{The following information applies to the questions displayed below) Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2017 and reports a balance sheet at December 31, 2016, as follows: Endless Mountain Company Balance Sheet December 31, 2016 Assets Current assets Cash $ 46,200 Accounts receivable 260,000 raw materials inventory (4,500 yarda) 11,250 Finished goods inventory (1,500 units) 32,250 Total current assets $349,700 Plant and equipment Buildings and equipment 900,000 Accumulated depreciation (292,000) Plant and equipment, net 608,000 Total assets $957,700 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $158,000 Stockholders' equity: Common stock $ 419,800 Retained earnings 379,900 Total stockholders' equity 799.700 Total liabilities and stockholders' equity $957, 700 The company's chief financial officer (CFO). In consultation with various managers across the organization has developed the following set of assumptions to help create the 2017 budget 1. The budgeted unit sales are 12,000 units, 37,000 units, 15,000 units, and 25,000 units for quarters 1-4, respectively, Notice that the company experiences peak sales in the second and fourth quarters. The budgeted selling price for the year is $32 per unit. The budgeted unit sales for the first quarter of 2018 is 13,000 units. 2. All sales are on credit. Uncollectible accounts are negligible and can be ignored. Seventy-five percent of all credit sales are collected in the quarter of the sale and 25% are collected in the subsequent quarter. 3. Each quarter's ending finished goods inventory should equal 15% of the next quarter's unit sales. 4. Each unit of finished goods requires 3.5 yards of raw material that costs $3.00 per yard. Each quarter's ending raw materials inventory should equal 10% of the next quarter's production needs. The estimated ending raw materials Inventory on December 31, 2017, is 5,000 yards. 5. Seventy percent of each quarter's purchases are paid for in the quarter of purchase. The remaining 30% of each quarter's purchases are paid in the following quarter. 6. Direct laborers are paid $18 an hour and each unit of finished goods requires 0.25 direct labor-hours to complete. All direct labor costs are paid in the quarter incurred. 7. The budgeted variable manufacturing overhead per direct labor-hour is $3.00. The quarterly fixed manufacturing overhead is $150,000 including $20,000 of depreciation on equipment. The number of direct labor-hours is used as the allocation base for the budgeted plantwide overhead rate. All overhead costs (excluding depreciation) are paid in the quarter incurred. 8. The budgeted variable selling and administrative expense is $1.25 per unit sold. The fixeyi selling and administrative expenses per quarter include advertising ($25,000). executive salaries ($64,000), insurance ($12,000), property tax ($8,000), and depreciation expense ($8,000). All selling and administrative expenses (excluding depreciation) are paid in the quarter incurred. 9. The company plans to maintain a minimum cash balance at the end of each quarter of $30,000. Assume that any borrowings take place on the first day of the quarter. To the extent possible, the company will repay principal and Interest on any borrowings on the last day of the fourth quarter. The company's lender imposes a simple interest rate of 3% per quarter on any borrowings. 10. Dividends of $15,000 will be declared and paid in each quarter. 11. The company uses a last-in, first-out (LIFO) inventory flow assumption. This means that the most recently purchased raw materials are the "first-out" to production and the most recently completed finished goods are the "first-out" to customers. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Prepare the quarterly direct materials budget Including a schedule of expected cash disbursements for purchases of materials. (Round "raw materials p to i decimal place. Round final answers to the nearest whole number.) Endless Mountain Company Direct Materials Budget For the Year Ended December 31, 2017 Quarter 2 3 Year Required production in units Quantity of raw materials needed per unit Quantity of raw materials needed to meet production Add desired quantity of ending raw materials inventory Total quantity of raw materials needed 0 0 0 Les quantity of beginning raw materials inventory Quantity of raw materials to be purchased 0 0 0 Cost of raw materials per yard Cost of raw materials to be purchased 0 Schedule of Expected Cash Disbursements for Purchases of Materials Beginning accounts payable First quarter purchases Second quarter purchases Third-quarter purchases Fourth-quarter purchases Total cash disbursements for materials $ 05 $ 0$ 0S Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required Required 6 Required 2 Required Required 9 Required 10 Prepare the quarterly direct labor budget. (Round "Per Unit" to 2 decimal places.) Endless Mountain Company Direct Labor Budget For the Year Ended December 31, 2017 Quarter 3 Year Required production in units Direct labor-hours per unit Total direct labor-hours needed Direct labor cost per hour Total direct labor cost Required 1 Required 2 Required 3 Required 4 Required Required 6 Required 7 Required 8 Required 9 Required 10 Prepare the quarterly manufacturing overhead bdget. (Round "Budgeted direct labor hours answers to 1 decimal place.) 3 Year Endless Mountain Company Manufacturing Overhead Budget For the Year Ended December 31, 2017 Quarter 2 Budgeted direct labor hours Variable manufacturing overhead per direct laborhout Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead 0 0 Loss depreciation Cash disbursements for manufacturing overhead 0 0 0 0 0 0 0 Total manufacturing overhead Budgeted direct labor hours Predetermined overhead rate for the year 0 Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required B Required 9 Required 10 Prepare the quarterly cash budget. (Round inal answers to the nearest whole dollar value) Endles Nountain Cogany For the You Ended December 31, 2017 Quarter Yes 0 0 0 0 0 Beginning cash balance Add cash receipts Collection from customers Total cash available Less cash disbursements: Direct materials Direct labor Manufacturing overhead Seling and administrative Dividends Total cash disbursements Excess or deficiency) of cash available over disbursements Financing Borrowings (at the beginnings of quarters) Repayment (at end of the year) Interest (at 3% per quarter) Total financing Ending cash balance 0 0 0 0 0 0 0 0 0 $ 0 o 0 $ 0 0 $ 0 0 $ Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Required 9 Required 10 Prepare the balance sheet at December 31, 2017. (Amounts to be deducted should be indicated by a minus sign.) Endless Mountain Company Budgoted Balance Sheet December 31, 2017 Assets Current assets $ Total current assets Plant and equipment: 0 Plant and equipment, net Total assets $ 0 Liabilities and Stockholders' Equity Current liabilities: Stockholders' equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0