What the Scrap Steel Co$.$ produces and sells steel doors with budgeted or standard costs as follows:

Inputs: Standards:

Direct Materials $100$ lbs per door; $$0\mathrm{.}40$ per pound

Direct Labor

Variable Overhead Rate

$10$ hrs per door; $$23\mathrm{.}00$ per hour

$10$ hrs per door; $$27\mathrm{.}60$ per hour

Fixed Overhead Costs $$26,000$ per month

Depreciation is a non$-$cash expense and is valued at $$1,000$ and is included in the Fixed OH cost above.

Unit Sales for the prior and future months are budgeted as follows:

July August September

$280250270$

The desired Ending Inventory of Materials is $5\%$ of the materials needed for production for the following

month. The desired Ending Inventory of Finished Goods is $10\%$ of production for the following month.

The Ending Inventory for June was $28$ units. The cost per unit for June was $ $386$ per unit.

The budgeted sales price is $$1,200$ per steel door. Sales are budgeted as $100\%$ credit sales. According to

previous recorded collections, Scrap Steel determined that $55\%$ of sales are collected during the month

of sale; $43\%$ are collected in the following month; $2\%$ are uncollectible. June Accounts receivable were

$$129,000$ and will be collected in full during July.

The materials purchases are $100\%$ credit $70\%$ in month of purchase and $30\%$ in the following month.

The beginning Accounts Payable is $$5,500.$

Selling and Administrative expenses are:

Variable Selling and Administrative Expenses $$50$ per unit sold

Fixed Selling and Administrative Expenses $$15,000$ per month

Selling and Administrative depreciation is a noncash expense that is at a rate of $$750$ per month that is

included in the fixed expenses above.

The following information for the cash account follows:

Beginning Cash Balance $$165,000$

Dividend Paid $30,000$

Capital Expenditures $153,000$

Scrap Steel requires a minimum ending cash balance of $$1,500.$

Required:

A partial master budget for July as follows.

$1.$ Sales budget for July

$2.$ Production budget for July

$3.$ Direct material quantity needed for production

$4.$ Direct material quantity to be purchased for July

$5.$ Budgeted cost of direct material purchases for July

$6.$ Budgeted cost of direct materials used in July

$7.$ Direct labor needed for production

$8.$ Budgeted cost of direct labor

$9.$ Budgeted factory overhead costs

$10.$ Budgeted cost of goods sold

$11.$ Budgeted selling and administrative costs

$12.$ Budgeted income statement

$13.$ Prepare a cash budget; include cash receipts and disbursements