assignment is attached
Sheet1 O'Leary Corporation manufactures industrial dye. The company is preparing its 2021 Master Budget and has presented you with the following information: a. The projected December 31, 2020, balance sheet for the company is as follows: Cash$5,080Notes Payable$25,000 Accounts Receivable26,500Accounts Payable2,148 Raw Material Inventory800Dividends Payable10,000 Finished Goods Inventory2,104 Total Liabilities$37,148 Prepaid Insurance1,200Common Stock$100,000 Building$300,000Paid-in-Capital50,000 Accum. Deprectiation(20,000)280,000Retained Earnings128,536278,536 Total Assets$315,684 Total Liabilities and Stockholder's Equity$315,684 b. The Accounts Receivable balance at December 31, 2020 represents the remaining balances of November and December credit sales. Sales were $70,000 and $65,000, respectively in those two months. c. Estimated sales in gallons of dye for January through May 2021 are as follows: January8,000 February10,000 March15,000 April12,000 May11,000 Each gallon of dye sells for $12 d. The collection pattern for accounts receivable is as follows: 70 percent in the month of sale, 20 percent in the first month after the sale, and 10 percent in the second month after the sale. No bad debts are expected and they do not offer a cash discount. e. Each gallon of dye has the following standard quantities and costs for direct material and direct labor: 1.2 gallons of direct material x $0.80 per gallon …................................$0.96 .5 hours of direct labor x $6 per hour ….............................................$3.00 f.Variable overhead is applied to the product on a machine-hour basis. Processing one gallon of dye takes 5 hours of machine time. The variable overhead rate is $0.06 per machine hour. VOH consists entirely of of utility costs. The annual fixed overhead is $120,000; it is applied at $1 per gallon based on an expected annual capacity of 120,000 gallons. Fixed overhead per year is composed of the following costs: Salaries$78,000 Utilities12,000 Insurance - factory2,400 Deprecitation - factory27,600 Fixed overhead is incurred evenly throughout the year. g.There is no beginning Work in Process Inventory. All work in process is completed in the period in which it is started. Raw Material Inventory at the beginning of the year consists of 1,000 gallons of direct material at a standard cost of $0.80 per gallon. There are 400 gallons of dye in Finished Goods Inventory at the beginning of the year carried at a standard cost of $5.26 per gallon; direct material, $0.96; direct labor, $3.00; variable overhead $0.30; and fixed overhead $1.00 h.Accounts Payable relates solely to raw material and is paid 60 percent in the month of purchase and 40 percent in the month after purchase. No discounts are received for prompt payment i.The ending Finished Goods Inventory should include 5 percent of next month's sales. The ending inventory of raw materials also should be 5 percent of next month's needs. j.Selling and administrative costs per month are as follows: salaries, $25,000; rent, $7,000; and utilites, $800. These costs are paid in cash as incurred. Prepare the following: Sales budget Production budget Purchases budget Direct Labor budget Variable OH budget Schedule of Cash Receipts Schedule of Cash Payments