Using the information below, please prepare.

- MOH Budget including cash disbursements for overhead, S&A budget including cash

disbursements for S&A, Budgeted Income Statement, Cash Budget

Selected information concerning sales and production for October 2019 is summarized as follows:

a.The sales budget must be divided up by product (Backyard and Master).

Estimated sales for October by sales territory:

Maine:Vermont: New Hampshire:

Backyard 280 units at $750 per unit Backyard 210 units at $800 per unitBackyard 305 units at $850 per unit

Master 250 units at $1,500 per unit Master 160 units at $1,600 per unitMaster 275 units at $1,700 per unit

Estimated sales for November for all territories:

Backyard Grills 620 grills

Master Grills 1,150 grills

Outdoor Chef Grill has a beginning accounts receivable balance of $550,000 in the month of October and expects to collect 30% of that balance. In addition, their accounting department has estimated that 80% of sales for the Master Grill will be paid in cash and 70% of the Backyard grill will be paid in cash.

b.Inventory of Grills

Beginning Inventory of Grills:

Backyard 36 units

Master 18 units

Outdoor Chef Grill has established a new ending inventory policy to take effect the month of October. From October and going forward, the ending inventory should be:

Ending Inventory:

Backyard 5% of November's sales

Master 2% of November's sales.

c.Estimated direct material inventories at October 1:

Direct materials (available for the Master and Backyard Grill):

Grates 300 units, Stainless steel 1,800 lbs., Burner subassemblies 150 units, Shelves 300 units

Desired inventories at October 31:

Direct materials (available for the Master and Backyard Grill):

Grates 320 units, Stainless steel 2,100 lbs.,Burner subassemblies 135 units, Shelves 285 units

d.Direct materials used in production:

Direct Materials required to produce one Backyard Chef Grill:

Grates 3 units per unit of product, Stainless steel 24 lbs. per unit of product, Burner subassemblies 2 units per unit of product

Shelves 4 units per unit of product

Direct Materials required to produce one Master Chef grill:

Grates 6 units per unit of product, Stainless steel 42 lbs. per unit of product, Burner subassemblies 4 units per unit of product, Shelves 5 units per unit of product

Anticipated purchase price for direct materials:

Grates $16 per unit, Stainless steel $5 per lb., Burner subassemblies $125 per unit, Shelves $8 per unit

Because of their excellent relationships with the vendors, they pay the following percentages when placing their order:

Grates: 10%, Stainless Steel: 25%, Burner subassemblies 5%, Shelves 2%, if pay the entire balance within 35 days.

e.Direct labor requirements for one grill:

Backyard Chef: Stamping Department 0.60 hr. at $17 per hr., Forming Department 0.80 hr. at $14 per hr., Assembly Department 2.0 hrs. at $12 per hr.

Master Chef: Stamping Department .80 hr. at $17 per hr., Forming Department 1.50 hrs. at $14 per hr., Assembly Department 2.50 hrs. at $12 per hr.

f.Outdoor Chef Grill Company budgeted the following costs for anticipated production in October. The list below includes fixed MOH expenses and Fixed S&A expenses, Advertising Expenses $24,000, Sales monthly salary (not commission) $7,500, Factory Insurance $5,000, Production Supervisor Salary $4,900, Executive officer salaries $25,000, Indirect Labor Salaries for Quality Control $2,800, Factory Depreciation $4,000, Corporate Office Building Depreciation, $3,000

Total estimated VMOH expenses are $41,000 for the month of October. VMOH expenses are allocated to the products based on a single PDOR rate using the allocation base, Direct Material Cost.

FMOH is assigned to the products based on DL hours.

Note: You will have two PDOR's for this assignment.

Variable S&A expenses are allocated at rate of $3 per grill.

g.Other Information:

a.Income Tax Rate is 35%, b.Minimum Cash Balance $500,000, Beginning Cash Balance $750,000