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Derry Manufacturing is prepaning its master budget for the first quarter of the upcoming year The following data pertain to Derry Manulacturing's operations (Click the icon to view the data) (1) (Click the icon to view additional data.) Read the requirements Requirement 1. Propare a schedule of cash colloctions for January. Fobruary, and March, and for the quartor in total Data table More info a. Actual sales in December wote $70,000. Seling price per uni is propoctod bo remain stable at $10 per unit ifroughout the tuudget period Saies iar the first five months of tho upcoming yoar are budgeled to be as follows B.5yles-aie 39ene cast and 70% credit Nl crodt sales are collectod in the month following the salo c. Deperiblimiflucturing has a policy that states that each morth's onding invontory of fnesthod goods should be 25% of tho Toliwice monttis sides (in units) d.Ot each propef diect material purcharses, 20% are paid for in the month of purchaso, while the remander is paid for en the rierilt folowing purchase 'Two pounds of diect material is noeded por unit at $2 oo per bound Ending imonfory of tiroct materuls should bo 10% of nexd moctith producton noods is D of Ther deoct labot rute per hoer 5$12 per hour. Al droci hbor is pad for in the menth in which the work is pertermed The direct latior todal cost lar each of the upcoming thioe motiths is ats foloens. e. Most of the labor at the manufacturing facilfy is indirect, but there is some diect labor incurred. The direct labor hours per uni is 0.01 . The direct labor rate per hour is $12 per hour. Al direct labor is paid for in the moeth in which the work is perlormed The direct laber total best for eactr of the upcoming three months is as follows W. Monthy manutactiining overhead costs are $5,000 for factory ront, $3,000 for other foced manutactunng expensers, and 5120 per gnit for variable maniulacturing overhead. No depreciatica is indudod in these figules. All expenses amo paid in the month Wherkit they are incured: 9. Cothpefir equipmont for the administrative offices wil be purchased in the upcoming quarlar in January, Derry Manutacturing Wil pucthase equigrment for 55,000 (cash), while February's cash axpendture will be $12,000 and March's cash expendture will be 516.009 n.Opirtalilg expenses are budgetod to be $1.00 per unit sold plus sexed operating expenses of $1,000 por month Ar operating exponsos ate paid in the month in which they are incured. No depreciation is induded in these figures L. Deprecialion on the buliang and equapenent for the general and administeative offices is budgoted to be $4,500 for me entre quarter, which includos depreciation on nerw acquisibons 1. Derry Manulachiang has a policy that the ending cash batance in each month must be at least 54,000. It has a ine of crodi With a local barik. The company can berrew in increments of $1,000 at the begining of each menth, up to a total cedstanding loan buiance of 5140,000 . The inderest rate on these koans is 1% per month simple inforest (not compounded) Tho carreany would pay down on the ine of crodt balance in increments of 51,000 if it has excess tunds at the end of the quartor The would pay qowe on the ine of croct balance in wicimeing woild alse pay the accumulated entecest at the end of the quarter on the funds borrened during the quartoc: k. The company's irepene tax rale is propected to be 30k of operating income less intorest expense. The conpureq purs 510 oco cash at the end of Fehruary in erstimatod twees Requirements 1. Prepare a schedule of cash collections for January. Februay, and March, and for the quaster in fotal. 2. Prepare a production budget (Hint Unit sales = Sales in dollars i Selling price per unit) 3. Prepare a direct materials budget. 4. Prepare a cash payments budpot lor the direct material purchuses from Requirement 3 , (Use the accounts payable balance at December 31 of pror year for the prior month payment in January. . 5. Prepare a cesh payments budgot for drect labor 6. Prepare a cash payments budpot for manufacturing owerhead costs. 7. Propate a cash payments budget lor operating expenses. 8. Prepare a combined cash budget. 