with the following data if you could answer the following question
question
Boulder Brick, Inc. (BBI) has been manufacturing and selling red bricks to local and regional construction companies for over 50 years. Since BBI is based in the northeastern part of the United States, its sales are seasonal and follow the construction season, which runs primarily between April and November of any given year. Fred and Pebbles Boulder, owners of the family run company, have been managing it for many years, but have decided to start turning over some of the operations to you, their trusted friend and adviser. The Boulders have not done much formal planning from one year to the next. Fred stated recently: "The Company has just run by itself for all these years, why mess it up?" You have heard them complain for years that money is tight during the first quarter of every year, but they aren't sure how to deal with this issue. You state that, although the business has grown tremendously over the years and that they've done a great job, they should consider doing some formal planning for the upcoming year. They want to see what you've learned at COBAIS and have decided to put you in charge of preparing a business plan for 2024 . You sit down with Fred and Pebbles to discuss some of the critical elements for the master budget. They prefer a detailed, month-by-month, 12 -month budget, but they ultimately decide that a quarterly budget with yearly totals will suffice. They provide you with the following 2024 estimates to get you started. 1. Quarterly Sales Forecast with Expected Selline Prices: 2. Fred has always liked to have some ending inventory units on hand - just in case. He provides you with the following desired ending finished goods inventory requirements for each quarter. He states that these are the same figures as last year. 3. Expected direct materials usage is based on the input-output relationship determined by the "mix-man" or the person in charge of mixing up the batch of dry and wet material that is used to form the bricks. Each brick requires the correct amount of cement, sand, gravel, shale, pumice, and water. Over the years, the company has determined that each brick requires 6 pounds of mixed material and each pound of material costs BBI $0.05. In addition, it is company policy to have the following requirements for desired ending direct materials inventory on hand: 4. Each batch of 100 bricks requires 1.50 direct labor hours to manufture at a budgeted rate of $14 per hour (which includes an average hourly wage rate plus benefits). 3 5. Variable manufacturing overhead is forecast to be $6.00 per direct labor hour. Fixed manufacturing overhead is estimated to be $280,000 per quarter, of which $200,000 represents depreciation for the plant operations. 6. BBI has three primary Selling, General, and Administrative functions: sales and marketing, research and development, and administration. The details for each of these areas are as follows: Sales and Marketing: Variable marketing expenses are $0.03 per brick. Fixed costs per quarter include salaries, $30,000; advertising, $20,000; depreciation, $2,000; travel, $3,000. Research and Development: The Company incurs quarterly salaries of $20,000 and spends $20,000 per quarter on design and development of new brick types. Administration: The Company incurs the following quarterly costs for administration: salaries, $50,000; depreciation, $10,000; travel, $2,000. Also, the Company pays annual insurance costs of $20,000 