Question
Prepare a Sales Budget for the quarter that ended June 30, 2015 using the assumptions provided. I have done some of the other budgets that
Prepare a Sales Budget for the quarter that ended June 30, 2015 using the assumptions provided. I have done some of the other budgets that might provide information needed to create the sales budget.
Sales Budget
Production Budget | ||||||
April | May | June | Quarter | July | ||
Unit Sales | 25,000 | 30,000 | 31,000 | 88,000 | 33,000 | |
Add: Desired Ending | 6000 | 6200 | 6600 | 18800 | 6000 | |
Total Needed | 30,000 | 41,200 | 35,600 | 106,800 | 39,000 | |
Less: Beginning Inventory | 5000 | 6000 | 6200 | 5000 | 6600 | |
Units to be Producted | 25,000 | 35,200 | 29,400 | 101,800 | 32,400 | |
Materials Purchases Budget | ||||||
April | May | June | Quarter | |||
Production Units | 26,000 | 30,200 | 31,400 | 87,600 | 32,400 | |
Materials per Unit | 3 | 3 | 3 | 3 | 3 | |
Production Needs | 78000 | 90600 | 94200 | 262800 | 97200 | |
Add: Desired Ending Inventory | 9060 | 9420 | 9720 | 9720 | ||
Total Needed | 87060 | 100020 | 103920 | 291000 | ||
Less: Beginning Inventory | 7800 | 9060 | 9420 | 7800 | ||
Materials to be Purchased | 79260 | 90960 | 94500 | 291000 | ||
Direct Labor Budget | ||||||
April | May | June | Quarter | |||
Production Units | 26,000 | 30,200 | 31,400 | 87,600 | ||
Direct Labor Hours | 0.2 | 0.2 | 0.2 | 0.2 | ||
Labor Hours Required | 5200 | 6040 | 6280 | 17520 | ||
Direct Labor Costs per Hour | $20.00 | $20.00 | $20.00 | $20.00 | ||
Total Direct Labor Cost | $104,000.00 | $120,800.00 | 125,600.00 | $350,400.00 | ||
Overhead Budget | ||||||
April | May | June | Quarter | |||
Total Direct Labor Cost | 104,000 | 120,800 | 125,600 | 350,400 | ||
Overhead Cost (175% of Direct Labor) | 182,000 | 211,400 | 219,800 | 613,200 |
April | May | June | July | August | |
Unit Sales | 25,000 | 30,000 | 31,000 | 33,000 | 30,000 |
Sales Price | $10 | ||||
Desired Ending Inventory for Finished Goods | 20% | of next month's sales in units | |||
Desired Ending Inventory for Material Units | 10% | of next month's materials needed for production | |||
Cost of one pound of materials | $0.25 | ||||
Units of Direct Materials to make one unit | 3 | ||||
Minutes of Direct Labor to make one unit | 12 | ||||
Direct Labor Costs per Hour | $20 | ||||
Overhead Costs percentage of Direct Labor | 175% | ||||
Minimum cash balance | $ 20,000.00 | ||||
Cash collections in month of sale | 65% | ||||
Cash collections in first month after sale | 25% | ||||
Cash collections in second month after sale | 10% | ||||
Cash Payments in month of purchase | 70% | ||||
Cash Payments in the first month after purch | 30% | ||||
Selling Costs per month | $ 10,000.00 | ||||
Administrative Costs per month | $ 15,000.00 | ||||
Annual Interest Rate for Letter of Credit | 12% | ||||
Annual Interest Rate Earned on Excess Cash | 4% |
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