Input Data (all currency in USS) Yellow-use only cell references Blue-may type numbers here Expected 2.500 Little Annin Flagmakers Sales Budget (USS) April May 2.500 6,000 $120 $120 300,000 720,000 $ Budgeted Sales April (units) May (units) June (units) July (units) August (units) Budgeted sales (units) Selling price per unit Total Sales June 3,000 $120 360,000 $ 6,000 Quarter 11,500 $120 1,380,000 s 3,000 2,500 2,000 Selling Price Unit $120.00 Little Annin Flagmakers Schedule of Expected Cash Collections (USS) April May June Quarter Accounts receivable Beginning balance $132,000 Cash Collection Pattern Month of sale Following month Uncollectible $132,000 40% 55% 5% April sales $ 120,000 $ 165,000 S 285,000 May sales $ 288,000 $ 396,000 $ 684,000 Cash Payments for Materials 3 Month of purchase Following month 40% 60% June sales S 144,000 $ 144,000 Total Cash Collections S252,000 $ 453,000 $ 540,000 $1,245,000 Accounts Receivable as of June 30 S 198,000 Production Requirements 2 Raw material per unit (Ib.) Raw material cost per lb. Direct labor hours per unit Direct labor rate per hour Variable MOHD per direct labor hour Fixed MOHD per month Depreciation in fixed MOHD $7.00 0.5 $40.00 $10.00 $57,950 $20,000 August 2,000 Little Annin Flagmakers Production Budget April May 2,500 6,000 1,200 600 3,700 6,600 410 1.200 3,290 5,400 Budgeted sales Add: Desired ending inventory Total needs Less: Beginning inventory Required Production Selling & Administrative (S&A) Costs Variable S&A cost per unit sold 2 Fixed S&A cost per month 3 Depreciation in fixed S&A cost June 3,000 500 3,500 600 2,900 Quarter 11,500 500 12,000 410 11,590 July 2.500 400 2.900 500 2,400 $1.25 $63,000 $10,000 E F G D Less: Beginning inventory Required Production 410 3,290 1,200 5,400 600 2.900 410 11,590 500 2.400 B 31 Variable S&A cost per unit sold $1.25 32 Fixed S&A cost per month $63,000 33 Depreciation in fixed S&A cost $10,000 34 35 Other Cash Outflows 36 Cash dividends paid each month $15,000 37 Equipment purchases May $47,820 38 Equipment purchases June $154,600 39 40 Desired Ending Inventory 41 Finished goods 20% 42 Raw materials 40% 43 Cash $30,000 44 45 Beginning Account Balances as of March 31 46 Cash $37,745 47 Accounts receivable $132,000 48 Finished goods inventory $30.750 49 Finished goods cost per unit $75.00 50 Finished goods inventory (units) 410 51 Raw materials inventory $32.200 52 Raw materials (lb.) 4,600 53 Accounts payable $55,000 54 55 Land $520,000 56 Buildings and equipment $1,800,000 57 Accumulated depreciation (S750,000) 58 Common stock $500,000 59 Retained earnings $1,247,695 Little Annin Flagmakers Direct Materials Budget (USS) April May June Required production in units 3,290 5,400 2,900 Raw materials per unit (lbs.) 5 5 5 Production needs (lbs.) 16,450 27,000 14,500 Add: Desired ending inventory 10.800 5.800 4.800 Total needs 27,250 32,800 19,300 Less: Beginning inventory 4,600 10,800 5,800 Raw materials to be purchased 22,650 22,000 13,500 Cost of raw materials $7.00 $7.00 $7.00 Total Cost of Raw Materials S 158,550 $ 154,000 $ 94,500 $ Check figure for April Cost of Raw Materials $ 158,550 Quarter 11,590 5 57,950 4.800 62,750 4,600 58,150 $7.00 407,050 Little Annin Flagmakers Schedule of Expected Cash Disbursements for Material (USS) April May June Quarter Accounts payable Beginning balance $55,000 $55,000 April purchases S 63,420 S 95,130 $ 158,550 May purchases $ 61,600 $ 92,400 $ 154,000 June purchases S 37,800 $ 37.800 Total Cash Disbursements for Materials $118,420 S 156,730 $ 130,200 $405,350 Accounts Payable as of June 30 S 56,700 60 61 62 63 64 65 66 67 68 69 70 71 72 Units to be produced Direct labor hours per unit Total direct labor hours needed Direct labor cost per hour Total Direct Labor Cost Little Annin