MasterBudgetCaseInstructions

Onthe attachedpagesyouwillfindkeydetailsregardingthe preparationofamaster budgetfor20X2for Patrick's Widget Company. Your team will complete the master budget (part 1) and then take intoconsiderationssomeotheroptions(parts2-4).

needtosubmit:

• CompletedExcelWorkbookwithyourParts1,2 and3inoneWorkbook(properlylabeled)

MasterBudgetCase Study

You and your team are part of the budget analyst office with Patrick's Widget Company. Your supervisor has tasked your team with preparingthe 20X2 Master Budget for one of Patrick's Widget Company's product, the zTec Widget. In addition, your supervisor wants to get your team'sopinion on a few changes upper management would like to take in 20X2 and whether they should pull the trigger on a few different options inthemanufacturingprocess.

Belowistheinformationrequired tomakethe20X2MasterBudgetforzTecWidget:

The expectedsalesfor20x2areasfollows:

		January	February	March	April	May	June	July	August	September	October	November	December	Total
Sales in Units		5,450	5,995	6,595	7,255	7,327	6,961	5,917	5,325	6,125	7,042	7,185	5,028	76,205

Each widget sells for $12.00 per until, however management has implemented a sales price change to $12.50 in August of 20x2. This change hasbeen communicated to all customers and will not be rolled back or changed. All sales are on account and Patrick's Widget Company's experiencewith cash collections is that 60% is collected in the month of sale, 30% is collected in the first month AFTER the sale and the final 10% is collectedinthesecondmonthAFTERthesale. Thecompanydoesn'texpectany baddebtduringthe yearandis ignored.

For November20x1, saleswere$52,000.December20x1's sales were$35,000.

Patrick's Widget Company desires 80% of the of the following month's estimated sales needs in finished goods inventory at the end of eachmonth.It isexpectedthat on January 1,20X2,the beginningfinishedgoodsinventorywillbe4,360 units.

For December 20X2, the company desired 4,800 in ending inventory (production budget) and 12,500 lbs in raw materials (Direct MaterialsBudget).

Each widget requires 2.5 pounds of plastics in order to produce. Patrick's Widget Company desires 80% of the next month's raw material ininventory at the end of each month. It is expected that on January 1, 20X2, the beginning raw materials inventory will be 8,500 pounds. The costof 1 pound of plastics is $0.89 until July when the price will go up to $0.94 per pound. All raw materials are paid for in the month it was acquiredandno payablerelatedtothe purchaseofrawmaterial areincurredforthefollowingyear.

Regardingdirectlabor, ittakes.25directlabor hourtoproduce1widget.Directlabor costsareas follows:

• Wages-$20.00perdirectlaborhour
• RetirementContribution -$0.45perdirectlaborhour
• Workers'Compensation Insurance-$0.20perdirectlaborhour
• EmployeeMedical-$0.80perdirectlaborhour
• Employers' Social Security - 7.65% of wages only (excluding retirement contribution, workers' compensation insurance, and employeemedical).

Productionoverhead includes the following:

• ShippingandHandling- $0.25perunitSold
• RawMaterialsStorageandMaterialHandling-$0.12perpoundofrawmaterialsinendinginventoryattheendofeachmonth
• Finished GoodsInventoryStorageandMaterialHandling-$0.21perunitinendinginventoryattheendofeachmonth
• OtherOverhead- $10.75perdirect laborhour duringthemonthJanuary's cash beginningbalanceisestimatedtobe$87,500.00

Part1

Based on the information above, your team will use the master budget template provided to you on BlackBoard to come up with 20X2's masterbudget.Yourteamwill produce thefollowingbudget (inthefollowingorder):

• Sales Budget
• CashReceiptsBudget
• Production Budget
• DirectMaterialsBudget
• Direct-Labor Budget
• ProductionOverhead Budget
• CashDisbursementBudget
• CashBudget

(Note-Useformulaswhenever possible.ThiswillbebeneficialinParts2and3)

Part2

Yoursupervisorhasmentioned thatatabudget-planningmeeting,theresearchanddevelopmentteammentionedthattheycouldinvest

$80,000 on a new equipment that can be acquired in June 20X2 (the equipment would be delivered in June and payment would be due on June15^th) and it would reduce the required raw materials required per unit from 2.5 lbs to 1.75 lbs and with the reduction of raw materials andimproved efficiency, there would also be a decline in direct-labor hours needed per unit from .25 to .15 direct-labor hour per unit.Even thoughthe equipment will be received in June, the machine will not be ready for production until July (meaning the first month in which the companywill receive thebenefits ofthemachine isin July).

Make a revised master budget assuming these changes are implemented. (Note: You should make Part 1 first, then copy your sheet in yourworkbook and change the appropriate information to reflect the new information. Review and check to ensure you numbers are correct aftermakingthe change- don't blindlythink theentiresheetwillmakethe change).