9. Caiculate the budgeted manulacturing cost per unit iassume that bxod manufacturng owentead is budgeted to be $0 so por unit for the year) 10. Prepare a tadgeted income statement for the quatier ending March 31 (Hint Cost of goods sald = - Budgelnd cost of manutacturing one uni Number of units sold) Derry Manufacturing is prepaning its master budget for the first quarter of the upcoming year The following data pertain to Derry Manulacturing's operations (Click the icon to view the data) (1) (Click the icon to view additional data.) Read the requirements Requirement 1. Propare a schedule of cash colloctions for January. Fobruary, and March, and for the quartor in total Data table More info a. Actual sales in December wote $70,000. Seling price per uni is propoctod bo remain stable at $10 per unit ifroughout the tuudget period Saies iar the first five months of tho upcoming yoar are budgeled to be as follows B.5yles-aie 39ene cast and 70% credit Nl crodt sales are collectod in the month following the salo c. Deperiblimiflucturing has a policy that states that each morth's onding invontory of fnesthod goods should be 25% of tho Toliwice monttis sides (in units) d.Ot each propef diect material purcharses, 20% are paid for in the month of purchaso, while the remander is paid for en the rierilt folowing purchase 'Two pounds of diect material is noeded por unit at $2 oo per bound Ending imonfory of tiroct materuls should bo 10% of nexd moctith producton noods is D of Ther deoct labot rute per hoer 5$12 per hour. Al droci hbor is pad for in the menth in which the work is pertermed The direct latior todal cost lar each of the upcoming thioe motiths is ats foloens. e. Most of the labor at the manufacturing facilfy is indirect, but there is some diect labor incurred. The direct labor hours per uni is 0.01 . The direct labor rate per hour is $12 per hour. Al direct labor is paid for in the moeth in which the work is perlormed The direct laber total best for eactr of the upcoming three months is as follows W. Monthy manutactiining overhead costs are $5,000 for factory ront, $3,000 for other foced manutactunng expensers, and 5120 per gnit for variable maniulacturing overhead. No depreciatica is indudod in these figules. All expenses amo paid in the month Wherkit they are incured: 9. Cothpefir equipmont for the administrative offices wil be purchased in the upcoming quarlar in January, Derry Manutacturing Wil pucthase equigrment for 55,000 (cash), while February's cash axpendture will be $12,000 and March's cash expendture will be 516.009 n.Opirtalilg expenses are budgetod to be $1.00 per unit sold plus sexed operating expenses of $1,000 por month Ar operating exponsos ate paid in the month in which they are incured. No depreciation is induded in these figures L. Deprecialion on the buliang and equapenent for the general and administeative offices is budgoted to be $4,500 for me entre quarter, which includos depreciation on nerw acquisibons 1. Derry Manulachiang has a policy that the ending cash batance in each month must be at least 54,000. It has a ine of crodi With a local barik. The company can berrew in increments of $1,000 at the begining of each menth, up to a total cedstanding loan buiance of 5140,000 . The inderest rate on these koans is 1% per month simple inforest (not compounded) Tho carreany would pay down on the ine of crodt balance in increments of 51,000 if it has excess tunds at the end of the quartor The would pay qowe on the ine of croct balance in wicimeing woild alse pay the accumulated entecest at the end of the quarter on the funds borrened during the quartoc: k. The company's irepene tax rale is propected to be 30k of operating income less intorest expense. The conpureq purs 510 oco cash at the end of Fehruary in erstimatod twees Requirements 1. Prepare a schedule of cash collections for January. Februay, and March, and for the quaster in fotal. 2. Prepare a production budget (Hint Unit sales = Sales in dollars i Selling price per unit) 3. Prepare a direct materials budget. 4. Prepare a cash payments budpot lor the direct material purchuses from Requirement 3 , (Use the accounts payable balance at December 31 of pror year for the prior month payment in January. . 5. Prepare a cesh payments budgot for drect labor 6. Prepare a cash payments budpot for manufacturing owerhead costs. 7. Propate a cash payments budget lor operating expenses. 8. Prepare a combined cash budget. 9. Caiculate the budgeted manulacturing cost per unit iassume that bxod manufacturng owentead is budgeted to be $0 so por unit for the year) 10. Prepare a tadgeted income statement for the quatier ending March 31 (Hint Cost of goods sald = - Budgelnd cost of manutacturing one uni Number of units sold)

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