The Master Budget Comprehensive summary problem Birdfeeders Unlimited makes backyard birdfeeders. The company sells the birdfeeders to home improvement stores. $15 Sales price per birdfeeder 1.5 Board feet of wood required for each birdfeeder $4 Cost per board foot (actual) 10% Desired ending wood inventory stated as a percentage of next month's production requireme 20% Desired ending finished goods inventory (finished birdfeeders) stated as a percentage of next $550,000 Total cost of direct materials purchases in December 45% of direct materials purchases are paid in the month of purchase 55% of direct materials purchases are paid in the month after purchase Sales data for the company can be found on the "SALESDATA" tab Use the blue shaded areas on the ENTERANSWERS tab for inputs Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong Requirements 1 Prepare the sales budget, including a separate section that details the type of sales made (cash versus credit) for the first three months of the year, as well as a summary budget for the quarter. 2 Prepare the production budget for the first three months of the year, as well as a summary budget for the quarter. a. Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted 3 Prepare the direct materials purchases budget for the first three months of the year, as well as a summary budget for the quarter. Assume the company needs 120,000 board feet of wood for production in April. a. Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted b. Abbreviation used: DM Direct materials quarter. and March, as well as a summary for the first quarter 4 Prepare the cash collections budget for January, February, and March, as well as a summary for the first 5 Prepare the cash payments budget for direct materials purchases for the months of January, February, DATA SHEET DO NOT ENTER ANSWERS HERE** Units 92,000 85,000 78,000 80,000 90,000 95,000 October actual sales (prior year) November actual sales (prior year) December actual sales (prior year) January projected sales February projected sales March projected sales 0April projected sales 1 105,000 20% of the total sales are cash sales 80% of the total sales are credit sales The corhpany's collection history indicates that: 80% of credit sales is collected in the month after the sale 10% iscol lected two months after the sale 6% iscollected three months after the sale 4% is never collected 7 5. Prepare the cash payments budget for direct materials purchases for the months of January, February, and March, as well as a summary for the first quarter. (Always use cell references and formulas where appropriate to receive full credit. Use cell references from previous calculations and requirements, if applicable. If you copy/paste from the Instruction tab you will be marked wrong.) Birdfeeders Unlimited Cash Payments for Direct Materials Purchases For the Quarter Ended March 31 Month February 1st Quarter Total cost of DM purchases Cash payments for current month purchases Cash payments for prior month purchases Total cash payments 3. Prepare the direct materials purchases budget for the first three months of the year, as well as a summary budget for the quarter. Assume the company needs 120,000 board feet of wood for production in April. (Always use cell references and formulas where appropriate to receive full credit. Use cell references from prior requirements and calculations, if applicable. If you copy/paste from the Instruction tab you will be marked wrong.) Birdfeeders Unlimited Direct Materials Budget For the Quarter Ended March 31 Month January February March 1st Quarter Units (birdfeeders) to be produced Multiply by: Quantity (board feet) of DM needed per unit Quantity (board feet) needed for production Plus: Desired ending inventory of DM Total quantity (board feet) needed Less: Beginning inventory of DM Quantity (board feet) to purchase Multiply by: Cost per board foot Total cost of DM purchases 4. Prepare the cash collections budget for January, February, and March, as well as a summary for the first quarter. (Always use cell references and formulas where appropriate to receive full credit. Use cell references from previous calculations and requirements, if applicable. If you copy/paste from the Instruction tab you will be marked wrong.) Birdfeeders Unlimited Cash Collections Budget For the Quarter Ended March 31 Month February March 1st Quarter anua Cash sales in current month Collection on credit sales: Credit sales made one month ago Credit sales made two months ago Credit sales made three months ago Total cash collections 1. Prepare the sales budget, including a separate section that details the type of sales made (cash versus credit) for the first three months of the year, as well as a summary budget for the quarter. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.) Birdfeeders Unlimited Sales Budget For the Quarter Ended March 31 Month March January February 1st Quarter Unit sales (birdfeeders) Multiply by: Selling price per birdfeeder Total sales revenue Type of sale: Cash sales Credit sales Total sales revenue 2. Prepare the production budget for the first three months of the year, as well as a summary budget for the quarter. (Always use cell references and formulas where appropriate to receive full credit. Use cell references from requirement 1 and prior calculations, if applicable. If you copy/paste from the Instruction tab you will be marked wrong.) Birdfeeders Unlimited Production Budget For the Quarter Ended March 31 Month February March January 1st Quarter Unit sales (birdfeeders) Plus: Desired ending inventory Total needed Less: Beginning inventory Number of units to produce