Use all available data (Assumptions Row 4-Row 52, Balance Sheet for 2016, results from other Soultions) Answer format also included.

1a. Create a DIRECT MATERIALS BUDGET for the year ended December 31, 2017. 1b. Create a SCHEDULE OF EXPECTED CASH DISBURSEMENTS FOR PURCHASES OF MATERIALS for the year ended December 31, 2017.

2. Create a DIRECT LABOR BUDGET for year ended December 31, 2017.

3. Create a MANUFACTURING OVERHEAD BUDGET for the year ended December 31, 2017.

Budgeted Unitsales 01 2017 02 2017 03 2017 04 2017 01 2018 12,000 17.000 15,000 25,000 13,000 Budgeted Selling Price per unit All sales are credit sales nore Uncollectible Accounts. They are minimal Percentage of Sales collected in the quarter of the sale Percentage of Sales collected in the subsequent quarter 754 15% 3 00 Quarter ending finished goods inventory as a percent of next quarter's unit sales Yards of raw material required for each unit Cost per yard of raw material Quarter ending raw materials inventory as a percent of next quarter's production needs Estimated ending raw materials inventory on December 31, 2017 (in yards) Percent of purchases paid for in the quarter of the purchase Percent of purchases paid for in the quarter following the purchase 104 5.000 70% 30N Direct labor hourly rate Direct labor hours required to finish each unit of finished goods Direct labor hours are paid in the quarter incurred 18.00 0.25 Budgeted variable manufacturing overhead per direct labor-hour Quarterly fixed manufacturing overhead including depreciation expense on equipment) Quarterly depreciation on equipment The number of direct labor hours is used as the allocation base for the budgeted plantwide overhead rate All overhead costs excluding depreciation) are paid in the quarter incurred $ $ $ 3.00 150,000 20,000 S 1.25 The budgeted variable selling and administrative expense per unit sold Fixed selling and administrative expenses Advertising Executive Salaries $ $ $ $ 25,000 54,000 12,000 8.000 Property tax Depreciation expense (selling and administrativa) Al selling and administrative expenses excluding depreciation are paid in the quarter incurred $ .000 $ 30,000 Minimum cash balance at the end of each quarter Any borrowing takes place on the first day of the quarter To the extent possible, the company will repay principal and interest on any borrowings on the last day of the fourth quarter The companys lenderimpose simple interest per quarter onany borrowing at a rate of Dividends declared and paid in each quarter $ 15,000 The company uses a LIFO inventory flow assumotion. This means that the most recently purchased raw materials are the first out to DIRECTIONS Assumptions Row 4 - Row 52 Balance Sheet for 2016 SOLUTION Balance Sheet December 31, 2016 Assets 46,200 260,000 11,250 32,250 Current Assets Cash Accounts Receivable Raw Materials Inventory (4,500 yards) Finished Goods Inventory (1,500 Units) Total Current Assets Plant and Equipment: Buildings and Equipment Accumulated Depreciation Plant and Equipment, net Total Assets 349,700 900,000 (292,000) 608,000 957,700.00 $ 20 158,000 Liabilities and Stockholders' Equity Current Liabilities: Accounts Payable Stockholders's Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 24 419,800 379,900 25 799,700 957,700.00 Endless Meta Company Derect Materials for Fow the Year Ended December 31, 2017 Quarter 16,050 33,700 16 500 23 200 99.450 56 175 117.950 57,750 81.200 11075 Required Production in units Quantity of Raw Materials Needed per Unit Quantity of Raw Materials Needed to Meet Production Add Desired Quantity of Ending Raw Materials Inventory Total Quantity of Raw Materials Needed Less Quantity of Beginning Raw Materials inventory Quantity of Raw Materials to be purchased Cost of Raw Materials per Yard Cost of Raw Materials to be purchased Schedule of Expected Cash Disbursements for Purchases of Materials Beginning Accounts Payable First Quarter Purchases Second Quarter Purchases Third Quarter Purchases Fourth Quarter Purchases Total Cash Disbursements for Materials Endless Mountain Company Direct Labor Budget For the Year Ended December 31, 2017 Quarter Required Production in Units Direct Labor Hours per Unit Total Direct Labor Hours Needed Direct Labor Cost per Hour Total Direct Labor Cost Endless Mountain Company Manufacturing Overhead Budget For the Year Ended December 31, 2017 Budget Direct Labor Hours Variable Manufacturing Overhead per Direct Labor Hour Variable Manufacturing Overhead Fixed Manufacturing Overhead Total Manufacturing Overhead Less Depreciation Cash Disbursements for Manufacturing Overhead 14 16 17 18 Total Manufacturing Overhead Budgeted Direct Labor Hours Predetermined Overhead Rate for the Year