Slatts, Inc., manufactures and sells snowboards. Slatts manufactures a single model, the Pipex. In late 2017, Slatts's management accountant gathered the following data to prepare budgets for January 2018: (Click the icon to view the budgeted balances and additional information pertaining to the cash budget.) (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 inventories, and additional inventory information.) (Click the icon to view the following selected January 2018 budgets: Revenue, Direct material purchases, Direct manufacturing labor cost, Variable manufacturing overhead and Ending inventory) Read the requirements Requirement 1. Prepare a cash budget for January 2018. Show supporting schedules for the calculation of collection overhead. receivables and payments of accounts payable, and for disbursements for fixed manufacturing and nonmanufacturing Begin by preparing the supporting schedule for the calculation of collection of receivables. Schedule of Cash Collections From December 2017 sales From January 2018 sales Total collections 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 payable Prepare the supporting schedule for disbursements for fixed manufacturing and nonmanufacturing overhead. Schedule of Cash Payments for Fixed Overhead Fixed manufacturing overhead Fixed nonmanufacturing overhead Total cash navmentes for fixed overhead Slatts, Inc., manufactures and sells snowboards. Slatts manufactures a single model, the Pipex. In late 2017, Slatts's management accountant gathered the following data to prepare budgets for January 2018: (Click the icon to view the budgeted balances and additional information pertaining to the cash budget.) (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 inventories, and additional Inventory Information.) (Click the icon to view the following selected January 2018 budgets: Revenue, Direct material purchases, Direct manufacturing labor cost. Variable manufacturing overhead and Ending inventory.) Read the requirements. Fixed nonmanufacturing overhead Total cash payments for fixed overhead Prepare a cash budget for January 2018. (If a box is not used in the table leave the box empty, do not select a label or enter a zero.) Slatts, Inc. Cash Budget For Month Ending January 31, 2018 Cash balance, beginning Add receipts Total cash available for needs Deduct disbursements Slatts, Inc., manufactures and sells snowboards. Slatts manufactures a single model, the Pipex. In late 2017, Slatts's management accountant gathered the following data to prepare budgets for January 2018: (Click the icon to view the budgeted balances and additional information pertaining to the cash budget.) (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 inventories, and additional inventory information.) (Click the icon to view the following selected January 2018 budgets: Revenue, Direct material purchases, Direct manufacturing labor cost, Variable manufacturing overhead and Ending inventory.) Read the requirements Total disbursements Cash balance, ending Requirement 2. Slatts is interested in maintaining a minimum cash balance of $80,000 at the end of each month. Will Slatts be in a position to pay the $195.000 dividend on January 31? be in a position to pay the $195,000 dividend on January 31. Requirement 3. Why do Slatts's managers prepare a cash budget in addition to the revenue, expenses, and operating income budget? Slatts's managers prepare a cash budget in addition to the operating income budget to Slatts's managers may then need to adequate cash will be available. Ir Slatis is profitable on an accrual accounting basis, Building a profitable operating plan that Requirement 4. Prepare a budgeted balance sheet for January 31, 2018 by calculating the January 31, 2018 balances in (a) cash (b) accounts receivable (c) inventory (d) accounts payable and (e) plugging in the balance for stockholders' equity. Slatts, Inc. Budgeted Balance Sheet January 31, 2018 Slatls, Inc., manufactures and sells snowboards. Slatls manufactures a single model, the Pipex. In late 2017, Slatls's management accountant gathered the following data to prepare budgets for January 2018: Click the icon to view the budgeted balances and additional information pertaining to the cash budget.) (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 inventories, and additional Inventory Information.) (Click the icon to view the following selected January 2018 budgets: Revenue, Direct material purchases, Direct manufacturing labor cost, Variable manufacturing overhead and Ending inventory.) Read the requirements Slatta's managers prepare a cash budget in addition to the operating income budget to If Slatts is profitable on an accrual accounting basis, Slaits's managers may then need to Building a profitable operating plan that adequate cash will be available. Requirement 4. Prepare a budgeted balance sheet for January 31, 2018 by calculating the January 31, 2018 balances in (a) cash (b) accounts receivable (c) inventory (d) accounts payable and (e) plugging in balance for stockholders' equity. Slatts, Inc. Budgeted Balance Sheet January 31, 2018 Assets: Total Liabilities and Stockholders' Equity Total Data table Budgeted balances at January 31, 2018 are as follows: Cash ? Accounts receivable ? Inventory ? Property, plant, and equipment (net) $ 852,000 Accounts payable ? Long-term liabilities 180,000 Stockholders' equity ? Selected budgeted information for December 2017 follows: Cash balance, December 31, 2017 $ 12,000 Budgeted sales 1,690,000 Budgeted materials purchases 600,000 Customer invoices are payable within 30 days. From past experience, Slatts's accountant projects 35% of invoices will be collected in the month invoiced, and 65% will be collected in the following month. Accounts payable relates only to the purchase of direct materials. Direct materials are purchased on credit with 45% of direct materials purchases paid during the month of the purchase, and 55% paid in the month following purchase. Fixed manufacturing overhead costs include $11,000 of depreciation costs and fixed nonmanufacturing overhead costs include $16,000 of depreciation costs. Direct manufacturing labor and the remaining manufacturing and nonmanufacturing overhead costs Print Done More info Variable manufacturing overhead is $8 per direct manufacturing labor-hour. There are also $20,800 in fixed manufacturing overhead costs budgeted for January 2018. Slatts 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 $270 per sales visit. The marketing plan calls for 36 sales visits during January 2018. Finally, there are $33,000 in fixed nonmanufacturing costs budgeted for January 2018. Print Done Data table Materials and Labor Requirements Direct materials Wood Fiberglass Direct manufacturing labor 9 board feet (b.f.) per snowboard 7 yards per snowboard 8 hours per snowboard Slatts' CEO expects to sell 1,300 snowboards during January 2018 at an estimated retail price of $650 per board. Further, the CEO expects 2018 beginning inventory of 600 snowboards and would like to end January 2018 with 600 snowboards in stock. Direct Materials Inventories Ending Inventory 1/31/2018 Beginning Inventory 1/1/2018 2,020 b.f. Wood 1,520 b.f. Fiberglass 1,020 yards 2,020 yards Other data include: 2017 Unit Price 2018 Unit Price Wood $ 30.00 per b.f. $ 32.00 per b.f. Fiberglass $ 6.00 per yard $ 7.00 per yard Direct manufacturing labor $ 26.00 per hour $ 27.00 per hour The inventoriable unit cost for ending finished-goods inventory on December 31, 2017, is $250.00. Print Done - Reference Revenue Budget For January 2018 Units Selling price Total revenues Snowboards 1,300 $ 650 $ 845,000 Direct Materials Purchases Budget For January 2018 Materials Wood Fiberglass Total Physical Units Budget To be used in production 11,700 b.f. 1,520 b.f. Add target ending inventory Total requirement 13,220 b.f. 9,100 yards 2,020 yards 11,120 yards 1,020 yards 10,100 yards Deduct beginning inventory 2,020 b.f. 11,200 Purchases to be made b.f. Cost Budget $ 358,400 $ Purchases 70,700 $ 429,100 Direct Manufacturing Labor Costs Budget Print Done Slatts, Inc., manufactures and sells snowboards. Slatts manufactures a single model, the Pipex. In late 2017, Slatts's management accountant gathered the following data to prepare budgets for January 2018: (Click the icon to view the budgeted balances and additional information pertaining to the cash budget.) (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 inventories, and additional inventory information.) (Click the icon to view the following selected January 2018 budgets: Revenue, Direct material purchases, Direct manufacturing labor cost, Variable manufacturing overhead and Ending inventory) Read the requirements Requirement 1. Prepare a cash budget for January 2018. Show supporting schedules for the calculation of collection overhead. receivables and payments of accounts payable, and for disbursements for fixed manufacturing and nonmanufacturing Begin by preparing the supporting schedule for the calculation of collection of receivables. Schedule of Cash Collections From December 2017 sales From January 2018 sales Total collections 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 payable Prepare the supporting schedule for disbursements for fixed manufacturing and nonmanufacturing overhead. Schedule of Cash Payments for Fixed Overhead Fixed manufacturing overhead Fixed nonmanufacturing overhead Total cash navmentes for fixed overhead Slatts, Inc., manufactures and sells snowboards. Slatts manufactures a single model, the Pipex. In late 2017, Slatts's management accountant gathered the following data to prepare budgets for January 2018: (Click the icon to view the budgeted balances and additional information pertaining to the cash budget.) (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 inventories, and additional Inventory Information.) (Click the icon to view the following selected January 2018 budgets: Revenue, Direct material purchases, Direct manufacturing labor cost. Variable manufacturing overhead and Ending inventory.) Read the requirements. Fixed nonmanufacturing overhead Total cash payments for fixed overhead Prepare a cash budget for January 2018. (If a box is not used in the table leave the box empty, do not select a label or enter a zero.) Slatts, Inc. Cash Budget For Month Ending January 31, 2018 Cash balance, beginning Add receipts Total cash available for needs Deduct disbursements Slatts, Inc., manufactures and sells snowboards. Slatts manufactures a single model, the Pipex. In late 2017, Slatts's management accountant gathered the following data to prepare budgets for January 2018: (Click the icon to view the budgeted balances and additional information pertaining to the cash budget.) (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 