Part3

The President of the company doesn't believe making a $80,000 investment is prudent because it would be a significant cash drain in June and ifan emergency occurred, it would be difficult to make payroll. Instead, the President has mentioned that if the company invest $30,000 inengineering design improvements, they could achieve a 0.5 pound of plastic reduction per unit and see a 0.05 reduction in direct-labor hour perunit.Becausethisisadesignchange,the companybelievesthepaymentwillbemadein JulyandtheimplementationcouldalsooccurinJuly.

make a revised master budget assuming these changes are implemented. (Note: You should make Part 1 first, then copy your sheet in yourworkbook and change the appropriate information to reflect the new information. Review and check to ensure you numbers are correct aftermakingthe change- do not blindlythinktheentire sheet willmake thechange).

Part4

Make a memo discussing which of the three options the company should choose based on your master budget analysis and why. Whendiscussing which of the three options the company should choose, provide greater emphasis on the ability to generate the greatest cash output.Although it is easy to emphasize unknown facts (for instance how long does the machine will work, what the machine capacity, what to do withemployeeswhoare nolonger needed), staywithinthe information providedwithinthis case.

Memorandum

Background(Thissectionshouldgivealittlebackgroundonthecompany)

Patrick'sWidgetCompany...

Purpose(Thissectionshouldgivethereaderthepurposeofthismemo)

The purposeof thismemo isto......

Analysis(Thissectionshouldgiveanunbiasedlookatthe datathatyourgroupdeveloped)

Hereisthedata...

OurRecommendation(Thissectionisaboutgivingyourteam'sopinion)

Webelieve...

