Tupper Kite Company Sales Budget Apri May June 2nd Quarter Budgeted sales (units) 700 650 720 2,070 x Unit sales price * $ 20 x $ 20 * $ 20 * $ 20 Budgeted sales revenue $14.000 $13.000 $14.400 $41.400 Production Budget April May June 2nd Quarter Budgeted sales (units) 700 650 720 2,070 + Ending finished goods inventory 195 216 249 249 (30% of next month's budgeted sales) Beginning finished goods inventory (30% of current month's budgeted sales) (210) (195) (216) (210) Budgeted production 685 671 753 2.109 Direct Materials Purchases Budget April May June 2nd Quarter Budgeted Production 685 671 753 2,109 x Material requirements per unit x 2 x 2 x 2 x 2 Total material needed for production 1,370.00 1,342.00 1,506.00 4,218.00 + Ending direct materials inventory (20% of next month's production needs) 268.40 301.20 323.60* 323.60 - Beginning direct materials inventory (20% of current month production needs) (274.00) (268.40) (301.20) (274.00) Budgeted direct materials purchases 1,364.40 1,374.80 1,528.40 4,267.60 x Material cost per vard * $ 0.60 * $ 0.60 * $ 0.60 * $ 0.60 Budgeted cost of direct materials $ 818.64 $ 824.88 $ 917.04 $ 2.560.56 purchases *July production = 830 + (.30 x 760) - (.30 x 830) = 809 June ending direct materials inventory = 809 x 2 = 1,618 x 20% = 323.60 Direct Labor Budget April May June 2nd Quarter Budgeted production 685 671 753 2, 109 x Direct labor requirements per unit x .50 x .50 x .50 x .50 Direct labor hours required 342.50 335.50 376.50 1,054.50 x Direct labor rate x $ 8.00 x $ 8.00 x $ 8.00 x $ 8.00 Budgeted direct labor cost $ 2.740 $ 2.684 $ 3.012 $ 8.436Manufacturing Overhead Budget ll" Budgeted production 685 x Variable manufacturing overhead rate x $0.40 Budgeted variable manufacturing 274.00 + Fixed manufacturing overhead 750.00 Budgeted manufacturing overhead $1324.00 Cost of Goods Said per Unit Budgeted Manufacturing Costs Direct materials {2 yards x $0.60 per yard) Direct labor { .50 hours at $8 per hour} Variable manufacturing overhead Fixed manufacturing overhead {$9.000 i 9.000 units) Budgeted manufacturing cost per unit Cost of Goods Sold Budget ll" Budgeted sales 700 x Budgeted manufacturing cost per unit x 6.00 Budgeted cost of goods sold W Generai and Administrative Budget BIL\" Budgeted sales (units) 700 x Variable selling and administrative rate ($.75 per unit sold) XE Budgeted variable selling and administrative expenses 525.00 + Budgeted xed selling and administrative expenses (given) 820.00 Budgeted selling and administrative expenses W W 51.3.0099 2 ( C 3 (D an 0996): CLAHE ooo oao ..u omnm Doom g E- 2\" Quarter 2.109 X $0.40 843.60 2,250.00 5.3.0.9350 Per Unit $ 1.20 4.00 0.40 1.00 5.6.5.0 2nd Quarter 2 .070 x $6.60 mamum 2\"\"Qtr. 2.070 x $.75 1, 552.50 2,460.00 Mamm 1. Using the above information provided prepare a cash budget. 2 Additional Information for the cash budget: Tupper Kite Corp. had $1 1,000 cash on hand on April 1. Of its sales, 60% are in cash. 0f the credit sales, 60 percent is collected during the month of the sale and 40 percent is collected in the following month of sale. Of direct materials purchases, 50 percent are paid in month of purchase and 50 percent are paid in the month following. Direct materials purchases for March totaled $825. All other operating costs are paid during the month incurred. Monthly xed manufacturing overhead includes $260 in depreciation Tupper plans to spend $20,000 on equipment during the quarter and pay half in April and the balance in May Required: 1. Budgeted cash receipts. Include each month (April to June) as well as the 2nd quarter totals. 2. Budgeted cash payments. 3. Cash Budget. Assume the company can borrow in increments of $1,000 to maintain a minimum cash balance of $10,000. No interest is charged if the loan is paid off by the end of the next quarter