Solve using this formula Bamboo Bat Company October 15, 2017 CCSU Consulting Tom

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Solve using this formula

Bamboo Bat Company October 15, 2017 CCSU Consulting Tom Verrengia, President, Bamboo Bat Company DATE: TO: FROM SUBJECT Master Budget for the fiscal year January 1, 2018 December 31, 2018 Our controller, Veronica Verrengia, is negotating with our bamboo suppliers in China. We need the Two-Tone Bat Division's Master Budget for 2018 for our corporate strategic planning process, and we cannot wait for Veronica's retum from China. We would like you to prepare the TWo-Tone Bat Division's Master Budget for 2018 The deliverables are as follows. 1. Sales budget, including a schedule of expected cash collections. 2 Production budget 3. Direct materials budget, including a schedule of expected cash disbursements for materials 4. Direct labor budget 5. Manufacturing overhead budget, with a calculation of a pre-determined overhead rate 6. Ending finished goods inventory budget calculating the expected value of the finished goods inventory as of December 31, 2018. 7. Selling and administrative expense budget 8. Cash budget. 9. Budgeted income statement for the year ended December 31, 2018. 10. Budgeted balance sheet for December 31, 2018. All the Master Budget schedules (except those marked with an asterisk) for the Two-Tone Bat Division should include a column for each quarter and a total column for the fiscal year. We only need annual totals for the budgeted financial statements (schedules 9 and 10) and we only need a year-end total for the value of finished goods inventory (schedule 6). The hard copies of these budget schedules should be delivered by November 11, 2017. You can print more than one schedule per page, but do not have a page break in the middle of a budget schedule. elke to be able to view an entire budget schedule without flipping back and forth between pages. Please also use a type font of between 10-12 points for printing. We also need you to submit (via e-mail) the Excel spreadsheet that you used to create the budget schedules you print so we can use the spreadsheet as a starting point for future budgets. Send the Excel spreadsheet as an email attachment. We need that spreadsheet file by November 10, 2017 as well I've attached a brief description of the Two-Tone Bat Division to the budget data Veronica gave me before she left for China. We eagerly await your results. Sincerely Tom Verrengia, President

Explanation / Answer

Please note per Chegg guidelines, 4 sub-parts have been answered.

1 Two-Tone Bat Division - Bamboo Bat Company Sales Budget For the Year 2018 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Budgeted sales in units 64000 88000 72000 84000 308000 Unit selling price $                  78 $                  78 $                  78 $                  78 $                      78 Budgeted Sales $ 4992000 6864000 5616000 6552000 24024000 Schedule of Expected Cash Collections Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Budgeted Sales $ 4992000 6864000 5616000 6552000 24024000 Collections for: Previous quarter (30%) 1250000 1497600 2059200 1684800 6491600 Current quarter (70%) 3494400 4804800 3931200 4586400 16816800 Total expected cash collections $ 4744400 6302400 5990400 6271200 23308400 2 Two-Tone Bat Division - Bamboo Bat Company Production Budget For the Year 2018 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Budgeted sales in units 64000 88000 72000 84000 308000 Ending FG inventory as percent of next quarter's budgeted sales (units) 35% 35% 35% Budgeted ending inventory (units) 30800 25200 29400 28000 28000 Budgeted unit sales for month 64000 88000 72000 84000 308000 Required production (units) 94800 113200 101400 112000 336000 Beginning inventory (units) 0 30800 25200 29400 0 Budgeted production in units 94800 82400 76200 82600 336000 3 Two-Tone Bat Division - Bamboo Bat Company Direct Materials Budget For the Year 2018 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Budgeted production in units 94800 82400 76200 82600 336000 Material required per unit of production (ounces) 38 38 38 38 38 Materials needed for production (ounces) 3602400 3131200 2895600 3138800 12768000 Ending DM inventory as percent of next quarter's production requirements (ounces) 12% 12% 12% Budgeted ending inventory (units) 375744 347472 376656 320000 320000 Total DM required (ounces) 3978144 3478672 3272256 3458800 13088000 Beginning inventory (ounces) 346000 375744 347472 376656 346000 Materials to be purchased (ounces) 3632144 3102928 2924784 3082144 12742000 Material price per ounce $               0.95 $               0.95 $               0.95 $               0.95 $                   0.95 Total cost of direct material purchases $ 3450537 2947782 2778545 2928037 12104900 Schedule of Expected Cash Disbursements for Materials Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Direct material purchases $ 3450537 2947782 2778545 2928037 12104900 Disbursements for: Previous quarter (40%) 920000 1380215 1179113 1111418 4590746 Current quarter (60%) 2070322 1768669 1667127 1756822 7262941 Total expected cash disbursements for materials $ 2990322 3148884 2846240 2868240 11853686 4 Two-Tone Bat Division - Bamboo Bat Company Direct Labor Budget For the Year 2018 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Budgeted production in units 94800 82400 76200 82600 336000 Direct labor hours required per unit 0.8 0.8 0.8 0.8 0.8 Total labor hours needed 75840 65920 60960 66080 268800 Direct labor rate per hour $                  16 $                  16 $                  16 $                  16 $                      16 Direct labor cost $ 1213440 1054720 975360 1057280 4300800

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