If work could be double checked to ensure done correctly and need assistance with cash budget
Brookes Inc. manufactures basketballs for $30/unit. Brookes Inc. budgets on a quarterly basis and the sales department has budgeted for the following sales: Budzeted Sales Units 01 Q2 03 04 14,000 15,000 20,000 18,000 Please prepare the Sales Budget. Sales Budget For the year ended December 31, 2020 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Expected Sales (units) Selling Price (S/unit) Total Budgeted Sales 14,000 15.000 20.000 18.000 67.000 30 30 30 30 30 420,000 450.000 cco.cc, 540,000 2,010,000 Brookes Inc. does not collect all of the sales revenue in the period of sale. The accounts receivable department has budgeted for 80% of sales revenue to be collected in the period of sale and 20% to be collected in the next period. The accounts receivable beginning balance is $90,000 Please prepare the Schedule of Expected Cash Collections. 801 of 0,000 901 301. 0+ 3600,000 000 Schedule of Expected Cash Collections Quarter 2 Quarter 3 Quarter 1 Quarter 4 Year Accounts Receivable, beginning balance 90,000 90,000 First quarter sales 336,000 84.000 420,00 450.000 Second quarter sales 360,000 90.000 Third quarter sales 480.000 120,000 600,000 Fourth quarter sales 432.000 432.000 Total cash collections 436.000 444.000 570,000 552.000 1.992.000 Brookes Inc. has spoken with the Production Department and determined that it would like to have a desired ending finished goods Inventory of 30% of next periods sales. The assumed beginning inventory of finished goods for Q1 and the desired ending inventory of 4 is provided Please prepare the Production Budget Production Budget For the Year Ended December 31, 2019 Quarter 2 Quarter 3 Quarter 1 Quarter 4 Year idget salt! 18.000 67.000 Budgeted Sales sired endale Add: Desired ending inventory of finished goods OOO 16.000.0 of 3,000 3,000 stal Needs 19.000 15.000 15.000 30 30.000 30 4.500 LOCO 18.500 21.000 2,000 4.500 18.500 - 2000 2000 - 4500 1,500 16,500 25,400 21.000 85, 900 Total needs Deduct: Beginning inventory of finished goods 6.000 2,000 5,400 95 400 CO - 1900 19400 15,600 Required Production 68.000 The Production Department is ready to budget for Direct Material Purchases. The Direct Materials needed are 20kg/unit and the cost of the raw materials is $1.00/kg. Production would like to have 10% of next quarters production needs as the desired ending inventory of raw materials. The assumed Q1 beginning inventory of raw materials and the ending inventory for Q4 is provided Please prepare the Direct Materials Budget Direct Materials Budget For the Year Ended December 31, 2019 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year n units. Requed Production line 16506 19,400 15 COO 690,000 GOD O 31 3.000 1940 335, 000 315 OKTOR 31. 300 11,360,ooo Yg OD 22.500 22.500 Choducr Budapt Required Production in Cases 10.500 Sors 16.500 16.500 Production needs (oka) 330,000 330, 000 use nexquarters 330.000X10 $85,000 TOT Add: Desired ending Inventory of raw materials 33.000 38.800 Production needs + Did ond more 363.000 368.900 Total needs Norders Deduct: Beginning inventory of raw materials 21,000 33.000 Total seed- Begind of Raw materials to be 342,000 335.800 purchased (kg 50.000+ ing 385.16*1kg Cost of raw materials to be 5335, 80 $345.000 purchased 419,200 334,500 1,465,500 38,800 31, 200 21,000 1,541.500 380,400 303,300 550,400 sig 3.300 kiko 5380, 400 $303.300 $1.361,500 Reture et payu Une perUU Urutse all UT in the next period. Accounts Payable beginning balance is provided. Please prepare the Schedule of Expected Cash Disbursements for Materials. Schedule of Expected Cash Disbursements for Materials Quarter 2 Quarter 3 Quarter 1 Quarter 4 Year Accounts Payable, beginning balance 25,800 $25,800 43,000 38 $11,000 1340700036 5171.000 335,900 SO 345,000 First quarter purchases 335,800 Second quarter purchases 81667,900 61.900 - Soy $190,000 360,400 Third quarter purchases 340, 400 30% $190,000 303, 300 5 15 1,650 151,650 Fourth quarter purchases 358.100 338.900 196.00 341,850 1,335.650 Total cash disbursements The Human Resources Department has indicated that the Direct Labour Cost per hour is $8.00 and the Production Department has indicated that the # of Direct Labour Hours per unit is 0.90 Please prepare the Direct Labour Budget: Q1 Q4 Year 63.000 Required Production in cases Direct Labour Budget For the Year Ended December 31, 2019 Q2 Q3 16.500 16.500 19,400 160.500 0.90 K.500 0.90 19.400 x 0.90 14.850 14.850 17, 460 14. 