Units Period November, 2021 December, 2021 January, 2022 February, 2022 March, 2022 April, 2022 May, 2022 Unit selling price 98,000 Actual 87,000 Actual 96,000 Planned 97,000 Planned 99,000 Planned 107,000 Planned 118,000 Planned 22.44 Grading guidelines are on the instr tab. $ Finished Goods Inventory Planning The company likes to keep 15% of the next quarter's unit sales in finished goods ending 100% Accounts Receivable & Collections Sales on Account Collections Activity Month of Sale Month after Sale Balance at 12/31/21 95% 5% 185,000.00 $ Materials Inventory Costs & Planning Direct Materials Amount Used per Unit Cost Ingredient 2 lb $ 1.12 lb The company likes to keep 12% of the material needed for the next month's production in raw materials ending 100% Accounts Payable & Disbursements Purchases on Account Payment Activity Month of Purchase Month after Purchase Balance at 12/31/21 55% 45% 120,000 $ Direct Labor & Costs Time per Unit Production Pay Rate/Hour 30 minutes 20.00 $ $ $ Manufacturing Overhead Costs Variable costs per direct labor hour Indirect materials Indirect labor Utilities Maintenance Fixed costs per month Salaries Depreciation Property taxes Insurance Janitorial 0.20 0.35 0.45 0.25 $ 42,000 16,800 2,675 1,200 1,300 Selling and Administrative Costs Variable costs per unit sold $ 1.20 $ 1.20 $ Selling and Administrative Costs Variable costs per unit sold Fixed costs per month Advertising Insurance Salaries Depreciation Other fixed costs 15,000 14,000 72,000 25,000 3,000 30% rounded to nearest dollar 200,000 Income Taxes Accrued on Monthly Net Income Amounts Accrued Q4 2021 paid January 202 $ Cash and Financing Matters Cash Balance, 12/31/2021 2022 Minimum Balance Required $ 130,000 780,000 Monthly Dividends $ 1.75 per share Outstanding Shares 5,000 Line of Credit Limit $ 1,200,000 Borrowing Increment Required $ 1,000 Annual Interest Rate 8% Borrowings occur on the First of Month Repayments occur on the Last of Month Interest accrues on the loan balance from the date of borrowing. Interest accrued is paid first with each repayment. Additional Item Fixed Asset Purchase Month $ 365,000 January The facts for this problem are presented on the Facts tab of this workbook. Instructions - Your solutions should be clearly labeled on the Solutions tab of this workbook. For the first quarter of 2022, do the following. (a) Prepare a sales budget. This is similar to illustration 22-3 in your textbook. (b) Prepare a production budget. This is similar to illustration 22-5 in your textbook. (c) Prepare a direct materials budget. (Round to nearest dollar) This is similar to illustration 22-9 in your textbook. (d) Prepare a direct labor budget. (For calculations, round to the nearest hour.) This is similar to illustration 22-11 in your textbook. (e) Prepare a manufacturing overhead budget. (Round intermediate amounts to the nearest dollar.) This is similar to illustration 22-12 in your textbook. (f) Prepare a selling and administrative budget. This is similar to illustration 22-11 in your textbook. (g) Prepare a budgeted income statement. (Round intermediate calculations to the nearest dollar.) This is similar to illustration 22-15 in your textbook. (h) Prepare a cash budget. This is similar to illustration 22-19 in your textbook. You will need to prepare schedules for expected collections from customers and expected payments to vendors first. See Illustrations 22-17 and 22-18 in your textbook for guidance. You will also need to prepare schedules to support your calculation of amounts borrowed, interest expense, and loan repayments. These should be well labeled and formatted so that I may follow your work