Sales Budget January February March April Mau June July August September October November December Total Sales in Units ,450 ,995 5,595 ',25! 1327 6,961 5,917 325 ,125 .042 1,185 ,028 6,205 Units Sales Price $ 12.00 $ 12.00 $ 12.00 $ 12.00 $ 12.00 $ 2.00 $ 12.00 12.50 $ 12.50 $ 12.50 $ 12.50 $ 12.50 Total Sales Revenue $ 65,400.00 $ 71,940.00 $ 79140.00 $ 87,060.00 $ 87,924.00 $ 83,532.00 $ 71,004.00 $ 66562.50 $ 76562.50 $ 88,025.00 |$ 89,812.50 $ 62,850.00|$929,812.50 Cash Receipts Budget January February March April Mau June July August September October November December Total Sales Revenue [ from Sales Budget) $ 65,400.00 $ 71,940.00 $ 73,140.00 $ 87,060.00 $ 87,924.00 $ 83,532.00 $ 71,004.00 $ 66,562.50 $ 76,562.50 $ 88,025.00 $ 83,812.50 $ 62,850.00 $ 329,812.50 Collection in Month of Sale 60% $ 39,240.00 $ 43,164.00 $ 47,484.00 1$ 52,236.00 $ 52,754.40 $ 50,119.20 $ 42,602.40 $ 39,937.50 $ 45,837.50 $ 52,815.00 )$ 53,887.50 $ 37,710.00 $ 557,887.50 Collection in First Month after 30% $ 11,772.00 12,949.20 $ 14,245.20 $ 15,670.80 0 $ 15,826.32 15,035.76 $ 12,780.72 $ 11,981.25 + 13,781.25 $ 15,844.50 $ 16,166.25 11,313.00 $ 167,366.25 Month aft 102 1,177.20 + 1,294.92 $ 1,424.52 + 1,567.08 1,582.63 + 1,503.58 + 1,278.07 1,198.13 + 1,378.13 + 1,584.45 + 1,616.63 + 1,131.30 $ 16,736.63 Total Cash Receipts $ 52189.20 $ 57,408.12 1 63153.72 $ 69473.86 $ 70163.35 $ 66.658.54 $ 56,661.19 $ 53,116.88 $ 61096.86 $ 70 243.95 $ 71670.38 $ 50.154.30 $ 741930.38 Production Budget January February March April May June July August September October November December Total Sales in Units [ from Sales Budget) 5,450 6,395 6,595 255 7,327 6,961 5,917 5,325 6,125 7,042 .185 5,026 16,205 Add: Desire Ending Inventory of FGI [Rdup) 802 4,796 5,276 5,804 5,862 5,569 4,734 4,260 1,300 5,634 5,748 4,022 4,800 51,404 Total Units Required 10,246 11,271 2,399 13,117 12,836 11,695 10,177 0,225 11,759 2,730 11,207 3,828 137,609 Less: Expected Beginning Inventory of FGI 4,360 4,796 5,276 5,804 5,862 5,569 1,734 4,260 4,900 5,634 5,748 4,022 60,364 Units to be Produced 5,886 6,475 7,123 7,313 7,034 6,126 5,443 5,365 6,859 7,156 5,453 5,806 76,645 Direct Materials Budget January February March April May June July August September October November December Tota Units to be Produced 5,886 6,475 7,123 7,313 7,034 6,126 5,443 5,965 5,853 7,156 5,453 5,806 16,645 Raw Materials Required Per Unit [lbs) 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 Raw Materials Required for Production [Ibe) 14,715 16,188 7,808 18,282 17,586 15,314 3,609 4.913 17,147 17,891 13,649 14,514 191,612 Add Desired Ending Inventory of RM [lb-) 12,950 14,246 14,625 14,068 12,251 10,887 11,930 13,717 14,313 10,919 11,611 2,500 154,018 Total Raw Material Required 27,665 30,434 32,433 32,350 23,837 26,201 25,539 28,630 31,453 28,810 25,260 27,014 345,630 Less Expected Beginning Inventory of RM (lbs) 8,500 12,950 14,246 14,626 14,069 12,251 10,887 11,930 13,718 14,313 10,913 11,611 150,021 Raw Materials to be Purchased [lba) 19,165 17,483 8,186 17,724 15,768 13,950 14,651 6,693 17,742 4,497 4,341 15,403 195,609 Cost per Pound 0.83 + 0.83 0.83 + 0.83 0.83 0.89 + 0.89 1 0.94 + 0.94 + 0.94 + 0.94 + 0.94 Total Cost of Raw Materials $ 17,056.85 + 15,559.96 16 185.81 1 15 774.63 $ 14 035.61 $1 12 415.37 + 13 039.66 $ 15,697.34 $ 16,677.20 13 627.18 $ 13 480.07 + 14,478.63 178,026Direct-Labor Budget January February March April Mau June July August September October November December Total Units to be Produced 5,886 6,475 7,123 7,313 7,034 6,126 5,443 5,365 6,859 7,156 ,459 5,806 6,645 Direct-Labor Hours Per Unit 0.25 0.25 1.25 0.25 0.25 0.25 0.25 0.25 ).25 0.25 0.25 0.25 Total Hours of Direct Labor Time Needed 1,471.50 1,618.75 1,780.75 ,828.15 1,758.58 1,531.43 1,360.85 1,431.25 