You are the newly hired Controller for Retro Vinyl. The proprietors of RV hired you due to your vast experience in the furniture industry, which now spans almost 25 years. Your first task is to create a master budget for the four quarters of the 2023 fiscal year, which begins January 1st and ends December 31st. The master budget must include the following detailed budgets: 1. A sales budget with a schedule of expected cash collections from sales. Show the budget by quarter and in total. 2. A production budget. Show the budget by quarter and in total. 3. A direct material purchase budget with expected cash disbursements for material purchases. Show the budget by quarter and in total. 4. A direct labor budget in dollars. Show the budget by quarter and in total. 5. A manufacturing overhead budget in dollars. Show the budget by quarter and in total. 6. An ending finished goods inventory budget. Show the budget by quarter and in total. 7. A selling, general, and administrative budget. Show the budget by quarter and in total. 8. A cash budget. Show the budget by quarter and in total. 9. A budgeted income statement for the period ending December 31. Use the absorption costing approach. 10.A budgeted balance sheet as of December 31.

Retro Vinyl Master Budget 1) Sales forecast: Q1: 200 units Q2: 300 units Q3: 400 units Q4: 500 units 2) Production budget: Q1: 200 units Q2: 300 units Q3: 400 units Q4: 500 units 3) Direct materials budget: Q1: 400 units @ $100 per unit Q2: 600 units @ $100 per unit Q3: 800 units @ $100 per unit Q4: 1,000 units @ $100 per unit 4) Direct labor budget: Q1: 200 hours @ $20 per hour Q2: 300 hours @ $20 per hour Q3: 400 hours @ $20 per hour Q4: 500 hours @ $20 per hour 5) Manufacturing overhead budget: Q1: $1,000 Q2: $1,500 Q3: $2,000 Q4: $2,500 6) Selling and administrative expense budget: Q1: $500 Q2: $750 Q3: $1,000 Q4: $1,250 7) Inventory Budget Q1:1,000 units Q2: 3,000 units Q3: 6,000 units Q4: 10,000 units 8) Cash budget: Q1: Beginning cash balance: $5,000 Receipts: Sale of cabinets: $20,000 Total receipts: $20,000 Disbursements: Materials: $10,000 Labor: $4,000 Overhead: $1,000 Selling and administrative expenses: $500 Total disbursements: $16,500 Ending cash balance: $8,500 Q2: Beginning cash balance: $8,500 Receipts: Sale of cabinets: $30,000 Total receipts: $30,000 Disbursements: Materials: $15,000 Labor: $6,000 Overhead: $1,500 Selling and administrative expenses: $750 Total disbursements: $24,250 Ending cash balance: $14,250 Q3: Beginning cash balance: $14,250 Receipts: Sale of cabinets: $40,000 Total receipts: $40,000 Disbursements: Materials: $20,000 Labor: $8,000 Overhead: $2,000 Selling and administrative expenses: $1,000 Total disbursements: $31,000 Ending cash balance: $19,250 Q4: Beginning cash balance: $19,250 Receipts: Sale of cabinets: $50,000 Total receipts: $50,000 Disbursements: Materials: $25,000 Labor: $10,000 Overhead: $2,500 Selling and administrative expenses: $1,250 Total disbursements: $39,750 Ending cash balance: $30,250 9) 9) Income statement: Q1: Revenue: $20,000 Cost of goods sold: $10,000 Gross profit: $10,000 Selling and administrative expenses: $500 Net income: $9,500 Q2: Revenue: $30,000 Cost of goods sold: $15,000 Gross profit: $15,000 Selling and administrative expenses: $750 Net income: $14,250 Q3: Revenue: $40,000 Cost of goods sold: $20,000 Gross profit: $20,000 Selling and administrative expenses: $1,000 Net income: $19,000 Q4: Revenue: $50,000 Cost of goods sold: $25,000 Gross profit: $25,000 Selling and administrative expenses: $1,250 Net income: $23,750) 10) Balance sheet: Assets: Cash: $30,250 Inventory: $25,000 Prepaid expenses: $1,000 Total assets: $56,250 Liabilities and Equity: Accounts payable: $10,000 Total liabilities: $10,000 Equity: Retained earnings: $46,250 Total equity: $46,250 Total liabilities and equity: $56,250 Q1 =quarterly 1 Q2 =quarterly 2 Q3 =quarterly 3 Q4= quarterly 4

Solved: You are the newly hired Controller for Retro Vinyl. The proprietors of

Home
questions and answers
you are the newly hired controller for retro vinyl the proprietors of

Question

You are the newly hired Controller for Retro Vinyl. The proprietors of RV hired you due to your vast experience in the furniture industry, which now spans almost 25 years. Your first task is to create a master budget for the four quarters of the 2023 fiscal year, which begins January 1st and ends December 31st. The mas