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Jamison and Co makes lightweight yoga mats. Jamison is preparing its budget for the second quarter of $2023.$

$1.$ Each mat sells for $$24.$ Sales in units are as follows:

February $12,500$ $$300,000$

March $13,600326,400$

April $13,500324,000$

May $14,000336,000$

June $15,500372,000$

July $16,000384,000$

August $16,000384,000$

In order to prevent stockouts they maintain an ending inventory at the end of each month. That inventory is $30\%$ of the following month$$s sales.

$2.$ The mats are made of a compound made of rubber and plastic which comes in a variety of colors and is made in India. Jamison buys the compound, rolls it flat, cuts the mats and stamps its logo on each one. Each mat requires $1\mathrm{.}8$ square yards of compound.

Because the compound comes from India, they require that a $20\%$ inventory of the following months production. The compound costs $$3\mathrm{.}25$ per square yard.

$3.$ Each mat requires $\mathrm{.}3$ hours of direct labor and Jamison pays its assembly line workers $$21$ per hour. Variable overhead includes inexpensive cording that is attached to the mats and is included in the Variable OH application rate of $$12$ per direct labor hour. Fixed manufacturing overhead is applied at $$9$ per direct labor hour.

$4.$ Delivery expenses are $7\%$ of sales and sales commissions are another $4\%.$ Fixed general and administrative are $$32,000$ per month and $50\%$ of that amount is depreciation.

$5.$ Sales are $30\%$ cash and $70\%$ on credit. The $70\%$ Credit sales are collected as follows:

a$.10\%$ of total sales in the month of sale

b$.50\%$ of total sales in the month following sale

c$.10\%$ of total sales in the second month following sale

$6.$ Payments for Purchases are made $25\%$ in the month of purchase and $75\%$ in the month following purchase. Purchases for March total $$65,300.$

$7.$ Jamison requires that a minimum of $$20,000$ remain in the bank at all times. If the balance drops below $$20,000$ Jamison borrows from it$$s line of credit in increments of $$1,000.$ It pays all borrowings back as soon as possible. There are no borrowings on the line of credit on April $1.$ The beginning cash balance on April $1$ is $$21,500.$

$8.$ Jamison expects to purchase new equipment in April totaling $$56,000$ and pays a $$65,000$ dividend in the last month of each quarter.

Requirements:

Using the template provided, prepare a master budget and financial budgets for Jamison for the months of April$-$June $2022,$ showing quarterly totals. These should include the following:

a$.$ Sales Budget

b$.$ Production Budget

c$.$ Materials purchases budget

d$.$ Direct labor Budget

e$.$ Manufacturing Overhead

f$.$ Selling, General and Administrative Budget

g$.$ Cost of Goods Sold Budget

h$.$ Budgeted Income Statement

i$.$ Cash receipts budget

j$.$ Cash payments budget

k$.$ Cash budget

All blue cells are for data input. Green cells are for formula input. I expect you to use Excel formulas whenever possible

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