The facts for this problem are presented below. Instructions - Your solutions should be clearly labeled. For the first quarter of 2020, do the following (a) Prepare a sales budget. (b) Prepare a production budget (c) Prepare a direct materials budget. (Round to nearest dollar) (d) Prepare a direct labor budget. (For calculations, round to the nearest hour (e) Prepare a manufacturing overhead budget. (Round intermediate amounts to the nearest dollar) Rules: Use Excel's functionality to your benefit Points are lost for lack of formula (PLEASE INCLUDE ALL THE FORMULAS IN PLACES WHERE USED) Use proper formats for schedules, following the referenced textbook examples Use dollar-signs and underscores where appropriate *Double-check your worki Verify your formula and logic! *YOU MUST PREPARE BUDGET DETAIL FOR EACH MONTH IN THE FIRST QUARTER*

The company is preparing its budget for the coming year 2020. The first step is to plan for the FIRST QUARTER of that coming year. The following information has been gathered from their managers "YOU MUST PREPARE BUDGET DETAIL FOR EACH MONTH IN THE FIRST QUARTER Sales Information Penod Units November 93,000 Actual December 83,000 Actual January 91,000 Planned February 92,000 Planned March 94,000 Planned April 102,000 Planned May 112,000 Planned Unit selling price $10.00

Finished Goods Inventory Planning The company likes to keep 10% of the next month's unit sales in finished goods ending inventory. 100%. Accounts Receivable & Collections Sales on Account 100% Collections Activity Month of Sale Month after Sale Balance at 12/31/19 90% 10% $185,000.00. Materials Inventory Costs & Planning $ Direct Materials Amount Used per Unit (Metal) 2 lb Cost $1.00 lb The company likes to keep 5% of the material needed for the next month's production in raw materials ending inventory. Accounts Payable & Disbursements Purchases on Account 100%. Payment Activity Month of Purchase 60% Month after Purchase 40% Balance at 12/31/19 $120,000. Direct Labor & Costs Time per Unit Production 9 Miniutes Pay Rate/Hour $5.00

Manufacturing Overhead Costs Variable costs per direct labor hour Indirect materials $.20 Indirect labor .30 Utilities .45 Maintenance .25. Fixed costs per month Salaries $42,000 Depreciation 16,800 Property taxes 2,675 Insurance 1,200 Janitorial 1,300. Selling and Administrative Costs Variable costs per unit sold $1.10 Fixed costs per month Advertising 15,000 Insurance 14,000 Salaries 72,000 Depreciation 25,000 Other fixed costs 3,000. Income Taxes Accrued on Monthly Net Income 35% rounded to nearest dollar Amounts Accrued Q4 2019, paid January 2020 $200,000.

Cash and Financing Matters Cash Balance, 12/31/2019 $67,000 2020 Minimum Balance Required 525,000. Monthly Dividends $1.60 per share Outstanding Shares 5,000 Line of Credit Limit-None Borrowing Increment Required-$1,000 Interest Rate-7% Draws-first of Month Repayments-Last of Month. Interest accumulates to the loan balance and is paid in full with each repayment. Additional Item- Fixed Asset Purchase $328,000 Month February