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Skubas, Inc., manufactures and sells snowboards. Skubas manufactures a single model, the Pipex. In late 2020, Skubas's management accountant gathered the following data to prepare budgets for January 2021 : (Click the icon to view the budgeted balances and additional information pertaining to the cash budget.) (Clicktheicontoviewtheadditionalvariableandfixedicontoviewthematerialsand labor requirements, the direct materials inventories, and additional inventory information.) (Click the icon to view the following selected January manufacturing cost information.) Direct manufacturing labor cost, Variable manufacturing overhead and Ending inventory.) Requirement 1. Prepare a cash budget for January 2021. Show supporting schedules for the calculation of collection of receivables and payments of accounts payable, and for disbursements for fixed manufacturing and operating (nonmanufacturing) overhead. Begin by preparing the supporting schedule for the calculation of collection of receivables. Next prepare the supporting schedule for the payments of accounts payable. Schedule of Cash Payments for Accounts Payable Prepare the supporting schedule for disbursements for fixed manufacturing and operating (nonmanufacturing) overhead. Schedule of Cash Payments for Fixed Overhead Prepare a cash budget for January 2021. (If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.) Requirement 2 . Skubas is interested in maintaining a minimum cash balance of $140,000 at the end of each month. Will Skubas be in a position to pay the $130,000 dividend on January 31 ? be in a position to pay the $130,000 dividend on January 31 . Requirement 3 . Why do Skubas's managers prepare a cash budget in addition to the revenue, expenses, and operating income budget? Skubas's managers prepare a cash budget in addition to the operating income budget to If Skubas is profitable on an accrual accounting basis, Skubas's managers may then need to Building a profitable operating plan that adequate cash will be available. Requirement 4. Prepare a budgeted balance sheet for January 31, 2021 by calculating the January 31,2021 balances in (a) cash (b) accounts receivable (c) inventory (d) accounts payable and (e) plugging in the balance for stockholders' equity. Data table More info Variable manufacturing overhead is $17 per direct manufacturing labor-hour. There are also $54,000 in fixed manufacturing overhead costs budgeted for January 2021. Skubas combines both variable and fixed manufacturing overhead into a single rate based on direct manufacturing labor-hours. Variable marketing costs are allocated at the rate of $320 per sales visit. The marketing plan calls for 41 sales visits during January 2021. Finally, there are $38,000 in fixed operating (nonmanufacturing) costs budgeted for January 2021. Selected budgeted information for December 2020 follows: Customer invoices are payable within 30 days. From past experience, Skubas's accountant projects 45% of invoices will be collected in the month invoiced, and 55% will be collected in the following month. Accounts payable relates only to the purchase of direct materials. Direct materials are purchased on credit with 35% of direct materials purchases paid during the month of the purchase, and 65% paid in the month following purchase. Fixed manufacturing overhead costs include $37,000 of depreciation costs and fixed operating (nonmanufacturing) overhead costs include $14,000 of depreciation costs. Direct manufacturing labor and the remaining manufacturing and operating (nonmanufacturing) overhead costs are paid monthly. Data table Skubas' CEO expects to sell 3,500 snowboards during January 2021 at an estimated retail price of $950 per board. Further, the CEO expects 2021 beginning inventory of 800 snowboards and would like to end January 2021 with 900 snowboards in stock. Other data include: The inventoriable unit cost for ending finished-goods inventory on December 31,2020 , is $190.00. Assume Skubas uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process in your calculations. Reference Ending Inventories Budget For January 2021 Finished goods Snowboard Total ending inventory Skubas, Inc., manufactures and sells snowboards. Skubas manufactures a single model, the Pipex. In late 2020, Skubas's management accountant gathered the following data to prepare budgets for January 2021 : (Click the icon to view the budgeted balances and additional information pertaining to the cash budget.) (Clicktheicontoviewtheadditionalvariableandfixedicontoviewthematerialsand labor requirements, the direct materials inventories, and additional inventory information.) (Click the icon to view the following selected January manufacturing cost information.) Direct manufacturing labor cost, Variable manufacturing overhead and Ending inventory.) Requirement 1. Prepare a cash budget for January 2021. Show supporting schedules for the calculation of collection of receivables and payments of accounts payable, and for disbursements for fixed manufacturing and operating (nonmanufacturing) overhead. Begin by preparing the supporting schedule for the calculation of collection of receivables. Next prepare the supporting schedule for the payments of accounts payable. Schedule of Cash Payments for Accounts Payable Prepare the supporting schedule for disbursements for fixed manufacturing and operating (nonmanufacturing) overhead. Schedule of Cash Payments for Fixed Overhead Prepare a cash budget for January 2021. (If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.) Requirement 2 . Skubas is interested in maintaining a minimum cash balance of $140,000 at the end of each month. Will Skubas be in a position to pay the $130,000 dividend on January 31 ? be in a position to pay the $130,000 dividend on January 31 . Requirement 3 . Why do Skubas's managers prepare a cash budget in addition to the revenue, expenses, and operating income budget? Skubas's managers prepare a cash budget in addition to the operating income budget to If Skubas is profitable on an accrual accounting basis, Skubas's managers may then need to Building a profitable operating plan that adequate cash will be available. Requirement 4. Prepare a budgeted balance sheet for January 31, 2021 by calculating the January 31,2021 balances in (a) cash (b) accounts receivable (c) inventory (d) accounts payable and (e) plugging in the balance for stockholders' equity. Data table More info Variable manufacturing overhead is $17 per direct manufacturing labor-hour. There are also $54,000 in fixed manufacturing overhead costs budgeted for January 2021. Skubas combines both variable and fixed manufacturing overhead into a single rate based on direct manufacturing labor-hours. Variable marketing costs are allocated at the rate of $320 per sales visit. The marketing plan calls for 41 sales visits during January 2021. Finally, there are $38,000 in fixed operating (nonmanufacturing) costs budgeted for January 2021. Selected budgeted information for December 2020 follows: Customer invoices are payable within 30 days. From past experience, Skubas's accountant projects 45% of invoices will be collected in the month invoiced, and 55% will be collected in the following month. Accounts payable relates only to the purchase of direct materials. Direct materials are purchased on credit with 35% of direct materials purchases paid during the month of the purchase, and 65% paid in the month following purchase. Fixed manufacturing overhead costs include $37,000 of depreciation costs and fixed operating (nonmanufacturing) overhead costs include $14,000 of depreciation costs. Direct manufacturing labor and the remaining manufacturing and operating (nonmanufacturing) overhead costs are paid monthly. Data table Skubas' CEO expects to sell 3,500 snowboards during January 2021 at an estimated retail price of $950 per board. Further, the CEO expects 2021 beginning inventory of 800 snowboards and would like to end January 2021 with 900 snowboards in stock. Other data include: The inventoriable unit cost for ending finished-goods inventory on December 31,2020 , is $190.00. Assume Skubas uses a FIFO inventory method for both direct materials and finished goods. Ignore work in process in your calculations. Reference Ending Inventories Budget For January 2021 Finished goods Snowboard Total ending inventory

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