The facts for this problem are presented on the facts tab of this workbook. Instructions - Your solutions should be clearly labeled on the Solutions tab of this workbook. For the first quarter of 2020, do the following. (a) Prepare a sales budget. This is similar to illustration 22-3 of your textbook. (b) Prepare a production budget. This is similar to Illustration 22-5 of your textbook. (c) Prepare a direct materials budget. (Round to nearest dollar) This is similar to Illustration 22-9 of your textbook. (d) Prepare a direct labor budget. (For calculations, round to the nearest hour.) This is similar to illustration 22-11 of your textbook. (e) Prepare a manufacturing overhead budget. (Round intermediate amounts to the nearest dollar.) This is similar to illustration 22-12 of your textbook. Rules: * Use Excel's functionality to your benefit. Points are lost for lack of formula. * Use proper formats for schedules, following the referenced textbook examples. * Use dollar-signs and underscores where appropriate. * Double-check your work! Verify your formula and logic! 40% Grading Guidelines: Effective Use of Excel Facts, Logic Completeness Spelling, Punctuation, Value Format 20% 30% 10% Serious Business, Inc. 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. Sales Information Period November December January February March April May Unit selling price Units 102,000 Actual 91,000 Actual 100,000 Planned 101,000 Planned 103,000 Planned 112,000 Planned 123,000 Planned 11.00 Grading guidelines are on the instr 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 Collections Activity Month of Sale Month after Sale Balance at 12/31/19 80% 20% 185,000.00 $ Materials Inventory Costs & Planning Cost Amount Used per Unit Direct Materials 2 lb $ Metal 1.00 lb The company likes to keep 5% of the material needed for the next month's production in raw materials ending inventory. Direct Materials Amount Used per Unit Cost Metal 2 lb $ 1.00 lb The company likes to keep 5% of the material needed for the next month's production in raw materials ending inventory. 100% Accounts Payable & Disbursements Purchases on Account Payment Activity Month of Purchase Month after Purchase Balance at 12/31/19 40% 60% 120,000 12 minutes Direct Labor & Costs Time per Unit Production Pay Rate/Hour 6.00 0.25 0.35 0.45 0.25 Manufacturing Overhead Costs Variable costs per direct labor hour Indirect materials Indirect labor Utilities Maintenance Fixed costs per month Salaries Depreciation Property taxes Insurance Janitorial 42,000 16,800 2,675 1,200 1,300 1.20 Selling and Administrative Costs Variable costs per unit sold Fixed costs per month Advertising Insurance Salaries Depreciation Other fixed costs 15,000 14,000 72,000 25,000 3,000 Income Taxes Accrued on Monthly Net Income Amounts Accrued Q4 2019, paid January 2020 $ 40% rounded to nearest dollar 200,000 Cash and Financing Matters Cash Balance, 12/31/2019 2020 Minimum Balance Required 74,000 575,000 per share Monthly Dividends Outstanding Shares 1.80 5,000 Line of Credit Limit None 1,000 Borrowing Increment Required 8% Interest Rate First of Month Draws Last of Month Repayments Interest accumulates to the loan balance and is paid in full with each repayment. $ Additional Item Fixed Asset Purchase Month 361,000 February