during the third quarter every year. 7. Capital acquisitions: BBI has always upgraded equipment on an annual basis. During 2024 they expect to spend $600,000 on new equipment during the first quarter of the year. 8. To get a better feel for their cash flow throughout the year, the Boulders have determined the following: a) 50% of sales are cash sales with the remaining sales made on credit. b) 70% of the credit sales are collected during the quarter in which sales occur and the remaining credit sales collected in the quarter following the sale. Bad debts over the years have been negligible. c) 80% of all direct materials are paid for in the quarter of purchase with the remaining portion paid for in the quarter following purchase. d) All other costs and expenses are paid for during the quarter incurred. he) Interest expense is recognized on the current quarter's LOC balance, but not paid until the following quarter (i.e., cash interest paid lags interest expense by one quarter). f) The current tax rate is 30%. Similar to interest expense, tax expense is recognized on income earned during the quarter, but not paid until the following quarter. However, assume that BBI does not realize tax benefits from losses (i.e., no carryforward NOLs to offset future taxable income). Thus, in months where Income before Income Tax (IBIT) is negative, zero income tax expense will be recognized. Conversely, in months where IBIT is positive, income tax expense will be recognized on the income statement and paid the following month (note: your formula should use an "IF" statement to complete income tax expense). g) The company requires a minimum cash balance at all times of $100,000 to meet current working capital needs. 9. Financing: To manage during seasonal downturns (that tough first quarter), BBI has set up a line of credit with a local bank that allows the company to borrow funds as needed at an annual rate of 5%. All borrowing is assumed to take place on the first day of the quarter, and all principal repayments are assuming to be made on the last day of a quarter. Note: Do not modify the financing area of the cash budget as these figures will automatically calculate. However you should study and understand these computations. \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline \multicolumn{3}{|c|}{ Sales Data: } & Quarter 1. & Quarter 2. & Quarter 3 & Quarter 4 & Total \\ \hline & \multicolumn{2}{|l|}{ Budgeted Sales Volume } & 2,500,000 & 0,500,000 & 8,500.000 & 2,500,000 & 23,000.000 \\ \hline & \multirow{2}{*}{\multicolumn{2}{|c|}{ Quarterly Sales Volume Sensitivity }} & 0.00% & & & & \\ \hline & & & Quarter 1 & Quater 2 & Quarter 3 & Quarter 4 & \\ \hline & \multicolumn{2}{|l|}{ Budgeted Sales Price } & 0.75 & 0.75 & 0.80 & 0.80 & \\ \hline & \multirow{2}{*}{\multicolumn{2}{|c|}{ Overall Sales Price Sensitivity }} & & & & & \\ \hline & & & 0.00% & & & & \\ \hline \multicolumn{8}{|c|}{ Direct Materiais data: } \\ \hline & \multicolumn{2}{|c|}{ Direct material required per brick (in lbs.) } & 6.00 & pounds & & & \\ \hline & & & & & & & \\ \hline & \multicolumn{2}{|c|}{ Cost per ib of direct material } & 0.05000 & & & & \\ \hline & \multirow{2}{*}{\multicolumn{2}{|c|}{ Direct Material Price Sensittivity }} & & & & & \\ \hline & & & 0.00% & & & & \\ \hline & \multirow{2}{*}{\multicolumn{2}{|c|}{ Desired ending inventory (in lbs.) - 2024}} & Quarter 1 & Quarter 2 & Quarte: 3 & Quarter 4 & \\ \hline 8 & & & 4,000,000 & 4,000,000 & 2,000,000 & 2.000,000 & \\ \hline 21 & \multirow{2}{*}{\multicolumn{2}{|c|}{ Endieng inventory at December 31,2024 (in los.) }} & 2,000,000 & & & & \\ \hline 2II & & & & & & & \\ \hline o) & \multicolumn{2}{|c|}{ Finiahed Goods inventory Info: } & Quater 1 & Quarter 2 & Quarter 3 & Cvarter 4 & \\ \hline \begin{tabular}{ll} 36 \\ in \end{tabular} & \multicolumn{2}{|c|}{ Desired bricks in ending inventocy - 2024} & 600,000 & 600.000 & 100,000 & 100.000 & \\ \hline 3 & \multirow{2}{*}{\multicolumn{2}{|c|}{ Ending invertory at December 31,2023 (in bncks) }} & 100,000 & & & & \\ \hline n & & & & & & & \\ \hline 3 & \multicolumn{2}{|l|}{ Direct Labor: } & & & & & \\ \hline & \multirow{2}{*}{\multicolumn{2}{|c|}{\begin{tabular}{l} Direct labor hours per brick \\ DUH per brick sensilivity \end{tabular}}} & 0.01500 & & & & \\ \hline \begin{tabular}{l} m \\ 3 \end{tabular} & & & 0.00% & & & & \\ \hline & \multicolumn{2}{|c|}{ Direct labor tale per how } & 14.00 & & & & \\ \hline 30 & DLH per hour se & nattivity & 0.00% & & & & \\ \hline \end{tabular} Manufacturing Overhead: Variable Variable overhead rate per DLH $6.00 Fixed Fixed overhead EXCEPT FOR depreciation per quarter Fixed overhead depreciation per quarter Total fixed overhead \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ Quarter 1} & \multicolumn{2}{|c|}{ Quarter 2} & \multicolumn{2}{|c|}{ - Quarter 3} & \multicolumn{2}{|c|}{ Quarter 4} \\ \hline$ & 80,000 & $ & 80,000 & $ & 80,000 & $ & 80,000 \\ \hline & 200,000 & & 200,000 & & 200,000 & & 200,000 \\ \hline$ & 280,000 & $ & 280,000 & $ & 280,000 & 5 & 280,000 \\ \hline \end{tabular} Selling, General \& Administrative: Sales and Marketing Expenses Variable marketing expense per brick SOLD Fixed Expenses (per quarter): Salaries Advertising Depreciation Travel Research \& Development Expenses (per quarter): Salaries Prototype design \& development Administrative Expenses (per quarter): Salaries Insurance Depreciation Travel E F G H 1 0.03 Quarter 1 Quarter 2 Quarter 3 Quarter 4 \begin{tabular}{lrr} $ & 30,000 & $ \\ $ & 20,000 & $ \\ $ & 2,000 & $ \\ $ & 3,000 & $ \end{tabular} 30,000 20,000 2,000 3,000 \begin{tabular}{ll} 1 & $ \\ 0 & $ \\ & $ \end{tabular} \begin{tabular}{rrrr} 30,000 & $ & 30,000 \\ 20,000 & $ & 20,000 \\ 2,000 & $ & 2,000 \\ 3,000 & $ & 3,000 \end{tabular} Quarter 1 Quarter 2 Quarter 3 Quarter 4 \begin{tabular}{ll} \$ & 20,000 \\ \$ & 20,000 \end{tabular} $ 20,000 20,000 $ $ 20,000 20,000 $ $ 20,000 20,000 Quarter 1 Quarter 2 Quarter 3 Quarter 4 \begin{tabular}{|lr|} \hline$ & 50,000 \\ $ & 20,000 \\ $ & 10,000 \\ $ & 2,000 \\ \hline \end{tabular} 50,00020,00010,0002,000 50,000 20,000 10,000 Cash Information: Cash collections \begin{tabular}{|l|l|} \hline Percentage of sales collected in cash & 50% \\ \hline Percentage of sales on credit & 50% \\ \hline & \\ \hline Credit Sales Collection percentages & 70% \\ \hline Percent collected in the quarter of the sale & 30% \\ \hline Percent collected in the quarter following sale & \end{tabular} Cash payments: Material purchases \begin{tabular}{ll} \hline Percent paid in the quarter of the sale & 80% \\ \hline Percent paid in the quarter following sale & 20% \\ \hline \end{tabular} \begin{tabular}{l|l|l|} \hline Taxes: & Tax rate & 30% \\ \hline \end{tabular} All other expenses paid in the quarter incurred \begin{tabular}{|l|r|} \hline Minimum cash balance required at end of quarter & $100,000 \\ \hline Interest rate on financing & 5% \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline Capital Acquisitions & \\ \hline Equipment purchases (1st Quarter) & $600,000 \\ \hline \end{tabular} Balance Sheet (December 31, 2023) \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{4}{|c|}{ ASSETS } & & & \\ \hline \multicolumn{7}{|c|}{ Current Assets: } \\ \hline & Cash & f & & $ & 120,000 & \\ \hline 0 & \multicolumn{3}{|c|}{ Accounts receivable } & & 300,000 & \\ \hline 1 & \multicolumn{3}{|c|}{ Materials inventory (2,000,000lbs$0.04 per Ib) } & & 80,000 & \\ \hline 02 & \multicolumn{3}{|c|}{ Finished goods inventory ( 100,000 bricks at $0.55/ brick) } & & 55,000 & \\ \hline 03 & \multicolumn{3}{|c|}{ Total current assets } & & & 555,000 \\ \hline \multicolumn{7}{|c|}{ Property, Plant \& Equipment } \\ \hline 105 & Land & & & & 2,500,000 & \\ \hline 106 & \multicolumn{3}{|c|}{ Buidlings and equipment } & & 9,000,000 & \\ \hline 107 & \multicolumn{3}{|c|}{ Accumulated depreciation } & & (4,500,000) & \\ \hline 108 & Total PP8 & & & & & 7,000,000 \\ \hline 109 & TOTAL ASSETS & & . & & & 7,555,000 \\ \hline 110 & & & & & & \\ \hline 111 & \multicolumn{3}{|c|}{ LIABILITIES AND STOCKHOLDERS' EQUITY } & & a. & \\ \hline 112 & Current liabilities & & & & & \\ \hline 113 & \multicolumn{2}{|c|}{ Accounts payable } & & & & 100,000 \\ \hline 114 & \multicolumn{2}{|c|}{ Interest payable } & & & & 120 \\ \hline 115 & \multicolumn{2}{|c|}{ Income taxes payable } & & & & 15,000 \\ \hline 116 & \multirow{2}{*}{\multicolumn{2}{|c|}{\begin{tabular}{l} Line of credit, short-term \\ Stockholders' equity \end{tabular}}} & & & & 28,000 \\ \hline 117 & & & & & & \\ \hline 118 & \multicolumn{2}{|c|}{ Common stock, no par } & & $ & 600,000 & \\ \hline 119 & \multicolumn{2}{|c|}{ Retained earnings } & & & 6,811,880 & \\ \hline 120 & \multirow{2}{*}{\multicolumn{3}{|c|}{ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY }} & & & 7,411,880 \\ \hline 121 & & & & & & 7,555,000 \\ \hline \end{tabular} a. Sales Budget - DOUARS \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{2}{|r|}{ n } & \multicolumn{2}{|r|}{1} & \multicolumn{2}{|r|}{1} & \multirow{2}{*}{\multicolumn{3}{|c|}{ k }} & \multirow[t]{2}{*}{1} & \multirow[t]{2}{*}{ M } \\ \hline & & & = & & & & & & & \\ \hline & arter 1. & & Quarter 2 & & Quarter 3 & & Quarter 4 & & Year & \\ \hline & 2,500,000 & & 9,500,000 & & 8,500.000 & & 2,500,000 & & & \% \\ \hline$ & 0.75 & 5 & 0.75 & 5 & 0.80 & $ & 0.80 & & & = \\ \hline$ & 1,875,000 & 5 & 7,125,000 & 5 & 6.800,000 & 5 & 20000,000 & s & 17,800,000 & \\ \hline & arter 1 & & Quarter 2 & & Ouarter 3 & & Quarter 4 & & Year & \\ \hlines & 937,500 & 5 & 3,602,500 & 5 & 3,400,000 & 5 & 1,000,000 & 5 & B,900,000 & \\ \hline & 937,500 & & 3,602,500 & & 3.400 .000 & & 1,000,000 & & 8,500,000 & \\ \hline & 656.250 & & 2,493,750 & & 2,380,000 & & 700,000 & & 6,230,000 & \\ \hline & 300,000 & & \begin{tabular}{r} 281,250 \\ \end{tabular} & & 1,068,750 & & 1,020,000 & & 2,670,000 & AR-Dec 31,2024 \\ \hline 3 & 1,893,750 & $ & 6.337 .500 & 5 & 6.43750 & s & 2720.000 & 5 & 17,800,000 & 300,000 \\ \hline \end{tabular} C. Production Budgot - in bricks Sales in units (brids) Ads: Desired ending inventory of FG units (bricks) Total urits required Less: expected beginning invertory of FG units (bricks) Units (bricks) to be produced 1. Direct-Labor Budget-DOLLARS Units (bricks) to be produced Direct labor hours required per brick (unit) Budgeted direct labor hours Direct labor cost per hour Total direct labor costs 9. Manufacturing-Overhead Budget - DOUARS h. SGSA Expense Budget Marketing expenses? Variable Portion Fixed Portion: Salaries