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Sales Budget Quarter #1 Quarter #2 Quarter #3 Quarter #4 Total Sales in Units 2,250 2,900 1,750 1,750 8,650 Selling Price per Unit $48 $48
Sales Budget Quarter #1 Quarter #2 Quarter #3 Quarter #4 Total Sales in Units 2,250 2,900 1,750 1,750 8,650 Selling Price per Unit $48 $48 $48 $48 $48 Sales Revenue $108,000 $139,200 $84,000 $84,000 $415,200 Expected Cash Collections Quarter #1 Quarter #2 Quarter #3 Quarter #4 Total Accounts Receivable Current month sales $59,400 $76,560 $46,200 $46,200 $228,360 Last month sales $48,600 $62,640 $37,800 $149,040 $59,400 $125,160 $108,840 $84,000 $377,400 Production Budget Quarter #1 Quarter #2 Quarter #3 Quarter #4 Total Sales In Units 2,250 2,900 1,750 1,750 8,650 Add: Desired Ending Inventory 725 437.5 437.5 575 575 Total Needs 2,975 3,337.50 2,187.50 2,325 9,225 Less: Beginning Finished Goods Inventory 200 725 437.5 437.5 200 Units To Be Produced 2,775 2,612.50 1,750 1,887.50 9,025 Direct Materials Purchases Quarter #1 Quarter #2 Quarter #3 Quarter #4 Total Units To Be Produced 2,775 2,612.50 1,750 1,887.50 9,025 Materials Per Unit 5 5 5 5 5 Production Needs 13875 13063 8750 9438 45125 Add: Desired Ending Inventory 3918.75 2625 2831.25 3375 3375 Total Needed 17794 15688 11581 12813 48500 Less: Beginning Inventory 450 3918.75 2625 2831.25 450 Materials To Be Purchased 17344 11769 8956 9981 48050 Materials Cost Per Ounce $0.75 $0.75 $0.75 $0.75 $0.75 Total Materials Purchase Cost $13,007.81 $8,826.56 $6,717.19 $7,485.94 $36,037.50 Cash Purchases Budget Quarter #1 Quarter #2 Quarter #3 Quarter #4 Total Accounts Payable 3/31 Current Month Purchases $7,775.24 $5,242.98 $3,990.01 $4,446.65 $21,454.88 Last Month Purchases $9,503.07 $6,408.08 $4,876.68 $20,787.83 Total Cash Disbursements For Purchases $7,775.24 $14,746.05 $10,398.09 $9,323.33 $42,242.71 Direct Labor Budget Quarter #1 Quarter #2 Quarter #3 Quarter #4 Total Units To Be Produced 2,775 2,612.50 1,750 1,887.50 9,025 DL Hours Needs Per Unit 0.8 0.8 0.8 0.8 0.8 DL Hours Needed 2,220 2,090 1,400 1,510 7,220 DL Cost Per Hour $18.75 $18.75 $18.75 $18.75 $18.75 Total Budgeted DL $41,625 $39,187.50 $26,250 $28,312.50 $135,375 Overhead Budget Quarter #1 Quarter #2 Quarter #3 Quarter #4 Total DL hours needed 2,220 2,090 1,400 1,510 7,220 VOH rate / hour 2 2 2 2 2 Budgeted variable OH 4,440 4,180 2,800 3,020 14,440 Budgeted fixed MOH costs 8,500 8,500 8,500 8,500 34,000 Total budgeted OH expense 12,940 12,680 11,300 11,520 48,440 Less: Depreciation 1,750 1,750 1,750 1,750 7,000 Total cash disbursements for MOH 11,190 10,930 9,550 9,770 41,440 Ending Finished goods Production costs per unit Quantity Cost Total Direct materials Direct labor MOH Budgeted finished goods inventory Ending inventory, in units Unit product cost Ending finished