Hi I was having trouble with this budgeting question, it's just making sure it is budgeted correctly, can you also add the steps for this please!
Perky Turkey Jerky, LLC Balance Sheet March 31,2018 Assets Current Assets Cash 22,000.00 Accounts Receivable 9,000.00 Raw Materials Inventory 2,750.00 Finished Goods Inventory 14,300.00 Total Current Assets 48,050.00 Plant and Equipment Equipment Accumulated Depreciation 960,000.00 (63,000.00) Plant and Equipment, Net 897,000.00 Total Assets 945,050.00 Liabilities and Stockholders' Equity Liabilities Accounts Payable 7,500.00 Bonds Payable 100,000.00 Stockholders' Equity Common Stock 800,000.00 Retained Earnings 37,550.00 Total Stockholders' Equity 837,550.00 Total Liabilities and Stockholders' Equity 945,050.00 Perky Turkey Jerky, LLC Budgeting Assumptions For the Quarter Ending June 30, 2018 Month April May June July Sales Budget Budgeted Salesin units Selling Price Per Unit Percentage of Sales collected in the month of the sale Percentage of Sales collected in the month after the sale 10,000 12,000 15,000 15,000 $9.00 $9.00 $9.00 90% 90% 80% 20% 10% 10% Production Budget Percentage of next month's sales in ending finished goods inventory 20% 25% 30% Direct Materials Budget $2.50 Meat per pound $2.50 $2.50 Pounds of meat per unit 2 2 2 5 % Percentage of next months production needs in ending inventory Percentage of purchases paid in the month purchased Percentage of purchases paid in the month after purchase 5% 5% 1400 pounds should be carried over to July 75% 75% 75% 25% 25% 25% Direct Labor Budget Direct labor hours required per unit (20 units per labor hour) Cost per direct labor hour 0.05 0.05 0.05 $18.00 $18.00 $18.00 Manufacturing Overhead Budget Variable manufacturing overhead per direct labor hour Fixed manufacturing overhead Manufacturing Depreciation $5.00 $5.00 $5.00 $15,000 $10,000 $15,000 $15,000 $10,000 $10,000 Variable Selling and Administrative Expense Budget Sales Commissions $0.10 $0.10 $0.10 Fixed selling and administrative expenses Advertising Manager Salaries $2,500 $2,500 $2,500 $5,000 $5,000 $5,000 $2,000 $2,000 $2,000 $500 $10,000 Insurance $500 $500 Depreciation on Office Equipment Total fixed selling and administrative expenses $10,000 $10,000 - Perky Turkey Jerky, LLC Sales Budget For the Quarter Ending June 30, 2018 Month Quarter Total April May June Budgeted Sales (in units) Selling price per unit Total Sales Schedule of Expected Cash Collections Beginning Accounts Receivable April sales May sales June sales Total cash collections Perky Turkey Jerky, LLC Balance Sheet March 31,2018 Assets Current Assets Cash 22,000.00 Accounts Receivable 9,000.00 Raw Materials Inventory 2,750.00 Finished Goods Inventory 14,300.00 Total Current Assets 48,050.00 Plant and Equipment Equipment Accumulated Depreciation 960,000.00 (63,000.00) Plant and Equipment, Net 897,000.00 Total Assets 945,050.00 Liabilities and Stockholders' Equity Liabilities Accounts Payable 7,500.00 Bonds Payable 100,000.00 Stockholders' Equity Common Stock 800,000.00 Retained Earnings 37,550.00 Total Stockholders' Equity 837,550.00 Total Liabilities and Stockholders' Equity 945,050.00 Perky Turkey Jerky, LLC Budgeting Assumptions For the Quarter Ending June 30, 2018 Month April May June July Sales Budget Budgeted Salesin units Selling Price Per Unit Percentage of Sales collected in the month of the sale Percentage of Sales collected in the month after the sale 10,000 12,000 15,000 15,000 $9.00 $9.00 $9.00 90% 90% 80% 20% 10% 10% Production Budget Percentage of next month's sales in ending finished goods inventory 20% 25% 30% Direct Materials Budget $2.50 Meat per pound $2.50 $2.50 Pounds of meat per unit 2 2 2 5 % Percentage of next months production needs in ending inventory Percentage of purchases paid in the month purchased Percentage of purchases paid in the month after purchase 5% 5% 1400 pounds should be carried over to July 75% 75% 75% 25% 25% 25% Direct Labor Budget Direct labor hours required per unit (20 units per labor hour) Cost per direct labor hour 0.05 0.05 0.05 $18.00 $18.00 $18.00 Manufacturing Overhead Budget Variable manufacturing overhead per direct labor hour Fixed manufacturing overhead Manufacturing Depreciation $5.00 $5.00 $5.00 $15,000 $10,000 $15,000 $15,000 $10,000 $10,000 Variable Selling and Administrative Expense Budget Sales Commissions $0.10 $0.10 $0.10 Fixed selling and administrative expenses Advertising Manager Salaries $2,500 $2,500 $2,500 $5,000 $5,000 $5,000 $2,000 $2,000 $2,000 $500 $10,000 Insurance $500 $500 Depreciation on Office Equipment Total fixed selling and administrative expenses $10,000 $10,000 - Perky Turkey Jerky, LLC Sales Budget For the Quarter Ending June 30, 2018 Month Quarter Total April May June Budgeted Sales (in units) Selling price per unit Total Sales Schedule of Expected Cash Collections Beginning Accounts Receivable April sales May sales June sales Total cash collections