Advertising Depreciation Travel TOTAL MARKETING EXPENSES Flesearch and development expenses Sasies Protchpe design \& development TOTAL RESEARCH ANO DEVELOPMENT EXPENSES Adrinistrative Expenses savares Insurance Depreciation Tiarel TOTM. ADMINUSTRATIVE EXPENSES Quarter 1 \begin{tabular}{rr} & 3,000,000 \\ & 0.015 \\ \hline 5 & 45,000 \\ \hline 5 & 14.00 \\ \hline \end{tabular} Quarter 2 9,500,000 0.015 Quarter 3 8,000,000 0.015 5 142,500 120 14.00 s Quarter 2 Quarter 3 Quarter 4 Year Budgeted direct labor hours Variable overtead rate per DLH Budgeted variable overhead Budgeled fixed overhead - total Total budgeted overhead Quarter 1 1,995,000$ 1,680.000; Quarter 4 L. x 2,500,000 Year \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline & ther 1 & & Quarter 2 & & Quarter 3 & & Quarter 4 & & Year \\ \hline & 3,000,000 & & 9,500,000 & & 8,000,000 & & 2,500,000 & & \\ \hline & 0.015 & & 0.015 & & 0.015 & & 0.015 & & \\ \hline & 45,000 & & 142,500 & & 120,000 & & 37,500 & & 345,000 \\ \hline$ & 14.00 & $ & 14.00 & 5 & 14.00 & 5 & 14.00 & 5 & 14.00 \\ \hline 5 & 630,000 & 5 & 1,905,000 & $ & 1,680,000 & 3 & 525,000 & 5 & 4,830,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline \multirow{4}{*}{$} & 45,000 & & 142,500 & & 120,000 & & 37,500 \\ \hline & 6.00 & $ & 6.00 & 5 & 6.00 & 5 & 6.00 \\ \hline & 270,000 & & 855,000 & & 720,000 & & 225,000 \\ \hline & 280,000 & & 280.000 & & 280,000 & & 200,000 \\ \hline$ & $50.000 & $ & 1,135,000 & $ & 1.000 .000 & 5 & 505,000 \\ \hline \end{tabular} Quarter 4 Year 6) (4) is is 67 in. (4) 70 n 27 7 an nis Wh in n 10 at 4111 TOTAL RESEARCH ANO DEVELOPMENT EXPENSES Quarter 1 \begin{tabular}{|c|c|c|} \hline \multirow[t]{5}{*}{s} & 75,000 & 5 \\ \hline & 30,000 & \\ \hline & 20,000 & \\ \hline & 2000 & \\ \hline & 3,000 & \\ \hline \multirow[t]{3}{*}{5} & 130,000 & $ \\ \hline & & \\ \hline & 20,000 & \\ \hline \multirow[t]{5}{*}{5} & \begin{tabular}{c} 20,000 \\ 40,000 \end{tabular} & 3 \\ \hline & & \\ \hline & 60,000 & \\ \hline & \begin{tabular}{l} 20,000 \\ 10,000 \end{tabular} & \\ \hline & 2,000 & \\ \hline 5 & 82,000 & 3 \\ \hline \end{tabular} Quarter 2 Quarter 3 285,000$ 5 5 $ 5 690,000 120,000 80,000 8,000 12,000 970,000 \begin{tabular}{rrr} 30,000 & 30,000 & 30,000 \\ 20,000 & 20,000 & 20,000 \\ 2,000 & 2,000 & 2,000 \\ 3,000 & 3,000 & 3,000 \\ 340,000 \$ & 310,000 \$ & 130,000 \\ \hline \end{tabular} 5 \begin{tabular}{lr} 20,000 & 20,000 \\ 20,000 & 20,000 \\ \hline 40,000=8 & 40,000 \\ \hline \end{tabular} 80,000 80,000 160,000 Bubgeted Schedile of Cost of Goods Manufsctured and coGs (including Coet per brick computstion) The computation at lef is criticai to detemining your value for ending friahed goods invertery and ultimstely Cost of Cosdo sold so you muat have this comect to get ichedale i is work. Boulder Brick, Inc. (BBI) has been manufacturing and selling red bricks to local and regional construction companies for over 50 years. Since BBI is based in the northeastern part of the United States, its sales are seasonal and follow the construction season, which runs primarily between April and November of any given year. Fred and Pebbles Boulder, owners of the family run company, have been managing it for many years, but have decided to start turning over some of the operations to you, their trusted friend and adviser. The Boulders have not done much formal planning from one year to the next. Fred stated recently: "The Company has just run by itself for all these years, why mess it up?" You have heard them complain