Hello, will you please help our with the following case, I need to create a Sale
ID: 2517061 • Letter: H
Question
Hello, will you please help our with the following case,
I need to create a Sales Budget, Production Budget, Material Budget, Labor Budget, Manufacturing Overhead Budget, Adminstrative Budget, Income Statment, and Cash Budget with the following information. Also i have attached examples of each from the textbook to help.
For the first quarter of 2017, do the following. (a) Prepare a sales budget. This is simflar to Mustration 21-3 on page 1088 of your textbook (b) Prepare a production budeet. This is similar to Nustration 21-Son page 1089 of your tertbook. [c] Prepare a direct materials budget·(Round to nearest dollar] This is similar to llustration 21-7 on page 1091 of your textbook. (d: Prepare a direct labor budget. ?For calculations, round to the nearest hour.) This is sma or to JMustration 21-9 on poge 1094 of your textbook. e) Prepare a manufacturing overhead budget. ?Round intermediate amounts to the nearest dollar.) Th's is similar to Arustration 21.10 on page 1094 of your textbook. ) Prepare a selling and administrative budget. This is similar to Nustration 21-12 on page 1095 of your textbook () Prepare a budgeted income statement. (Round intermediate calculations to the nearest dollar.] This is simiwar to NNustration 21-13 on page 1096 f your textbook h) Prepare a cash budget. This is simuilor to Niustration 21-17 on page 1200 of your textbook You will need to prepare schedules for expected collections from customers and expected payments to vendors first. See strations 21-15 and 21-16 on page 1099 0 your textbook or gun znce. Serious 8usiness, in. The company is preparing its budget for the comin year 2017. Th? firs?eepis to plan for the first quarter of that coming year. Th. fallowing nformetion has been pathered from their manegers Time per Unit Production Pay Rate/Hour Manufacturing Overhead Costs Variabvle cost ts per drect labor hour 114,000 Actual 102,000 Actual 12,000 Planned 113,000 Planned 115,000 Planned 125,000 Flanned 137,500 Planned Indirect labo .50 Grading guidelines are on the instructio Mantenance Line of Cdt Fwed costs per month 42.000 Sorrowing Increment Requred nterest Rate Unit sel ing price Property taxe First of Month Last of Month Finished Goads Inventory Ponning The company likes to keep 10% of the next month's unit sales in firished goods ending inventory. 1,300 Interest accumulates to the loon belance and is paid in ful with each repayment. Sellirg and Administrative Costs Varioble costs per ed costs per m Accounts Receivable&Collections; Adátional Item unit sold Foced Asset Purchase 500000 Cofectiens Activity Month of Sale Month after Sele Balance at 12/31/L6 S185,000.00 72,000 Materials Inwentory Costs & Planning Other faed cests ect Matemals Amount Used per Unk 0.75 Ib Accrued on Monthly Net Income mounts Accrued 04 2016 paild January 2017 40% rounded to nearest dollar beoorpany likes to keep S% of the material needed for the next month's production in raw materials ending inventory Cash and Financing Matters Cash Bglence. 12/31/2016 00 500 Purchases on Accou Poyment Actity Month of Purchase 2017 Mnimum Balance Required Monthy Dindends 2.50 per share Outstand ag Shares Balance at 12/31/L6 120,000Explanation / Answer