goods inventory Selling and Administrative Expense Budget Quarter #1 Quarter #2 Quarter #3 Quarter #4 Total Budgeted sales Variable S&A rate Variable expenses Fixed S&A Total S&A Less: Depreciation Cash S&A Expenses Cash Budget Quarter #1 Quarter #2 Quarter #3 Quarter #4 Total Beginning cash balance $2,500 $2,500 $2,500 $2,500 $10,000 Add: Cash collections $59,400 $125,160 $108,840 $84,000 $377,400 Total cash available $61,900 $127,660 $111,340 $86,500 $387,400 Less: Cash disbursements Materials $17,278 $11,651 $8,867 $9,881 $47,678 Direct Labor $41,625 $39,188 $26,250 $28,312 $135,375 MOH $11,190 $10,930 $9,550 $9,770 $41,440 S&A Taxes $2,000 $2,000 $2,000 $2,000 $8,000 Dividends $1,500 $1,500 $1,500 $1,500 $6,000 Equipment purchases $4,200 $2,750 $- ($35,037) $6,950 Total disbursements $77,793 $68,019 $48,167 $51,463 $245,442 Ending cash balance ($15,893) $59,641 $63,173 $35,037 $141,958 Borrowing $1,000 $1,000 $1,000 $1,000 $4,000 Interest $100 $100 $100 $100 $400 Repayments Cash at the end of the period Budgeted income statement Sales $108,000 $139,200 $84,000 $84,000 $415,200 Less: COGS ($16,453) ($8,106) ($3,179) ($1,288) ($29,025) Gross margin $91,548 $131,094 $80,821 $82,713 $386,175 S&A expense $13,938 $15,075 $13,063 $13,063 $55,138 Interest expense Net income before tax $77,610 $116,019 $67,759 $69,650 $331,038 Tax expense Net income Budgeted Balance sheet Cash Accounts receivable Raw materials inventory Finished goods inventory Land Building and Equipment Accumulated Depreciation Accounts payable Tax payable Capital stock RE Total L&SE Direct Materials Purchases Quarter #1 Quarter #2 Quarter #3 Quarter #4 Total Units To Be Produced 2,775 2,612.50 1,750 1,887.50 9,025 Materials Per Unit 3 3 3 3 3 Production Needs 8325 7838 5250 5663 27075 Add: Desired Ending Inventory 2351.25 1575 1698.75 2025 2025 Total Needed 10676 9413 6949 7688 29100 Less: Beginning Inventory 0 2351.25 1575 1698.75 0 Materials To Be Purchased 10676 7061 5374 5989 29100 Materials Cost Per Ounce $0.40 $0.40 $0.40 $0.40 $0.40 Total Materials Purchase Cost $4,270.50 $2,824.50 $2,149.50 $2,395.50 $11,640
| Sales Budget | Quarter #1 | Quarter #2 | Quarter #3 | Quarter #4 | Total |
| Sales in Units | 2,250 | 2,900 | 1,750 | 1,750 | 8,650 |
| Selling Price per Unit | $48 | $48 | $48 | $48 | $48 |
| Sales Revenue | $108,000 | $139,200 | $84,000 | $84,000 | $415,200 |
| Expected Cash Collections | Quarter #1 | Quarter #2 | Quarter #3 | Quarter #4 | Total |
| Accounts Receivable | |||||
| Current month sales | $59,400 | $76,560 | $46,200 | $46,200 | $228,360 |
| Last month sales | $48,600 | $62,640 | $37,800 | $149,040 | |
| $59,400 | $125,160 | $108,840 | $84,000 | $377,400 | |
| Production Budget | Quarter #1 | Quarter #2 | Quarter #3 | Quarter #4 | Total |
| Sales In Units | 2,250 | 2,900 | 1,750 | 1,750 | 8,650 |