Flagmakers Direct Labor Budget (USS) April May 3,290 5,400 0.5 0.5 1,645 2,700 $40.00 $40.00 65,800 $ 108,000 $ June 2,900 0.5 1,450 $40.00 58,000 $ Quarter 11,590 0.5 5,795 $40.00 231,800 S Budgeted direct labor hours Variable MOHD rate Total variable MOHD Fixed MOHD expense Total MOHD expense Less: Depreciation Cash Disbursements for MOHD Little Annin Flagmakers Manufacturing Overhead Budget (USS) April May June Quarter 1,645 2,700 1,450 5,795 S10 $10 $10 $10 $ 16,450 $ 27,000 $ 14,500 $ 57,950 $ 57,950 $ 57,950 57,950 $ 173,850 $ 74,400 $ 84,950 $ 72,450 $ 231,800 $ 20,000 $ 20,000 $ 20,000 $ 60,000 $ 54,400 $ 64,950 $ 52,450 $ 171,800 $52,450 Check Figure for June Cash Disbursements for MOHD $40.00 /direct labor hour MOHD rate Absorption cost per unit Direct materials Direct labor Manufacturing overhead Unit Product Cost Little Annin Flagmakers Unit Product Cost (USS) Quantity Cost Cost/unit 5 $7.00 $35.00 0.50 $40.00 $20.00 0.50 $40.00 $20.00 $75.00 Cost of Goods Sold (FIFO) Beginning finished goods inventory Add: Cost of goods manufactured Good available for sale Less: Ending finished goods inventory Cost of Good Sold Little Annin Flagmakers Cost of Goods Sold Budget (USD) Units Cost/unit Total Cost 410 $75.00 S 30,750 11,500 $75.00 S 862,500 893,250 500 $75.00 $ $ 37,500 855,750 Budgeted sales in units Variable S&A per unit Total variable S&A Total fixed S&A Total S&A expense Less: Depreciation Cash Disbursements for S&A Little Annin Flagmakers Selling and Administrative Expense Budget (USS) April May June Quarter 2,500 6,000 3,000 11,500 $1.25 $1.25 $1.25 $1.25 $ 3,125 $ 7,500 $ 3,750 $ 14.375 S 63,000 63,000 $ 63,000 $ 189,000 S 66,125 S 70,500 $ 66,750 $ 203,375 10,000 $ 10,000 $ 10,000 $ 30,000 S 56,125 S 60,500 $ 56,750 $ 173,375 $60,500 Check Figure for May Cash Disbursements for S&A S S D G H - E F Little Annin Flagmakers Cash Budget (USS) April May 37,745 $ 30,000 $ June 30,000 $ Quarter 37,745 Beginning Cash Balance Add: Receipts Cash collections Total Cash Available $252,000 $ 289,745$ 453,000 $ 483,000 $ 540,000 $1,245,000 570,000 $1,282,745 $ $ Less disbursements Direct materials Direct labor Manufacturing overhead Selling and administrative Dividends Equipment purchases Total Disbursements $118,420 S 65,800 $ 54,400 $ $56,125.00 15,000 156,730 $ 108,000 $ 64,950 $ $60,500.00 15,000 47,820 453,000 $ 130,200 58,000 $ 52,450 $ $56,750.00 15,000 154,600 467,000 $405,350 231,800 171,800 $173,375.00 45,000 202,420 $1,229,745 $309,745 S Excess (deficiency) of cash available $ (20,000) S 30,000 $ 103,000 $ 53,000 $50,000 $ Financing Borrowing Repayments Interest Total Financing $50,000 $50,000 $50,000 2,000 $102,000 $50,000 $ 2,000 $ $52,000 Ending Cash Balance 1,000 S 30,000 $ 30,000 $ 51,000 $ $30,000 Check Figure for April Ending Cash Balance Little Annin Flagmakers Budgeted Income Statement (USS) Quarter Ending June 30 Net sales Less: Cost of goods sold Gross margin Less: S&A expenses Net operating income Less: Interest expense Net income 1,311,000 S 855,750 S 455,250 'S 203,375 $ 251,875 2,000 $ 249,875 $243,125 Check Figure for Net Income Computation of Net Sales Sales Less uncollectible amounts Net Sales $ 1,380,000 S 69,000 $ 1,311,000 Complete Sales Budget through Budgeted Income Statement per Case Study requirements, Budgeted Balance Sheet optional for extra credit Extra Credit: Complete the Budgeted Balance Sheet Little Annin Flagmakers Budgeted Balance Sheet (USS) Ending March 31 Ending June 30 Current assets Cash Accounts receivable Raw materials inventory Finished goods inventory Plant and equipment Land Buildings and equipment Accumulated depreciation Total Assets Liabilities Accounts payable Stockholder's equity Common stock Retained earings Total Liabilities and Stockholder's Equity