B C D BMC Average sale for the past 3 year Quarter 1st 2nd 3rd 4th Sales in units 60,000 70,000 80,000 50,000 Company projected that sale will reduced by 10% this year due to market condition A. Sales budget - sale price $150 budgeted sale sale price 3 B. Cash receipts budget. 75% within the period; 20% next period: 5% doubtful debt 2 4th quarter of last year 8,000,000 3 C. Production budget. Begin + production - sale = ending BMC desires to have 15 percent of the current quarter's sales needs in finished goods inventory at the end of the next quarter. (On 31 December of last year, Binh Minh Corporation expects to have 14 750 units in inventory 15 D. Direct material budget 1 units need 1.25 kg materials 16 begin + purchased - needed - ending Direct material budget. (Note the desired ending inventory in the fourth quarter is 500 kilograms.) Each tile requires 1.25 kilograms of raw materials Binh Minh Corporation desires to have 10 percent of the next quarter's required raw material in inventory at the end of previous quarter. (On 31 December. Binh Minh Corporation expec 17 to have 500 kilograms of raw matenal in inventory) 18 E. Cash disbursement budget - materials Cash disbursements budget for raw material purchases. Assumed that the raw material price is $10 per kilogram The company buys its raw materials on account and pays 75 percent of the accounts payable during the quarter o purchase. The remaining 25 percent is paid during the following quarter. (The raw material purchases in the fourth 19 quarter of last year are expected to be $1,000,000) 20 F. Direct Labor Budget Prepare a Direct Labor Budget for the company Assumed it take 15 hours to complete unit. Cost per hour is $18 21 Sample Ready 21 Prepare a Direct Labor Budget for the company. Assumed it take 1.5 hours to complete unit. Cost per hour is $18 22 G. MOH Budget Prepare a MOH budget for the company assumed that the OAR is 115% of Direct Labor costs. = 5pts 24 H. Selling and Admin cost budget Selling and admin cost projected to be 80% of Direct labor cost. There is a fsted marketing fee for 4.000.0000 for each quarter Management salaries cost 1.000.000 each quarter 25 25 23 Lager 28