| Add: Desired Ending Inventory | 725 | 437.5 | 437.5 | 575 | 575 |
| Total Needs | 2,975 | 3,337.50 | 2,187.50 | 2,325 | 9,225 |
| Less: Beginning Finished Goods Inventory | 200 | 725 | 437.5 | 437.5 | 200 |
| Units To Be Produced | 2,775 | 2,612.50 | 1,750 | 1,887.50 | 9,025 |
| Direct Materials Purchases | Quarter #1 | Quarter #2 | Quarter #3 | Quarter #4 | Total |
| Units To Be Produced | 2,775 | 2,612.50 | 1,750 | 1,887.50 | 9,025 |
| Materials Per Unit | 5 | 5 | 5 | 5 | 5 |
| Production Needs | 13875 | 13063 | 8750 | 9438 | 45125 |
| Add: Desired Ending Inventory | 3918.75 | 2625 | 2831.25 | 3375 | 3375 |
| Total Needed | 17794 | 15688 | 11581 | 12813 | 48500 |
| Less: Beginning Inventory | 450 | 3918.75 | 2625 | 2831.25 | 450 |
| Materials To Be Purchased | 17344 | 11769 | 8956 | 9981 | 48050 |
| Materials Cost Per Ounce | $0.75 | $0.75 | $0.75 | $0.75 | $0.75 |
| Total Materials Purchase Cost | $13,007.81 | $8,826.56 | $6,717.19 | $7,485.94 | $36,037.50 |
| Cash Purchases Budget | Quarter #1 | Quarter #2 | Quarter #3 | Quarter #4 | Total |
| Accounts Payable 3/31 | |||||
| Current Month Purchases | $7,775.24 | $5,242.98 | $3,990.01 | $4,446.65 | $21,454.88 |
| Last Month Purchases | $9,503.07 | $6,408.08 | $4,876.68 | $20,787.83 | |
| Total Cash Disbursements For Purchases | $7,775.24 | $14,746.05 | $10,398.09 | $9,323.33 | $42,242.71 |
| Direct Labor Budget | Quarter #1 | Quarter #2 | Quarter #3 | Quarter #4 | Total |
| Units To Be Produced | 2,775 | 2,612.50 | 1,750 | 1,887.50 | 9,025 |
| DL Hours Needs Per Unit | 0.8 | 0.8 | 0.8 | 0.8 | 0.8 |
| DL Hours Needed | 2,220 | 2,090 | 1,400 | 1,510 | 7,220 |
| DL Cost Per Hour | $18.75 | $18.75 | $18.75 | $18.75 | $18.75 |
| Total Budgeted DL | $41,625 | $39,187.50 | $26,250 | $28,312.50 | $135,375 |
| Overhead Budget | Quarter #1 | Quarter #2 | Quarter #3 | Quarter #4 | Total |
| DL hours needed | 2,220 | 2,090 | 1,400 | 1,510 | 7,220 |
| VOH rate / hour | 2 | 2 | 2 | 2 | 2 |
| Budgeted variable OH | 4,440 | 4,180 | 2,800 | 3,020 | 14,440 |
| Budgeted fixed MOH costs | 8,500 | 8,500 | 8,500 | 8,500 | 34,000 |
| Total budgeted OH expense | 12,940 | 12,680 | 11,300 | 11,520 | 48,440 |
| Less: Depreciation | 1,750 | 1,750 | 1,750 | 1,750 | 7,000 |
| Total cash disbursements for MOH | 11,190 | 10,930 | 9,550 | 9,770 | 41,440 |
| Ending Finished goods | |||||
| Production costs per unit | Quantity | Cost | Total | ||
| Direct materials | |||||
| Direct labor | |||||
| MOH | |||||
| Budgeted finished goods inventory | |||||
| Ending inventory, in units | |||||
| Unit product cost | |||||
| Ending finished goods inventory | |||||
| Selling and Administrative Expense Budget | Quarter #1 | Quarter #2 | Quarter #3 | Quarter #4 | Total |
| Budgeted sales | |||||
| Variable S&A rate | |||||
| Variable expenses | |||||