Input Data (all currency in USS) Yellow-use only cell references Blue-may type numbers here Expected 2.500 Little Annin Flagmakers Sales Budget (USS) April May 2.500 6,000 $120 $120 300,000 720,000 $ Budgeted Sales April (units) May (units) June (units) July (units) August (units) Budgeted sales (units) Selling price per unit Total Sales June 3,000 $120 360,000 $ 6,000 Quarter 11,500 $120 1,380,000 s 3,000 2,500 2,000 Selling Price Unit $120.00 Little Annin Flagmakers Schedule of Expected Cash Collections (USS) April May June Quarter Accounts receivable Beginning balance $132,000 Cash Collection Pattern Month of sale Following month Uncollectible $132,000 40% 55% 5% April sales $ 120,000 $ 165,000 S 285,000 May sales $ 288,000 $ 396,000 $ 684,000 Cash Payments for Materials 3 Month of purchase Following month 40% 60% June sales S 144,000 $ 144,000 Total Cash Collections S252,000 $ 453,000 $ 540,000 $1,245,000 Accounts Receivable as of June 30 S 198,000 Production Requirements 2 Raw material per unit (Ib.) Raw material cost per lb. Direct labor hours per unit Direct labor rate per hour Variable MOHD per direct labor hour Fixed MOHD per month Depreciation in fixed MOHD $7.00 0.5 $40.00 $10.00 $57,950 $20,000 August 2,000 Little Annin Flagmakers Production Budget April May 2,500 6,000 1,200 600 3,700 6,600 410 1.200 3,290 5,400 Budgeted sales Add: Desired ending inventory Total needs Less: Beginning inventory Required Production Selling & Administrative (S&A) Costs Variable S&A cost per unit sold 2 Fixed S&A cost per month 3 Depreciation in fixed S&A cost June 3,000 500 3,500 600 2,900 Quarter 11,500 500 12,000 410 11,590 July 2.500 400 2.900 500 2,400 $1.25 $63,000 $10,000 E F G D Less: Beginning inventory Required Production 410 3,290 1,200 5,400 600 2.900 410 11,590 500 2.400 B 31 Variable S&A cost per unit sold $1.25 32 Fixed S&A cost per month $63,000 33 Depreciation in fixed S&A cost $10,000 34 35 Other Cash Outflows 36 Cash dividends paid each month $15,000 37 Equipment purchases May $47,820 38 Equipment purchases June $154,600 39 40 Desired Ending Inventory 41 Finished goods 20% 42 Raw materials 40% 43 Cash $30,000 44 45 Beginning Account Balances as of March 31 46 Cash $37,745 47 Accounts receivable $132,000 48 Finished goods inventory $30.750 49 Finished goods cost per unit $75.00 50 Finished goods inventory (units) 410 51 Raw materials inventory $32.200 52 Raw materials (lb.) 4,600 53 Accounts payable $55,000 54 55 Land $520,000 56 Buildings and equipment $1,800,000 57 Accumulated depreciation (S750,000) 58 Common stock $500,000 59 Retained earnings $1,247,695 Little Annin Flagmakers Direct Materials Budget (USS) April May June Required production in units 3,290 5,400 2,900 Raw materials per unit (lbs.) 5 5 5 Production needs (lbs.) 16,450 27,000 14,500 Add: Desired ending inventory 10.800 5.800 4.800 Total needs 27,250 32,800 19,300 Less: Beginning inventory 4,600 10,800 5,800 Raw materials to be purchased 22,650 22,000 13,500 Cost of raw materials $7.00 $7.00 $7.00 Total Cost of Raw Materials S 158,550 $ 154,000 $ 94,500 $ Check figure for April Cost of Raw Materials $ 158,550 Quarter 11,590 5 57,950 4.800 62,750 4,600 58,150 $7.00 407,050 Little Annin Flagmakers Schedule of Expected Cash Disbursements for Material (USS) April May June Quarter Accounts payable Beginning balance $55,000 $55,000 April purchases S 63,420 S 95,130 $ 158,550 May purchases $ 61,600 $ 92,400 $ 154,000 June purchases S 37,800 $ 37.800 Total Cash Disbursements for Materials $118,420 S 156,730 $ 130,200 $405,350 Accounts Payable as of June 30 S 56,700 60 61 62 63 64 65 66 67 68 69 70 71 72 Units to be produced Direct labor hours per unit Total direct labor hours needed Direct labor cost per hour Total Direct Labor Cost Little Annin