i need help with question 6,7 and 10. please

d. cost of goods sold budget VE 2* round the world PROBLEMS Problem 8.36 Operating Budget, Comprehensive Analysis Problem 8.36 Operating Budget, com Ponderosa, Inc., produces wiring harness assemblies used in the production of se trucks. The wiring harness assemblies are sold to various truck manufacturers around Frojected sales in units for the coming five months are given below. 10.000 January 10.500 February 13,000 March 16,000 April 18,500 May The following data pertain to production policies and manufacturing specifications foll by Ponderosa: a. Finished goods inventory on January 1 is 900 units. The desired ending inventory for month is 20 percent of the next month's sales. b. The data on materials used are as follows: Direct Material ( ) Per-Unit Usage Unit Cost Part #K298 Part #C30 cifications followed Inventory policy dictates that sufficient materials be on hand at the beginning of the month to satisfy 30 percent of the next month's production needs. This is exactly the amount of material on hand on January 1. c. The direct labor used per unit of output is one and one-half hours. The average direct labor cost per hour is $20. d. Overhead each month is estimated using a flexible budget formula. (Activity is measured in direct labor hours.) Fixed Cost Component Variable Cost Component $1.00 0.20 1.10 Supplies Power Maintenance Supervision Depreciation Taxes Other 12,500 14,000 45,000 4,300 86,000 1.60 16100 Chapter 8 Budgeting for Planning and Control y finds Mon Monthly selling and administrativ ve expenses are also estimated using a flexible budgeting a. (Activity is measured in units sold.) ent are a formula. (Activiti cash Fixed Costs $1.40 Variable Costs Salaries $ 88,500 Commissions Depreciation 25,000 Shipping 3.60 Other 137,000 1.60 The unit selling price of the wiring harness assembly is STION In February, the company plans to purchase land for future expansion. The land costs The unit se $68,000. All sales and purchases are for cash. The cash balance on January 1 equals S62.900. The firm wants to have an ending cash balance of at least 25.000. If a cash shortage develops, fficient cash is borrowed to cover the shortage and provide the desired ending balance. Any cash borrowed must be borrowed in S1,000 increments and is repaid the following month, as is the interest due. The interest rate is 12 percent per annum. Required: Prepare a monthly operating budget for the first quarter with the following schedules: 1. Sales budget 2. Production budget Direct materials purchases budget 4 Direct labor budget 5. Overhead budget 6. Selling and administrative expense budget 7. Ending finished goods inventory budget 8. Cost of goods sold budget 9. Budgeted income statement (ignore income taxes) 10. Cash budget OBJECTIVE d. cost of goods sold budget VE 2* round the world PROBLEMS Problem 8.36 Operating Budget, Comprehensive Analysis Problem 8.36 Operating Budget, com Ponderosa, Inc., produces wiring harness assemblies used in the production of se trucks. The wiring harness assemblies are sold to various truck manufacturers around Frojected sales in units for the coming five months are given below. 10.000 January 10.500 February 13,000 March 16,000 April 18,500 May The following data pertain to production policies and manufacturing specifications foll by Ponderosa: a. Finished goods inventory on January 1 is 900 units. The desired ending inventory for month is 20 percent of the next month's sales. b. The data on materials used are as follows: Direct Material ( ) Per-Unit Usage Unit Cost Part #K298 Part #C30 cifications followed Inventory policy dictates that sufficient materials be on hand at the beginning of the month to satisfy 30 percent of the next month's production needs. This is exactly the amount of material on hand on January 1. c. The direct labor used per unit of output is one and one-half hours. The average direct labor cost per hour is $20. d. Overhead each month is estimated using a flexible budget formula. (Activity is measured in direct labor hours.) Fixed Cost Component Variable Cost Component $1.00 0.20 1.10 Supplies Power Maintenance Supervision Depreciation Taxes Other 12,500 14,000 45,000 4,300 86,000 1.60 16100 Chapter 8 Budgeting for Planning and Control y finds Mon Monthly selling and administrativ ve expenses are also estimated using a flexible budgeting a. (Activity is measured in units sold.) ent are a formula. (Activiti cash Fixed Costs $1.40 Variable Costs Salaries $ 88,500 Commissions Depreciation 25,000 Shipping 3.60 Other 137,000 1.60 The unit selling price of the wiring harness assembly is STION In February, the company plans to purchase land for future expansion. The land costs The unit se $68,000. All sales and purchases are for cash. The cash balance on January 1 equals S62.900. The firm wants to have an ending cash balance of at least 25.000. If a cash shortage develops, fficient cash is borrowed to cover the shortage and provide the desired ending balance. Any cash borrowed must be borrowed in S1,000 increments and is repaid the following month, as is the interest due. The interest rate is 12 percent per annum. Required: Prepare a monthly operating budget for the first quarter with the following schedules: 1. Sales budget 2. Production budget Direct materials purchases budget 4 Direct labor budget 5. Overhead budget 6. Selling and administrative expense budget 7. Ending finished goods inventory budget 8. Cost of goods sold budget 9. Budgeted income statement (ignore income taxes) 10. Cash budget OBJECTIVE