for years that money is tight during the first quarter of every year, but they aren't sure how to deal with this issue. You state that, although the business has grown tremendously over the years and that they've done a great job, they should consider doing some formal planning for the upcoming year. They want to see what you've learned at COBAIS and have decided to put you in charge of preparing a business plan for 2024 . You sit down with Fred and Pebbles to discuss some of the critical elements for the master budget. They prefer a detailed, month-by-month, 12 -month budget, but they ultimately decide that a quarterly budget with yearly totals will suffice. They provide you with the following 2024 estimates to get you started. 1. Quarterly Sales Forecast with Expected Selline Prices: 2. Fred has always liked to have some ending inventory units on hand - just in case. He provides you with the following desired ending finished goods inventory requirements for each quarter. He states that these are the same figures as last year. 3. Expected direct materials usage is based on the input-output relationship determined by the "mix-man" or the person in charge of mixing up the batch of dry and wet material that is used to form the bricks. Each brick requires the correct amount of cement, sand, gravel, shale, pumice, and water. Over the years, the company has determined that each brick requires 6 pounds of mixed material and each pound of material costs BBI $0.05. In addition, it is company policy to have the following requirements for desired ending direct materials inventory on hand: 4. Each batch of 100 bricks requires 1.50 direct labor hours to manufture at a budgeted rate of $14 per hour (which includes an average hourly wage rate plus benefits). 3 5. Variable manufacturing overhead is forecast to be $6.00 per direct labor hour. Fixed manufacturing overhead is estimated to be $280,000 per quarter, of which $200,000 represents depreciation for the plant operations. 6. BBI has three primary Selling, General, and Administrative functions: sales and marketing, research and development, and administration. The details for each of these areas are as follows: Sales and Marketing: Variable marketing expenses are $0.03 per brick. Fixed costs per quarter include salaries, $30,000; advertising, $20,000; depreciation, $2,000; travel, $3,000. Research and Development: The Company incurs quarterly salaries of $20,000 and spends $20,000 per quarter on design and development of new brick types. Administration: The Company incurs the following quarterly costs for administration: salaries, $50,000; depreciation, $10,000; travel, $2,000. Also, the Company pays annual insurance costs of $20,000 during the third quarter every year. 7. Capital acquisitions: BBI has always upgraded equipment on an annual basis. During 2024 they expect to spend $600,000 on new equipment during the first quarter of the year. 8. To get a better feel for their cash flow throughout the year, the Boulders have determined the following: a) 50% of sales are cash sales with the remaining sales made on credit. b) 70% of the credit sales are collected during the quarter in which sales occur and the remaining credit sales collected in the quarter following the sale. Bad debts over the years have been negligible. c) 80% of all direct materials are paid for in the quarter of purchase with the remaining portion paid for in the quarter following purchase. d) All other costs and expenses are paid for during the quarter