1,714.65 1,783.10 ,364.85 1,451.40 19,161 Direct Labor Costs: Wages ($20.00 p $ 23,430.00 $ 32,375.00 $ 35,615.00 $ 36,563.00 $ 35,171.50 $ 30,628.50 $ 27,217.00 $ 29,825.00 $ 34,293.00 $ 35,782.00 $ 27,297.00 |$ 23,028.00 $383,225.00 Retirement Contribution ($0.45 per DLH) 662.18 + 128 801.34 $ 822.67 | $ 791.36 $ 589.14 $ 12.36 $ 671.06 $ 771.59 $ 305.10 $ 614.18 $ 53.13 $ 8,622.56 Workers' Compensation Insurance ($0.20 per DLH 294.30 + 323.75 + 356.15 + 365.63 $ 351.72 + 306.29 + 272.17 + 238.25 + 342.93 + 357.82 | $ 272.97 + 290.28 $ 3,832.25 Employee Medical ($0.80 per DLH) 1,177.20 + 1,295.00$ 1,424.60 + ,462.52 $ 1,406.86 1,225.14 + 1,086.68 + 1,193.00 $ 1,371.72 $ 1,431.28 $ 1,091.88 + 1,161.12 $ 15,329.00 Employer's Social Security (7.65% of Wages) $ 2,251.40 $ 2,476.69 $ 2,724.55 + 2,797.07 |$ 2,690.62 $ 2,343.08 + 2,082.10 $ 2,281.61 + 2,623.41 $ 2,737.32 $ 2,086.22 + 2,220.64 $ 29,316.71 Total Direct-Labor Cost 33 815.07 $ 37,198.88 1 40.921.64 $ 42,010.89 $ 40412.05 $ 35 192.15 1 31272.33 $ 34 268.93 $ 39,402.66 + 41,113.52 $ 31364.25 1 33,353.17 $ 440,325.53 Production Overhead Budget January February March April Mau June July August September October November December Tots Shipping and Handling ($0.25 per Unit Sold] 1,362.50 + 1,498.75 $ 1,648.75 $ 1,813.75 $ 831.75 $ 1,740.25 + 1,479.25 $ 1,331.25 1,531.25 1,760.50 $ 1,796.25 $ 1,257.00 $ 19,051.25 Raw Material Storage and Material Handling [$.12 per lbs) 106.32 177.00 854.76 $ 377.51 844.10 $ 35.08 653.21 $ 715.80 | $ 623.03 358.77 + 655.13 596.67$ 9,197.39 FGI Storage and Material Handling ($.21 per unit 1,236.06 1,359.75 1,495.83 $ 1,535.65 1,477.18 $ 1,286.40 $ 1,143.11$ 1,252.65 | $ 1,440.31 $ 1,502.84 1,146.47 $ 1,219.18 $ 16,095.43 Other Overhead ($10.75 per DLH) $ 15,818.63 17,401.56 $ 19,143.06 $ 19,652.61 $ 18,904.68 $ 16,462.82 14,629.14 $ 16,030.94 $ 18,432.49 $ 19,232.83 $ 14,672.14 $ 15,602.55 $205,983.44 Total Production Overhead 19 123.51 $ 21037.06 1 23.142.40 $ 23.879.52 1 23.057.72 + 20,224.55 $ 17,904.71 $ 19 330.64 $ 22 227.08 1 23.354.94 $ 18 269.99 $ 18,775.40 $ 250,327.50 Cash Disbursement Budget January February March April Mau June August September October November December Total Cost of Raw Materials Purchases 17,056.85 $ 15,559.96 1 16 185.81 $ 15 774.63 $ 14,033.61 $ 12,415.37 $ 13039.66 $ 15,697.34 $ 16,677.20 $ 13,627.18 $ 13,480.07 $ 14,478.63 $ 178,026.30 Cost of Direct-Labor 33,815.07 $ 37,198.86 $ 40,921.64 $ 42,010.89 $ 40,412.05 $ 35,192.15 $ 31,272.33 $ 34,268.93 $ 39,402.66|$ 41,113.52 $ 31,364.25 $ 33,353.17 $ 440,325.53 Cost of Production Overhead 19,123.51 $ 21,037.06 $ 23,142.40 $ 23,879.52 $ 23,057.72 $ 20.224.55|$ 17,904.71 $ 19,330.64 $ 22,227.08 |$ 23,354.94 $ 18,269.99 $ 18,775.40 $ 250,327.50 Total Cash Disbursed During the Period 69 995.43 $ 73 795.90 1 80 249.84 $ 81665.03 1 77,503.38 $ 67,832.06 1 62 216.70 1 69 296.90 $ 78,306.93 1 78,095.64 $ 63,114.31 $ 66,607.20 $868,673.3: Cash Budget January February March April Mau June July August September October November December Total Beginning Cash Balance $ 87,500.00 $ 71,940.00 $ 73,140.00 $ 87,060.00 $ 87,924.00 $ 83,532.00 $ 71,004.00 $ 66,562.50 $ 76,562.50 $ 88,025.00 $ 89,812.50 |$ 62,850.00 |$ 951,912.50 Cash Receipts $ 52,189.20 $ 57,408.12 $ 63,153.72 $ 69,473.88 70,163.35 $ 66,658.54 $ 56,661.19 $ 53,116.88 $ 61,096.88 $ 70,243.95 71,670.38 $ 50,154.30 $ 741,930.38 Less: Cash Disbursements $ 69,995.43 $ 73,795.90 $ 80,249.84 $ 81,665.03 $ 77,503.36 $ 67,832.06 $ 62,216.70 $ 63,296.90 $ 78,306.93 $ 78,095.64 $ 63,114.31 $ 66,607.20 $868,679.33 Ending Cash Balance 69.693.78 1 55,552.22 $ 62043.88 $ 74868.85 $ 80583.97 1 82,358.47 1 65448.49 1 50 382.47 1 59,352.44 $ 80173.32 $ 98,368.56 $ 46,397.10 $ 825,223.55Sales Budget January February March Apri