The management team at Windsor Corporation is capitalizing on the trend for live-edge cedar fireplace mantels-beautiful, simple, organic. In fact, sales are so strong they are running out of inventory. This means that budgeting for next year will be extremely important, to ensure sure that Windsor can source enough cedar. With budgeted sales as the starting point for the entire process, the management team agrees that the following levels present the most likely scenario for the first five months of the upcoming year. In addition to sales volume, many other specifics are required in order to complete the company's operating budgets. Key details associated with prices, costs, and usage are as follows. - Budgeted selling price is $500 per mantel. Each mantel measures 3 inches 12 inches 4 feet. - Target ending inventory of finished mantels is 20% of next month's budgeted sales. However, beginning inventory on January 1 is expected to be only 41 units. - Windsor' primary DM, rough-cut cedar, is purchased from the supplier already at the desired height and depth (3 inches high, 12 inches deep). Windsor cuts the cedar planks to the desired 4-foot lengths. Each rough-cut board costs Windsor $50 per foot. - Target ending DM inventory (rough-cut cedar) is 50% of next month's production needs. - DL to sand, stain, and treat the rough-cut cedar costs $20 per hour. Each mantel requires one hour of labor time. - MOH resources include variable costs budgeted to be $10/ board foot, plus budgeted monthly Fixed MOH costs of $4,600. Depreciation of $1,800 is included in that monthly fixed cost. - SG\&A costs are also broken down into their variable and fixed components: budgeted variable SG\&A costs are $50/ unit sold, while budgeted fixed monthly SG\&A costs are $58,000, which includes $7,500 of depreciation. - All sales are made on account, with 25% paying in the month of sale and 70% paying in the month following the sale. The remainder is considered uncollectible. December sales in the prior year were budgeted to be $234,000. - Beginning finished goods inventory was held at a cost of $270/ unit from the prior year. Prenare the Gales fnreract (and rorresonnndino arherlulle of cach rereintel for W/indenr Corn (a1) Your answer is correct. Prepare the Sales forecast (and corresponding schedule of cash receipts) for Windsor Corp. \( \frac{\text { February }}{\hline 410} \frac{\text { March }}{410} \frac{430}{4} \frac{\text { Quarter }}{4250} \) 51250 143500 194750 0 51250 143500 194750 Prepare the production budget for Windsor Corp. Prepare the DM purchases budget for Windsor Corp. Prepare the DL budget for Windsor Corp. Budgeted Units to be Produced Quantity of DL per Unit (Hours) Total Budgeted DL Cost Attempts: 0 of 2 use Prepare the MOH budget for Windsor Corp. Prepare the SG\&A budget for Windsor Corp. (b) Prepare the schedule of COGS for Windsor's first quarter. (Round intermediate calculations and final answers to 2 decimal places, e.g. 15.25.) $ 1 $ Budgeted COGM Budgeted Cost of Goods Available for Sale Budgeted Cost of DM Used Budgeted DL Cost Budgeted Ending FG Inventory Beginning FG Inventory Budgeted MOH Cost Total Budgeted COGS Prepare Windsor's budgeted income statement for the first quarter. (Round answers to 2 decimal places, e.g. 15.25.)
