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Problem 13-61 (Algo) Comprehensive Budget Plan (LO 13-4, 5, 6) Brighton, Inc., manufactures kitchen tiles The company recently expanded, and the controller believes that it will need to borrow cash to continue operations. It began negotiating for a one-month bank loan of $500,000 starting May 1. The bank would charge interest at the rate of 100 percent per month and require the company to repay interest and principal on May 31 In considering the loan, the bank requested a projected income statement and cash budget for May. The following information is available ces The company budgeted sales at 600.000 units per month in April, June, and Jury and at 550,000 units in May. The selling price is 54 per unit The inventory of finished goods on April was 150,000 units. The finished goods inventory at the end of each month equals 25 percent of sales anticipated for the following month. There is no work in process The inventory of raw materials on April was 58.750 pounds. At the end of each month, the raw materials inventory equals no less than 40 percent of production requirements for the following month. The company purchases materials in quantities of 70,500 pounds per shipment Selling expenses are 10 percent of gross sales Administrative expenses, which include depreciation of $2,500 per month on office furniture and fixtures, total $150,000 per month The manufacturing budget for tiles, based on normal production of 500,000 units per month, follows materials (0:25 pound per tile, 125.000 pounds, 54 per pound) Labor Variable overhead Find overhead (includes depreciation of $200,000) Total $500,000 410,000 200.000 400.000 51.510,000 Required: 8-1. Prepare schedules computing inventory budgets by months for production in units for April, May, and June 3-2. Prepare schedules computing inventory budgets by months for raw materials purchases in pounds for Apri and May b. Prepare a projected income statement for May Cost of goods sold should equal the variable manufacturing cost per unit times the number of units sold plus the total foed manufacturing cost budgeted for the period. When calculating net sales assume cash discounts of percent and bad debt expense of 0.50 percent Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Re Materials (0.25 pound per tile, 125,000 pounds, 54 per pound) Labor Variable overhead Fixed overhead (includes depreciation of $200,000) Total $ 500,000 410,000 200,000 400.000 $1,510,000 Required: 0-1. Prepare schedules computing inventory budgets by months for production in units for April, May, and June 0-2. Prepare schedules computing inventory budgets by months for raw materials purchases in pounds for April and May b. Prepare a projected income statement for May Cost of goods sold should equal the variable manufacturing cost per unit times the number of units sold plus the total fixed manufacturing cost budgeted for the period When calculating net sales assume cash discounts of 1 percent and bad debt expense of 0.50 percent es Complete this question by entering your answers in the tabs below. Red Al Reg A2 Reg B Prepare schedules computing Inventory budgets by months for production in units for April May, and June. BRIGHTON, INC Schedule Computing Production Budget (Units) For April May, and June May June April Total needs 0 0 0 Budgeted production - Units 0 0 RURA Rex A2 > Savad -mework Materials (0.25 pound per tile, 125.000 pounds, $4 per pound) Labor Variable overhead Fixed overhead (includes depreciation of $200,000) Total $ 500,000 410,000 200,000 400,000 $1,510,000 Required: 0-1. Prepare schedules computing inventory budgets by months for production in units for Apni, May, and June 0-2. Prepare schedules computing inventory budgets by months for raw materials purchases in pounds for April and May b. Prepare a projected income statement for May. Cost of goods sold should equal the variable manufacturing cost per unit times the number of units sold plus the total fixed manufacturing cost budgeted for the period When calculating net sales assume cash discounts of 1 percent and bad debt expense of 0.50 percent Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg Prepare schedules computing Inventory budgets by months for raw materials purchases in pounds for April and May, Schedule Computing Raw Materials inventory Purchase Budget (Pounds) For April and May April May Total pound needs Balance required to purchase Budgeted purchases - Pounds number of units sold plus the total fixed manufacturing cost budgeted for the period. When calculating net sales assume cash discounts of 1 percent and bad debt expense of 0.50 percent Complete this question by entering your answers in the tabs below. Req AI Reg A2 RoQB Prepare a projected income statement for May. Cost of goods sold should equal the variable manufacturing cost per unit times the number of units sold plus the total fixed manufacturing cost budgeted for the period. When calculating net sales assume cash discounts of 1 percent and bad debt expense of 0.50 percent. (Do not round intermediate calculations.) BRIGHTON, INC. Projected Income Statement For the Month of May 0 $ 0 Not Sales Cost of