Variable selling expenses per unit sold are $2/unit. The budgeted monthly fixed selling and administrative expenses...

 

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Variable selling expenses per unit sold are $2/unit. The budgeted monthly fixed selling and administrative expenses are $120,000 which includes monthly depreciation of $20,000. The company will be acquiring some additional equipment in the first quarter of the year. They will purchase equipment for $300,000 in cash in January. Dividends of $150,000 will be paid out in March. The company has a policy that it needs to maintain a cash balance of $50,000 at all times. They do have a line of credit with their bank. It has an annual interest rate of 12%. Borrowing, if needed, will occur at the beginning of the month and repayment of the principal and interest will occur at the end of the month. Borrowings and repayments are done in increments of $5,000. REQUIRED: 1. Prepare the sales budget for each month of the first quarter. (25 points) 2. Prepare the schedule of expected cash collections for each month of the first quarter. (25 points) 3. Prepare the production budget for each month of the first quarter. (25 points) 4. Prepare the direct materials budget for each month of the first quarter. (25 points) 5. Prepare the schedule of cash payments to suppliers for each month of the first quarter. (25 points) 6. Prepare the direct labor budget for each month of the first quarter. (25 points) 7. Prepare the manufacturing overhead budget for each month of the first quarter. (25 points) 8. Prepare the selling and administrative expense budget for each month of the first quarter. (25 points) 9. Prepare the cash budget for each month of the first quarter. (50 points) 10. Prepare the budgeted income statement for the full quarter. (75 points) 11. Prepare the budgeted balance sheet as of March 31, 2023. (75 points) Variable selling expenses per unit sold are $2/unit. The budgeted monthly fixed selling and administrative expenses are $120,000 which includes monthly depreciation of $20,000. The company will be acquiring some additional equipment in the first quarter of the year. They will purchase equipment for $300,000 in cash in January. Dividends of $150,000 will be paid out in March. The company has a policy that it needs to maintain a cash balance of $50,000 at all times. They do have a line of credit with their bank. It has an annual interest rate of 12%. Borrowing, if needed, will occur at the beginning of the month and repayment of the principal and interest will occur at the end of the month. Borrowings and repayments are done in increments of $5,000. REQUIRED: 1. Prepare the sales budget for each month of the first quarter. (25 points) 2. Prepare the schedule of expected cash collections for each month of the first quarter. (25 points) 3. Prepare the production budget for each month of the first quarter. (25 points) 4. Prepare the direct materials budget for each month of the first quarter. (25 points) 5. Prepare the schedule of cash payments to suppliers for each month of the first quarter. (25 points) 6. Prepare the direct labor budget for each month of the first quarter. (25 points) 7. Prepare the manufacturing overhead budget for each month of the first quarter. (25 points) 8. Prepare the selling and administrative expense budget for each month of the first quarter. (25 points) 9. Prepare the cash budget for each month of the first quarter. (50 points) 10. Prepare the budgeted income statement for the full quarter. (75 points) 11. Prepare the budgeted balance sheet as of March 31, 2023. (75 points)

Answer rating: 100% (QA)

Budgeting for the First Quarter of 2023 1 Sales Budget Month Sales Units Sales Revenue January 20000 400000 February 25000 500000 March 30000 600000 T... View the full answer