May June July August September October November Sales in Units December Total 5,450 i,995 6,595 7,255 7,327 6,961 5,917 Units Sales Price 5,325 ,125 7,042 7,185 5,028 '6,205 $ 12.00 $ 12.00 $ 12.00 $ 12.00 $ 12.00 $ 12.00 12.00 12.50 $ 12.50 12.50 2.50 Total Sales Revenue $ 12.50 $ 65,400.00 $ 71,940.00 $ 79,140.00 $87,060.00 |$87,924.00 0 $ 83,532.00 |$ 71,004.00 $66,562.50 $76,562.50 |$ 88,025.00 | $ 89,812.50 $62,850.00 $ 929,812.50 Cash Receipts Budget January February March April May June July August September October November December Total Sales Revenue (from Sales Budget $ 65,400.00 $ 71,940.00 $ 79,140.00 $87,060.00 $87,924.00 $ 83,532.00 $ 71,004.00 $66,562.50 $ 76,562.50 $ 88,025.00 $ Collection in Month of Sale 89,812.50 ## $ 39,240.00 $ 62,850.00 $ 929,812.50 $ 43,164.00 $47,484.00 $ 52,236.00 $52,754.40 50,119.20 $42,602.40 $39,937.50 Collection in First Month after Sale $ 45,937.50 ## $ 11,772.00 $ 52,815.00 $ 53,887.50 $ 37,710.00 $557,887.50 $ 12,949.20 $ 14,245.20 $ 15,670.80 $ 15,826.32 |$ 15,035.76 $ 12,780.72 $ 11,981.25 $ 13,781.25 $ 15,844.50 $ Collection in Second Month after Sale ## $ 6,166.25 $ 11,313.00 1,177.20 $ 1,294.92 $ 1,424.52 $ 1,567.08 $ 167,366.25 $ 1,582.63 $ 1,503.58 $ 1,278.07 $ 1. Total Cash Receipts 1,198.13 $ 1,378.13 $ 1,584.45 $ 52.189.20 1,616.63 1,131.30 $ 16,736.63 1 $ 57,408.12 $ 63,153.72 $69,473.88 $ 70,163.35 $ 66.658.54 $ 56,661.19 | $ 53,116.88|$ 61,096.88| $ 70,243.95 $ 71,670.38| $ 50,154.30 $ 741,990.38 Production Budget January February March April May June July August September October November Sales in Units (from Sales Budget) December 5,450 Total ,995 3,595 ',25! .327 5,917 5,325 3,125 Add: Desire Ending Inventory of FGI [Ridup 7,042 ## 7.185 i,028 6,205 4,796 i,276 5,804 5,862 5,569 4.734 .260 4,900 Total Units Required 5,634 5,748 4.022 4,800 10,246 31,404 11,271 2.399 13,117 12,896 11,695 0,177 0,225 11,759 12,790 Less: Expected Beginning Inventory of FGI 11,207 3,828 137.609 4,360 1,796 5,276 5,804 5,862 5,569 1,734 4,260 Units to be Produced 4,900 5,634 5,886 5,748 4,022 60,964 3,475 7,123 7.313 7.034 6,126 6,443 5,965 3,859 7,156 5,459 5,806 76.645 Direct Materials Budget January February March Apri May June July August September October November December Total Units to be Produced 5,886 5,475 7,123 7,313 7,034 6,126 5,443 5,965 6,859 Raw Materials Required Per Unit (lbs) 7,156 5,459 5,806 2.5 76.645 2.5 2.5 2.5 2.5 2.5 1.75 1.75 1.75 1.75 Raw Materials Required for Production [Ibs) 1.75 14,715 1.75 16,188 17,808 18,282 17,586 5,314 .526 10,439 Add Desired Ending Inventory of RM (lbs) 12,003 12,524 ## 9,554 10,160 164,096 2,950 14.246 4.625 14,068 12.251 7,621 3,351 9.602 10,019 7,643 Total Raw Material Required 27,665 3,128 2,500 132,005 30,434 32,433 32,350 29,837 22,935 17,877 20,041 Less Expected Beginning Inventory of RM [lbs) 22,022 20,167 17.682 22,660 296,101 8,500 12,950 14,246 14,626 14,069 2,251 10,887 11,930 13,718 14.313 Raw Materials to be Purchased [Ibs) 10,919 11.611 19,165 18,186 150,021 17.483 7,724 15,768 10,684 6,990 8,110 8,304 5,854 Cost per Pound 6,763 11,049 $ 146,080 0.89 0.89 0.89 0.89 $ 0.89 0.89 $ 0.89 0.94 $ 0.94 Total Cost of Raw Materials 0.94 $ 0.94 $ $ 17,056.85 0.94 $ 15,559.96 $ 16,185.81 $ 15,774.63 $ 14,033.61 $ 9,508.59 $ 6,220.88 $ 7,623.77 $ 7,805.68 $ 5,502.82 $ 6,356.83 | $ 10,385.68 132,015Direct-Labor Budget January February March April May June July August September October November December Total Units to be Produced 5,886 1.475 ' 123 .313 7.034 6,126 5,443 5,965 ,859 ',156 5,459 5,806 76,645 Direct-Labor Hours Per Unit 0.25 0.25 0.25 1.25 D.25 0.25 0.15 0.15 0.15 0.15 D.15 0.15 Total Hours of Direct Labor Time Needed 1,471.50 1,618.75 1,780.75 .828.15 1,758.58 1,531.43 816.51 894.75 .028.79 1,073.46 818.91 