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Computer Project Comprehensive Budget Project 2a Mueller's Backpacks Manufacturing Co. Mueller's Backpacks Manufacturing Co. produces nylon backpacks...

Hello, please help me with K.Classified Income Statement to N. Statement of Cash Flows.





Comprehensive Budget Project 2a
Mueller's Backpacks Manufacturing Co.
Mueller's Backpacks Manufacturing Co. produces nylon backpacks and larger packs to
sell to tourists visiting the Western United States and other tourist areas. The design of
the two products is unique and represents a breakthrough in the industry. The company is
completing its eighth year of operations and is preparing to build its master budget for the
coming year, 2020. The budget will detail each quarter's activity and the activity for the
year in total. The master budget will be based on the following information:
A. Projected 2020 unit sales for each quarter and for the first two quarters of
2021 are as follows:
First Quarter
Second Quarter 41,580
30 030
Third Quarter
Fourth Quarter
B. The selling price for the above quarters is projected at $55,00 per smaller bags
and $175.00 per larger bag
C. Mueller's carefully screens its customers and expects no uncollectable
accounts. For budget purposes, each quarter has the following collection
pattern: 10% of the total is cash sales/ 409% of the total will be collected later
come back
in the quarter of sale, 50%% of the total will be collected in the quarter
following the sale.
D. Mueller's ended the current year (2018) with a finished goods inventory of
25.410 smaller bags and 13,840 larger bags. Because of a discouraging
economic forecast, it plans to budget an ending inventory of fOl% of the next
quarter's unit sales. The company's ending Work-in-Process inventory is
expected to be $127 050 (this number will only be used in the Cost of Goods
Manufactured Statement and Balance Sheet).
E. The following are the budgeted standard costs to make 1 finished product,
Larger Backpacks
Direct Material
330/sq. yd.
@510.396 yd. 1.375 sq, yd. @510.396 yd.
.110 sq. yd. @$2.772 yd. .55 sq. yd.
@$2.772 yd
Direct Labor:
. 110 hr.
@520.79 hr. .165 hr.
(@ 520.79 hr.
.275 hr.
(@534.65 hr.
.44 hr.
(@534.65 hr.
Per Travel Bag
Per larger bag @53.58
Per travel
Per larger bag


F. The fixed overhead rate is based on a four year average and will be used only
to cost the projected finished goods inventory on the Income Statement and
Balance Sheet.
G. Mueller's will start the budget year with 7,219 sq. yards of nylon and 8,689
Sq. yards of lining. For budgeting purposes, the plan is to always have an
ending inventory of nylon equal to 30% of the next quarter's needs and lining
equal to 25% of next quarter's needs.
H. Mueller's buys raw material on account and plans to pay for 25% in the
quarter of purchase and the remaining 75% in the next quarter. The accounts
payable account consists only of the unpaid portion of the purchase of raw
I. Wages and salaries are paid on the last day of the month.
J. Fixed overhead is projected as follows and is paid for in the quarter incurred
(except for depreciation).
Depreciation $20,790 per qtr.
Property tax $4,274 per qtr.
Supervisory Salary $25,988 per qtr.
Insurance $1,444 per qtr.
K. Variable overhead is budgeted as follows and is paid for in the quarter
incurred. It is based on total units produced (small backpacks + larger
Indirect Materials $0.4851 per unit produced
Indirect Labor $1.9173 per unit produced
Maintenance $0.3696 per unit produced
Utilities $0.8085 per unit produced
L. Marketing expenses are as follows and are paid for in the quarter incurred.
Advertising $25,988 per qtr.
Commissions 5.0% of dollar sales
Salary $31,763 per qtr.
M. Fixed administrative expenses are as follows and are paid for in the quarter
incurred (except for depreciation).
Depreciation - $1,444 per qtr.
Officers' Salaries - $25,988 per qtr
Office Salaries - $18,625 per qtr
Office Rent - $2,490.47 per qur
Miscellaneous - $1,804.69 per qtr


N . The Balance Sheet ( unclassified, for the year just ending (2018) is as follows :`
$ 3:03, 240.0
Accounts Receivable
407. 010 0
Finished Goods Inventory - smaller
$70, 232
Finished Goods Inventory - larger
Work - in - process Inventory
235, 8:40
Nylon Inventory
123, 750
Lining Inventory*
Property , plant, and equip . (net)
$. 3. 520, 000
Total Assets
5. 6. 3 80.902
Liabilities :"
MECounts Parable
Income Tax Parable
$.1. 210, 000
Interest Payable
Dividends Parable
Short - lenin Debt
Stockholders Equity .`
Common Stock
$ 3. 300, 0 0^
Retained Earnings
$ 1. 651. 502
Total liabilities and Stockholder's Equity*
$ 6. 380.5017
U. In January. Mueller's expects to declare a $240, 0.010 dividend . It will be paid
" in the second quarter and & in the fourth quarter .
P. Mueller's also plans to purchase and pay for $125, 000 of Equipment during
Each quarter .
``. The income tax rate is 35%' and is paid on April 15 of the next year .
Required : Prepare the formal master budget schedules for each quarter of the coming
year , 2020 and for the year in total . Prepare formal financial statements for the year
only . The following components must be included :
1 2 .
_Sales budget
2 6. Production budget
3 6. Material purchases budget
4 d . Direct Labor budget
{{ . Variable Overhead budget
I f. Fixed Overhead budget
FB. Marketing budget
& h. General and Administration budget
9 1 .
`Cash budget
\ .
Schedule of Cost of Goods Manufactured ( annual only's
W k . !
Classified Income Statement ( annual only*
12 1 . Retained Earnings Statement ( annual only*
13. m . Classified Balance Sheet ( annual only ]
14.17. Statement of Cash Flows - indirect method ( annual only"

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