You have been hired as the Controller for the crayon department of Crayola Canada $($CC$).$ The Crayon

Department in Canada will begin operations on January $01,2024.$ The first task you have been assigned is the

creation of the $2024$ budget. Your CFO has provided you with some notes detailing the department's

operations $($see below$)$ and would like you to use the notes to prepare all ten $(10)$ schedules of the $2024$

budget. Crayola Canada has a calendar fiscal year $($January $$ December$).$

Sales

$1.$ Sales will be $30,000$ boxes per month except for August $(80,000$ boxes$)$ and September $(120,000$ boxes$)$

$2.$ Monthly sales in $2025$ will be $10\%$ higher, than monthly sales in $2024$

$3.$ A box of crayons will sell for $$11\mathrm{.}49$ in Jan, Feb, Aug, Sep, Nov, Dec and $$13\mathrm{.}49$ in Mar, Apr, May, Jun, Jul

$4.65\%$ of sales are collected in the month of the sale, $25\%$ the following month, and $10\%$ in the second

month after the sale

$5.$ To ensure a consistent supply of crayons, inventory at the end of each month must be $15\%$ of the next

month's total budgeted sales

Costs $-$ Production

$6.$ Each box contains $24$ crayons

$7.$ Each crayon is made of three $(3)$ grams of wax

$8.$ Each crayon contains one $(1)$ gram of colored dye

$9.$ Each crayon contains one $(1)$ paper sleeve

$10.$ Each gram of wax costs $$0\mathrm{.}03$

$11.$ Each gram of dye costs $$0\mathrm{.}06$

$12.$ Each paper sleeve costs $$0\mathrm{.}02$

$13.$ The box the crayons are packaged in$,$ costs $$0\mathrm{.}06$

$14.$ All direct material costs are paid for the month after they are purchased $($ex: June materials are paid for in July$)$

$15.$ Each employee can produce $20$ crayons a minute

$16.$ Employees are paid $$22\mathrm{.}50$ per hour

$17.$ All employees are paid on the $15$th and $30$th of every month

$18.$ The production warehouse supervisor receives a salary of $$100,000$ per year

$19.$ There are $8($eight$)$ employees who are directly involved with the manufacturing of the crayons

$20.$ The production facility has a fixed$-$rate utilities contract with Enmax where they will pay $$3,800$ per

month from May to September and $$4,600$ per month from October to April

$21.$ Variable Manufacturing Overhead will be $$500$ per day. The factory operates $365$ days per year, so every

day per month must be accounted for

$22.$ The CEO receives a bonus of $$0\mathrm{.}10$ for every box of crayons produced

$23.$ The shipping cost is $$0\mathrm{.}05$ for every box of crayons sold

Costs $$ Equipment

$24.$ CC has two types of assets, production assets and administration assets

$25.$ The depreciation on the administration assets will be $$5,000$ per month until November $2024,$ then it will

jump to $$8,000$ per month when the lunchroom has been renovated $($see below$)$

$26.$ The depreciation on the production assets is $$2,200$ per month

$27.$ CC will use straight$-$line depreciation on all production and administration assets

$28.$ CC will purchase manufacturing equipment in January at a cost of $$250,000$

Accounting $2400$ Final Exam Fall $2023$

Costs $$ Buildings

$29.$ There are two buildings that CC utilizes in the operations of their company

$30.$ The first building, the administration building is currently being rented for $$10,000$ per month

$31.$ The second building, the production facility is currently being rented for $$8,000$ per month

$32.$ In October $2024,$ CC plans to renovate the lunchroom of their administration building. The renovation will

cost $$50,000$ and construction will be completed at the end of October. The renovation will be paid for in

cash after the project has been completed

$33.$ Insurance for office building is $$2,000$ per month

$34.$ Insurance for the production facility is $$5,000$ per month

Costs $-$ Other

$35.$ The administration team receives salaries totaling $$50,000$ per month

$36.$ Two marketing campaigns will be run on Canadian television, the first one will run from January to June,

where ads will be run consistently each month for $$5,000$ per month. The second one will be a $$Back to

School$$ campaign which will run in August and will cost $$15,000$ for the month

$37.$ Payment for all marketing campaigns will be made in December $2024$

$38.$ CC has access to a line of credit from the Bank of Montreal, which carries an interest rate of $8\mathrm{.}0\%$

Notes

$39.$ CC would like to keep a cash balance of at least $$15,000$ at the end of every month

$40.$ CC will pay dividends of $$200,000$ in July $2024$

Required

$-$ Read the instructions on the cover of this exam

$-$ Prepare a full, $10-$schedule budget