Data Computer Company manufactures hard drives for servers for all the major computer companies. Below you...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Data Computer Company manufactures hard drives for servers for all the major computer companies. Below you will find the information for their 2025 budget. Use the following information to create the Quarterly budgets including the full year total for the year 2025 and include the following items: • Sales Budget • Production Budget (Including: Direct Material, Direct Labor, Manufacturing Overhead) • Operating Expenses Budget • Budgeted Income Statement (Include the calculation of the cost per unit) • Capital Budget • Combined Cash (Including: Cash Receipts and Cash Disbursements) • Budget Balance Sheet Data Required to Complete the Requirements Above Quarter 3 Quarter 1 Quarter 2 Full Year Quarter 4 Sales Budget: Expected Unit Sales 5,000 6,000 8,000 10,000 29,000 Each unit sells for $125 65% collected in quarter sold, 35% collected in following quarter. Production Budget: Ending Inventory should be 20% of the next quarter's unit sales. • The expected unit sales for Quarter 1 of 2026 are 11,000 units. Direct Material Budget: • Ending materials Inventory should be 10% of the next quarter's production requirements. • The production of the drives requires 2.5 pounds of material costing $7 per pound • The expected production requirements for Quarter 1 of 2026 is 28,050 pounds • 50% of purchases are paid in quarter of purchase and the remaining 50% is paid the following quarter Direct Labor Budget: The required direct labor hours per unit are 3 hours. • The average cost per direct labor hour is $20. • Paid 100% in the quarter it was incurred Manufacturing Overhead Budget: Variable Costs -Calculated based on the direct labor hours used, rates are as follows: NOTE: All items are expected to be paid in the quarter in which it was incurred except for Depreciation! • Indirect Material - • Indirect Labor - $2.00 per direct labor hour $1.30 per direct labor hour $1.20 per direct labor hour $0.50 per direct labor hour Utilities - Maintenance - Fixed Cost per quarter includes: • Supervisor Salaries - • Depreciation - • Property Taxes & Insurance Maintenance - $30,000 4,500 (Assume this includes the New Asset Purchase. No Changes!) 15,000 7,150 Operating Expenses: NOTE: All items are expected to be paid in the quarter in which it was incurred except for Depreciation! Variable Expenses - Calculated based on units of sales • Sales Commissions - Freight Out - Fixed Expenses per quarter: Advertising - Sales Salaries- $4.50 $2.00 $7,000 25,000 Office Salaries - 12,500 Depreciation- Property Tax Insurance - 3,500 3,000 Income Taxes Estimate for full year is $18,000 and is expected to be paid evenly each quarter. Interest Expense for the full year is estimated to be $500 and used when repaying borrowed funds. Combined Cash Budget detail information: 1. Cash balance as of Jan 1, 2025 is expected to be $125,000 and Data's cash on hand policy requires them to have a minimum of $15,000 on hand at the end of each month. 2. Account receivable balance for Dec 31, 2024 is $110,000 and is expected to be collected in the first quarter of 2025. 3. Short-term investments are planned to be sold for $25,000 cash in the first quarter. 4. Accounts payable balance of $35,500 at Dec 31, 2024 is planned to be paid in full in the first quarter of 2025. 5. Management plans to purchase a truck in the second quarter for $50,000. 6. Income tax payments are made quarterly by Data based on the estimated annual amount. 7. Loans are repaid with interest in the earliest quarter possible in which there is a sufficient amount of cash on hand after meeting the $15,000 minimum requirement. Loans are borrowed in $1,000 increments. Balance Sheet Data Needed: Balances as of Dec 31, 2024 Building and Equipment- Accumulated depreciation - $368,000 55,100 375,000 271,503 Common Stock - Retained Earnings - Check Figures: *Total Assets = $1,050,550 *Cost per Unit = $100.00 *Net income for the full year = $313,904 *Ending Cash Balance = $42,508 NOTE: Budget Year = 2025 Prior Year = Following year = 2026 2024 Make sure your spreadsheet is fully connected from section to section, I will check to make sure your income statement updates automatically when the sales data is changed the net income should automatically update. Spreadsheet Connectivity Test: I will test your spreadsheet by changing the unit-selling price to $150, when this change is made the Net Income should be $1,039.404. Hint: Be sure to include the impact to your cash budget to determine if you still need to borrow cash. All