Sutton Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Sutton Manufacturing's operations: (Click the icon to view the data.) A (Click the icon to view additional data.) Requirements CE Requirement 1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total. Sutton Manufacturing Cash Collection Budget January February $ 15,480$ 17,280 62,400 61,920 $ 77,880$ 79,200 Cash sales March Quarter 17,100 $ 49,860 69,120 193,440 Credits sales 86,220's 243,300 Total cash collections Requirement 2. Prepare a production budget. (Hint: Unit sales - Sales in dollars / Selling price per unit.) - X Sutton Manufacturing Production Budget January February Data Table March Quarter Unit sales Current Assets as of December 31 (prior year): Plus: Desired ending inventory Total needed Cash 4,640 Accounts receivable, net $ 51,000 Less: Beginning inventory Inventory $ 15,400 Units to produce 121,000 Property, plant, and equipment, net. Accounts payable Capital stock $ 43,600 126,000 Enter any number in the edit fields and then click Check Answer. Retained earnings .... 23,000 Sutton Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Sutton Manufacturing's operations: E (Click the icon to view the data.) (Click the icon to view additional data.) Requirements C!!! Requirement 1. Prepare Requirements 1 Cash sales Credits sales Total cash collections Prepare a schedule of cash collections for January, February, and March, and for the quarter in total. 2. Prepare a production budget. (Hint: Unit sales - Sales in dollars / Selling price per unit.) 3. Prepare a direct materials budget. 4. Prepare cash payments budget for the direct material purchases from Requirement 3. 5. Prepare a cash payments budget for conversion costs. 6. Prepare a cash payments budget for operating expenses. 7. Prepare a combined cash budget. 8. Calculate the budgeted manufacturing cost per unit (assume that fixed manufacturing overhead is budgeted to be $0.90 per unit for the year). 9. Prepare a budgeted income statement for the quarter ending March 31. (Hint: Cost of goods sold = Budgeted cost of manufacturing each unit x Number of units sold.) 10. Prepare a partial budgeted balance sheet for March 31. Include Loans Payable and Income Tax Payable. Requirement 2. Prepare - X Unit sales Plus: Desired ending inver Print Done 4,640 Total needed 51,000 Less: Beginning inventory Units to produce 15,400 121,000 TIVEMOTY Property, plant, and equipment, net. Accounts payable $ Capital stock Retained earnings ......................... $ 43,600 126,000 Enter any number in the edit fields and then click Check Answer. 23,000 Sutton Manufactu (Click the id Requirements a. Actual sales in December were $78,000. Selling price per unit is projected to remain stable at $9 per unit throughout the budget period. Sales for the first 5 months of the upcoming year are budgeted to be as follows: Requirement 1. January ......... $ February $ March $ 77,400 86,400 85,500 April $ 82,800 Cash sales Credits sales Total cash collect Requirement 2. May $ 72,000 b. Sales are 20% cash and 80% credit. All credit sales are collected in the month following the sale. c. Sutton Manufacturing has a policy that states that each month's ending inventory of finished goods should be 20% of the following month's sales (in units). d. Of each month's direct material purchases, 15% are paid for in the month of purchase, while the remainder is paid for in the month following purchase. Two kilograms of direct material is needed per unit at $1.50/kg. Ending inventory of direct materials should be 10% of next month's production needs. e. Monthly manufacturing conversion costs are $5,500 for factory rent, $2,800 for other fixed manufacturing expenses, and $1.10 per unit for variable manufacturing overhead. No depreciation is included in these figures. All expenses are paid in the month in which they are incurred. f. Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Sutton Manufacturing will purchase equipment for $5,400 (cash), while February's cash expenditure will be $12,800 and March's cash expenditure will be $15,600 g. Operating expenses are budgeted to be $1.25 per unit sold plus fixed operating expenses of $1,600 per month. All operating expenses are paid in the month in which they are incurred. h. Depreciation on the building and equipment for the general and administrative offices is budgeted to be $4,500 for the entire quarter, which includes depreciation on new acquisitions. i. Sutton Manufacturing has a policy that the ending cash balance in each month must be at least $5,000. It has a line of credit with a local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $125,000. The interest rate on these loans is 1% per month simple interest (not compounded). Sutton Unit sales Plus: Desired eng Total needed Less: Beginning Units to produce Print Done Enter any numbe