870.84 15,492 Direct Labor Costs: Wages [ $20.00 per DLH) $ 29,430.00 $ 32,375.00|$ 35,615.00 $36,563.00 $ 35,171.50 $ 30,628.50 $ 16,330.20 |$ 17,895.00 $20,575.80 $ 21,469.20 $ 16,378.20 |$ 17,416.80 $309,848.20 Retirement Contribution ($0.45 per DLH) 862.18 $ 728.44 $ 801.34 $ 822.67 | $ 791.36 89.14 367.43 | $ 402.64 $ 462.96 483.06 368.51 391.88 $ 6,971.58 Workers' Compensation Insurance ($0.20 per DLH) 294.30 323.75 356.15 $ 865.63 $ 351.72 306.29 63.30 $ 178.95 $ 205.76 214.69 163.78 174.17 $ 3,098.48 Employee Medical ($0.80 per DLH) $ 1,177.20 $ 1,295.00 $ 1,424.60 $ 1,462.52 $ 1,406.86 1,225.14 $ 653.21 $ 715.80 323.03 858.77 655.13 $ 696.67 $ 12,393.93 Employer's Social Security (7.65% of Wages) 2,251.40 $ 2,476.69 $ 2,724.55 $ 2,797.07 $ 2,690.62 $ 2,343.08 $ 1,249.26 $ 1,368.97 $ 1,574.05 1,642.39 $ 1,252.93 $ 1,332.39 $ 23,703.39 Total Direct-Labor Cost $ 33,815.07|$ 37,198.88 $ 40,921.64 $ 42,010.89 $ 40,412.05 $ 35,192.15 $ 18,763.40 |$ 20.561.36 |$ 23.641.59 $ 24.668.11 $ 18,818.55|$ 20,011.90 $ 356,015.58 Production Overhead Budget January February March April May June July August September October November December Tota Shipping and Handling ($0.25 per Unit Sold) $ ,362.50 $ 1,498.75 $ 1,648.75 $ 1,813.75|$ 1,831.75|$ 1,740.25 $ 1,479.25 $ 1,331.25 $ 1,531.25 1,760.50 .796.25 $ 1,257.00 19,051.25 Raw Material Storage and Material Handling ($.12 per lbs) | $ 706.32 777.00 $ 854.76 $ 877.51 $ 844.10 735.08 353.21 $ 715.80 $ 823.03 358.77 655.13 696.67 $ 9,197.39 FGI Storage and Material Handling ($.21 per unit) 1,236.06 $ 1,359.75 $ 1,495.83 $ 1,535.65 $ 1,477.18 $ 1,286.40 $ 1,143.11 $ 1,252.65 1,440.31 $ 1,502.84 1,146.47 $ 1,219.18 $ 16,095.43 Other Overhead ( $10.75 per DLH) 15.818.63 $ 17,401.56 $ 19,143.06 $ 19,652.61 $ 18,904.68 | $ 16,462.82 $ 8,777.48 $ 9,618.56 $ 11,059.49 $ 11,539.70 $ 8,803.28 $ 9,361.53 $ 166,543.41 Total Production Overhead $ 19,123.51 $ 21,037.06 $ 23,142.40 $23.879.52 $23.057.72 $ 20,224.55 |$ 12,053.05 |$ 12,918.26 |$ 14.854.08 $ 15,661.81 $ 12,401.13 $ 12,534.38 $ 210,887.47 Cash Disbursement Budget January February March April May June July August September October November December Tota Cost of Raw Materials Purchases $ 17,056.85 $ 15,559.96 $ 16,185.81 $ 15,774.63 $ 14,033.61 $ 9,508.59 $ 6,220.88 $ 7,623.77 $ 7,805.68 $ 5,502.82 3,356.83 $ 10,385.68 $ 132,015.10 Cost of Direct-Labor $ 33,815.07 $ 37,198.88 $ 40,921.64 $ 42,010.89 $ 40,412.05 $ 35,192.15 $ 18,763.40 $ 20,561.36 $ 23.641.59 $ 24.668.11 $ 8,818.55 $ 20,011.90 $ 356,015.58 Cost of Production Overhead $ 19,123.51 $ 21,037.06 $ 23,142.40 $23,879.52 $23,057.72 $ 20,224.55 $ 12,053.05 $ 12,918.26 $ 14,854.08 $ 15,661.81 $ 12,401.13 $ 12,534.38 $ 210.887.47 Total Cash Disbursed During the Period $ 69,995.43 $73,795.90 $80,249.84 | $ 81,665.03 $77,503.38 $ 64,925.29 $37,037.33 |$ 41,103.38 $ 46,301.35 $ 45,832.73 $ 37,576.52 | $ 42,931.97 $ 698,918.15 Cash Budget January February March April May June July August September October November December Tota Beginning Cash Balance $ 87.500.00 $ 71,940.00 $ 79,140.00 $87.060.00 $87,924.00 | $ 83,532.00 | $ 71,004.00 $66,562.50 $ 76,562.50 $ 88,025.00 89,812.50 | $ 62.850.00 $ 951,912.50 Cash Receipts $ 52,189.20 $ 57,408.12 $ 63,153.72 $ 69,473.88 $ 70,163.35 $ 66,658.54 $ 56,661.19 $ 53,116.88 $ 61,096.88 $ 70,243.95 71,670.38 $ 50,154.30 $ 741,990.38 Less: Cash Disbursements $ 69,995.43 $73,795.90 $ 80,249.84 | $ 81,665.03 $77,503.38 $ 64,925.29 $37,037.33 $ 41,103.38 $ 46,301.35 $ 45,832.73 37.576.52 $ 42,931.97 $ 698,918.15 Ending Cash Balance $ 69,693.78 $55,552.22 $62,043.88 |$74,868.85 $80,583.97 $ 85,265.25 $90,627.86 $78,575.99 |$ 91,358.02 |$ 112,436.22 $ 123,906.35 |$70,072.33 $994,984.72Sales Budget January February March April hel June July August September