Sales Budget
Quarter	1	2	3	4	Year
P100 Expected Sales units	5,850.00	6,240.00	7,378.00	7,378.00	26,846.00
Selling Price	715.00	715.00	715.00	715.00	715.00
Total Sales P100	4,182,750.00	4,461,600.00	5,275,270.00	5,275,270.00	19,194,890.00
P200 Expected Sales units	7,893.00	7,893.00	7,722.00	8,236.00	31,744.00
Selling Price	845.00	845.00	845.00	845.00	845.00
Total Sales P200	6,669,585.00	6,669,585.00	6,525,090.00	6,959,420.00	26,823,680.00
Total Sales	10,852,335.00	11,131,185.00	11,800,360.00	12,234,690.00	46,018,570.00

Production Budget
Quarter	1	2	3	4	Year
Expected Sales Units P100	5,850.00	6,240.00	7,378.00	7,378.00	26,846.00
Add desired ending of Inventory P100	405.60	479.57	479.57	363.35	1,728.09
Total needs P100	6,255.60	6,719.57	7,857.57	7,741.35	28,574.09
Less beginning of Inventory P100	380.25	405.60	479.57	479.57	1,744.99
P100 Required Production: Units	5,875.35	6,313.97	7,378.00	7,261.78	26,829.10
Expected Sales Units P200	7,893.00	7,893.00	7,722.00	8,236.00	31,744.00
Add desired ending of Inventory P200	513.05	501.93	535.34	388.70	1,939.02
Total needs P200	8,406.05	8,394.93	8,257.34	8,624.70	33,683.02
Less beginning of Inventory P200	513.05	513.05	501.93	535.34	2,063.36
P200 Required Production: Units	7,893.00	7,881.89	7,755.41	8,089.36	31,619.66

Additional details Additional details continued: Fine Office Company produces two products P100 and P200 Fine Office Company will pay $60,000 in dividends in Q4 Sales price per P100 is $715 Currently, the cash balance in the bank is $15,000. Fine Office Company wants to maintain a Sales price per P200 is $845 minimum cash balance of $10,000 in the bank for each quarter. The value of P100 finished goods inventory at the end of 2022 is $360,000 and The value of P200 finished goods inventory at the end of 21 $300,000. Budgeted sales volumes year 2024 Q1 At the end of each quarter, Fine Office Company requires ending inventory to be equal to 6.50% | of the following quarter's budgeted sales in units P100 Q1 5590 P200 Q1 5980 Each P100 unit uses 71.5 sq. It. of steel during the manufacturing process. The cost of steel for 2023 is estimated $8 per sq. ft. Budgeted sales volumes are: Each P200 unit uses 97.5 sq. ft. of steel during the manufacturing process P100 Q1 5850 Q2 6240 Q3 7378 Q4 7378 Fine Office Company currently has 30,000 sq. ft. of steel in the beginning inventory. At P200 893 02 7893 Q3 7722 04 8236 the end of each quarter, Fine Office Company wants to have 57.200 sq. ft. of ending Selling and Administration expenses for the budgeted year are as follows: inventory. Variable Cost: Each product requires 2 machine hours and 7 direct labour his to produce. Delivery costs are based on $0.30 per sales unit Direct Labour costs $ 19.5 per direct labour hour. Commissions are based on 0.1 % of sales value. Fine Office Company allocates manufacturing overhead costs based on the estimated machine hours. Estimated manufacturing overhead cost for 2023 are $81,900 and are all variable. Fixed Costs per quarter: For each quarter, it is estimated that 40%% of sales will be cash and 60% Accounting & professional services 1,600 will be credit sales. Of the credit sales, 80% pay in the quarter of the sale and 20%% pay in the Administrative & Sales Salaries 40,000 following quarter. Credit sales from Q4 2022 were $1,300,000 Advertising 8,000 Direct labour costs and manufacturing overhead costs are paid for in cash in the quarter they Computer costs 3,00 occurred. Depreciation 25,000 Assume operating expenses occur evenly throughout the year and are all paid in cash. Office Supplies 2,000 For each quarter, 0% of material purchases are paid for in cash in the quarter of Printing 2,500 the purchase and 30%% are paid in the following quarter. Purchases of materials from Insurance 1,500 Q4 2022 were $1,500,000 Property taxes 1,000 Rent 12,000 Fine Office Company Utilities 3,400 Total Fixed Costs 100,000 Fine Office Company will purchase a new machine on 1/1/2023 worth $500,000 and will make two equal payments. The first payment will be in Q1 and the second in Q4. Assume the machine was purchased at the beginning of the year. Taxation is 25% on taxable income and paid at the end of Q 4 each year (Ignore negative taxes]. Balance sheet information as at 31st December 2022 is as follows; PPE $100,000 Accumulated Depreci $100,000 Common Stock $580,000 Retained Earnings $145,000 For Cost of goods sold (COGS) Add total costs of production + Beginning Finished goods - Ending Finished goods Inventory. Interest of $9,000 on loans is paid in total at the end of the year and is a fixed cost