Slides, Inc., manufactures and sells snowboards. Slides manufactures a single model, the Pipex. In late 2017, Slides'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 GEORGE (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 of receivables and payments of accounts payable, and for disbursements for fuced 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 1,079.000 From January 2018 sales 346,500 1425,500 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 X Data Table u sti res te 2 ure bi view budg view ja uri ? ? Budgeted balances at January 31, 2018 are as follows: Cash Accounts receivable Inventory Property, plant, ajd equipment (net) Accounts payable Long-term liabilities Stockholders' equity $ are a ursem 851,000 ? ime ne supl 179,000 ? Sched 7 sale sales pporting Selected budgeted information for December 2017 follows: Cash balance, December 31, 2017 11,000 Budgeted sales 1,660,000 Budgeted materials purchases 640,000 Customer invoices are payable within 30 days. From past experience, Slides'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 30% of direct materials purchases paid during the month of the purchase, and 70% paid in the month following purchase. of Cas! 17 puro 3 purcha ts for ad Print Done More Info al und Its of acc de sd Variable manufacturing overhead is $10 per direct manufacturing labor-hour. There are also $24,000 in fixed manufacturing overhead costs budgeted for January 2018. Slides 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 $260 per sales visit. The marketing plan calls for 35 sales visits during January 2018. Finally, there are $32,000 in fixed nonmanufacturing costs budgeted for January 2018. 7 sal pa Print Done f 17 Data Table Materials and Labor Requirements Direct materials Wood 8 board feet (b.f.) per snowboard Fiberglass 6 yards per snowboard Direct manufacturing labor 6 hours per snowboard Slides' CEO expects to sell 1,800 snowboards during January 2018 at an estimated retail price of $550 per board. Further, the CEO expects 2018 beginning inventory of 500 snowboards and would like to end January 2018 with 700 snowboards in stock. Direct Materials Inventories Beginning Inventory 1/1/2018 Ending Inventory 1/31/2018 2,010 b.1. 1,510 b.f. 1,010 yards 2,500 yards Wood Fiberglass Other data include: 2017 Unit Price 2018 Unit Price Wood $ 31.00 per b.f. 29.00 per b.f. 5.00 normord Ciberniane 1000 narare Print Done Data Table Direct manufacturing labor 6 hours per snowboard Slides' CEO expects to sell 1,800 snowboards during January 2018 at an estimated retail price of $550 per board. Further, the CEO expects 2018 beginning inventory of 500 snowboards and would like to end January 2018 with 700 snowboards in stock. Direct Materials Inventories Beginning Inventory 1/1/2018 Ending Inventory 1/31/2018 2,010 b.f. 1,510 b.f. 1,010 yards 2,500 yards Wood Fiberglass Other data include: 2017 Unit Price 2018 Unit Price Wood $ 29.00 per B.. 31.00 per b.f. Fiberglass $ 5.00 per yard 10.00 per yard Direct manufacturing labor $ 25.00 per hour $ 26.00 per hour The inventoriable unit cost for ending finished-goods inventory on December 31, 2017, is $240.00. Assume Slides uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process in your calculations. . fo Print Done Reference Revenue Budget For January 2018 Units Selling price Total revenues 1,800 $ 550 $ 990,000 Snowboards CC Total Direct Materials Purchases Budget I For January 2018 Materials Wood Fiberglass Physical Units Budget To be used in production 16,000 b.f. 12,000 yards Add target ending inventory Total requirement 17,510 b.f. 14,500 yards Deduct beginning inventory 2,010 b.f. 1.010 yards 15,500 Purchases to be made 13,490 b.f. yards Cost Budget $ 480,500 $ 134,900 1,510 b.. 2,500 yards Purchases $ 615,400 Print Done Reference Output Units Produced 2,000 For January 2018 DMLH Total per Unit Hours 6 12,000 Hourly Wage Rate Total Snowboards $ 26 $ 312,000 Total labor hours 12,000 * Variable manufacturing overhead rate - Vasable manufacturing overhead costs 10 120,000 = $ Ending Inventories Budget For January 2018 Quantity Cost per unit Total Direct materials Wood Fiberglass 31 $ 1,510 $ 2,500 46,810 25,000 10 Finished goods Snowboard 700 $ 536 375,200 Total andinnonton $ 447,010 Print Done ave TOIT Requirements 1. 2. 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. Slides is interested in maintaining a minimum cash balance of $150,000 at the end of each month. Will Slides be in a position to pay the $135,000 dividend on January 31? Why do Slides's managers prepare a cash budget in addition to the revenue, expenses, and operating income budget? 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 3. 4. ch a se Print S Done