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Use the following to fill in the blanks Perky Turkey Jerky, LLC Budgeting Assumptions For the Quarter Ending June 30, 2018 Month April May June
Use the following to fill in the blanks
Perky Turkey Jerky, LLC | ||||
Budgeting Assumptions | ||||
For the Quarter Ending June 30, 2018 | ||||
Month | ||||
April | May | June | July | |
Sales Budget | ||||
Budgeted Sales in units | 10,000 | 12,000 | 15,000 | 15,000 |
Selling Price Per Unit | $9.00 | $9.00 | $9.00 | |
Percentage of Sales collected in the month of the sale | 90% | 90% | 80% | |
Percentage of Sales collected in the month after the sale | 10% | 10% | 20% | |
Production Budget | ||||
Percentage of next month's sales in ending finished goods inventory | 20% | 25% | 30% | |
Direct Materials Budget | ||||
Meat per pound | $2.50 | $2.50 | $2.50 | |
Pounds of meat per unit | 2 | 2 | 2 | |
Percentage of next months production needs in ending inventory | 10% | 10% | 10% | |
Percentage of purchases paid in the month purchased | 60% | 60% | 60% | |
Percentage of purchases paid in the month after purchase | 40% | 40% | 40% | |
Direct Labor Budget | ||||
Direct labor hours required per unit (20 units per labor hour) | 0.05 | 0.05 | 0.05 | |
Cost per direct labor hour | $15.00 | $15.00 | $15.00 | |
Manufacturing Overhead Budget | ||||
Variable manufacturing overhead per direct labor hour | $5.00 | $5.00 | $5.00 | |
Fixed manufacturing overhead | $15,000 | $15,000 | $15,000 | |
Manufacturing Depreciation | $10,000 | $10,000 | $10,000 | |
Variable Selling and Administrative Expense Budget | ||||
Sales Commissions | $0.15 | $0.15 | $0.15 | |
Fixed selling and administrative expenses | ||||
Advertising | $2,500 | $2,500 | $2,500 | |
Manager Salaries | $5,000 | $5,000 | $5,000 | |
Insurance | $2,000 | $2,000 | $2,000 | |
Depreciation on Office Equipment | $500 | $500 | $500 | |
Total fixed selling and administrative expenses | $10,000 | $10,000 | $10,000 | |
Cash Budget | ||||
Minimum cash balance | $50,000 | $50,000 | $50,000 | |
Simple annual interest rate | 3% | 3% | 3% |
Perky Turkey Jerky, LLC | |||||||
Balance Sheet | |||||||
March 31, 2018 | |||||||
Assets | |||||||
Current Assets | |||||||
Cash | 52,000.00 | ||||||
Accounts Receivable | 9,000.00 | ||||||
Raw Materials Inventory | 2,750.00 | ||||||
Finished Goods Inventory | 14,300.00 | ||||||
Total Current Assets | 78,050.00 | ||||||
Plant and Equipment | |||||||
Equipment | 930,000.00 | ||||||
Accumulated Depreciation | (63,000.00) | ||||||
Plant and Equipment, Net | 867,000.00 | ||||||
Total Assets | 945,050.00 | ||||||
Liabilities and Stockholders' Equity | |||||||
Liabilities | |||||||
Accounts Payable | 7,500.00 | ||||||
Bonds Payable | 100,000.00 | (for simplicity, ignore interest on Bonds Payable) | |||||
Stockholders' Equity | |||||||
Common Stock | 800,000.00 | ||||||
Retained Earnings | 37,550.00 | ||||||
Total Stockholders' Equity | 837,550.00 | ||||||
Total Liabilities and Stockholders' Equity | 945,050.00 | - | |||||
Perky Turkey Jerky, LLC | ||||
Sales Budget | ||||
For the Quarter Ending June 30, 2018 | ||||
Month | Quarter Total | |||
April | May | 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 |
Perky Turkey Jerky, LLC | ||||
Sales Budget | ||||
For the Quarter Ending June 30, 2018 | ||||
Month | Quarter Total | |||
April | May | June | ||
Budgeted sales in units | ||||
Add: Desired Ending Inventory | ||||
Total units needed | ||||
Less: Units of beginning finished goods inventory | ||||
Required production in units |
Perky Turkey Jerky, LLC | ||||
Direct Materials Budget | ||||
For the Quarter Ending June 30, 2018 | ||||
Month | Quarter Total | |||
April | May | June | ||
Required production (in units) | ||||
Pounds of raw materials per unit | ||||
Pounds of raw materials needed for production | ||||
Add: Desired Raw Materials ending inventory | ||||
Total pounds of Raw Materials needed | ||||
Less: Beginning Raw Materials inventory | ||||
Pounds of Raw Materials to be purchased | ||||
Cost of Raw Materials per pound | ||||
Cost of Raw Materials to be purchased | ||||
Schedule of Expected Cash Disbursements for the Purchase of Materials | ||||
Beginning Accounts Payable | ||||
April purchases | ||||
May purchases | ||||
June purchases | ||||
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