing i (Click the icon to view the additional variable and fixed manufacturing cost overhead and Ending inventory.) information.) Read the requirements. Requirement 1. Prepare a cash budget for January 2018. Show supporting schedules for the calculation of collection of receivables and payments of accounts payable, and for disbursements for fixed manufacturing and nonmanufacturing overhead. Begin by preparing the supporting schedule for the calculation of collection of receivables. Schedule of Cash Collections From December 2017 sales $ 990,000 From January 2018 sales 754,000 Total collections $ 1,744,000 Next prepare the supporting schedule for the payments of accounts payable. Schedule of Cash Payments for Accounts Payable From December 2017 purchases From January 2018 purchases Total cash payments for accounts payableBudgeted balances at January 31, 2018 are as follows: Cash ? Accounts receivable ? Inventory ? Property, plant, and equipment (net) $ 1,175,600 Accounts payable ? Long-term liabilities 182,000 Stockholders' equity ? Selected budgeted information for December 2017 follows: Cash balance, December 31, 2017 $ 124,000 Budgeted sales 1,650,000 Budgeted materials purchases 820,000 Customer invoices are payable within 30 days. From past experience, Skulas's accountant projects 40% of invoices will be collected in the month invoiced, and 60% will be collected in the following month. Accounts payable relates only to the purchase of direct materials. Direct materials are purchased on credit with 50% of direct materials purchases paid during the month of the purchase, and 50% paid in the month following purchase. o DataTable - X Materials and Labor Requirements Direct materials Wood 9 board feet (b.f.) per snowboard Fiberglass 10 yards per snowboard Direct manufacturing labor 5 hours per snowboard Skulas' CEO expects to sell 2,900 snowboards during January 2018 at an estimated retail price of $650 per board. Further, the CEO expects 2018 beginning inventory of 500 snowboards and would like to end January 2018 with 200 snowboards in stock. Direct Materials Inventories Beginning Inventory 1I1I2018 Ending Inventory 1i31i2018 Wood 2,040 b.f. 1,540 b.f. Fiberglass 1,040 yards 2,040 yards Other data include: 2017 Unit Price 2018 Unit Price Wood 32.00 per b.f. 34.00 per b.f. Fiberglass 8.00 per yard 9.00 per yard Direct manufacturing labor 28.00 per hour 29.00 per hour
