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Font 5 Paragraph 1: 12:13:1415 116 117 118 110 111 112 13 14 15 16 17 18 1.19 Styles Totale sing and are expenses are as follows Sameau Manufacturing produces and distributes a special type of chemical compound called Compound W. The formation below about area's operations has been assembled to budget preparation The company is preparing its master budget for the first quarter of 2020. The budget wild each mont's activity and the activity for the water in total The master budget wil be based on the following woman a Seling price is 555 per un in 2015 and will not change for the first two quarter of 2020 Actual and estimated sales are as follows Advertising 5100 15.000 250 3.600 HO Variable sing and administrative expenses consist of 54 for shipping and 10% of sales for comissions February The company will cases for use in the sales office at a cost of $300,000, which will be paid at the end of January 2020 The balance sheets of December 31, 2019. stolews Actual 2017 Estimated 7070 November 11 000 1120 December 10.000 units 11000 March 10.000 units LATE 111500 und May 11100 b. The company produces enough units each month to meet that month's sales plus a desired Inventory level equal to 20% of next month's estimated sales Finished Goods inventory at the end of 2019 consisted of 2,200 units at a variable cost of 533 each The company purchases enough raw materias each month for the current month's production equirement and 25 of months production that is, the ending inventory of each moth, should be 25of the month's production requirements. Each und of productores grams of material 60 program. There were 13,500 Kilograms of raw materials inventory at the end of 2019. Gameau pays 40% of material purchases in the month of purchase and the remaining 60% in the following month d. Each und of freshed product requires 12 tabow-hours. The average wage rate is 16 per hous Asset 612.000 TC Accounts Receivable Inventor Materiais Finished Goods Plan and Equipment Les Acord Deprecation HO TO 1000000 HD DO 11.00 124000 900 000 Variate matching heads os of the direct labour cost 1 Credits we offer the company colects 50% of the credit sales during the first month following the month of sale and son during the second month Liabetes and EURY Accounts Payable GS Long Term Notes Payable Common Shares Tondo Fored overhead costs or more as follows: 15 Fada por LO Adrenalinformation as Alcash payments except purchases of raw materials are made ontwas incurred Alborrowings occur at the beginning of each month and repaymenco the end of the month You can repay he same that you borrow Borrowings and repayments may occur in any amount . Interest on operam Long Term Notes Patisered to be paid moet Am canh balance of 1,000 sed the end of each month Required: Prepare the following budgets for each of the first three months of 2020: 1. Sales Budget 2. Schedule of Expected Cash Receipts 3. Production Budget 4. Raw Materials Purchases Budget 5. Schedule of Cash Disbursements for Raw Materials. 6. Direct Labour Budget 7. Manufacturing Overhead Budget 8. Selling and Administrative Expense Budget. 9. Cash Budget B C D E F 3 Garneau Manufacturing Ltd. Sales Budget For the three months ending March 31, 2020 January February March 5 5 Quarter 7 Units 8 X Selling Price 9 Budgeted Sales 10 11 12 13 14 15 16 17 Cash Sales 18 Credit sales: 19 November 20 December 21 January 22 February 23 Total Cash Receipts 24 25 Garneau Manufacturing Ltd. Schedule of Expected Cash Receipts For the three months ending March 31, 2020 January February March Quarter 26 Quarter 5 6 -7 Garneau Manufacturing Ltd. 8 Production Budget -9 For the three months ending March 31, 2020 30 January February March 31 Budgeted sales in units 32 Add: desired ending inventory 83 Total needs 34 Less: beginning inventory 35 Production requirements in units 36 37 38 39 Garneau Manufacturing Ltd. 40 Raw Materials Purchases Budget 41 For the three months ending March 31, 2020 42 January February March 43 Production requirements in units 44 x kg of material per unit 45 Material production requirements 46 Add: desired ending inventory 47 Total material requirements 48 Less: beginning inventory 49 Raw materials to be purchased 50 x cost per kg 51 Cost of raw materials to be purchased 52 Quarter 53 14 55 Garneau Manufacturing Ltd. 66 Schedule of Expected Cash Disbursements for Raw Material Purchases 67 For the three months ending March 31, 2020 58 January February March Quarter 59 From December Accounts Payable 50 January purchases 51 February purchases 52 March purchases 53 Total cash disbursements for materials 64 65 66 67 Garneau Manufacturing Ltd. 68 Direct Labour Budget 69 For the three months ending March 31, 2020 70 January February March Quarter 71 Production requirements in units 72 x direct labour hours per unit 73 Total direct labour hours required 74 x rate per direct labour hour 75 Total direct labour cost 76 77 70 Quarter 78 79 Garneau Manufacturing Ltd. 30 Manufacturing Overhead Budget 81 For the three months ending March 31, 2020 82 January February March 83 Total direct labour cost 84 x 50% 85 Total variable manufacturing overhead 86 Total fixed manufacturing overhead 87 Total budgeted manufacturing overhead 88 89 90 91 Garneau Manufacturing Ltd. 92 Selling and Administrative Expense Budget 93 For the three months ending March 31, 2020 94 January February March 95 Sales in units 96 Sales in dollars 97 Variable: 98 Shipping 99 Commissions 100 Total 101 Fixed 102 Total budgeted selling and admin. exp. 103 Quarter 707 Quarter 03 04 Garneau Manufacturing Ltd. 105 Cash Budget 106 For the three months ending March 31, 2020 January February March 108 Cash balance, beginning 109 Total Cash Receipts 110 Total Cash Available 111 112 Operating cash payments: 113 Total Cash Disbursements for Materials 114 Direct labour 115 Variable overhead 116 Fixed overhead 117 Variable selling and administrative 118 Fixed selling and administrative 119 Purchase of equipment 120 Total 121 Net operating cash inflows (outflows) 122 Interest on notes payable 123 Excess (deficiency) of cash available 124 Borrowings 125 Repayments 126 Cash balance, ending 127 Garneau Manufacturing Budget