Flagmakers Direct Labor Budget (USS) April May 3,290 5,400 0.5 0.5 1,645 2,700 $40.00 $40.00 65,800 $ 108,000 $ June 2,900 0.5 1,450 $40.00 58,000 $ Quarter 11,590 0.5 5,795 $40.00 231,800 S Budgeted direct labor hours Variable MOHD rate Total variable MOHD Fixed MOHD expense Total MOHD expense Less: Depreciation Cash Disbursements for MOHD Little Annin Flagmakers Manufacturing Overhead Budget (USS) April May June Quarter 1,645 2,700 1,450 5,795 S10 $10 $10 $10 $ 16,450 $ 27,000 $ 14,500 $ 57,950 $ 57,950 $ 57,950 57,950 $ 173,850 $ 74,400 $ 84,950 $ 72,450 $ 231,800 $ 20,000 $ 20,000 $ 20,000 $ 60,000 $ 54,400 $ 64,950 $ 52,450 $ 171,800 $52,450 Check Figure for June Cash Disbursements for MOHD $40.00 /direct labor hour MOHD rate Absorption cost per unit Direct materials Direct labor Manufacturing overhead Unit Product Cost Little Annin Flagmakers Unit Product Cost (USS) Quantity Cost Cost/unit 5 $7.00 $35.00 0.50 $40.00 $20.00 0.50 $40.00 $20.00 $75.00 Cost of Goods Sold (FIFO) Beginning finished goods inventory Add: Cost of goods manufactured Good available for sale Less: Ending finished goods inventory Cost of Good Sold Little Annin Flagmakers Cost of Goods Sold Budget (USD) Units Cost/unit Total Cost 410 $75.00 S 30,750 11,500 $75.00 S 862,500 893,250 500 $75.00 $ $ 37,500 855,750 Budgeted sales in units Variable S&A per unit Total variable S&A Total fixed S&A Total S&A expense Less: Depreciation Cash Disbursements for S&A Little Annin Flagmakers Selling and Administrative Expense Budget (USS) April May June Quarter 2,500 6,000 3,000 11,500 $1.25 $1.25 $1.25 $1.25 $ 3,125 $ 7,500 $ 3,750 $ 14.375 S 63,000 63,000 $ 63,000 $ 189,000 S 66,125 S 70,500 $ 66,750 $ 203,375 10,000 $ 10,000 $ 10,000 $ 30,000 S 56,125 S 60,500 $ 56,750 $ 173,375 $60,500 Check Figure for May Cash Disbursements for S&A S S D G H - E F Little Annin Flagmakers Cash Budget (USS) April May 37,745 $ 30,000 $ June 30,000 $ Quarter 37,745 Beginning Cash Balance Add: Receipts Cash collections Total Cash Available $252,000 $ 289,745$ 453,000 $ 483,000 $ 540,000 $1,245,000 570,000 $1,282,745 $ $ Less disbursements Direct materials Direct labor Manufacturing overhead Selling and administrative Dividends Equipment purchases Total Disbursements $118,420 S 65,800 $ 54,400 $ $56,125.00 15,000 156,730 $ 108,000 $ 64,950 $ $60,500.00 15,000 47,820 453,000 $ 130,200 58,000 $ 52,450 $ $56,750.00 15,000 154,600 467,000 $405,350 231,800 171,800 $173,375.00 45,000 202,420 $1,229,745 $309,745 S Excess (deficiency) of cash available $ (20,000) S 30,000 $ 103,000 $ 53,000 $50,000 $ Financing Borrowing Repayments Interest Total Financing $50,000 $50,000 $50,000 2,000 $102,000 $50,000 $ 2,000 $ $52,000 Ending Cash Balance 1,000 S 30,000 $ 30,000 $ 51,000 $ $30,000 Check Figure for April Ending Cash Balance Little Annin Flagmakers Budgeted Income Statement (USS) Quarter Ending June 30 Net sales Less: Cost of goods sold Gross margin Less: S&A expenses Net operating income Less: Interest expense Net income 1,311,000 S 855,750 S 455,250 'S 203,375 $ 251,875 2,000 $ 249,875 $243,125 Check Figure for Net Income Computation of Net Sales Sales Less uncollectible amounts Net Sales $ 1,380,000 S 69,000 $ 1,311,000 Complete Sales Budget through Budgeted Income Statement per Case Study requirements, Budgeted Balance Sheet optional for extra credit Extra Credit: Complete the Budgeted Balance Sheet Little Annin Flagmakers Budgeted Balance Sheet (USS) Ending March 31 Ending June 30 Current assets Cash Accounts receivable Raw materials inventory Finished goods inventory Plant and equipment Land Buildings and equipment Accumulated depreciation Total Assets Liabilities Accounts payable Stockholder's equity Common stock Retained earings Total Liabilities and Stockholder's Equity