The Bundy Shoe Emporium is beginning Business in 2024 Bundy invested $20,000 of his own money to become the sole owner in this corporation with no par 3 On January 1st 2024, the Marcy D'arcy Bank loaned Bundy $500,000 to start his business stock This 6% loan only required interest payments in 2024 which is NOT included in the fixed costs of making the shoes. 5 Al Bundy has made the following projections for the first quarter of 2024 5 7 Sales ($27 per pair of shoes) 8 9 10 January February March April 10000 pairs 14000 pairs 17000 pairs 17000 pairs 1 2 Bundy expects to collect 80% in the month of sale 18% in the next month and have 2% bad debt 13 The Cost of making the Bundy Shoe LABOR MATERIALS VARIABLE OH 14 15 16 17 18 FIXED OH 19 20 21 22 1 hour at $8 per hou 1/2 paid in month incurred rest paid next month 75% paid in month incurred rest in next month 2 square feet $2.50 per square foot variable oh fixed overhead $2 per pair January February April all paid in next month $12,000 $12,000 12,000 23 Bundy wants ending inventory of 10% of next month's projected sales 24 Bundy wants ending raw materials of 15% of next months usage 25 Bundy wants an ending cash balance of at least $50,000 26 Bundy can borrow up to $75000 more from the Marcy D'arcy Bank 27 28 29 30 31 32 33 34 35 36 37 + FOR THE FIRST QUARTER OF 2024 A) PREPARE A RAW MATERIALS BUDGET FOR EACH MONTH BOTH IN UNITS AND DOLLARS B) PREPARE A MONTHLY PRODUCTION BUDGET BOTH IN UNITS AND DOLLARS C) PREPARE A MONTHLY LABOR BUDGET IN HOURS AND DOLLARS D) PREPARE A CASH BUDGET FOR EACH MONTH E) PREPARE A QUARTERLY INCOME STATEMENT FOR THE FIRST QUARTER 2024....BUNDY USES FIFO INVENTORY