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.) Data Table Budgeted balances at January 31, 2018 are as follows: Cash 2 ? ? $ 851,000 gel afal Accounts receivable Inventory Property, plant, and equipment (net) Accounts payable Long-term liabilities Stockholders' equity ? che 179,000 ? ash 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 Bulet ments ts pay Print Done Data Table - Stockholders' equity ? 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 theymonth following purchase. Fixed manufacturing overhead costs include $13,000 of depreciation costs and fixed nonmanufacturing overhead costs include $15,000 of depreciation costs, Direct manufacturing labor and the remaining manufacturing and nonmanufacturing overhead costs are paid monthly. All property, plant, and equipment acquired during January 2018 were purchased on credit and did not entail any outflow of cash. There were no borrowings or repayments with respect to long-term liabilities in January 2018. On December 15, 2017, Slides's board of directors voted to pay a $135,000 dividend to stockholders on January 31, 2018. Print Done 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 Iventory 1/31/2018 2,010 b.f. 1,510 b.f. 1,010 yards 2,500 yards Wood Fiberglass Other data include: n 2017 Unit Price 29.00 per b.f. 2018 Unit Price 31.00 per b.f. Wood $ - Data Table Direct manuacturing racor onours per snowboara 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. I 1,010 yards 2,500 yards Wood Fiberglass Other data include: 2017 Unit Price 2018 Unit Price Wood $ 29.00 per b.f. $ 31.00 per b.1. 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. Reference Revenue Budget For January 2018 Units Selling price Total revenues 1,800 $ 550 $ 990,000 Snowboards Total Direct Materials Purchases Budget 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 15,500 Purchases to be made b.f. 13,490 yards Cat Rudent 1,510 b.. 2,500 yards 2,010 .1 1,010 yards Reference Cost Budget Purchases $ 480,500 $ 134,900 $ 615,400 Direct Manufacturing Labor Costs Budget For January 2018 Output Units DMLH Total Hourly Produced per Unit Wage Rate 2,000 6 12,000 $ 26 Hours Total $ 312,000 Snowboards Total labor hours 12,000 * Variable manufacturing overhead rate = Variable manufacturing overhead costs 10 120,000 Ending Inventories Budget For January 2018 Quantity Cost per unit Total Direct materials Wood 1,510 $ 31 $ 46,810 per Unit Hours Wage Rate Total Produced 2,000 Snowboards 6 12,000 $ 26 $ 312,000 otal labor hours 12,000 * Variable manufacturing overhead rate 10 Variable manufacturing overhead co 120,000 Ending Inventories Budget For January 2018 Quantity Cost per unit Total Direct materials Wood Fiberglass 31 $ 46,810 1,510 $ 2,500 10 25,000 I Finished goods Snowboard 700 $ 536 375,200 $ Total ending inventory 447,010 2. 3. 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 4. 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.) Data Table Budgeted balances at January 31, 2018 are as follows: Cash 2 ? ? $ 851,000 gel afal Accounts receivable Inventory Property, plant, and equipment (net) Accounts payable Long-term liabilities Stockholders' equity ? che 179,000 ? ash 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 Bulet ments ts pay Print Done Data Table - Stockholders' equity ? 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 theymonth following purchase. Fixed manufacturing overhead costs include $13,000 of depreciation costs and fixed nonmanufacturing overhead costs include $15,000 of depreciation costs, Direct manufacturing labor and the remaining manufacturing and nonmanufacturing overhead costs are paid monthly. All property, plant, and equipment acquired during January 2018 were purchased on credit and did not entail any outflow of cash. There were no borrowings or repayments with respect to long-term liabilities in January 2018. On December 15, 2017, Slides's board of directors voted to pay a $135,000 dividend to stockholders on January 31, 2018. Print Done 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 Iventory 1/31/2018 2,010 b.f. 1,510 b.f. 1,010 yards 2,500 yards Wood Fiberglass Other data include: n 2017 Unit Price 29.00 per b.f. 2018 Unit Price 31.00 per b.f. Wood $ - Data Table Direct manuacturing racor onours per snowboara 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. I 1,010 yards 2,500 yards Wood Fiberglass Other data include: 2017 Unit Price 2018 Unit Price Wood $ 29.00 per b.f. $ 31.00 per b.1. 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. Reference Revenue Budget For January 2018 Units Selling price Total revenues 1,800 $ 550 $ 990,000 Snowboards Total Direct Materials Purchases Budget 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 15,500 Purchases to be made b.f. 13,490 yards Cat Rudent 1,510 b.. 2,500 yards 2,010 .1 1,010 yards Reference Cost Budget Purchases $ 480,500 $ 134,900 $ 615,400 Direct Manufacturing Labor Costs Budget For January 2018 Output Units DMLH Total Hourly Produced per Unit Wage Rate 2,000 6 12,000 $ 26 Hours Total $ 312,000 Snowboards Total labor hours 12,000 * Variable manufacturing overhead rate = Variable manufacturing overhead costs 10 120,000 Ending Inventories Budget For January 2018 Quantity Cost per unit Total Direct materials Wood 1,510 $ 31 $ 46,810 per Unit Hours Wage Rate Total Produced 2,000 Snowboards 6 12,000 $ 26 $ 312,000 otal labor hours 12,000 * Variable manufacturing overhead rate 10 Variable manufacturing overhead co 120,000 Ending Inventories Budget For January 2018 Quantity Cost per unit Total Direct materials Wood Fiberglass 31 $ 46,810 1,510 $ 2,500 10 25,000 I Finished goods Snowboard 700 $ 536 375,200 $ Total ending inventory 447,010 2. 3. 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 4