Question

Needing help with this! I have been working on this question for over 2 hours! If anyone could please help me out as it is due tomorrow morning at 8am! if you do ill be forever in debt!.

Homework: Chapter 9 Homework Score: 0.12 of 1 pt & P9-57A (similar to) Save 2 of 4 (3 complete) HW Score: 39.12%, 1.56 of 4 pts Question Help Dalton Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Dalton Manufacturing's operations EE (Click the icon to view the data.) Read the requirements Total quantity (pounds) needed Less: Beginning inventory of DM Quantity (pounds) to purchase Multiply by: Cost per pound Total cost of DM purchases Requirement 4. Prepare a cash payments budget for the direct material purchases from Requirement 3. (Round your answers to the nearest whole dollar.) 1 (Click the icon to view additional data.) 88.986 5,076 83,910 2.00 $ 52,452 $ 58,824 $ 56,544 $ 167,820 31,302 5,076 26,226 35,334 33,9 5,922 5,724 29,412 28,272 2.00 $ 2.00 $ 2.00 $ Dalton Manufacturing Cash Payments for Direct Materials Budget For the Quarter Ended March 31 Month January February March Quarter 20% of current month DM purchases 80% of last month's DM purchases Total cash payments Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Check Answer Requirements 1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total 2. Prepare a production budget. (Hint: Unit sales Sales in dollars/ Selling price per unit.) 3. Prepare a direct materials budget. 4. Prepare a cash payments budget for the direct material purchases from Requirement 3 5. Prepare a cash payments budget for direct labor. 6. Prepare a cash payments budget for manufacturing overhead costs 7. Prepare a cash payments budget for operating expenses 8. Prepare a combined cash budget. 9. Calculate the budgeted manufacturing cost per unit (assume that fixed manufacturing overhead is budgeted to be $0.80 per unit for the year). Prepare a budgeted income statement for the quarter ending March 31. (Hint: Cost of goods sold Budgeted cost of manufacturing one unit x Number of units sold.) 10. Print Done 4/15/2019 More Info a.Actual sales in December were $71,000. Selling price per unit is projected to remain stable at $12 per unit throughout the budget period Sales for the first five months of the upcoming year are hiudgeted to he as follows January February March April May $ 99,600 118,800 $115,200 $ 108,000 $ 103,200 b. Sales are 35% cash and 65% credit. All credit sales are collected in the month following the sale c. Dalton Manufacturing has a policy that states that cach month's cnding inventory of finishcd goods should bc 10% of thc following month's sales (in units). d.Of each month's direct material purchases, 20% are paid for in the month of purchase, while the remainder is paid for in the month following purchase. Three pounds of direct material is needed per unit at $2.00 per pound. Ending inventory of direct materials should be 20% of next month's production needs e.Most of the labor at the manufacturing facility is indirect, but there is some direct labor incurred. The direct labor hours per unit is 0.05. The direct labor rate per hour is $9 per hour. All direct labor is paid for in the month in which the work is performed. The direct labor total cost for each of the upcoming three months is as follows January February March $ 3,807 $4,442 $ 4,293 f. Monthly manufacturing overhead costs are $5,500 for factory rent, $2,900 for other fixed manufacturing expenses, and $1.10 per unit for variable manufacturing overhead. No depreciation is included in these figures. All expenses are paid in the month in which they are incurred g.Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Dalton Manufacturing will purchase equipment for $5,000 (cash), while February's cash expenditure will be $12.200 and March's cash expenditure will be $16,600 h.Operating expenses are budgeted to be $1.25 per unit sold plus fixed operating expenses of $1,800 per month. All operating i. Depreciation on the building and equipment for the general and administrative offices is budgeted to be $4,800 for the entire j. Dalton Manufacturing has a policy that the ending cash balance in each month must be at least $4.000. It has a line of credit with a expenses are paid in the month in which they are incurred. No depreciation is included in these figures. quarter, which includes depreciation on new acquisitions. local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $1 10,000. The interest rate on these loans is 1% per month simple interest (not compounded). The company would pay down on the line of credit balance in increments of $1,000 if it has excess funds at the end of the quarter. The company would also pay the accumulated interest at the end of the quarter on the funds borrowed during the quarter k. The company's income tax rate is projected to be 30% of operating income less interest expense. The company pays $10,000 cash at the end of February in estimated taxes.

Answer 1

1.