October November December Tota Sales in Units 5,450 1,995 6,595 7,255 7,327 6,961 5,917 5,325 3,125 7,042 Units Sales Price 7,185 5,028 76,205 $ 2.00 $ 12.00 $ 2.00 $ 12.00 $ 12.00 $ 2.00 2.00 $ 12.50 $ 12.50 $ 12.50 | $ 12.50 $ 12.50 Total Sales Revenue $ 65,400.00 |$ 71,940.00 |$ 79,140.00 $ 87,060.00 |$ 87,924.00 $ 83,532.00 | $ 71,004.00 $ 66,562.50 $ 76,562.50 $ 88,025.00 | $ 89,812.50|$ 62,850.00 $ 929,812.50 Cash Receipts Budget January February March April May June July August September October November December Total Sales Revenue [from Sales Budget) $ 65,400.00 $ 71,940.00 ) $ 79,140.00 |$ 87,060.00|$ 87,924.00 |$ 83,532.00| $ 71,004.00 |$ 66,562.50 $ 76,562.50 $ 88,025.00 Collection in Month of Sale $ 89,812.50 $ 62,850.00 60% $ 39,240.00 $ 43,164.00 $ 929,812.50 1 $ 47,484.00 $ 52,236.00 $ 52,754.40 $ 50,119.20 $ 42,602.40 $ 39,937.50 $ 45,937.50 $ 52,815.00 |$ 53.887.50 Collection in First Month after Sale $ 37,710.00 30% $ 11,772.00 $557,887.50 $ 12,949.20 $ 14,245.20 $ 15,670.80 $ 15,826.32 $ 15,035.76 $ 12,780.72 $ 11,981.25 $ 13,781.25 $ 15,844.50 $ 16,166.25 $ 11,313.00 Collection in Second Month after Sale 10% $ $ 167.366.25 1,177.20 $ 1,294.92 $ 1,424.52 $ 1,567.08 $ 1,582.63 $ 1,503.58 $ 1,278.07 $ 1,198.13 $ Total Cash Receipts 1,378.13 $ 1,584.45 1,616.63 1,131.30 $ 16,736.63 $ 52,189.20 $ 57,408.12 $ 63,153.72|$ 69,473.88 $ 70,163.35 $ 66,658.54 | $ 56,661.19 | $ 53,116.88|$ 61,096.88 | $ 70,243.95 | $ 71,670.38 |$ 50,154.30 |$ 741,990.38 Production Budget January February March April May June July August September October November December Total Sales in Units [from Sales Budget) 5,450 5,995 6,595 7.255 7,327 6,961 5,917 5,325 3,125 Add: Desire Ending Inventory of FGI (Rdup 7,042 7,185 5,028 80% 4,796 76,205 5,276 5,804 5.862 5,569 1,734 4,260 4.900 5,634 5,748 4,022 4.800 Total Units Required 10,246 61,404 11,271 2,399 13,117 2,896 11,695 10,177 10,225 11,759 12,790 Less: Expected Beginning Inventory of FGI 11,207 3,828 137,60 1.360 4,796 5,276 5,804 5,862 1,569 4,734 4,260 4,900 5,634 5,748 4,022 Units to be Produced 60,964 5,886 6,475 7.123 7,313 7.034 3,126 5,443 5,965 5,859 7,156 5,459 ,806 76,645 Direct Materials Budget January February March April May June July August September October November December Tota Units to be Produced 5,886 6,475 7.123 7,313 7,034 ,126 5,443 5,965 6,859 7.156 ,459 5,806 Raw Materials Required Per Unit [Ibs) 76,645 2.5 2.5 2.5 2.5 2.5 2.5 2 2 2 Raw Materials Required for Production [Ibs) 2 2 21 2.5 14,715 6,188 17,808 18,282 17,586 15,314 10.887 11,930 13,717 14.313 10,919 Add Desired Ending Inventory of RM [lbS) 11,611 191,612 80% 12,950 14,246 4.625 14,068 2,251 8,709 3,544 10,974 11,450 8,735 9,289 Total Raw Material Required 2,500 27.665 139,342 30,434 32,433 32,350 29,837 24,024 20,431 22,904 25,167 23,048 20,208 Less Expected Beginning Inventory of RM [lbs) 24,111 312,610 3,500 12,950 4.246 14,626 4,069 12,251 0,887 11,930 13,718 14,313 10,919 11,611 Raw Materials to be Purchased [lbs) 150,021 19,165 17,483 8,186 17,724 5,768 11,772 9,544 10,973 11,450 8,735 Cost per Pound 9,289 2,500 162,590 $ 0.89 $ 0.89 $ 0.89 $ 0.89 $ 0.89 $ 0.89 $ 0.89 $ 0.94 $ 0.94 $ Total Cost of Raw Materials 0.94 0.94 $ 0.94 $ 17,056.85 $ 15,559.96 $ 16,185.81 $ 15,774.63 $ 14,033.61 $ 10,477.52 $ 8,493.80 $ 10,314.96 $ 10,762.85 $ 8,210.94 $ 8,731.25 $ 11,750.00 147.352Direct-Labor Budget January February March April May June July August September October November December Total Units to be Produced 5,886 3,475 7,123 7,313 7.034 6,126 5,443 5,965 6,859 7,156 5,459 5,806 76,645 Direct-Labor Hours Per Unit .25 0.25 1.25 0.25 1.25 D.25 1.20 0.20 0.20 0.20 0.20 0.20 Total Hours of Direct Labor Time Needed 1,471.50 1,618.75 1,780.75 1,828.15 1,758.58 .531.43 ,088.68 193.00 1,371.72 