changes should update automatically with the price change to get full points. Data Computer Company manufactures hard drives for servers for all the major computer companies. Below you will find the information for their 2025 budget. Use the following information to create the Quarterly budgets including the full year total for the year 2025 and include the following items: • Sales Budget • Production Budget (Including: Direct Material, Direct Labor, Manufacturing Overhead) • Operating Expenses Budget • Budgeted Income Statement (Include the calculation of the cost per unit) • Capital Budget • Combined Cash (Including: Cash Receipts and Cash Disbursements) • Budget Balance Sheet Data Required to Complete the Requirements Above Quarter 3 Quarter 1 Quarter 2 Full Year Quarter 4 Sales Budget: Expected Unit Sales 5,000 6,000 8,000 10,000 29,000 Each unit sells for $125 65% collected in quarter sold, 35% collected in following quarter. Production Budget: Ending Inventory should be 20% of the next quarter's unit sales. • The expected unit sales for Quarter 1 of 2026 are 11,000 units. Direct Material Budget: • Ending materials Inventory should be 10% of the next quarter's production requirements. • The production of the drives requires 2.5 pounds of material costing $7 per pound • The expected production requirements for Quarter 1 of 2026 is 28,050 pounds • 50% of purchases are paid in quarter of purchase and the remaining 50% is paid the following quarter Direct Labor Budget: The required direct labor hours per unit are 3 hours. • The average cost per direct labor hour is $20. • Paid 100% in the quarter it was incurred Manufacturing Overhead Budget: Variable Costs -Calculated based on the direct labor hours used, rates are as follows: NOTE: All items are expected to be paid in the quarter in which it was incurred except for Depreciation! • Indirect Material - • Indirect Labor - $2.00 per direct labor hour $1.30 per direct labor hour $1.20 per direct labor hour $0.50 per direct labor hour Utilities - Maintenance - Fixed Cost per quarter includes: • Supervisor Salaries - • Depreciation - • Property Taxes & Insurance Maintenance - $30,000 4,500 (Assume this includes the New Asset Purchase. No Changes!) 15,000 7,150 Operating Expenses: NOTE: All items are expected to be paid in the quarter in which it was incurred except for Depreciation! Variable Expenses - Calculated based on units of sales • Sales Commissions - Freight Out - Fixed Expenses per quarter: Advertising - Sales Salaries- $4.50 $2.00 $7,000 25,000 Office Salaries - 12,500 Depreciation- Property Tax Insurance - 3,500 3,000 Income Taxes Estimate for full year is $18,000 and is expected to be paid evenly each quarter. Interest Expense for the full year is estimated to be $500 and used when repaying borrowed funds. Combined Cash Budget detail information: 1. Cash balance as of Jan 1, 2025 is expected to be $125,000 and Data's cash on hand policy requires them to have a minimum of $15,000 on hand at the end of each month. 2. Account receivable balance for Dec 31, 2024 is $110,000 and is expected to be collected in the first quarter of 2025. 3. Short-term investments are planned to be sold for $25,000 cash in the first quarter. 4. Accounts payable balance of $35,500 at Dec 31, 2024 is planned to be paid in full in the first quarter of 2025. 5. Management plans to purchase a truck in the second quarter for $50,000. 6. Income tax payments are made quarterly by Data based on the estimated annual amount. 7. Loans are repaid with interest in the earliest quarter possible in which there is a sufficient amount of cash on hand after meeting the $15,000 minimum requirement. Loans are borrowed in $1,000 increments. Balance Sheet Data Needed: Balances as of Dec 31, 2024 Building and Equipment- Accumulated depreciation - $368,000 55,100 375,000 271,503 Common Stock - Retained Earnings - Check Figures: *Total Assets = $1,050,550 *Cost per Unit = $100.00 *Net income for the full year = $313,904 *Ending Cash Balance = $42,508 NOTE: Budget Year = 2025 Prior Year = Following year = 2026 2024 Make sure your spreadsheet is fully connected from section to section, I will check to make sure your income statement updates automatically when the sales data is changed the net income should automatically update. Spreadsheet Connectivity Test: I will test your spreadsheet by changing the unit-selling price to $150, when this change is made the Net Income should be $1,039.404. Hint: Be sure to include the impact to your cash budget to determine if you still need to borrow cash. All changes should update automatically with the price change to get full points.
