+ Wilson Inc. manufactures basketballs for $20/unit. Wilson Inc. budgets on a quarterly basis and the sales department has budgeted for the following sales: Budgeted Sales Units: JUNE JULY AUGUST 10,000 11,000 12,000 The Basketball's selling price is $35 each. Please prepare the Sales Budget. SALES BUDGET June July August Expected Sales (units) Selling Price (/unit) $35 $35 $35 Total Budgeted Sales PART 2 Wilson Inc. does not collect all of the sales revenue in the period of sale. The accounts receivable department has budgeted for 85% of sales revenue to be collected in the period of sale and 15% to be collected in the next period. The accounts receivable beginning balance is $80,000. Please prepare the Schedule of Expected Cash Collections. Accounts Receivable, beginning balance June Sales SCHEDULE OF EXPECTED CASH COLLECTIONS June 80,000 I July August July Sales August Sales Total cash collections PART 3 Wilson Inc. has spoken with the Production Department and determined that it would like to have a desired ending finished goods inventory of 20% of next periods sales. The beginning inventory of finished goods for JUNE and the desired ending inventory of AUGUST is provided. Please prepare the Production Budget. Budgeted Sales Add: Desired ending inventory of finished goods Total needs Deduct: Beginning inventory of finished goods Required Production PRODUCTION BUDGET June I 2,000 July August 3000 PART 4 The Production Department is ready to budget for Direct Material Purchases. The Direct Materials needed are 15kg/unit and the cost of the raw materials is $1.50/kg. Production would like to have 10% of next quarters production needs as the desired ending inventory of raw materials. The assumed JUNE beginning inventory of raw materials and the ending inventory for AUGUST is provided. > Please prepare the Direct Materials Budget DIRECT MATERIAL BUDGET Required Production in Cases Production needs Add: Desired ending inventory of raw materials Total needs June Deduct: Beginning inventory of raw materials 21,000 Raw materials to be purchased July August I 22,500 Cost of raw materials per Kilo $1.50 $1.50 $1.50 Total Cost of Raw Materials PART 5 The Human Resources Department has indicated that the Direct Labour Cost per hour is $7.50 and the Production Department has indicated that the # of Direct Labour Hours per unit is 0.90. Please prepare the Direct Labour Budget: DIRECT LABOUR BUDGET JUNE JULY AUGUST Required Production in cases 90 Labour Hour Per Unit 90 .90 I Total direct labour hours needed $7.50 $7.50 $7.50 Total direct labour cost per hour Total Direct Labour Cost PART 6 Wilson Inc. has determined that the Variable Overhead Rate per Direct labour hour is $1.75 and the fixed manufacturing overhead is $6,200 per quarter and depreciation is $1,500. >Please prepare the Manufacturing Overhead Budget BUDGETED MANUFACTURING OVERHEAD Budgeted direct labour hours Variable overhead rate Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Less: Depreciation Manufacturing Overhead Cost JUNE JULY AUGUST I $1.75 $1.75 $1.75 PART 2 Please prepare the cash budget. CASH BUDGET JUNE JULY AUGUST 2 QUARTER Cash balance, beginning $42,500 Add Receipts Collection from customers Total Cash available Deduct Disbursements Direct Materials Direct Labour Manufacturing Overhead Equipment Purchases Dividends Total Disbursements Cash Balance Endog 10,000 10,000 10,000 500 500 500