a. Sales Budget January February March Total Budgeted unit sales 112000 113000 116000 341000 Unit sellling price 12 12 12 12 Budgeted Sales 1344000 1356000 1392000 4092000 Schedule of cash collections: January February March Total Collections from: December Sales 185000 185000 January Sales 1142400 201600 1344000 February Sales 1152600 203400 1356000 March Sales 1183200 1183200 Total Collections 1327400 1354200 1386600 4068200 Receivables 201600 203400 208800 208800 b. Producion Budget January February March Total Budgeted Unit Sales 112000 113000 116000 341000 Add: Desired ending inventory 11300 11600 12500 12500 (10% of next month's sales) Total unis neded 123300 124600 128500 353500 Less: Beginning Inventory 11200 11300 11600 11200 Budgeted production units 112100 113300 116900 342300 c. Direct material budget January February March Total Budgeted Production units 112100 113300 116900 342300 Direct material per unit of production (lb) 2 2 2 2 Direct material required for production 224200 226600 233800 684600 Add: desired ending inventory (20% of next month's production requirements) 113300 116900 13790 13790 Total direct material needed 337500 343500 247590 698390 Less: Beginning Inventory 11210 113300 116900 11210 Direct material purchases - pounds 326290 230200 130690 687180 Direct material cost per pound - $ 0.75 0.75 0.75 0.75 Budgeted direct material purchases - $ 244718 172650 98017 515385 Cash payment budget for direct material purchases January February March Total Payment for : December purchases 120000 120000 January purchases 122359 122359 244717.5 February purchases 86325 86325 172650 March Purchases 49009 49009 Total payments for direct materials 242359 208684 135334 586376 Payables 122359 86325 49009 49009 d. Direct labor budget January February March Total Budgeted Production units 112100 113300 116900 342300 Direct labor time required per unit - minutes 12 12 12 12 Direct labor hours for production 22420 22660 23380 68460 Direct labor rate per hour - $ 8.00 8.00 8.00 8.00 Budgeted direct labor cost - $ 179360 181280 187040 547680 e. Manufacturing overheads budget January February March Total Budgeted Production units 112100 113300 116900 342300 Variable manufacturing overheads: Indirect material 33630 33990 35070 102690 Indirect labor 56050 56650 58450 171150 Utilities 50445 50985 52605 154035 Maintenance 28025 28325 29225 85575 Total variable ovehreads 168150 169950 175350 513450 Fixed overheads Salaries 42000 42000 42000 126000 Depreciation 16800 16800 16800 50400 Property Taxes 2675 2675 2675 8025 Insurance 1200 1200 1200 3600 Janitorial 1300 1300 1300 3900 Total Fixed Overheads 63975 63975 63975 191925 Total manufacturing Overheads 232125 233925 239325 705375 Cash payment for manufacturing overheads 215325 217125 222525 654975 f. Selling and admin. Expenses budget January February March Total Budgeted unit sales 112000 113000 116000 341000 Variable expenses 179200 180800 185600 545600 Fixed expenses Advertising 15000 15000 15000 45000 Insurance 14000 14000 14000 42000 Salaries 72000 72000 72000 216000 Depreciation 25000 25000 25000 75000 Other fixed costs 3000 3000 3000 9000 Total fixed costs 129000 129000 129000 387000 Budgeted selling and admn. Expenses 308200 309800 314600 932600 Cash payment for selling and admn. Expenses 283200 284800 289600 857600 Cash Budget January February March Total Beginning Balance 100500 307656 300968 100500 Collection from sales 1327400 1354200 1386600 4068200 Cash available for disbursements 1427900 1661856 1687568 4168700 Cash disbursements: For direct material 242359 208684 135334 586376 For direct labor 179360 181280 187040 547680 For manufacturing overheads 215325 217125 222525 654975 For selling and admn. Expenses 283200 284800 289600 857600 For income tax 200000 200000 For purchase of fixed assets 500000 500000 Total cash disbursements 1120244 1391889 834499 3346631 Cash Surplus / (Deficit) 307656 269968 853069 822069 Minimum cash balance 300000 300000 300000 300000 Cash Excess / (shortage) 7656 -30033 553069 522069 Financing Borrowing/ Repayment 0 31000 -31000 0 Interest 0 413 413 Total financing 0 31000 -30587 413 Ending Cash Balance 307656 300968 822482 822482 Income Statement Sales Revenue 4092000 Cost of goods sold 1766505 Gross Profit 2325495 Selling and admn. Expenses 932600 Operating profit 1392895 Interet expense 413 Income before income tax 1392482 Income tax - 40% 556993 Net income 835489
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