Sales

Budget
December
January
February
$ 5,917 $ 8,300 $ 9,900
$12
$12
$12
$71,000
$99,600
$118,800

Budgeted sales (units)

Selling price per unit
Budget sales (dollars)

Schedule of Cash Collections

Cash collections (35%)
Credit collections (65%)
Total Cash Collection

January
February
March
$ 34,860 $ 41,580 $ 40,320
46,150 64,740 77,220
$81,010
$106,320
$117,540

Prouction Budget
Sales in units
Add: ending inventory
Total units needed
Less: beginning inventory
Production in units

January
February
March
8,300

9,900

9,600

990
960
900
9,290

10,860 10,500
830
990
960
$8,460
$9,870
$9,540

Direct Materials Budget

Units to be produced
Quantity of DM needed per unit
Quantity of DM needed for production
Add: desired ending inventory of DM
Total quantity of DM needed
Less: beginning inventory of DM
Quantity of DM to purchase
Cost per pound
Total cost of DM purchases

January
8,460

3
25,380
5922
31,302
5076
26,226
2
$52,452

February
9,870

3
29,610
5724
35,334
5922
29,412
2
$58,824

Unit Sales
Desired End Inventory (10%)
Total needed
Beginning inventory
Units to produce
DM needed per unit
DM needed for production
20% of DM

April
May
$ 9,000 $ 8,600
860
9860
900
8960
3
26880
5376

March
9,540

3
28,620
5376
33,996
5724
28,272
2
$56,544

Cash Payments for Direct Materials Budget

January
February
March
$ 43,000
10,490 $ 41,962
11,765 $ 47,059
11,309
$53,490
$53,726
$58,368

December purchases
January purchases
February purchases
March purchases
Total disbursements

Direct Labor Budget

January
February
March
8,460

9,870

9,540

0.05
0.05
0.05
423 494 477

$9
$9
$9
$3,807
$4,442
$4,293

Production in units
DL hours per unit
Labor hours required
DL cost per hour
Total direct labor cost

Manufacturing Overhead Budget

January
February
March
8,460

9,870

9,540

$1.10
$1.10
$1.10
$ 9,306 $ 10,857 $ 10,494
8400
8400
8400
$17,706
$19,257
$18,894

Production in units
Variable Mfg. O/H rate
Variable Mfg. O/H costs
Fixed Mfg. O/H costs
Total Mfg. O/H costs

Selling and Administrative Expense Budget

Sales in units
Variable selling and Admin. Rate
Variable selling and Admin. Expense
Add: Fixed selling and Admin. Expense
Total selling and Admin expense

January
February
March
8,300

9,900

9,600

$1.25
$1.25
$1.25
$ 10,375 $ 12,375 $ 12,000
1800
1800
1800
$12,175
$14,175
$13,800

Cash Budget
Cash balance, beginning
Add cash collections
Total cash available
Less cash disbursements:
Material purchases
Direct labor

January
February
March
$ 4,600 $ 4,432 $ 4,952
81,010 106,320 117,540
$ 85,610 $ 110,752 $ 122,492

$ 53,490 $ 53,726 $ 58,368
3,807

4,442

4,293

 Mfg. O/H
Selling and Admin.
Equipment purchases
Taxes
Total disbursements
Excess (deficiency) of cash
Financing:
Borrowing
Repayments
Interest
Total financing
Cash balance, ending

17,706 19,257
12,175 14,175
5,000

12,200
10,000
$ 92,178 $ 113,800
$ (6,568) $ (3,048)

$ 111,955

$ 10,537

11,000 8,000

(6,000)
(180)

$ 11,000 $ 8,000 $ (6,180)
$ 4,432 $ 4,952 $ 4,357

Budgeted Manufacturing Cost Per Unit

Direct materials cost per unit
Direct labor cost per unit
Variable Mfg. O/H costs per unit
Fixed Mfg. O/H: $0.70 each
Cost of Mfg. one unit

$6
0.45
1.10
0.70
$8

Budgeted Income Statement

Sales
Less: CofGS
Gross margin
Less: Selling and Admin. Expenses
Depreciation
Operating Income
Less: interest expense
Less: provision for income tax (30%)
Net income

18,894
13,800
16,600

$ 333,600
(229,350)

$ 104,250
40,150
4,600

$ 59,500
(180)

17,670
$41,650

udget
March
April
May
Quarter(Jan-March)
$ 9,600 $ 9,000 $ 8,600 $ 27,800

$12
$12
$12
$12
$115,200
$108,000
$103,200
$333,600

Quarter
$ 116,760

188,110
$304,870

Quarter
27,800
900
28,700
830
$27,870

Quarter
27,870
3
83,610
5376
88,986
5076
83,910
2
$167,820

et
Quarter
$ 43,000
52,452
58,824
11,309
$165,585

Quarter
27,870
0.05
1,394

$9
$12,542

Quarter
27,870
$1.10
$ 30,657
25200
$55,857

et
Quarter
27,800
$1.25
$ 34,750
5400
$40,150

Quarter
$ 4,600
304,870
$ 309,470

$ 165,585

12,542

 55,857
40,150
33,800
10,000
$ 317,933

$ (8,463)
19,000
(6,000)
(180)

$ (6,180)
$ 4,357