The Production Department is ready to budget for Direct Material Purchases. The Direct Materials needed are 15kg/unit and the cost of the raw materials is $1.50/ke. Production would like to have 10% of next quarters production needs as the desired ending inventory of raw materials, The assumed 01 beginning inventory of raw materials and the ending inventory for Q4 is provided. Please prepare the Direct Material Budget Direct Materials Budget For the Year Ended December 31, 2019 Quarter 1 Cuarter 2 Quarter 3 Quarter 4 Required Production in Cases Production needs Add: Desired ending inventory of raw materials 22,500 Total needs Deduct: Beginning inventory of raw materials 21.000 Raw materials to be purchased Cost of raw materials to be purchased The Accounts Payable Department has advised Wilson Inc. that they expect to pay for Direct Materials S0% in the period of purchase and 50% in the next period. Accounts Payable beginning balance is provided. > Please prepare the Schedule of Expected Cash Disbursements for Materials. Schedule of Expected Cash Disbursements for Materials Quarter 2 Quarter 3 Quarter 1 Quarter 4 Accounts Payable, | beginning balance $25,800 First quarter purchases Second quarter purchases Third quarter purchases Fourth quarter purchases Total cash disbursements ACCT 1300 P7 The Human Resources Department has indicated that the Direct Labour Cost per hour is $7.50 and the Production Department has indicated that the of Direct Labour Hours per unit is 0.90. Please prepare the Direct Labour Budget: Direct Labour Budget For the Year Ended December 11, 2019 01 02 03 04 Required Production in cases Total direct about hours needed Total direct labour cost Wilson Inc. manufactures basketballs for $20/unit. Wilson Inc. budgets on a quarterly basis and the sales department has budgeted for the following sales: 01 02 Q3 Q4 10,000 11,000 12,000 14,000 The Basketball's selling price is $35 each. > Please prepare the Sales Budget. Sales Budget For the year ended December 31, 2020 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Expected Sales (units) 10,000 11.000 12,000 14,000 47,000 $35 $35 $35 $35 $35 Selling Price /unit) Total Budgeted Sales $350000 $385000 $420000 $490000 $1645000 Wilson Inc. does not collect all of the sales revenue in the period of sale. The accounts receivable department has budgeted for 85% of sales revenue to be collected in the period of sale and 15% to be collected in the next period. The accounts receivable beginning balance is $80,000. Please prepare the Schedule of Expected Cash Collections. Schedule of Expected Cash Collections Quarter 2 Quarter 3 Quarter 1 Quarter 4 Total Accounts Receivable, beginning balance 80,000 52500 57750 63000 First quarter sales 297500 52500 Second quarter sales 327250 57750 Third quarter sales 357000 63000 Fourth quarter sales 416500 Total cash collections 377500 380000 414750 479500 1651750 Wilson Inc. has spoken with the Production Department and determined that it would like to have a desired ending finished goods invertory of 20% of next periods sales. The assumed beginning inventory of finished goods for Q1 and the desired ending inventory of Q4 is provided. Please prepare the Production Budget. Production Budget For the Year Ended December 31, 2019 Quarter 2 Quarter 3 Quarter 1 Quarter 4 Total Budgeted Sales 10,000 11,000 12.000 14,000 47,000 Add: Desired ending inventory of finished goods 2,200 2,400 2.800 3,000 10.400 12,200 13,400 14,800 17,000 57,400 Total needs Deduct: Beginning inventory of finished goods 2,000 2,200 2.400 2,800 9.400 Required Production 10,200 11.200 12400 14,200 48,000 The Production Department is ready to budget for Direct Material Purchases. The Direct Materials needed are 15kg/unit and the cost of the raw materials is $1.50/kg. Production would like to have 10% of next quarters production needs as the desired ending inventory of raw materials. The assumed 01 beginning inventory of raw materials and the ending inventory for Q4 is provided. Please prepare the Direct Materials Budget Direct Materials Budget For the Year Ended December 31, 2019 Quarter 1 Quarter 2 Charter 3 Quarter 4 Required Production in Cases Production needs Add: Desired ending inventory of raw materials 22,500 Total needs Deduct: Beginning inventory of raw materials 21,000 Raw materials to be purchased Cost of raw materials to be purchased The Accounts Payable Department has advised Wilson Inc. that they expect to pay for Direct Materials 50% in the period of purchase and 50% in the next period. Accounts Payable beginning balance is provided. Please prepare the Schedule of Expected Cash Disbursements for Materials. Schedule of Expected Cash Disbursements for Materials Quarter 2 Quarter 3 Quarter 1 Quarter 4 Accounts Payable, beginning balance $25,800 First quarter purchases Second quarter purchases Third quarter purchases Fourth quarter purchases Total cash disbursements The Human Resources Department has indicated that the Direct Labour Cost per hour is $7.50 and the Production Department has indicated that the # of Direct Labour Hours per unit is 0.90. Please prepare the Direct Labour Budget: Direct Labour Budget For the Year Ended December 31, 2019 Q1 Q2 Q3 04 Required Production in cases Total direct labour hours needed Total direct labour cost Wilson Inc. has determined that the Variable Overhead Rate per Direct labour hour is $1.75 and the fixed manufacturing overhead is $6,700 per quarter and depreciation is $1,500. Please prepare the Manufacturing Overhead Budget Manufacturing Overhead Budget 91 02 03 04 Budgeted direct labour hours Variable overhead rate $1.75 $1.75 $1.75 $1.25 Variable manufacturing overhead Fixed manutacturing overhead Total manufacturing overhead Less: Depreciation Cash disbursement for manufacturing overhead Wilson Inc. budgeted for find selling and administrative expenses below. The variable selling and administrative rate based on budgeted units $11/hour. Please prepare the Selling and Administrative Expense Budget. Advertising Executive Salaries Q2 Insurance Q3 Insurance Q4 Property taxes Depreciation $3,000 850 100 2,000 4,300 10,000 Selling and Administrative Expense Budget 91 Q3 Budgeted Sales Q4 Variable selling & admins expense Total budgeted variable selling & administrative expense $11 $11 $11 $11 Budgeted fred selling & admin. expenses: Advertising Executive Salaries Insurance Property taxes Depreciation Total budgeted foed selling & admin. expense Total budgeted selling & admin. expenses Less: Depreciation Cash disbursements for selling & administrative expenses Enginted States 3 The beginning cash balance has been provided and equipment purchases and dividends has been provided. > Please prepare the cash budget. Cash Budget For the Year Ended December 31, 2019 Qu1 02 Q Cash balance, beginning $42,500 Add Receipts Collection from customers Total Cash available before current financing Deduct disbursements Direct materials Direct labour Manufacturing overhead Selling and administrative Equipment purchases 60,000 50,000 10,000 20,000 Dividends 500 500 500 500 Total Disbursements Dress (deficiency) of cash available over disbursements