What did I do wrong? Why is it not balancing at the end. Would love feedback on where I could have gone wrong. Am I missing an account?

region, and the company as 2. As the Manitoba region manager, would you investigate the Winnipeg this report? Why or why not? 3. Briefly discuss the benefits of budgeting. Base your discussion on Winnie's World's perfor mance report. P9-64A Prepare an inventory, purchases, and cost of goods sold budget (Learning Objective 5) University Logos buys logo-imprinted merchandise and then sells it to university bookstores Sales are expected to be $2,000,000 in September, $2,160,000 in October, $2,376,000 in November, and $2,500,000 in December. University Logos sets its prices to earn an average 30% gross profit on sales revenue. The company does not want inventory to fall below $400,000 plus 15% of the next month's cost of goods sold. Requirement 1. Prepare an inventory, purchases, and cost of goods sold budget for the months of October and November Problems (Group B) P9-65B Comprehensive budgeting problem (Learning Objectives 2 & 3) Osborne Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Osborne Manufacturing's operations: Current assets as of December 31 (prior year): Cash Accounts receivablc, net. Inventory ....... Property, plant, and equipment, net Accounts payable..... Capital stock.... Retained earnings.. $ 4,640 $ 57,600 $ 15,600 $121,500 $ 42,800 $124,500 $ 22,800 a Actual sales in December were $72,000. Selling price per unit is projected to remain stable at $12 per unit throughout the budget period. Sales for the first five months of the upcoming year are budgeted to be as follows: January February March April. May $104,400 $108,000 $112,800 $109,200 $105,600 b Sales are 20% cash and 80% credit. All credit sales are collected in the month follow- ing the sale. c. Osborne Manufacturing has a policy that states that each month's ending inventory of finished goods should be 10% of the following month's sales (in units). d. Of each month's direct material purchases, 20% are paid for in the month of purchase, while the remainder is paid for in the month following purchase. Three kilograms of direct material is needed per unit at $2.00 per kilogram. Ending inventory of direct materials should be 30% of next month's production needs. The Master Budget and Responsibility Accounting g 1 tak h. e. Monthly manufacturing conversion costs are $4,500 for factory rent, $2,800 for other fixed manufacturing expenses, and $1.10 per unit for variable manufacturing overhead. No depreciation is included in these figures. All expenses are paid in the month in which they are incurred. 1. Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Osborne Manufacturing will purchase equipment for $6,000 (cash), while February's cash expenditure will be $12,800, and March's cash expenditure will be $15,600 Operating expenses are budgeted to be $1.30 per unit sold plus fixed operating expenses of $1,800 per month. All operating expenses are paid in the month in which they are incurred. Depreciation on the building and equipment for the general and administrative offices is walisitions S. i. Osborne Manufacturing has a policy that the ending cash balance in each month must be at least $4,200. The company has a line of credit with a local bank. It can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $130,000. The interest rate on these loans is 2% per month simple interest (not compounded). Osborne Manufacturing pays down on the line of credit balance if it has excess funds at the end of the quarter. The company also pays the interest at the end of the quarter on the funds borrowed during the quarter. j. The company's income tax rate is projected to be 30% of operating income less interest expense. The company pays $10,800 cash at the end of February in estimated taxes. Requirements 1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total accumulated WWE Cash Collections Budget -,640 ,600 2,600 -500 800 _500 -800 January February March Quarter Cash sales Credit sales Total cash collections nain 5 of 2. Prepare a production budget. (Hint: Unit sales - Sales in dollars / Selling price per unit.) 40 Production Budget w WW January February March Quarter 20 Unit sales Plus: Desired ending inventory Total needed Less: Beginning inventory Units to produce 548 Chapter 9 3. Prepare a direct materials budget, Direct Materials Budget March Quarter February January Units to be produced x kg of DM needed per unit Quantity (kg) needed for production Plus: Desired ending inventory of DM Total quantity tkgl needed Less: Beginning inventory of DM Quantity (kg) to purchase x Cost per kg Total cost of DM purchases 4. Prepare a cash payments budget for the direct material purchases from Requirement 3. Cash Payments for Direct Material Purchases Budget February March January Quarter December purchases (from Accounts Payable) January purchases February purchases March purchases Total cash payments for DM purchases 5. Prepare a cash payments budget for conversion costs. Cash Payments for Conversion Costs Budget January February March Quarter Variable conversion costs Rent (fixed) Other fixed MOH Total payments for conversion costs 6. Prepare a cash payments budget for operating expenses. Cash Payments for Operating Expenses Budget January February March Quarter Variablc operating expenses Fixed operating expenses Total payments for operating expenses 2112101 7. Prepare a combined cash budget. Combined Cash Budget January February March Quarter cash balance, beginning Add cash collections Total cash available Less cash payments: Direct material purchases Conversion costs Operating expenses Fquipment purchases Tax payment Total disbursements finding cash balance before financing Financine: Borrowings Repayments Interest payments Total financing Cash balance, ending 8. Calculate the budgeted manufacturing cost per unit (assume that fixed manufacturing over- head is budgeted to be $0.80 per unit for the year). Budgeted Manufacturing Cost per Unit Direct materials cost per unit Conversion costs per unit Fixed manufacturing overhead per unit Budgeted cost of manufacturing each unit 9. Prepare a budgeted income statement for the quarter ending March 31. (Hint: Cost of goods sold = Budgeted cost of manufacturing each unit : Number of units sold) Budgeted Income Statement For the Quarter Ended March 31 Sales..... Cost of goods sold. Gross profit Operating expenses. Depreciation expense Operating income. Less interest expense Less provision for income taxes. Net income....... 10. Prepare a partial budgeted balance sheet for March 31. Follow the same format as the origi- nal balance sheet provided for December 31, adding Loans Payable and Income Tax Payable, P9-66B Prepare budgeted income statement (Learning Objective 2) The budget committee of Binders Office Supply has assembled the following data. As the business manager, you must prepare the budgeted income statements for May and June. a. Sales in April were $42,000. You forecast that monthly sales will increase 12% in May and 3% in June. b. Binders Office Supply maintains inventory of $8,000 plus 30% of the sales revenue 600l of sales revenue in budgeted for the following month Monthly nur Assets $5,028 $90,240 $7,189 $16,326 $118,783 $155,900 $4,600 $151,300 $270,083 Cash Accounts Receivable Inventory - Finished Goods Inventory - DM Total Current Assets Property, plant, and equipment Less: Accumulated Depreciation Total Assets Liabilities and Shareholder's Equity Accounts Payable Loans Payable Income Tax Payable Total Liabilities Captial Stock Retained Earnings Total Shareholders Equity Total Liabilities and Shareholders Equity $44,544 $8,000 $19,500 $72,044 $124,500 $68,300 $192,800 $264,844