During $2024-2025$ fiscal year, the average selling price for large box cars is expected to be $(1)$ $$65$ per car. The Large Box Car Division forecasts the following units of sales.

Quarter First Second Third Fourth

Box Car UNIT Sales $(2-5)17,00020,00023,00027,000$

The collection pattern for Accounts Receivable is as follows:

o $(6)70$ percent of all sales are collected within the quarter in which they are sold

o $(7)30$ percent of all sales are collected in the following quarter.

o There are no bad debts$/$uncollectible accounts.

Due to high demand last year, the Large Box Car Division expects to have $(8)$ zero finished box cars in inventory on $(35)$ July $1,2024,$ the beginning of the first quarter of the new fiscal year $($i$.$e$.$ Beginning Finished Goods Inventory is $(8)$ Zero$).$ To avoid having that problem in the coming fiscal year, the Large Box Car Division would like to have the ending inventory of Box Car at the end of each of the first three quarters equal to $(9)20\%$ of the budgeted sales for the next quarter. They would like to have $(10)6,000$ finished Box Cars on hand on $(36)$ June $30,2025.$

Quarter First Second Third Fourth

Ending FG inventory of Box Cars as a $\%$ of the next quarter$$s budgeted sales $(9)20\%20\%20\%$

Ending FG inventory of Box Cars $(10)???6,000$

Each large box car requires an average of $(11)5\mathrm{.}0$ feet of wood. The Large Box Car Division buys wood for $(13)$ $$2\mathrm{.}00$ per foot and they expect the price to remain constant throughout the year. They expect to have $(12)8,000$ feet of wood $($RAW MATERIALS$)$ on hand as of $(35)$ July $1,2024((12)8,000*((13)$ $$2\mathrm{.}00=(14)$ $$16,000-$ This is beginning Direct Material Inventory$),$ the beginning of the first quarter of the fiscal year. At the end of each of the first three quarters, the Large Box Car Division would like to have their direct materials inventory quantity to equal $(15)15\%$ percent of the amount required for the following quarter$$s planned production. On $(36)$ June $30,2025,$ the end of the fiscal year, Large Box Car Division would like to have $(16)15,000$ feet of wood on hand $($This is ending Direct Material Inventory$)..$

Quarter First Second Third Fourth

Ending DM inventory as a $\%$ of the next quarter$$s production requirement $(15)15\%15\%15\%?$

Ending DM inventory in feet $(16)???15,000$

The Large Box Car Division buys its wood on account. It pays for $(17)40\%$ of its purchases of direct materials in the quarter in which they were purchased and $(18)60\%$ in the quarter after they were purchased.

Each large box car requires $(19)3$ hours of direct labor. Employees engaged in direct labor will be paid an estimated $(20)$ $$10\mathrm{.}00$ per labor hour. Wages and salaries are paid on the $15$th and $30$th of each month.

Variable manufacturing overhead is estimated to be $(21)$ $$2\mathrm{.}00$ per direct labor hour for the coming fiscal year. All variable manufacturing overhead expenses are paid for in the quarter incurred.

Fixed manufacturing overhead is estimated to total $(22)$ $$69,750$ each quarter, with $(23)$ $$15,000$ out of the total amount of $(22)$ $$69,750$ representing depreciation on machinery, equipment and the factory. All other fixed manufacturing overhead expenses are paid in cash in the quarter they occur. The fixed manufacturing overhead rate will be computed by dividing the year$$s total fixed manufacturing overhead by the year$$s budgeted direct labor hours. Round the fixed overhead rate to the nearest penny.

Variable selling and administrative expenses are estimated to be $(24)$ $$4\mathrm{.}00$ per box car sold. Fixed selling and administrative expenses are expected to total $(25)$ $$40,000$ each quarter, with $(26)$ $$20,000$ out of the total amount of $(25)$ $$40,000$ representing depreciation on the office space, furniture and equipment. Other than depreciation, all selling and administrative expenses are paid for in the quarter they occur.

On $(36)$ June, $2024,$ the last month of the $4$th quarter, the Large Box Car Division plans to buy new machinery and equipment for $(27)$ $$400,000.$ The new machinery and equipment will be acquired at the very end of the fiscal year, so it will not be used in production and sales during the coming year and it will not be depreciated until the following year. The Large Box Car Division expects to pay $(28)50\%$ down in cash and finance the remaining $(29)50\%$ of the equipment cost with a note payable from a local bank with whom they do business with. No interest payable will accrue on the equipment note payable until after $(36)$ June $30,2025.$ You must record the initial cost outlay for the entire cost of the new machinery as well as who the cost inflow related to the financing from the local bank.

The Division must maintain a minimum cash balance of $(30)$ $$70,000.$ If after accounting for cash receipts and disbursements $($including dividends$)$ in the cash budget, the budgeted cash available cash falls below $(30)$ $$70,000$ in any quarter, the Division will need to borrow cash. They have arranged a line of credit. create a master budget