The management of by Manufacturing prepared the following balance sheet for March Asset C 1. kecewa www.otory nicht 3.50 12 Letter 10.00 15, ... tidig Total To prepare a master budget for April May, and June management gathers the following information a. Sales for March total 20.500 units Budgeted sales in units follow April 20500, May 19500, June 20.000and July 20500 The product's selling price is $24.00 per unit and its total product cost $1985 per unit b. Raw materials inventory consists solely of direct materials that cost $20 per pound. Company policy calls for a given month's ending materials inventory to el 50% of the next month's direct materials requirements. The March 2rawa inventory is 1925 pounds. The budgeted June 30 ending raw materials inventory 4000 pounds. Each finhede 050 pound of direct materials c. Company policy calls for a given months ending finished goods inventory to equal 80% of the next month's budgeted unit les The March 31 finished goods inventory is 16.400 units d. Each finished unit requires 0.50 hour of direct laborata rate of $15 per hour The predetermined variable overhead rate is 52.70 per direct labor hour Depreciation of $20.000 per months the only food factory overhead item 4. Sales commissions of 8% of sales are paid in the month of the sales. The sales manager's monthly sawyis $1.000 9. Monthly general and administrative expenses include $12.000 for administrative salaries and 0.9% mohly terest on the long term note payable h. The company budgets 30% of sales to be for cash and the remaining 70% on Credit Create we collected in fut in the month following the sale no credit sales are collected in the month of sale Al raw materials purchases are on credit and accounts payable are solely tied to raw material purchases Raw materials pechases atefully paid in the next month one are paid in the month of purchase The minimum ending cash balance for all months ls 540,000, necessary, the company bonos enough cash using a loan to reach the minimum. Loans require an interest payment of 15 at each month end before any repayments of the son end preliminary cash balance exceeds the minimum, the excess will be used to repay any loans k. Dividends of $10,000 ate budgeted to be declared and peld in May. 1. No cash payments for income taxes are budgeted in the second calendar quarter Income tax will be used in the quartier and budgeted to be paid in the third calendar quarter m. Equipment purchases of S400.000 are budgeted for the last day of June. Required: Prepare the following budgets for the months of April May. and Jane 1. Sales budget 2 Production budget 3. Direct materials budget 4. Direct labor budget 5. Factory overhead budget 6. Selling expense budget 7. General and administrative expense budget 8. Schedule of cash receipts. 9. Schedule of cash payments for direct materials 10. Cashbudget 11. Budgeted income statement for entire second quarter mot many 12. Budgeted balance sheet at June 30 Complete this question by entering your answers in the tabs below. Rec1 Reg2 Res Rings 10 Sales budget DIGBY MANUFACTURING Sales Dudgets May Budgeted units g Toalbuted Reg 2 > The management of by Manufacturing prepared the following balance sheet for March Asset C 1. kecewa www.otory nicht 3.50 12 Letter 10.00 15, ... tidig Total To prepare a master budget for April May, and June management gathers the following information a. Sales for March total 20.500 units Budgeted sales in units follow April 20500, May 19500, June 20.000and July 20500 The product's selling price is $24.00 per unit and its total product cost $1985 per unit b. Raw materials inventory consists solely of direct materials that cost $20 per pound. Company policy calls for a given month's ending materials inventory to el 50% of the next month's direct materials requirements. The March 2rawa inventory is 1925 pounds. The budgeted June 30 ending raw materials inventory 4000 pounds. Each finhede 050 pound of direct materials c. Company policy calls for a given months ending finished goods inventory to equal 80% of the next month's budgeted unit les The March 31 finished goods inventory is 16.400 units d. Each finished unit requires 0.50 hour of direct laborata rate of $15 per hour The predetermined variable overhead rate is 52.70 per direct labor hour Depreciation of $20.000 per months the only food factory overhead item 4. Sales commissions of 8% of sales are paid in the month of the sales. The sales manager's monthly sawyis $1.000 9. Monthly general and administrative expenses include $12.000 for administrative salaries and 0.9% mohly terest on the long term note payable h. The company budgets 30% of sales to be for cash and the remaining 70% on Credit Create we collected in fut in the month following the sale no credit sales are collected in the month of sale Al raw materials purchases are on credit and accounts payable are solely tied to raw material purchases Raw materials pechases atefully paid in the next month one are paid in the month of purchase The minimum ending cash balance for all months ls 540,000, necessary, the company bonos enough cash using a loan to reach the minimum. Loans require an interest payment of 15 at each month end before any repayments of the son end preliminary cash balance exceeds the minimum, the excess will be used to repay any loans k. Dividends of $10,000 ate budgeted to be declared and peld in May. 1. No cash payments for income taxes are budgeted in the second calendar quarter Income tax will be used in the quartier and budgeted to be paid in the third calendar quarter m. Equipment purchases of S400.000 are budgeted for the last day of June. Required: Prepare the following budgets for the months of April May. and Jane 1. Sales budget 2 Production budget 3. Direct materials budget 4. Direct labor budget 5. Factory overhead budget 6. Selling expense budget 7. General and administrative expense budget 8. Schedule of cash receipts. 9. Schedule of cash payments for direct materials 10. Cashbudget 11. Budgeted income statement for entire second quarter mot many 12. Budgeted balance sheet at June 30 Complete this question by entering your answers in the tabs below. Rec1 Reg2 Res Rings 10 Sales budget DIGBY MANUFACTURING Sales Dudgets May Budgeted units g Toalbuted Reg 2 >