Sales 0 0 Expenses 0 & Reg A2 Problem 13-61 (Algo) Comprehensive Budget Plan (LO 13-4, 5, 6) Brighton, Inc., manufactures kitchen tiles The company recently expanded, and the controller believes that it will need to borrow cash to continue operations. It began negotiating for a one-month bank loan of $500,000 starting May 1. The bank would charge interest at the rate of 100 percent per month and require the company to repay interest and principal on May 31 In considering the loan, the bank requested a projected income statement and cash budget for May. The following information is available ces The company budgeted sales at 600.000 units per month in April, June, and Jury and at 550,000 units in May. The selling price is 54 per unit The inventory of finished goods on April was 150,000 units. The finished goods inventory at the end of each month equals 25 percent of sales anticipated for the following month. There is no work in process The inventory of raw materials on April was 58.750 pounds. At the end of each month, the raw materials inventory equals no less than 40 percent of production requirements for the following month. The company purchases materials in quantities of 70,500 pounds per shipment Selling expenses are 10 percent of gross sales Administrative expenses, which include depreciation of $2,500 per month on office furniture and fixtures, total $150,000 per month The manufacturing budget for tiles, based on normal production of 500,000 units per month, follows materials (0:25 pound per tile, 125.000 pounds, 54 per pound) Labor Variable overhead Find overhead (includes depreciation of $200,000) Total $500,000 410,000 200.000 400.000 51.510,000 Required: 8-1. Prepare schedules computing inventory budgets by months for production in units for April, May, and June 3-2. Prepare schedules computing inventory budgets by months for raw materials purchases in pounds for Apri and May b. Prepare a projected income statement for May Cost of goods sold should equal the variable manufacturing cost per unit times the number of units sold plus the total foed manufacturing cost budgeted for the period. When calculating net sales assume cash discounts of percent and bad debt expense of 0.50 percent Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Re Materials (0.25 pound per tile, 125,000 pounds, 54 per pound) Labor Variable overhead Fixed overhead (includes depreciation of $200,000) Total $ 500,000 410,000 200,000 400.000 $1,510,000 Required: 0-1. Prepare schedules computing inventory budgets by months for production in units for April, May, and June 0-2. Prepare schedules computing inventory budgets by months for raw materials purchases in pounds for April and May b. Prepare a projected income statement for May Cost of goods sold should equal the variable manufacturing cost per unit times the number of units sold plus the total fixed manufacturing cost budgeted for the period When calculating net sales assume cash discounts of 1 percent and bad debt expense of 0.50 percent es Complete this question by entering your answers in the tabs below. Red Al Reg A2 Reg B Prepare schedules computing Inventory budgets by months for production in units for April May, and June. BRIGHTON, INC Schedule Computing Production Budget (Units) For April May, and June May June April Total needs 0 0 0 Budgeted production - Units 0 0 RURA Rex A2 > Savad -mework Materials (0.25 pound per tile, 125.000 pounds, $4 per pound) Labor Variable overhead Fixed overhead (includes depreciation of $200,000) Total $ 500,000 410,000 200,000 400,000 $1,510,000 Required: 0-1. Prepare schedules computing inventory budgets by months for production in units for Apni, May, and June 0-2. Prepare schedules computing inventory budgets by months for raw materials purchases in pounds for April and May b. Prepare a projected income statement for May. Cost of goods sold should equal the variable manufacturing cost per unit times the number of units sold plus the total fixed manufacturing cost budgeted for the period When calculating net sales assume cash discounts of 1 percent and bad debt expense of 0.50 percent Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg Prepare schedules computing Inventory budgets by months for raw materials purchases in pounds for April and May, Schedule Computing Raw Materials inventory Purchase Budget (Pounds) For April and May April May Total pound needs Balance required to purchase Budgeted purchases - Pounds number of units sold plus the total fixed manufacturing cost budgeted for the period. When calculating net sales assume cash discounts of 1 percent and bad debt expense of 0.50 percent Complete this question by entering your answers in the tabs below. Req AI Reg A2 RoQB Prepare a projected income statement for May. Cost of goods sold should equal the variable manufacturing cost per unit times the number of units sold plus the total fixed manufacturing cost budgeted for the period. When calculating net sales assume cash discounts of 1 percent and bad debt expense of 0.50 percent. (Do not round intermediate calculations.) BRIGHTON, INC. Projected Income Statement For the Month of May 0 $ 0 Not Sales Cost of Sales 0 0 Expenses 0 & Reg A2