1 The Bundy Shoe Emporium is beginning Business in 2024 2 Bundy invested $20,000 of his...

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1 The Bundy Shoe Emporium is beginning Business in 2024 2 Bundy invested $20,000 of his own money to become the sole owner in this corporation with no par stock 3 On January 1st 2024, the Marcy D'arcy Bank loaned Bundy $500,000 to start his business 4 This 6% loan only required interest payments in 2024 which is NOT included in the fixed costs of making the shoes. 5 Al Bundy has made the following projections for the first quarter of 2024 6 7 Sales ($27 per pair of shoes) 8 9 10 11 January February 10000 pairs 14000 pairs 12 Bundy expects to collect 80% in the month of sale 18% in the next month and have 2% bad debt 13 14 15 6 7 The Cost of making the Bundy Shoe LABOR MATERIALS VARIABLE OH 1 hour at $8 per hou 1/2 paid in month incurred rest paid next month 2 square feet $2.50 per square foot variable oh 75% paid in month incurred rest in next month $2 per pair all paid in next month 8 FIXED OH fixed overhead January 9 February $12,000 $12,000 0 1 2 3 Bundy wants ending inventory of 10% of next month's projected sales Bundy wants ending raw materials of 15% of next months usage 5 Bundy wants an ending cash balance of at least $50,000 5 Bundy can borrow up to $75000 more from the Marcy D'arcy Bank 7 FOR THE FIRST QUARTER OF 2024 A) PREPARE A RAW MATERIALS BUDGET FOR EACH MONTH BOTH IN UNITS AND DOLLARS B) PREPARE A MONTHLY PRODUCTION BUDGET BOTH IN UNITS AND DOLLARS C) PREPARE A MONTHLY LABOR BUDGET IN HOURS AND DOLLARS D) PREPARE A CASH BUDGET FOR EACH MONTH E) PREPARE A QUARTERLY INCOME STATEMENT FOR THE FIRST QUARTER 2024....BUNDY USES FIFO INVENTORY 1 The Bundy Shoe Emporium is beginning Business in 2024 2 Bundy invested $20,000 of his own money to become the sole owner in this corporation with no par stock 3 On January 1st 2024, the Marcy D'arcy Bank loaned Bundy $500,000 to start his business 4 This 6% loan only required interest payments in 2024 which is NOT included in the fixed costs of making the shoes. 5 Al Bundy has made the following projections for the first quarter of 2024 6 7 Sales ($27 per pair of shoes) 8 9 10 11 January February 10000 pairs 14000 pairs 12 Bundy expects to collect 80% in the month of sale 18% in the next month and have 2% bad debt 13 14 15 6 7 The Cost of making the Bundy Shoe LABOR MATERIALS VARIABLE OH 1 hour at $8 per hou 1/2 paid in month incurred rest paid next month 2 square feet $2.50 per square foot variable oh 75% paid in month incurred rest in next month $2 per pair all paid in next month 8 FIXED OH fixed overhead January 9 February $12,000 $12,000 0 1 2 3 Bundy wants ending inventory of 10% of next month's projected sales Bundy wants ending raw materials of 15% of next months usage 5 Bundy wants an ending cash balance of at least $50,000 5 Bundy can borrow up to $75000 more from the Marcy D'arcy Bank 7 FOR THE FIRST QUARTER OF 2024 A) PREPARE A RAW MATERIALS BUDGET FOR EACH MONTH BOTH IN UNITS AND DOLLARS B) PREPARE A MONTHLY PRODUCTION BUDGET BOTH IN UNITS AND DOLLARS C) PREPARE A MONTHLY LABOR BUDGET IN HOURS AND DOLLARS D) PREPARE A CASH BUDGET FOR EACH MONTH E) PREPARE A QUARTERLY INCOME STATEMENT FOR THE FIRST QUARTER 2024....BUNDY USES FIFO INVENTORY