950 29 4.850 MOKS 118.800 118.800 139, 680 15. 6000 15. COORD.90 Lol.500 14,040 1.040 S Total direct labour hours needed (0.90 DL HAS x 8.00 Total direct labour cost 499.600 112,330 Brookes Inc. would like to know the unit product cost as well as the ending finished goods inventory dollar amount Please prepare the Ending Finished Goods Inventory Budget Ending Finished Goods Inventory Budget For the Year Ended December 31, 2019 Quantity per unit Cost Total Item Production Cost per case: per 11.00 kilogram Direct Materials Direct labour Manufacturing Overhead Unit Product Cost DO 0.90 0.00 kilograms hours hours 18.00 per hour 2. per hour $20.00 $ 1.20 $ 2.1 $ 29:37 Budgeted Finished Goods Inventory Ending finished goods inventory 3.000 29.37 $88.110 Unit product cost Ending finished goods inventory in dollars Brookes Inc. budgeted for fixed selling and administrative expenses below. The variable selling and administrative rate based on budgeted units is $11/hour Please prepare the Selling and Administrative Expense Budget. Fixed selling and administrative expenses based on units sold: Advertising Executive Salaries Q2 Insurance Q3 Insurance Q4 Property taxes Depreciation $4,500 500 300 4,200 4,300 10,000 Selling and Administrative Expense Budget Q1 92 Q3 [14.000 15. Do 20.000 $11 $11 $11 154 000 165.000 220,000 Q4 19.DOO Year (01. OCO Budgeted Sales Variable selling & admins expense Total budgeted variable selling & administrative expense $11 $11 148.000 737,000 4.500 4.500 Sco 4200 41500 500 Soo Budgeted fixed selling & admin. expenses: Advertising 4.500 Executive Salaries 500 Insurance Property taxes Depreciation + 10,000 Total budgeted fixed selling & admin, expense 15.000 Total budgeted selling & admin, expenses 149.000 Less: Depreciation 10.000 Cash disbursements for selling & administrative expenses 159.000 18.000 2000 4.500 4.300 4o, ooo 10.000 15300 190, 300 0,000 170,300 10.000 19. 200 239200 4.300 10.00 19.300 2001 300 10. COO 207,300 Sos. 800 40,000 765,800 259.000 Brookes Inc. requires a minimum cash balance at the end of each quarter of $40,000. The beginning cash balance has been provided. Please prepare the cash budget. Cash Budget For the Year Ended December 31, 2019 Q2 03 24 Year Q1 $42,500 Cash balance, beginning Add Receipts: Collection from customers Total Cash available before current financing Deduct disbursements Direct materials Direct labour Manufacturing overhead Selling and administrative Equipment purchases Dividends Total Disbursements Excess (deficiency) of cash available over disbursements Financing Borrowings (at beginning) Total financing Cash balance, ending 50,000 8,000 40.000 8,000 20,000 8,000 27,000 8.000 137,000 32,000 Brookes Inc. has determined that the variable Overhead Rate per Direct labour hour is $2.00 and the fixed manufacturing overhead is 56,200 per quarter and depreciation is $1,500. Please prepare the Manufacturing Overhead Budget Manufacturing Overhead Budget Q1 Q2 Q3 04 Year Budgeted direct labour hours 14,850 14.850 11,460 14.0410 Lol, sco $2 $2 $2 $2 29.700 34,900 28.040 122.400 10.900 (0.300 Ls , , Variable overhead rate $2 Variable manufacturing overhead 29.700 + Fixed manufacturing overhead Lo, 200 Total manufacturing overhead 35,900 Less: Depreciation 1,500 Cash disbursement for manufacturing overhead 34.400 24.800 147. 200 35,900 41,120 34,280 1.500 1.500 1,500 10.000 34.400 39,620 32.780 1141,200 Total manufacturing overhead Budgeted direct labour hours Predetermined overhead rate for the year 9147,200 61,200 2.41