| Fixed S&A | |||||
| Total S&A | |||||
| Less: Depreciation | |||||
| Cash S&A Expenses | |||||
| Cash Budget | Quarter #1 | Quarter #2 | Quarter #3 | Quarter #4 | Total |
| Beginning cash balance | $2,500 | $2,500 | $2,500 | $2,500 | $10,000 |
| Add: Cash collections | $59,400 | $125,160 | $108,840 | $84,000 | $377,400 |
| Total cash available | $61,900 | $127,660 | $111,340 | $86,500 | $387,400 |
| Less: Cash disbursements | |||||
| Materials | $17,278 | $11,651 | $8,867 | $9,881 | $47,678 |
| Direct Labor | $41,625 | $39,188 | $26,250 | $28,312 | $135,375 |
| MOH | $11,190 | $10,930 | $9,550 | $9,770 | $41,440 |
| S&A | |||||
| Taxes | $2,000 | $2,000 | $2,000 | $2,000 | $8,000 |
| Dividends | $1,500 | $1,500 | $1,500 | $1,500 | $6,000 |
| Equipment purchases | $4,200 | $2,750 | $- | ($35,037) | $6,950 |
| Total disbursements | $77,793 | $68,019 | $48,167 | $51,463 | $245,442 |
| Ending cash balance | ($15,893) | $59,641 | $63,173 | $35,037 | $141,958 |
| Borrowing | $1,000 | $1,000 | $1,000 | $1,000 | $4,000 |
| Interest | $100 | $100 | $100 | $100 | $400 |
| Repayments | |||||
| Cash at the end of the period | |||||
| Budgeted income statement | |||||
| Sales | $108,000 | $139,200 | $84,000 | $84,000 | $415,200 |
| Less: COGS | ($16,453) | ($8,106) | ($3,179) | ($1,288) | ($29,025) |
| Gross margin | $91,548 | $131,094 | $80,821 | $82,713 | $386,175 |
| S&A expense | $13,938 | $15,075 | $13,063 | $13,063 | $55,138 |
| Interest expense | |||||
| Net income before tax | $77,610 | $116,019 | $67,759 | $69,650 | $331,038 |
| Tax expense | |||||
| Net income | |||||
| Budgeted Balance sheet | |||||
| Cash | |||||
| Accounts receivable | |||||
| Raw materials inventory | |||||
| Finished goods inventory | |||||
| Land | |||||
| Building and Equipment | |||||
| Accumulated Depreciation | |||||
| Accounts payable | |||||
| Tax payable | |||||
| Capital stock | |||||
| RE | |||||
| Total L&SE | |||||
| Direct Materials Purchases | Quarter #1 | Quarter #2 | Quarter #3 | Quarter #4 | Total |
| Units To Be Produced | 2,775 | 2,612.50 | 1,750 | 1,887.50 | 9,025 |
| Materials Per Unit | 3 | 3 | 3 | 3 | 3 |
| Production Needs | 8325 | 7838 | 5250 | 5663 | 27075 |
| Add: Desired Ending Inventory | 2351.25 | 1575 | 1698.75 | 2025 | 2025 |
| Total Needed | 10676 | 9413 | 6949 | 7688 | 29100 |
| Less: Beginning Inventory | 0 | 2351.25 | 1575 | 1698.75 | 0 |
| Materials To Be Purchased | 10676 | 7061 | 5374 | 5989 | 29100 |
| Materials Cost Per Ounce | $0.40 | $0.40 | $0.40 | $0.40 | $0.40 |
| Total Materials Purchase Cost | $4,270.50 | $2,824.50 | $2,149.50 | $2,395.50 | $11,640 |
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Management And Cost Accounting
Authors: Alnoor Bhimani, Srikant M. Datar, Charles T. Horngren, Madhav V. Rajan
7th Edition
1292232668, 978-1292232669
