USE EXCEL AND SHOW CELL REFRENCE OR SHOW CALCULATION TO ANSWERS IF USING A PAPER

USE EXCEL AND SHOW CELL REFRENCE OR SHOW CALCULATION TO ANSWERS IF USING A PAPER

You have recently been hired as a new managerial accountant for Organic Life Manufacturing Inc.. The company manufactures and distributes to retailers across North America a patented nutrition drink in four tasty flavours. You have been asked by the company Controller, Emily Seguin, to complete the following planning and control requirements while she is away at an industry conference next week. Required: Based on the sales assumptions provided by Emily in the Assumptions worksheet, as well as the remaining assumptions provided to you in Budgeting Assignment Instructions you have been asked to complete the 2022 master budget which will allow further cost-volume-profit analysis upon Emily's return. ASSUMPTIONS Organic Life Manufacturing Inc. Balance Sheet As at December 31, 2021 Assets Liabilities & Shareholders Equity $ $ Current Liabilities Accounts Payable Income taxes payable Bank loan payable 38,000 64,000 Cost per unit 5,100 $0.03 13,35 $8.90 120,450 32,100 6,200 15,000 53,300 170,000 grams cases Current Assets Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total current assets Land, buildings and equipment Land Buildings and equipment Less: Accumulated Depreciation Total land, buildings and equipment Total assets 100,000 S 860,000 180,000 680,000 780,000 $ 900,450 Shareholders' Equity Common shares Retained Earnings Total shareholders' equity Total liabilities and shareholders' equity 225,000 622,150 847,150 900,450 S Quarter 2022 2023 Quarter 2022 2023 First Second Third Fourth First Second Estimated Sales Units (cases of 24 Organic Life cans) Selling Price per unit 25,010 22,000 23,000 24,000 25,000 26,000 Collection of credit sales collected in the quarter of sale collected in the following quarter Accounts Receivable Dec. 31, 2021 will be collected in the first quarter of 2022 Desired Minimum Inventories Finished Goods Direct Materials of next quarter's sales in units of next quarter's Direct Materials (in grams) to meet production (in units) Manufacturing Costs: Variable Costs Direct material Direct Labour Variable Manufacturing Overhead grams per gram per hour hours of Direct Labour hours per quarter Fixed Costs Factory Rent Factory Insurance Supervisory Salaries Nepreciation per quarter Fixed Costs Factory Rent Factory Insurance Supervisory Salaries Depreciation Payment assumptions Direct Material Purchases quarter of purchase Direct Material Purchases quarter following the quarter of purchase Accounts Payable Dec. 31, 2021 will be paid in the first quarter of 2022 Direct Labour Variable Manufacturing Overhead Fixed Manufacturing Overhead Variable Selling & Administrative Fixed Selling & Administrative month expensed / incurred month expensed / incurred month expensed / incurred month expensed / incurred varies - see below Selling & Administrative Costs: Variable: Sales Commissions per unit sold Expense per Quarter Cash Disbursements per Quarter Second Third First Fourth Fixed : Advertising Executive salaries Insurance Property taxes Depreciation Selling & Administrative Costs: Variable: Sales Commissions per unit sold Expense per Quarter Cash Disbursements per Quarter Second Third First Fourth Fixed : Advertising Executive salaries Insurance Property taxes Depreciation Cash & Financing: Minimum Opening Cash Balance each quarter before interest payments on bank line of credit Financing: Maximum Revolving Bank Line of Credit Line of Credit borrowings Line of Credit repayments annual interest rate Quarterly interest rate assumed to occur, when necessary, at the beginning of the quarter assumed to occur, when possible, at the end of the quarter paid at the end of quarter based on the line of credit balance at the beginning of the quarter Quarter of Payment Second Third First Fourth Other Purchases, Expenses and Payments Equipment Purchases Cash Dividends Income tax instalments/payments Income tax expense (refund) of Quarterly Net Income before income tax expense