The Production Department of Harveton Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year.

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Units to be produced	23,000	22,000	21,000	22,000

Each unit requires 0.80 direct labor-hours and direct labor-hour workers are paid $12.00 per hour.

In addition, the variable manufacturing overhead rate is $2.60 per direct labor-hour. The fixed manufacturing overhead is $81,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $23,000 per quarter.

Required:
1.	Prepare the company%u2019s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

Harveton Corporation Direct Labor Budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Total direct labor hours needed
Total direct labor cost	$	$	$	$	$

2.	Prepare the company%u2019s manufacturing overhead budget. (Input all amounts as positive values.)

Harveton Corporation Manufacturing Overhead Budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Variable manufacturing overhead	$	$	$	$	$
Fixed manufacturing overhead
Total manufacturing overhead
Less depreciation
Cash disbursements for manufacturing overhead	$	$	$	$	$

question 4

Colerain Corporation is a merchandising company that is preparing a profit plan for the third quarter of the calendar year. The company%u2019s balance sheet as of June 30 is shown below:

Colerain Corporation Balance Sheet June 30
Assets
Cash	$	85,000
Accounts receivable		136,000
Inventory		70,000
Plant and equipment, net of depreciation		250,000
Total assets	$	541,000
Liabilities and Stockholders%u2019 Equity
Accounts payable	$	82,600
Common stock		350,000
Retained earnings		108,400
Total liabilities and stockholders%u2019 equity	$	541,000

Colerain%u2019s managers have made the following additional assumptions and estimates:

1.	Estimated sales for July, August, September, and October will be $250,000, $270,000, $260,000, and $280,000, respectively.
2.	All sales are on credit and all credit sales are collected. Each month%u2019s credit sales are collected 40% in the month of sale and 60% in the month following the sale. All of the accounts receivable at June 30 will be collected in July.
3.	Each month%u2019s ending inventory must equal 40% of the cost of next month%u2019s sales. The cost of goods sold is 70% of sales. The company pays for 50% of its merchandise purchases in the month of the purchase and the remaining 50% in the month following the purchase. All of the accounts payable at June 30 will be paid in July.
4.	Monthly selling and administrative expenses are always $65,000. Each month $8,000 of this total amount is depreciation expense and the remaining $57,000 relates to expenses that are paid in the month they are incurred.
5.	The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30.

Required:

1.	Prepare a schedule of expected cash collections for July, August, and September. Also compute total cash collections for the quarter ended September 30th. (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.)

	Schedule of Expected Cash Collections
	July	August	September	Total
From accounts receivable	$	$	$	$
From July sales
From August sales
From September sales
Total cash collections	$	$	$	$

2a.	Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30th. (Input all amounts as positive values. Do not round intermediate calculations.)

Merchandise Purchases Budget
	July	August	September	Total
Budgeted cost of goods sold	$	$	$	$
Total needs
Required purchases	$	$	$	$

2b.

Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Also compute total cash disbursements for merchandise purchases for the quarter ended September 30th. (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.)

Schedule of Expected Cash Disbursements%u2014Merchandise Purchases
	July	August	September	Total
From accounts payable	$	$	$	$
For July purchases
For August purchases
For September purchases
Total cash disbursements	$	$	$	$

3.	Prepare an income statement for the quarter ended September 30th. (Input all amounts as positive values except losses which should be indicated by a minus sign. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.)

Colerain Corporation Income Statement For the Quarter Ended September 30
	$
	$

4.	Prepare a balance sheet as of September 30th. (Be sure to list the assets and liabilities in order of their liquidity. Do not round intermediate calculations.)

Colerain Corporation Balance Sheet September 30
Assets
	$
Total assets	$
Liabilities and Stockholders' Equity
	$
Total liabilities and stockholders' equity	$