AssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false eBook E Calculator Understanding Relationships, Master Budget, Comprehensive Review Optima Company is a high-technology organization that produces a mass-storage system. The design of Optima's system is unique and represents a breakthrough in the industry. The units Optima produces combine positive features of both compact and hard disks. The company is completing its fifth year of operations and is preparing to build its master budget for the coming year (20Y1). The budget will detall each quarter's activity and the activity for the year in total. The master budget will be based on the following information: a. Fourth-quarter sales for 20Y0 are 55,000 units. b. Unit sales by quarter (for 20Y1) are projected as follows: First quarter 65,000 Second quarter 70,000 Third quarter 75,000 Fourth quarter 90,000 The selling price is $400 per unit. All sales are credit sales. Optima collects 85% of all sales within the quarter in which they are realized the other 15% collected in the following quarter. There are no bad debts. C. There is no beginning inventory of finished goods. Optima is planning the following ending finished goods inventories for each quarter: First quarter 13,000 units Second quarter 15,000 units Third quarter 20,000 units Fourth quarter 10,000 units d. Each mass-storage unit uses 5 hours of direct labor and three units direct materials. Laborers are paid $10 per hour and one unit of direct materials costs $80. e. There are 65,700 units of direct materials in beginning inventory as of January 1, 2011. At the end of each quarter. Optima plans to have 30% of the dlart materiale natar for navtartare unit cales intims will on the ver with the same amount of first materiale fruit in the year herlina Check My Work A dd 12/15/2019 Assignment Main.do?invokers &take AssignmentSessionLocator&inprogress=false eBook Calculator e. There are 65,700 units of direct materials in beginning inventory as of January 1, 2011. At the end of each quarter, Optima plans to have 30% of the direct materials needed for next quarter's unit sales. Optima will end the year with the same amount of direct materials found in this year's beginning inventory. f. Optima buys direct materials on account. Half of the purchases are paid for in the quarter of acquisition, and the remaining half are paid for in the following quarter. Wages and salaries are paid on the 15th and 30th of each month. g. Fixed overhead totals $1 million each quarter of this total, $350,000 represents depreciation. All other fixed expenses are paid for in cash in the quarter incurred. The fixed overhead rate is computed by dividing the year's total fixed overhead by the year's budgeted production in units. h. Variable overhead is budgeted at $6 per direct labor hour. All variable overhead expenses are paid for in the quarter incad. i. Fixed selling and administrative expenses total $250,000 per quarter, including $50,000 depreciation. 1. Variable selling and administrative expenses are budgeted at $10 per unit sold. All selling and administrative expenses are paid for in the quarter incurred. k. The balance sheet as of December 31, 200, is as follows: Assets $ 250,000 Cash Direct materials inventory Accounts receivable Plant and equipment, net Total assets 5,256,000 3,300,000 33,500,000 342,306,000 Liabilities and Stockholders' Equity Accounts payable $7,249,000 Capital stock 27,000,000 8.055,000 Retained earnings Check My Work A dd OPM 1/15/2019 ke Assignment Main.do?invoker=&take AssignmentSessionLocator Binprogress=false Calculator eBook Capital stock Retained earnings 27,000,000 8,058,000 Total liabilities and stockholders' equity $42,306,000 - For purchase of direct materials only. I. Optima will pay quarterly dividends of $300,000. At the end of the fourth quarter, $2 million of equipment will be chased Required: Prepare a master budget for Optima Company for each quarter of 2011 and for the year in total. The following component budgets must be included 1. Sales Budget (units and budgeted sales in thousands) Optima Company Sales Budget For the Year Ending December 31, 2011 Otr. 1 Qtr. 2 otr. 3 Units 400 $ 400 5 400 Unit price $ 26.000 20.000 Total sales Correct Check My Work Add 2:31 PM 12/142019 ent/take Assignment Main.do?invokerStake AssignmentSessionLocator=&inprogress=false eBook Calculator 2. Production budget (amounts in full, not in thousands) If an amount is zero, enter "o". Optima Company Production Budget For the Year Ending December 31, 2011 Otr. 2 Otr. 3 Sales 70.000 75.000 Desired ending inventory 15.000 20.000 Total needs 85,000 95.000 100.000 Less: Beginning inventory 1 13.000 15.000 Production 78.000 72.000 80.000 30.000 310,000 My Wor Correct 3. Direct Materials Purchases Budget in thousands, except for per unit/hour data) If required, round answers to one decimal place Optima Company Direct Materials Purchases Budget For the Year Ending December 31, 2011 Otr. 1 Otr. 2 Otr. 3 13.000 X 15.000 X 20.000 X Otr. 4 Total Production 