Sales Budget

1
Expected sales in units
Unit sales price
Total sales

800
80
$64,000

700
80
$56,000

Schedule of Expected Cas

Accounts receivable 31/12/2006
1st quarter sales
2nd quarter sales
3rd quarter sales
4th quarter sales
Total cash collection

$9,500
44,800

$54,300

17,920
39,200

$57,120

9500
70
28

Production Budget
Planned sales
Desired ending Inventory
Total needs
Less: Beginning inventory
Units to be produced

800
70
870
80
790

700
90
790
70
720

10

Direct Material Budget

Units to be produced
Material needs per unit (pounds)
Material needs for production
Desired ending inventory of material
Total needs
Less: beginning inventory of materials
material to be purchased
Unit price
Purchase cost

790
3
2370
216
2586
237
2349
$2
$4,698

720
3
2160
267
2427
216
2211
$2
$4,422

10

Schedule of Expected Cas

Accounts payable 31/12/2006
1st quarter purchases
2nd quarter purchases
3rd quarter purchases
4th quarter purchases
Total disbursements
2200
50

$2,200
2,349

$4,549

2,349
2,211

$4,560

Direct Labor Budget

Units to be produced
Direct labor hours per unit
Total hours
Direct labor cost per hour
Total direct labor cost

790
5
3,950
$5
$19,750

Budgeted direct labor hours

Variable overhead rate
Variable overhead budgeted
Fixed overhead budgeted
Total budgeted overhead
Less: Depreciation
Cash disbursements for overhead

3,950
$2
$7,900
6,000
$13,900
3,250
$10,650

720
5
3,600
$5
$18,000

Factory Overhead Budget

3,600
$2
$7,200
6,000
$13,200
3,250
$9,950

Selling and Administrative

Expected sales in units
Variable Selling & Admin Expense per unit
Budgeted variable expense
Fixed selling & Admin expenses:
Advertising
Insurance
Office salaries
Rent
Taxes
Total budgeted selling and admin expenses

800
$4
$3,200

700
$4
$2,800

1,100
2,800
8,500
350

1,100

$15,950

$12,750

8,500
350

Cash Budget
Cash balance, Beginning
Add: Receipts:
Collection from customers
Total cash available
Less: Disbursements:
Direct Materials
Direct labor
Factory overhead
Selling and administrative
Machinery Purchase
Income tax
Total disbursements
Cash surpls (deficit)
Financing:
Borrowing
Repayment
Interest
Total financing
Cash balance, ending

Note:

$10,000

$9,401

$54,300
$64,300

$57,120
$66,521

$4,549
$19,750
$10,650
$15,950

$4,560
$18,000
$9,950
$12,750
$24,300

$4,000
$54,899
$9,401

$69,560
$(3,039)
$8,500

$0
$9,401

$8,500
$5,461

1
2
3
4

500
10
Payment of interest would be paid along with repayment of principle
Minimum cash balance requirement is $ 5,000

Sales Budget
Quarters
3

900
80
$72,000

800
80
$64,000

Total
3200
80
$256,000

Schedule of Expected Cash Collection

15,680
50,400
$66,080

20,160
44,800
$64,960

$9,500
62,720
54,880
70,560
44,800
$242,460

800
100
900
80
820

3200
100
3300
80
3220

820
3
2460
250
2710
246
2464
$2
$4,928

3220
3
9660
250
9910
237
9673
$2
$19,346

Production Budget
900
80
980
90
890

Direct Material Budget

890
3
2670
246
2916
267
2649
$2
$5,298

Schedule of Expected Cash Disbursements

2,211
2,649
$4,860

2,649
2,464
$5,113

$2,200
4,698
4,422
5,298
2,464
$19,082

Direct Labor Budget

890
5
4,450
$5
$22,250

820
5
4,100
$5
$20,500

3220
5
16,100
$5
$80,500

Factory Overhead Budget

4,450
$2
$8,900
6,000
$14,900
3,250
$11,650

4,100
$2
$8,200
6,000
$14,200
3,250
$10,950

16,100
$2
$32,200
24,000
$56,200
13,000
$43,200

Selling and Administrative Expense Budget

900
$4
$3,600

800
$4
$3,200

3,200
$4
$12,800

1,100

1,100

8,500
350
1,200
$14,750

8,500
350
$13,150

4,400
2,800
34,000
1,400
1,200
$56,600

$5,461

$9,106

10000

$66,080
$71,541

$64,960
$74,066

$242,460
$252,460

$4,860
$22,250
$11,650
$14,750

$5,113
$20,500
$10,950
$13,150

$19,082
$80,500
$43,200
$56,600

$53,510
$18,031

$49,713
$24,353

$199,382
$53,078

$0
$24,353

$8,500
$(8,500)
$(425)
$(425)
$24,353

Cash Budget

$(8,500)
$(425)
$(8,925)
$9,106