April May June Second Qtr. July August Sales Budget Budgeted sales (units) Times selling price per unit Total Budgeted sales Schedule of Expected Cash Collections Accounts Receivable, beginning balance April sales May sales $ 251,550 $ 322,500 $ 307,020 $ $ 199,950 $112,875 19,500 25,000 23,800 68,300 24,500 18,600 Budgeted Sales Units: $ 12.90 $ 12.90 $ 12.90 $ 12.90 April 19,500 881,070 May 25,000 June 23,800 July 24,500 $ 44,950 $ 155,961 $ 88,043 June sales Total Cash Collections Production Budget S 44,950 244,004 312,825 $ 190,352 190,352 $ 200,911 $ 287,993 $ 303,227 $ 792,131 August Sales Price per Unit 18,600 $ 12.90 Budgeted sales (units) 19,500 25,000 23,800 68,300 24,500 18,600 Month following sale Plus desired ending inventory 3,250 3,094 3,185 3,185 2,418 Expected Cash Collections: Month of sale Uncollectible Total needs (units) 22,750 28,094 26,985 71,485 26,918 Less beginning inventory (2,535) (3,250) (3,094) (2,535) (3,185) March 31 Estimated A/R Balance Required production (units) 20,215 24,844 23,891 68,950 23,733 62% 35% 3% $ 44,950.00 Production: Direct Materials Budget Percentage of next month's production in ending inventory 13% Required production (units) Materials needed per unit (pounds) 20,215 6.0 Materials needed for production 121,290 24,844 6.0 149,064 Plus desired ending inventory (pounds) 17,888 17.202 23,891 6.0 143,346 17,088 68,950 6.0 413,700 17,088 23,733 6.0 Expected March 31 balance in units 2550 142,398 Bay Materials: Total Materials Needed 139,178 166,266 160,434 430,788 Less beginning inventory (pounds) (14,555) (17,888) (17,202) (14,555) Required Quantity: Total Materials to be Purchased (pounds) 124,623 148,378 143,232 416,233 Cost of Materials per pound Total cost of Materials to be purchased 0.38 $ 47,357 $ 0.38 56,384 $ 0.38 54,428 $ 0.38 158,169 Material (Pounds) Cost: Material (Pounds) 6 $ 0.38 Schedule of Expected Cash Disbursements Accounts Payable, beginning balance April purchases May purchases June purchases Total Cash Disbursements for Materials Direct Labor Budget Required production (units) Direct labor hours per unit Total direct labor hours needed Direct labor cost per hour Total direct labor cost Requirements for next month's budgeted raw materials inventory Beginning Balance (Estimated): Material (Pounds) Expected Cash Disbursements: Payments: Month of the purchase 12% 15,500 55% 45% Month following the purchase Accounts Payable March 31 Ending Balance $ 23,700.00