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Didston Manutacturhg is preparing lis mastar budget for the first quarier of the upooming yes. The followhg data pertah bo Dideson Manufacturlig's operaftons: Clek the leon to viow the data.) (Click the loon to view additonn data.) Read the roqurements. Data table More info a. Actuai sales in December weme $70,000. Seling price per unit is projoctod to remain stable at $10 per unlt throughout the budgot period. Sales for the first flve months of the upcoming yoar are budgeted to be as follows: D.Saves are 30% cash and 70% credit. All eredit tales ate colected in the month following the sale. c. Dickson Manulacturing has a policy that states that each month's ending inventory of finished goods ahould be 25% of the following month's sales (in units). d.Of each monthis direct material purchases, 20\% are pald for in the month of purchase, whilo the remainder is paid for in the month following purchase. Two pounds of direct materiat is needed per unit at $2.00 per pound. Ending invertory of ditect materlals should be 10% of next month's production needs. 6. Most of the Inbor at the manufacturing facility is indirect, but there is some dirnct labor incurmed. The direct labor hours por unit is 0.01. The direct labor rate per hour is $12 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: F. Monthly manulacturing ovehead costh are $5,000 for tactory rent, $3,000 for othar Sxed manufacturing expenses, and $1,20 per unit for variable manulacturing overhead. No depreciation is included in these foures. All expenses are peid in the month in which. they are incurred. g. Computer equipment for the adminlstrativo offoes wi be purchased in the upeoming quarter. In January. Dickson Manulacturing Will purchase equipment for $5,000 (cash) while Februacy's cath expenditure witl bo $12,000 and Marchs cash expendicure will be $16,000 h.Operating expenses are budgeted to be $1.00 per unit sold plua fixed oporating axpenses of $1,000 per monfh. Alr operathe expensos are pald in the month in which they are incurred. No depreciation is included in mese foures. 1. Deprociation on the bullding and equipment for the general and administratve oflices is budpeted to be 54,500 for the. entire quarter, which includet depreclation on new acquisilions. 1. Dickson Manulacturing has a policy that the anding cash balance in oach month must be at foast $4.000. At has a line of chedit whth a local bank. The company can bortow in increments of $1,000 at the beginghg of cach month up to a total outstonding loan balance of 5160,000 . The interest rate on these loans is 18 per monh sinple interes (not compoumded) The aompany would pay down on the ine of credit balance in increments of $1,000 if it has excess funds at fhe end of the cuarter the company would also pay the accumulated interest at the end of the quarter on ine funds borrowed ourvo the cuartet k. The company' income tax rate is projected to be 30% at operating income lass htocept expense. The compairy paye sto.coe. 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. (Use the accounts payable balance at December 31 of prior year for the prior month payment in January.) 5. Prepare a cash payments budgot 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). 10. 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.) Requirement 1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total. Didston Manutacturhg is preparing lis mastar budget for the first quarier of the upooming yes. The followhg data pertah bo Dideson Manufacturlig's operaftons: Clek the leon to viow the data.) (Click the loon to view additonn data.) Read the roqurements. Data table More info a. Actuai sales in December weme $70,000. Seling price per unit is projoctod to remain stable at $10 per unlt throughout the budgot period. Sales for the first flve months of the upcoming yoar are budgeted to be as follows: D.Saves are 30% cash and 70% credit. All eredit tales ate colected in the month following the sale. c. Dickson Manulacturing has a policy that states that each month's ending inventory of finished goods ahould be 25% of the following month's sales (in units). d.Of each monthis direct material purchases, 20\% are pald for in the month of purchase, whilo the remainder is paid for in the month following purchase. Two pounds of direct materiat is needed per unit at $2.00 per pound. Ending invertory of ditect materlals should be 10% of next month's production needs. 6. Most of the Inbor at the manufacturing facility is indirect, but there is some dirnct labor incurmed. The direct labor hours por unit is 0.01. The direct labor rate per hour is $12 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: F. Monthly manulacturing ovehead costh are $5,000 for tactory rent, $3,000 for othar Sxed manufacturing expenses, and $1,20 per unit for variable manulacturing overhead. No depreciation is included in these foures. All expenses are peid in the month in which. they are incurred. g. Computer equipment for the adminlstrativo offoes wi be purchased in the upeoming quarter. In January. Dickson Manulacturing Will purchase equipment for $5,000 (cash) while Februacy's cath expenditure witl bo $12,000 and Marchs cash expendicure will be $16,000 h.Operating expenses are budgeted to be $1.00 per unit sold plua fixed oporating axpenses of $1,000 per monfh. Alr operathe expensos are pald in the month in which they are incurred. No depreciation is included in mese foures. 1. Deprociation on the bullding and equipment for the general and administratve oflices is budpeted to be 54,500 for the. entire quarter, which includet depreclation on new acquisilions. 1. Dickson Manulacturing has a policy that the anding cash balance in oach month must be at foast $4.000. At has a line of chedit whth a local bank. The company can bortow in increments of $1,000 at the beginghg of cach month up to a total outstonding loan balance of 5160,000 . The interest rate on these loans is 18 per monh sinple interes (not compoumded) The aompany would pay down on the ine of credit balance in increments of $1,000 if it has excess funds at fhe end of the cuarter the company would also pay the accumulated interest at the end of the quarter on ine funds borrowed ourvo the cuartet k. The company' income tax rate is projected to be 30% at operating income lass htocept expense. The compairy paye sto.coe. 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. (Use the accounts payable balance at December 31 of prior year for the prior month payment in January.) 5. Prepare a cash payments budgot 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). 10. 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.) Requirement 1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total

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