You have been asked to review the information of Deck Corp. and prepare elements of the master budget for the year ending December 2013.

Given:

A) Balance Sheet:

Deck Corp Balance Sheet December 31, 2012
ASSETS	LIABILITIES AND EQUITIES
Current Assets:		Current Liabilities:
Cash.......................................................	$ 76,153	Accounts payable.........................	$ 23,451
Accounts receivable...........................	26,000
Inventory: Direct Materials (1,600 kg @ $5)......	8,000	Equity:
Finished Goods (7,400 @ $5.516).....	24,268	Contributed capital......................	151,746
	134,421	Retained earnings........................	169,224
Capital Assets:		Total equity..................................	320,970
Manufacturing property & equipment..	320,000
Less: accumulated amortization.............	110,000
	210,000
Total Assets................................................	$ 344,421	Total Liabilities and Equity.........	$ 344,421

B) The units are expected to be sold for $9.50 with the following volumes:

December 2012	26,000
January 2013	22,000
February 2013	30,000
March 2013	45,000
April 2013	42,000
May 2013	40,000

C) Variable manufacturing costs:

	Quantity	Cost	Cost per Unit
Direct materials (DM)	0.35	kg	$ 5.00	per kg	$ 1.75
Direct labour (DL)	0.2	hours	$15.00	per hour	$ 3.00
Manufacturing Overhead (MOH) (applied on DLH)	0.2	hours	$ 8.00	per hour	$ 1.60

D) Total fixed manufacturing costs per unit:

Estimated annual fixed manufacturing overhead $ 180,000

Includes annual depreciation of $ 24,000

Applied based on direct labour hours (DLH)

E) Desired minimum inventories:

Direct materials	15%	of next month's production needs
Finished goods	20%	of next month's sales in units

F) Selling & administrative costs:

Variable:

Sales commissions:3% of sales if sales are > $300,000

2% of sales if sales are

Fixed:

$26,000 monthly, including amortization of $6,000

G) Collection of sales:

All sales are on account and are expected to be collected 30% in the month of sale and 70% in the month following the sale.

H) Payment of direct material purchases:

All direct material purchases are on account, and payments are:

40% in the month of purchase

60% in the month following the purchase

All other operating expenses are paid in the month incurred (budgeted)

I) Minimum cash balance required is: $40,000

Interest is calculated at an annual rate of: 12%

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Questions:

Note:

• Please show notes to support some calculations
• All shaded cells onall schedules are there 'just in case' you require them to calculate any necessary numbers - you may not need to fill in each shaded box on each schedule.

A. Complete the SALES BUDGET (2 marks)

Deck Corp. Sales Budget For the 3 months ending March 31, 2013 Dec Jan Feb Mar Total Apr May Sales in Units Selling Price/unit Sales in $Deck Corp. Production Budget For the 3 months ending March 31, 2013 Dec Jan Feb Mar Total Apr May Sales in units Desired Ending Inventory Total Needs * Beginning Inventory Production in Units * state either ADD or LESSDeck Corp. Direct Materials Purchases Budget For the 3 months ending March 31, 2013 Dec Jan Feb Mar Total Apr May Production in units DM quantity per unit (kg) DM quantity for production * Desired Ending Balance Total Needs Beginning Inventory Kgs to be purchased Unit Cost Purchases in dollars