LO22-2, 3 P22-45. Developing a Master Budget for a Manufacturing Organization: Challenge Problem Computer Accessories Inc. assembles a computer networking device from kits of imported components. You have been asked to develop a quarterly and annual operating budget and pro forma income state- ments for next year. You have obtained the following information. Cambridge Business Publishers Module 22 Operational Budgeting and Profit Planning 22-38 Beginning-of-year balances Cash . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . ... . . ... $ 75,000 Accounts receivable (previous quarter's sales). . . . $245,000 Raw materials . . . . . . 950 kits Finished goods . . . . . . . . . . ... 1,500 kits Accounts payable (materials) $125,000 Borrowed funds. . . . . . . . . . . . . . . . . . . $ 30,000 Desired end-of-year inventory balances pg. 22-38 Raw materials . . 1,000 kits Finished goods . . . . . . . . . . . . . 1,600 kits Desired end-of-quarter balances Cash . . . . . . . . $ 30,000 Raw materials as a portion of the following quarter's production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.20 Finished goods as a portion of the following quarter's sales. . . . . 0.30 Manufacturing costs Standard cost per unit Units Unit price Total Raw materials . . . . . . . . . 1 kit $75.00 $75.00 Direct labor hours at rate. . . . . 0.50 hour $30.00 15.00 Variable overhead/labor hour. . 0.50 hour $ 5.00 2.50 Total standard variable cost. . . . . . . . . . . . . . $92.50 Fixed cost per quarter Cash . . . . . . $110,000 Depreciation . . . 15,000 Total . . . $125,000 Selling and administrative costs Variable cost per unit. . .. $8.00 Fixed costs per quarter Cash . . . $150,000 Depreciation . . .. 7,500 Total. . $157,500 Interest rate per quarter . 0.015 Portion of sales collected Quarter of sale . . . . . . . . . . . . 0.70 Subsequent quarter . 0.29 Bad debts . . .. 0.01 Portion of purchases paid Quarter of purchase . 0.60 Subsequent quarter 0.40 Unit selling price . . . . . $225.00 Sales forecast Quarter First Second Third Fourth Unit sales . . . 4,400 4,600 4,500 4,800 Additional information All cash payments except purchases are made quarterly as incurred. All borrowings occur at the start of a quarter. All repayments on borrowings occur at the end of a quarter. At the time the principal is repaid, interest is paid on the portion of principal that is repaid. Borrowings and repayments may be made in any amount. Required a. A sales budget for each quarter and the year. b. A production budget for each quarter and the year. C. A purchases budget for each quarter and the year. d. A manufacturing cost budget for each quarter and the year. e. A selling and administrative expense budget for each quarter and the year. f. A cash budget for each quarter and the year. g. A pro forma contribution income statement for each quarter and the year