20.000 X 10.000 X Chuck My Work 2:31 PM ment/takeAssignmentMain.doFinvokerStake AssignmentSessionLocator=&inprogress=false eBook Calculator 3. Direct Materials Purchases Budget (in thousands, except for per unit/hour data) If required, round answers to one decimal place. Optima Company Direct Materials Purchases Budget For the Year Ending December 31, 2011 Otr. 1 Qtr. 2 Qtr. 3 13,000 X 15.000 X 20,000 X Total Qtr. 4 20.000 Production 3 Materials/unit Production needs 234.000 216.000 Desired ending inventory 64,800 Total needs Less: Beginning inventory Purchases Cost per unit Purchase cost Partially correct 4. Direct Labor Budget in thousands except berunit hour data) acer ent/take Assignment Main.doFinvokerStake AssignmentSession Locator=&inprogress=false eBook Calculator 4. Direct Labor Budget (in thousands, except per unit/hour data) Optima Company Direct Labor Budget For the Year Ending December 31, 2011 Otr. 3 Otr. 1 Production 78.000 80 000 Hours per unit Hours needed Cost per hour Total cost incorrect 5. Overhead Budget (in thousands except per unit hour data) Optima Company Overhead Budget For the Year Ending December 31, 2011 Otr. 1 t. 2 tr. 3 Otr. 4 Buded hours Check My Work acer m/takeAssignment/take Assignment Main.doFinvokerStake AssignmentSessionLocator=&inprogress=false eBook Calculator 5. Overhead Budget (in thousands, except per unit/hour data) Optima Company Overhead Budget For the Year Ending December 31, 2011 Otr. 1 t r. 2 tr. 3 Budgeted hours Variable rate Budgeted VOH Budgeted FOH 000) Total OH Incorrect 6. Selling and Administrative Expenses Budget in thousands, except per unit hour data) Optima Company Selling and Administrative Expenses Budget For the Year Ending December 31, 2011 Otr. 1 Otr. 2 tr. 3 or 4 Total Check My Work re to search takeAssignment/take Assignment Main.doFinvokerStake AssignmentSessionLocator Beinprogress=false eBook Calculator 6. Selling and Administrative Expenses Budget (in thousands, except per unit/hour data) Optima Company Selling and Administrative Expenses Budget For the Year Ending December 31, 2011 Planned sales Variable rate Variable expenses Duit: Dubina Faced penses Total expenses Incorrect 7. Ending finished goods inventory budget. Enter amounts in full, not in thousands. Round to the nearest cent. Optima Company Ending Finished Goods Inventory Budget For the Year Ending December 31, 2011 Unit cost computation Direct materials Direct labor Check My Work re to search _acer nt/takeAssignmentMain.doFinvokere&takeAssignmentSessionLocator &inprogressa false eBook Calculator 7. Ending finished goods inventory budget. Enter amounts in full, not in thousands. Round to the nearest cent. Optima Company Ending Finished Goods Inventory Budget For the Year Ending December 31, 2011 Unit cost computation: Direct materials Direct labor Overhead: Variable Fixed Total unit cost Finished goods Incorrect 3. Cost of goods sold budget (Note: Assume that there is no change in work-in-process inventories.) Enter amounts in full, not in thousands. If an zero, enter"0 Optima Company Cost of Goods Sold Budget Check My Work nt/take AssignmentMain.doFinvokere&takeAssignmentSessionLocator=&inprogress=false eBook Calculator 8. Cost of goods sold budget (Note: Assume that there is no change in work-in-process inventories.) Enter amounts in full, not in thousands. If an amount zero, enter "o". Optima Company Cost of Goods Sold Budget For the Year Ending December 31, 20Y1 Direct materials used Direct labor used Overhead Budgeted manufacturing costs Add: Beginning finished goods inventory Cost of goods available for sale Less: Ending finished goods inventory Budgeted cost of goods sold Incorrect 9. Cash Dudget (in thousands Optima Company Check My Work ent/take Assignment Mandolinvokere&take AssignmentSessionLocatorinprogress false eBook Calculator 9. Cash Budget (in thousands) Optima Company Cash Budget For the Year Ending December 31, 2011 Otr. 1 Qtr. 2 Qtr. 3 Otr. 4 Beginning cash bals Collections: Credit sales Current quarter Total Prior quarter Cash available Less disbursements: Direct materials Current quarter Prior Quarter Direct labor Overhead Soling and admin Dividends Equipment Chock y Work UPM eBook Calculator Feedback Incorrect income taxes.) 10. Pro forma income statement (using absorption costing). Enter amounts in full, not in thousands.(Note Optima Company Pro Forma Income Statement For the Year Ending December 31, 2011 Incorrect in order of uit te ore income taxes.) 11. Pro forma balance sheet Enter amounts in full, not in thousands List all assets and Check My Work Add a 22/1/2018 acer ment/take Assignment Main.do?invokers&take AssignmentSessionLocator Binprogress false eBook 5 Calculator 11. Pro forma balance sheet. Enter amounts in full, not in thousands. List all assets and liabilities in order of liquidity. (Note: Ignore income taxes.) Optima Company Pro Forma Balance Sheet December 31, 2041 Assets Total assets Liabilities and stockholders' equity Total liabilities and stockholders equity Incorrect Check My Wok