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Beginning$-$of$-$year balances

Cash $$10,000$

Accounts receivables $($previous fourth quarter's sales$)$ $$61,200$

Raw materials $653$ Kits

Finished Goods $510$ Units

Accounts payable$($purchases made in previous fourth quarter$)$ $$33,255$

Desired end$-$of$-$year inventory balances

Raw materials $500$ kits

Finished goods $270$ units

Desired end$-$of$-$quarter balances

Raw materials as a portions of the following quarter's production $18\%$

Finished goods as a portion of the following quarter's sales $14\%$

Manufacturing costs other than raw materials are paid in quarter incurred unless it is an noncash expense

Variable Standard cost per unit Unit of input Unit price per input Total cost per unit

Raw materials $1$ kit $$44$ $$44\mathrm{.}00$

Direct labor hours at rate $0\mathrm{.}6$ hour $$18$ $$10\mathrm{.}80$

Variable overhead$/$labor hour $0\mathrm{.}6$ hour $$4$ $$2\mathrm{.}40$

Total Variable Standard cost per unit $$57\mathrm{.}20$

Fixed overhead cost per quarter used cash $$18,000$

Manufacturing Depreciation per quarter $$2,000$

Selling and administrative costs are paid in quarter incurred unless it is an noncash expense

Variable cost per unit $$2$

Fixed selling and administrative cost per quarter used cash $$23,100$

Selling and administrative depreciation per quarter $$2,200$

Portion of sales collected

Collected in the quarter of sale $67\%$

Subsequent quarter $32\%$

Bad debts $1\%$

Portion of purchases paid

Paid in the quarter of purchases $66\%$

Subsequent quarter $34\%$

Unit selling price $$120$

Sales forecast

Quarter First Second Third Fourth

Unit sales $3,0002,5002,7003,200$Budget $1$

Budget :$2$

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