The requirements are to correctly budget the following (this is all the directions and information given). THIS IS ALL THE INFORMATION I WAS GIVEN.
Perky Turkey Jerky, LLC Balance Sheet March 31, 2018 Assets 22,000.00 9,000.00 2,750.00 14,300.00 Current Assets Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Plant and Equipment Equipment Accumulated Depreciation Plant and Equipment, Net Total Assets 48,050.00 960,000.00 (63,000.00) 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 April May 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 10,000 $9.00 90% 10% 12,000 $9.00 90% 15,000 $9.00 80% 20% 10% Production Budget Percentage of next month's sales in ending finished goods inventory 20% 25% 30% $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% 75% 25% 1400 pounds should be carried over to July $2.50 2 5% 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 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 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 Sales Schedule of Expected Cash Collections Beginning Accounts Receivable April sales May sales June sales Total cash collections B 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