Schedule of Cash Collections	January	February	March	Quarter
Current Cash Sales	34,860	41,580	40,320	1,16,760
Plus collection from A/R	46,150	64,740	77,220	1,88,110
Total Collection	81,010	1,06,320	1,17,540	3,04,870

Sales budget	January	February	March	Quarter
Cash Sale	34,860	41,580	40,320	1,16,760
Sales on Account	64,740	77,220	74,880	2,16,840
Total Budgeted Sales	99,600	1,18,800	1,15,200	3,33,600

2.

Production Budget	January	February	March	Quarter	December
Sales Unit	8,300	9,900	9,600	27,800	5916.667
Plus Desired ending Inventory	990	960	900	2,850	830
Inventory Needed	9,290	10,860	10,500	30,650	6,747
Less: beginning Inventory	830.00	990	960	2,780	591.6667
Required Production	8,460	9,870	9,540	27,870	6,155

3.

Dirct Material Budget	January	February	March	Quarter
Required Production	8,460	9,870	9,540	27,870
Raw material per unit	3	3	3
Required Production	25,380	29,610	28,620	83,610
Add: Desired ending inventory	5,922	5,724	5,376	17,022
Raw material needed	31,302	35,334	33,996	1,00,632
Less : Opening	5,076	5,922	5,724	16,722
Raw Material Purchases	26,226	29,412	28,272	83,910
Cost per pound of direct material	2	2	2
Cost of Direct Material Purchases	52,452	58,824	56,544	1,67,820

4.

Cash Payments for Raw Material Inventory	January	February	March	Quarter
Payments of Current Month's A/P	10,490.40	11,764.80	11,308.80	33,564
Payments for Prior month's A/P	31,756.80	41,961.60	47,059.20	120777.6
Total Budgeted Payments for Raw Material purchases	42,247.20	53,726.40	58,368.00	1,54,341.60

5.

Direct Labor Cost Budget	January	February	March	Quarter
Direct labor cost	3,807.00	4442	4293	12,542.00
Total Payments for Direct labor	3,807.00	4,442.00	4,293.00	12,542.00

6.

Manufacturing overhead cost	January	February	March	Quarter
Factory rent	5500	5500	5500	16500
Other fixed manufacturing expense	2900	2900	2900	8700
Variable manufacturing overhead	9,306.0	10,857.0	10,494.0	30657
Total Cash Payments for Manufacturing expenses	17706	19257	18894	55857

7.

Cash Payment budget for operating expenses	January	February	March	Quarter
Operating expenses	10,375.00	12,375.00	12,000.00	34,750.00
Fixed Operating expense	1800	1800	1800	5,400.00
Total Cash Payments for operating expenses	12,175.00	14,175.00	13,800.00	40,150.00

8.

Cash Budget	October	November	December	Quarter
Beginning cash balance	4,600.00	4,674.80	4,194.40	4,600.00
Collections from customer	81,010.00	1,06,320.00	1,17,540.00	3,04,870.00
Total Cash available	85,610.00	1,10,994.80	1,21,734.40	3,09,470.00
Less: Payments
Purchase of raw material	42,247.20	53,726.40	58,368.00	1,54,341.60
Total Payments for Direct labor	3807	4442	4293	-
Total Cash Payments for Manufacturing expenses	17706	19257	18894	55,857.00
Total Cash Payments for operating expenses	12175	14175	13800	40,150.00
Purchase of computer equipment	5,000.00	12,200.00	16,600.00	33,800.00
Income tax expense		10000
Total Budgeted Payments	80,935.20	1,13,800.40	1,11,955.00	3,06,690.60
Cash balance before borrowings	4,674.80	-2,805.60	9,779.40	2,779.40
Financing
Borrowings/(Repayments)		7,000.00	-7,000.00	-
Interest			-140.00	-140
Ending cash balance	4,674.80	4,194.40	2,639.40	2,639.40

9.

Budgeted Manufacturing cost per unit
Direct Material cost	6
Labor cost	0.45
Variable manufacturing cost	1.1
Fixed manufacturing cost	0.8
Total Manufacturing cost per unit	$8.35

10.  

Income statement
Sales	3,33,600
Less: Variable expenses
Cost of goods sold	2,32,130
Contribution margin	1,01,470
Less: Operating expenses	40,150
Depreciation and	4,800
Net Operating Income	56,520
Less: Interest expense	140
Income before tax	56,380
Less: Income tax expense	16,914
Net Income after tax	$ 39,466