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You have just been hired into a management position which requires the application of your budgeting skills. You find out that budgeting has not been a priority of the company. You have contacted various areas on the organization and have accumulated the information below to assist you in preparing a comprehensive budget. Manufacturing Inc. produces a part used in the production of engines. Actual Sales and Projected sales in units: March (Actual) 38,000 April 40,000 May 42,000 June 45,000 July 44,000 Sales are the following type: 51% 49% The following data pertains to the manufacturing process. 1. Finished goods inventory Desired ending finished goods for each month 2. Direct materials used: Direct Material Per-Unit Usage 8 Metal The beginning balance of each month needs to be able to produce Beginning material in pounds as of April 1st Direct materials paid in month purchased. 3. The direct labor used per unit Direct labor paid in month incurred. Cash sales collected in month of sale Credit sales collected in the following month of sale March 31st Cost per Pound $7 pounds 4 hours 80% 48% $14.00 32,000 units $148.71 of next month's sales volume of that month's estimated sales volume per hour 153,600 budgeted cost to make a unit 4. Overhead each month is estimated based on direct labor hours per variable cost. All costs that use cash are paid in month incurred. Fixed cost Variable cost $0.80 Supplies Power 0.60 Maintenance $20,000 0.40 15,000 Supervision Depreciation 19,000 Taxes 11,000 Total $65,000 $1.80 5. Monthly selling and administrative expenses are based on units sold per variable cost. All costs that use cash are paid in month incurred. Variable cost Fixed cost $30,000 Salaries $1 10,000 Commissions Depreciation Shipping Total 0.7 $40,000 $1.70 6. Unit selling price $200 per unit 7. Cash balance as of April 1st $60,000 Prepare the following second quarter budgets and answer the questions listed on the template provided on the BudgetSolution Worksheet. I have adapted the budget model to meet the needs of this company. If I bolded a line item, that is a header and does not need computation on that row. Please note the quarter column is for the quarter so not all lines should be added across in the quarter column. When you have beginning and ending inventory or cash balances this is for the quarter and should be brought over to the quarter column. 4. Manufacturing Cost budget per month and quarter. 5. Selling and administrative expenses budget per month and quarter. 6. Cash budget per month and quarter. #4 Manufacturing Cost Budget April Direct Materials: Production needs(pounds)--found on Budget 3 Cost per pound Total Cost of material issued to production Direct Labor: Units to be produced (Reference Budget 2) Direct labor time per unit (hours) Total hours needed Cost per hour Total cost of Direct Labor Manufacturing Overhead: Budgeted direct labor hours needed (Reference Row 51 above) Variable overhead rate Budgeted variable overhead Budgeted Fixed overhead Total Manufacturing Overhead Total Manufacturing Cost #5 Selling and Administrative Expenses Budget Budgeted Sales in units (Reference Budget 1) Variable Selling and Administrative expenses per unit Total variable expenses Fixed Selling and Administrative expenses Total selling and administrative expenses #6 Cash Budget Beginning cash Add Cash Collections of Sales: Cash sales collected in month sale Credit sales Collected in following month Total Cash receipts Cash Available Less Cash Disbursements: Purchases (Budget 3) Direct Labor (Budget 4) Overhead that uses cash. Selling and administrative expenses that use cash Total Cash Disbursements Ending Cash April April Manufacturing Cost Budget For quarter ended June 30, 20XX May June Manufacturing Inc. Selling and Administrative Expenses Budget For quarter ended June 30, 20XX May June Manufacturing Inc. Cash Budget For quarter ended June 30, 20XX May June Quarter Quarter Quarter