1,431.28 1,091.88 1,161.12 17,327 Direct Labor Costs; Wages [ $20.00 per DLH) $ 29.430.00|$ 32,375.00|$ 35,615.00|$ 36,563.00 $ 35,171.50 $ 30,628.50 $ 21,773.60 $ 23,860.00 $ 27,434.40 $ 28,625.60 $ 21,837.60 | $ 23,222.40 $346,536.60 Retirement Contribution ($0.45 per DLH) 562.18 $ 728.44 $ 801.34 822.67 $ 791.36 $ 589.14 $ 489.91 536.85 617.27 $ 644.08 $ 491.35 $ 522.50 $ 7,797.07 Workers' Compensation Insurance ($0.20 per DLH) 294.30 $ 323.75 $ 356.15 $ 365.63 $ 351.72 306.29 $ 217.74 238.60 $ 274.34 $ 286.26 $ 218.38 $ 232.22 $ 3,465.37 Employee Medical ($0.80 per DLH) $ 1,177.20 $ 1,295.00 $ 1,424.60 $ 1,462.52 $ 1,406.86 1,225.14 $ 870.94 954.40 $ 1,097.38 $ 1,145.02 873.50 928.90 13,861.46 Employer's Social Security (7.65% of Wages) $ 2,251.40 $ 2,476.69 $ 2,724.55 $ 2,797.07 $ 2,690.62 $ 2,343.08 1,665.68 $ 1,825.29 $ 2.098.73 $ 2,189.86 $ 1,670.58 1,776.51 $ 26,510.05 Total Direct-Labor Cost $ 33,815.07 $ 37,198.88 $ 40,921.64 $ 42,010.89 $ 40,412.05 $ 35,192.15 |$ 25,017.87 $ 27,415.14 $ 31,522.13 |$ 32,890.81 $ 25,091.40 |$ 26,682.54 $ 398,170.55 Production Overhead Budget January February March April May June July August September October November December Total Shipping and Handling [$0.25 per Unit Sold) 1,362.50 1,498.75 $ 1,648.75 1,813.75 $ 1,831.75 $ 1,740.25 $ 1,479.25 $ 1,331.25 1,531.25 $ 1,760.50 $ 1,796.25 $ 1,257.00 $ 19,051.25 Raw Material Storage and Material Handling ($.12 per lbs) 706.32 $ 777.00 $ 854.76 $ 877.51 $ 844.10 $ 735.08 653.21 715.80 $ 823.03 | $ 858.77 $ 655.13 $ 696.67 $ 9,197.39 FGI Storage and Material Handling ($.21 per unit) $ 1,236.06 $ 1,359.75 $ 1,495.83 $ 1,535.65 1,477.18 $ 1,286.40 $ 1,143.11 $ 1,252.65 1,440.31 $ 1,502.84 1,146.47 $ 1,219.18 $ 16,095.43 Other Overhead ( $10.75 per DLH) $ 15,818.63 $ 17,401.56 $ 19,143.06 $ 19.652.61 $ 18,904.68 $ 16,462.82 $ 11,703.31 $ 12.824.75 $ 14,745.99 $ 15,386.26 $ 11,737.71 $ 12,482.04 $ 186,263.42 Total Production Overhead $ 19,123.51 $ 21,037.06 $ 23.142.40 $ 23,879.52 $ 23.057.72 $ 20,224.55 $ 14,978.88 $ 16.124.45 $ 18,540.58|$ 19,508.37|$ 15,335.56| $ 15,654.89 $230.607.49 Cash Disbursement Budget January February March April May June July August September October November December Total Cost of Raw Materials Purchases $ 17,056.85 $ 15,559.96 $ 16,185.81 $ 15,774.63 $ 14,033.61 $ 10,477.52 $ 8,493.80 $ 10,314.96 $ 10,762.85 8,210.94 $ 8,731.25 $ 11,750.00 $ 147,352.16 Cost of Direct-Labor $ 33,815.07 $ 37,198.88 $ 40,921.64 $ 42,010.89 $ 40,412.05 $ 35,192.15 $ 25.017.87 $ 27.415.14 $ 31,522.13 $ 32,890.81 $ 25,091.40 $ 26,682.54 $ 398,170.55 Cost of Production Overhead $ 19,123.51 $ 21,037.06 $ 23,142.40 |$ 23,879.52 $ 23,057.72 $ 20,224.55 $ 14,978.88 $ 16,124.45 $ 18,540.58 $ 19,508.37 $ 15,335.56 |$ 15,654.89 $230,607.49 Total Cash Disbursed During the Period $ 69,995.43 $ 73,795.90 $ 80,249.84 $ 81,665.03|$ 77,503.38|$ 65,894.21|$ 48,490.55 $ 53,854.55 |$ 60,825.55 |$ 60,610.12|$ 49,158.21|$ 54.087.43|$ 776,130.21 Cash Budget January February March April May Jun July August September October November December Total Beginning Cash Balance $ 87,500.00 $ 71,940.00 $ 79,140.00 $ 87,060.00 $ 87,924.00 $ 83,532.00 $ 71,004.00 |$ 66,562.50 $ 76,562.50 $ 88,025.00 $ 89,812.50 $ 62,850.00 $ 951,912.50 Cash Receipts $ 52,189.20 |$ 57,408.12 $ 63,153.72 $ 69,473.88 $ 70,163.35 $ 66,658.54 $ 56,661.19 $ 53,116.88 $ 61,096.88|$ 70,243.95 $ 71,670.38 $ 50,154.30 $ 741,990.38 Less: Cash Disbursements $ 69,995.43 $ 73,795.90 $ 80,249.84 $ 81,665.03 $ 77,503.38 $ 65,894.21 $ 48,490.55 $ 53,854.55 $ 60,825.55 $ 60,610.12 $ 49,158.21 $ 54.087.43 $ 776,130.21 Ending Cash Balance $ 69,693.78 | $ 55,552.22 $ 62.043.88 | $ 74,868.85 $ 80,583.97 $ 84,296.32 $ 79,174.64 $ 65,824.83 $ 76,833.82 $ 97,658.83 $ 112,324.66 |$ 58,916.87 $ 917,772.67