Perky Turkey Jerky, LLC Balance Sheet March 31, 2018 22,000.00 9,000.00 2,750.00 14,300.00 Assets Current Assets Cash Accounts Receivable Raw Materials Inventory (1,100 pounds) Finished Goods Inventory (2,000 units) Total Current Assets Plant and Equipment Equipment Accumulated Depreciation Plant and Equipment, Net Total Assets 48,050.00 911,000.00 14,000.00 897,000.00 945,050.00 7,500.00 100,000.00 Liabilities and Stockholders' Equity Liabilities Accounts Payable Bonds Payable Stockholders' Equity Common Stock 800,000.00 Retained Earnings 37,550.00 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 837,550.00 945,050.00 Perky Turkey Jerky, LLC Budgeting Assumptions For the Quarter Ending June 30, 2018 Month May April June July 15,000 Sales Budget Budgeted Sales in 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 11,000 $9.00 90% 10% 10,000 $9.00 90% 10% 13,000 $9.00 90% 10% Production Budget Percentage of next month's sales in ending finished goods inventory 20% 20% 20% $2.50 $2.50 $2.50 Direct Materials Budget Meat per pound Pounds of meat per unit 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% 75% 25% 75% 25% 5% 75% 25% Direct Labor Budget Direct labor hours required per unit (20 units per labor hour) Cost per direct labor hour 0.05 $18.00 0.05 $18.00 0.05 $18.00 Manufacturing Overhead Budget Variable manufacturing overhead per direct labor hour Fixed manufacturing overhead Manufacturing Depreciation $5.00 $15,000 $10,000 $5.00 $15,000 $10,000 $5.00 $15,000 $10,000 $0.10 $0.10 $0.10 Variable Selling and Administrative Expense Budget Sales Commissions Fixed selling and administrative expenses Advertising Manager Salaries Insurance Depreciation on Office Equipment (only noncash item) Total fixed selling and administrative expenses $2,500 $5,000 $2,000 $500 $10,000 $2,500 $5,000 $2,000 $500 $10,000 $2,500 $5,000 $2,000 $500 $10,000 Cash Budget Minimum cash balance $30,000 $30,000 $30,000 Equipment Purchases $12,000 10 year asset, administrative Dividends $3,000 $3,000 $3,000 Simple annual interest rate 2% 2% 2% Perky Jerky has an open line of credit with its bank. If it needs to borrow money, the minimum amount that can be borrowed is $10,000 Perky Jerky's company policy is to repay all loans (principal + simple interest) at the end of the month where it has enough cash on hand Perky Turkey Jerky, LLC Sales Budget For the Quarter Ending June 30, 2018 Month May - Quarter Total April June Budgeted Sales (in units) Selling price per unit Total budgeted Sales Schedule of Expected Cash Collections Beginning Accounts Receivable April sales May sales June sales Total cash collections AR Balance 6/30 Perky Turkey Jerky, LLC Sales Budget For the Quarter Ending June 30, 2018 Month May Quarter Total April June Budgeted sales in units Add: Desired Ending Inventory Total units needed Less: Units of beginning finished goods inventory Required production in units Perky Turkey Jerky, LLC Direct Materials Budget For the Quarter Ending June 30, 2018 Month May April Quarter Total June Required production in units) Pounds of raw materials per unit Pounds of raw materials needed for production Add: Desired Raw Materials ending inventory Total pounds of Raw Materials needed Less: Beginning Raw Materials inventory Pounds of Raw Materials to be purchased Cost of Raw Materials per pound Cost of Raw Materials to be purchased Schedule of Expected Cash Disbursements for the Purchase of Materials Beginning Accounts Payable April purchases May purchases June purchases Total Cash Disbursements Accounts Payable Balance 6/30 Perky Turkey Jerky, LLC Direct Labor Budget For the Quarter Ending June 30, 2018 Month May April Quarter Total June Required production in units) Direct labor hour per unit Total direct labor hours needed Cost per direct labor hour Total direct labor cost Perky Turkey Jerky, LLC Manufacturing Overhead Budget For the Quarter Ending June 30, 2018 Month May - Quarter Total April June Budgeted direct labor hours Variable Manufacturing Overhead rate Variable Manufacturing Overhead Fixed Manufacturing Overhead Total Manufactuing Overhead Less: Depreciation Cash disbursments for manufacturing overhead Total Manufacturing Overhead Total budgeted Direct Labor hours Predetermined overhead rate for the quarter Perky Turkey Jerky, LLC Ending Finished Goods Inventory Budget For the Quarter Ending June 30, 2018 Ost Total Prodcution Cost Per Case Direct Material Direct Labor Manufacturing Overhead Unit Product Cost Quantity pounds hours hours per pound per hour per DL hour Budgeted ending finished goods inventory Ending finished goods inventory (in units) Unit product cost Dollar value of ending inventory Perky Turkey Jerky, LLC Selling and Administrative Expenses Budget For the Quarter Ending June 30, 2018 Month May - Quarter Total April June Budgeted sales Variable selling and administrative expense per unit Total variable selling and administrative expense Fixed selling and adminstrative expenses Advertising Manager Salaries Insurance Depreciation on Office Equipment (only noncash item) Total fixed selling and administrative expenses Total selling and administrative expenses Less: Depreciation Cash dispersements for selling and admin expenses