Wayne Corporation Master Budget Project The company is preparing its budget for the coming year, 2022. The first step is to plan for the first quarter of that coming year. The following 2 information has been gathered from their managers. 3 4 Sales Information 5 Period 6 November, 2021 7 December, 2021 8 January, 2022 9 February, 2022 10 March, 2022 11 April, 2022 12 May, 2022 13 Unit selling price 14 15 Finished Goods Inventory Planning 16 The company likes to keep 15% of the next quarter's unit sales in finished goods ending inventory. 17 18 Accounts Receivable & Collections 19 Sales on Account 20 Collections Activity 21 Month of Sale 22 Month after Sale 23 Balance at 12/31/21 24 25 Materials Inventory Costs & Planning 30 Accounts Payable & Disbursements 31 Purchases on Account 32 Payment Activity 33 Month of Purchase 34 Month after Purchase 35 Balance at 12/31/21 36 37 Direct Labor & Costs Units 38 Time per Unit Production 39 Pay Rate/Hour $ $ $ 26 Direct Materials 27 Ingredient 28 The company likes to keep 12% of the material needed for the next month's production in raw materials ending inventory. 29 $ 93,000 Actual 83,000 Actual 91,000 Planned 92,000 Planned i 94,000 Planned 102,000 Planned 112,000 Planned 27.65 DI 100% 90% 10% 185,000.00 Amount Used per Unit 2 lb 100% 60% 40% 120,000 30 minutes 20.00 Grading guidelines are on the inst JOUL Cost $ 1.16 lb + 41 Manufacturing Overhead Costs 42 Variable costs per direct labor hour 43 Indirect materials 44 Indirect labor 45 Utilities. 46 Maintenance 47 Fixed costs per month Salaries 48 49 Depreciation 50 Property taxes 51 Insurance 52 Janitorial 53 54 Selling and Administrative Costs 55 Variable costs per unit sold 56 Fixed costs per month 57 Advertising 58 Insurance 59 Salaries 60 Depreciation 61 62 63 Income Taxes 64 65 66 67 Cash and Financing Matters 68 Cash Balance, 12/31/2021 69 2022 Minimum Balance Required 70 71 Monthly Dividends 72 Outstanding Shares 73 74 Line of Credit 75 Limit 76 77 78 79 80 81 Other fixed costs Accrued on Monthly Net Income Amounts Accrued Q4 2021 paid January 2022 $ $ $ S $ $ $ $ $ 0.20 0.30 0.45 0.25 42,000 16,800 2,675 1,200 1,300 1.10 15,000 14,000 72,000 25,000 3,000 40% rounded to nearest dollar 200,000 140,000 790,000 1.60 per share 5,000 1,200,000 1,000 9% Borrowing Increment Required Annual Interest Rate Borrowings occur on the First of Month Repayments occur on the Last of Month Interest accrues on the loan balance from the date of borrowing. Interest accrued is paid firs with each rebayment. Additional Item Fixed Asset Purchase Month $ 328,000 MarchE 2 1 4 5 Sales Budget 6 7 Expected Sales (units) Sellings Price/Unit 9 Expected Sales (5) 10 11 Production Budget 12 13 Expected Sales (units) 14 Desired Ending Inventoy (units) 15 Required Inventory (units) 16 Expected Beginning Inventory 17 Production Requirement (units) 18 19 Direct Materials Budget 20 21 Production Requrement (units) 22 Raw Material #Reqd/FGUnit 23 Raw Materials Required (Pounds (W) 24 Desired Ending Raw Mats Inv ( 25 Required Raw Mats Inv () 26 Expected Beg Raw Mats Inv() 27 Raw Materials Purchases Required () 28 Cost per Pound 29 Total Cost of Direct Materials Purchase 30 31 Direct Labor Budget 32 33 Production Requirement in Units 34 Required Labor/Units (Hours) 35 Budgeted Direct Labor (Hours) 36 Direct Labor Cost per Hour 37 Budgeted Direct Labor Cost 38 39 Manufacturing Overhead Budget 40 41 Budget Direct Labor (Hours) ook and Rake Ma Instructions Facts 2022 November December January February March April 2022 November December January February March April a e Wayne Corporation Master Budget Year Ended December 2022 01 01 02 02 $38 Student Solution 2022 03 2022 01 2022 03 + 04 3 2 04 04 Total Total Total May May