inventories, and additional inventory information.) (Click the icon to view the following selected January 2018 budgets: Revenue, Direct material purchases, Direct manufacturing labor cost, Variable manufacturing overhead and Ending inventory.) Read the requirements Total disbursements Cash balance, ending Requirement 2. Slatts is interested in maintaining a minimum cash balance of $80,000 at the end of each month. Will Slatts be in a position to pay the $195.000 dividend on January 31? be in a position to pay the $195,000 dividend on January 31. Requirement 3. Why do Slatts's managers prepare a cash budget in addition to the revenue, expenses, and operating income budget? Slatts's managers prepare a cash budget in addition to the operating income budget to Slatts's managers may then need to adequate cash will be available. Ir Slatis is profitable on an accrual accounting basis, Building a profitable operating plan that Requirement 4. Prepare a budgeted balance sheet for January 31, 2018 by calculating the January 31, 2018 balances in (a) cash (b) accounts receivable (c) inventory (d) accounts payable and (e) plugging in the balance for stockholders' equity. Slatts, Inc. Budgeted Balance Sheet January 31, 2018 Slatls, Inc., manufactures and sells snowboards. Slatls manufactures a single model, the Pipex. In late 2017, Slatls's management accountant gathered the following data to prepare budgets for January 2018: Click the icon to view the budgeted balances and additional information pertaining to the cash budget.) (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 inventories, and additional Inventory Information.) (Click the icon to view the following selected January 2018 budgets: Revenue, Direct material purchases, Direct manufacturing labor cost, Variable manufacturing overhead and Ending inventory.) Read the requirements Slatta's managers prepare a cash budget in addition to the operating income budget to If Slatts is profitable on an accrual accounting basis, Slaits's managers may then need to Building a profitable operating plan that adequate cash will be available. Requirement 4. Prepare a budgeted balance sheet for January 31, 2018 by calculating the January 31, 2018 balances in (a) cash (b) accounts receivable (c) inventory (d) accounts payable and (e) plugging in balance for stockholders' equity. Slatts, Inc. Budgeted Balance Sheet January 31, 2018 Assets: Total Liabilities and Stockholders' Equity Total Data table Budgeted balances at January 31, 2018 are as follows: Cash ? Accounts receivable ? Inventory ? Property, plant, and equipment (net) $ 852,000 Accounts payable ? Long-term liabilities 180,000 Stockholders' equity ? Selected budgeted information for December 2017 follows: Cash balance, December 31, 2017 $ 12,000 Budgeted sales 1,690,000 Budgeted materials purchases 600,000 Customer invoices are payable within 30 days. From past experience, Slatts's accountant projects 35% of invoices will be collected in the month invoiced, and 65% will be collected in the following month. Accounts payable relates only to the purchase of direct materials. Direct materials are purchased on credit with 45% of direct materials purchases paid during the month of the purchase, and 55% paid in the month following purchase. Fixed manufacturing overhead costs include $11,000 of depreciation costs and fixed nonmanufacturing overhead costs include $16,000 of depreciation costs. Direct manufacturing labor and the remaining manufacturing and nonmanufacturing overhead costs Print Done More info Variable manufacturing overhead is $8 per direct manufacturing labor-hour. There are also $20,800 in fixed manufacturing overhead costs budgeted for January 2018. Slatts 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 $270 per sales visit. The marketing plan calls for 36 sales visits during January 2018. Finally, there are $33,000 in fixed nonmanufacturing costs budgeted for January 2018. Print Done Data table Materials and Labor Requirements Direct materials Wood Fiberglass Direct manufacturing labor 9 board feet (b.f.) per snowboard 7 yards per snowboard 8 hours per snowboard Slatts' CEO expects to sell 1,300 snowboards during January 2018 at an estimated retail price of $650 per board. Further, the CEO expects 2018 beginning inventory of 600 snowboards and would like to end January 2018 with 600 snowboards in stock. Direct Materials Inventories Ending Inventory 1/31/2018 Beginning Inventory 1/1/2018 2,020 b.f. Wood 1,520 b.f. Fiberglass 1,020 yards 2,020 yards Other data include: 2017 Unit Price 2018 Unit Price Wood $ 30.00 per b.f. $ 32.00 per b.f. Fiberglass $ 6.00 per yard $ 7.00 per yard Direct manufacturing labor $ 26.00 per hour $ 27.00 per hour The inventoriable unit cost for ending finished-goods inventory on December 31, 2017, is $250.00. Print Done - Reference Revenue Budget For January 2018 Units Selling price Total revenues Snowboards 1,300 $ 650 $ 845,000 Direct Materials Purchases Budget For January 2018 Materials Wood Fiberglass Total Physical Units Budget To be used in production 11,700 b.f. 1,520 b.f. Add target ending inventory Total requirement 13,220 b.f. 9,100 yards 2,020 yards 11,120 yards 1,020 yards 10,100 yards Deduct beginning inventory 2,020 b.f. 11,200 Purchases to be made b.f. Cost Budget $ 358,400 $ Purchases 70,700 $ 429,100 Direct Manufacturing Labor Costs Budget Print Done