I am stuck on #5 and after
Each unit sells for $99 January May June Forecasted Sales 20,000 22,000 23,000 27,000 21 ,000 17,000 Each unit requires 3 pounds of material Each unit requires 2.5 hours of Direct Labor Each unit requires 1.5 hours of machine time Each pound of material costs $5 Each machine hour costs $9 of which $1 is depreciation Each Direct Labor hour costs $17 Your desired Finished Goods inventory is 20% of next month's sales Your desired Raw Material ending inventory is 25% of next month's usage Your cash collections are 60% during the month of sale, 24% the next month and 15% two months later, you never collect 1% Your cash payments of raw material are 60% the month of purchase and 40% the next month Actual Beginning Inventory for Finished Goods is 4,000 units Actual Beginning Inventory for Raw Material is 15,300 pounds January February March April May June Administrative expenses $400,000 $3 80,000 $430,000 $450,000 $370,000 $360,000 $20,000 of administrative expenses are depreciation February March April The Tax rate is 25% of pro-tax net income 1) Sales Budget in units and dollars for each month 2) Production Budget in units for each month (somewhere near your budget you should calculate cost per unit) 3) Direct Labor Budget for each month 4) Overhead Budget (remember, some of this is depreciation) 5) Administrative Expenses Budget (remember some of this is depreciation) 6) Cash Collections Budget for each month 7) Purchases Budget for Raw Material for each month 8) Cash Disbursements Budget for each month 9) Cash Budget for each month 10) Income Statement for each month 1. Sales Budget Unit Price Month Janurary Feburary March April May June total Units 20,000 22,000 23,000 Notnon 27,000 21,000 17,000 130,000 price Dollars 1980000 2178000 2277000 2673000 2079000 1683000 12870000 2. Production budget Januray Feburary March April May June 9 Beginning Inventory 4000 4400 4600 5400 4200 3400 10 Units to Produce 20,000 22,000 23,000 27,000 21,000 17,000 Available 24,400 2500 28,400 31,200 24,400 17,000 12 Less End Inventory 4400 4600 5400 4200 3400 C 13 Units Sold 20,000 22,000 23,000 27,000 21,000 17,000 15 3. Direct labor Budget Janurary Feburary March April May June 16 Units Produced 20,000 22,000 23,000 27,000 21,000 17,000 17 Hours Per Unit 2.5 2.5 18 Total Hours 50000 55000 57500 67500 52500 42500 19 Rate per Hours 17 17 20 Total Dollars 850000 935000 977500 1147500 892500 722500 22 4. Overhead Budget Janurary Feburary March April May June 23 Units Produced 20,000 22,000 23,000 27,000 21,000 17,000 24 Hours per unit 1.5 1.5 1.5 1.5 1.5 25 total Hours 30000 33000 34500 40500 31500 25500 26 rate per hour (cash) N Total cash Dollars 240000 264000 276000 324000 252000 204000 29 5.Administrative Exspenses Janurary Feburary March April May June cash 380000 360000 410000 430000 350000 340000 31 Depriciation 20000 20000 20000 20000 20000 20000 32 Total 400000 380000 430000 450000 370000 360000
