XYZ Company

Balance Sheet, December 31

Cash $41,700

Accounts receivable 192,000

Raw materials 102,240

Finished goods 64,400

Land 50,000

Plant and equipment $500,000

Less: accumulated depreciation 112,000 388,000

Total assets $838,340

Accounts payable to suppliers $40,000

Common Stock $100,000

Retained Earnings 698,340 798,340

Total liabilities and equity $838,340

Information:

Estimated sales in units of Product X

January 7,000

February 8,000

March 11,000

April 8,000

May 7,000

Selling price $70

Collections from customers

Collect in month of sale 55%

Collect the following month 25%

Collect 2 months after sale 15%

Desired FG inventory

(% of next month's unit sales) 20%

Desired raw material inventory

(% of next month's production needs) 25%

Raw material units needed to produce one final product

M-1 7

BI units & cost

Product X 1,400 $45.00

M-1 18,000 $7.50

Purchases

Paid in onr month after purchase 100%

Direct labor time to produce one Product X 0.5 hours

Cost of direct labor $24 per hour

Factory overhead $12 per direct labor hr.

Selling and administrative expenses $10,000 fixed

15% variable

Plant and equipment depreciation $12,000 per year

Create the requisite budgets listed below for Jan, Feb, March

Sales & Production

Material Purchase

Direct Labor & FOH

S & A

Cash

Create a new tab for each as listed above

Link and use formulas