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
How would you value a hot dog stand in midtown Manhattan using a discounted cash flow analysis Please answer the question following the requirements below Step 1: Calculate and Calculate and then...
-
locate the "Depreciation Policy" worksheet in the downloaded Excel file and enter the useful life of each asset category as given below: Asset Category Land Buildings Equipment Furniture Land...
-
Could somebody help me with part (ii)? I don't fully understand what they're asking. In the triangle ABC, |ABC| = 30, |BC| = 15 cm and |AC| = 53 cm (i) Find two values for |BAC|. (ii) Calculate the...
-
Tony acquired 1,000 shares in X Co (a resident public company) for $10 each in August 2000. In January this year X Co returned $7 of capital to its shareholder in respect to each share they held. The...
-
Tire and automobile manufacturers and consumer safety experts all recommend that drivers maintain proper tire pressure in their cars. Consequently, many gas stations now provide air pumps and air...
-
In 1995, Abraham AS completed the construction of a building at a cost of 1,900,000 and first occupied it in January 1996. It was estimated that the building would have a useful life of 40 years and...
-
Clarify the difference between risk and regret.
-
Tom Loper is an accounting major at a midwestern state university located approximately 60 miles from a major city. Many of the students attending the university are from the metropolitan area and...
-
Gordon Growth Company is expected to pay a dividend of $3.4 next period and dividends are expected to grow at 3% per year. The required return is 11%. What is the current price? What is the value of...
-
Toms, Inc., produces various Mexican food products and sells them to Western Foods, a chain of grocery stores located in Texas and New Mexico. Toms, Inc., makes two salsa products: Western Foods...
-
Spend approximately 30 minutes using the LIRN library and find an example of either a quantitative or qualitative research article. You can access the LIRN Library in the Canvas navigation bar....
-
Pierre is 24 years old and has always lived in Quebec. Upon graduation from Concordia last year, he landed a fantastic full-time job and decided to spend his pay cheques on buying a BMW for his first...
-
Muiz Berhad is a food product manufacturing company. The following is information related to production costs. Variable costs per unit Direct raw materials Direct labor Factory overhead Annual fixed...
-
Net sales RINGLING COMPANY Income Statement For the Year Ended December 31, 2824 Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Interest expense Income tax expense...
-
1.How would you adjust the broker's pro forma assumption for each property? Be sure to justify any changes you suggest and provide sources that support your view. 2.Using the format presented in...
-
On January 1, 2024, Al-Mahed Company issued 1,000, 14%, 10-year $1,000 bonds at 105. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 102, and...
-
In this podcast Suze was talking about the language of Money in retirement she talked alot about the different types of retirement in a private or public sector settings and how it might range...
-
What is the difference between the straight-line method of depreciation and the written down value method? Which method is more appropriate for reporting earnings?
-
The accompanying diagram shows the anticipated cash dividends for Delta Electronics over the next four years. John is interested in buying some shares of this stock for a total of $100 and will hold...
-
You are considering an investment costing $250,000. If you want to recover the initial investment, and also earn 12% interest while your money is being tied up within three years, what is the...
-
Suppose you have the alternative of receiving either $5,000 at the end of five years or P dollars today. Currently, you have no need for the money, so you could deposit the P dollars into a bank...
-
Is an oscillating object in translational equilibrium?
-
If you photograph a flock of birds taking off from ground level, some of the wings will be blurred in the photograph even though the bodies are in focus. In which wing positions are the wings least...
-
Plot kinetic energy and potential energy as a function of time for the cart in Figure 15. 2. Data from Figure 15. 2 (a) t=0 5=0 (b) 0.09 s (c) 0.18 s x=0 E (d) 0.27 s E K U K U KU KU
Study smarter with the SolutionInn App