Problem 204B r a given months ending finished goods inventory to equal 70 of the next months budgeted unit sales The June 30 finished goods inventory is 16800 units cRaw materials inventory consists solely of direct materials that cost 8 per pound Company policy calls for a given months ending materials inventory to equal 20 of the next months direct materials requirements The June 30 raw materials inventory is 4375 pounds The budgeted September 30 ending raw materials inventory is 1980 pounds Each finished unit requires 050 pound of direct materials dEach finished unit requires 050 hour of direct labor at a rate of 16 per hour eThe predetermined variable overhead rate is 270 per direct labor hour Depreciation of 20000 per month is the only fixed factory overhead item fMonthly general and administrative expenses include 9000 administrative salaries and 09 monthly interest on the longterm note payable gSales commissions of 10 of sales are paid in the month of the sales The sales managers monthly salary is 3500 hThe company budgets 30 of sales to be for cash and the remaining 70 on credit Credit sales are collected in full in the month following the sale no credit sales are collected in the month of sale iAll raw materials purchases are on credit and accounts payable are solely tied to raw materials purchases Raw materials purchases are fully paid in the next month none are paid in the month of purchase jDividends of 20000 are budgeted to be declared and paid in August kIncome Taxes Payable at June 30 are budgeted to be paid in July Income tax expense will be assessed at 35 in the quarter and budgeted to be paid in October lEquipment purchases of 100000 are budgeted for the last day of September mThe minimum ending cash balance for all months is 40000 If necessary the company borrows enough cash using a loan to reach the minimum Loans require an interest payment of 1 at each monthend before any repayment If the monthend preliminary cash balance exceeds the minimum the excess will be used to repay any loans Check 2 Units to produce July 17500 August 19700 3 Cost of direct materials purchases July 50760 10 Ending cash balance July 95855 August 140200 12 Budgeted total assets Sep 30 1054920 Required Prepare the following budgets for the months of July August and September except as noted below 1Sales budget 2Production budget 3Direct materials budget 4Direct labor budget 5Factory overhead budget 6Selling expense budget 7General and administrative expense budget 8Schedule of cash receipts from sales 9Schedule of cash payments for direct materials 10Cash budget 11Budgeted income statement for entire quarter not monthly 12Budgeted balance sheet at September 30