incurred. he) Interest expense is recognized on the current quarter's LOC balance, but not paid until the following quarter (i.e., cash interest paid lags interest expense by one quarter). f) The current tax rate is 30%. Similar to interest expense, tax expense is recognized on income earned during the quarter, but not paid until the following quarter. However, assume that BBI does not realize tax benefits from losses (i.e., no carryforward NOLs to offset future taxable income). Thus, in months where Income before Income Tax (IBIT) is negative, zero income tax expense will be recognized. Conversely, in months where IBIT is positive, income tax expense will be recognized on the income statement and paid the following month (note: your formula should use an "IF" statement to complete income tax expense). g) The company requires a minimum cash balance at all times of $100,000 to meet current working capital needs. 9. Financing: To manage during seasonal downturns (that tough first quarter), BBI has set up a line of credit with a local bank that allows the company to borrow funds as needed at an annual rate of 5%. All borrowing is assumed to take place on the first day of the quarter, and all principal repayments are assuming to be made on the last day of a quarter. Note: Do not modify the financing area of the cash budget as these figures will automatically calculate. However you should study and understand these computations. \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline \multicolumn{3}{|c|}{ Sales Data: } & Quarter 1. & Quarter 2. & Quarter 3 & Quarter 4 & Total \\ \hline & \multicolumn{2}{|l|}{ Budgeted Sales Volume } & 2,500,000 & 0,500,000 & 8,500.000 & 2,500,000 & 23,000.000 \\ \hline & \multirow{2}{*}{\multicolumn{2}{|c|}{ Quarterly Sales Volume Sensitivity }} & 0.00% & & & & \\ \hline & & & Quarter 1 & Quater 2 & Quarter 3 & Quarter 4 & \\ \hline & \multicolumn{2}{|l|}{ Budgeted Sales Price } & 0.75 & 0.75 & 0.80 & 0.80 & \\ \hline & \multirow{2}{*}{\multicolumn{2}{|c|}{ Overall Sales Price Sensitivity }} & & & & & \\ \hline & & & 0.00% & & & & \\ \hline \multicolumn{8}{|c|}{ Direct Materiais data: } \\ \hline & \multicolumn{2}{|c|}{ Direct material required per brick (in lbs.) } & 6.00 & pounds & & & \\ \hline & & & & & & & \\ \hline & \multicolumn{2}{|c|}{ Cost per ib of direct material } & 0.05000 & & & & \\ \hline & \multirow{2}{*}{\multicolumn{2}{|c|}{ Direct Material Price Sensittivity }} & & & & & \\ \hline & & & 0.00% & & & & \\ \hline & \multirow{2}{*}{\multicolumn{2}{|c|}{ Desired ending inventory (in lbs.) - 2024}} & Quarter 1 & Quarter 2 & Quarte: 3 & Quarter 4 & \\ \hline 8 & & & 4,000,000 & 4,000,000 & 2,000,000 & 2.000,000 & \\ \hline 21 & \multirow{2}{*}{\multicolumn{2}{|c|}{ Endieng inventory at December 31,2024 (in los.) }} & 2,000,000 & & & & \\ \hline 2II & & & & & & & \\ \hline o) & \multicolumn{2}{|c|}{ Finiahed Goods inventory Info: } & Quater 1 & Quarter 2 & Quarter 3 & Cvarter 4 & \\ \hline \begin{tabular}{ll} 36 \\ in \end{tabular} & \multicolumn{2}{|c|}{ Desired bricks in ending inventocy - 2024} & 600,000 & 600.000 & 100,000 & 100.000 & \\ \hline 3 & \multirow{2}{*}{\multicolumn{2}{|c|}{ Ending invertory at December 31,2023 (in bncks) }} & 100,000 & & & & \\ \hline n & & & & & & & \\ \hline 3 & \multicolumn{2}{|l|}{ Direct Labor: } & & & & & \\ \hline & \multirow{2}{*}{\multicolumn{2}{|c|}{\begin{tabular}{l} Direct labor hours per brick \\ DUH per brick sensilivity \end{tabular}}} & 0.01500 & & & & \\ \hline \begin{tabular}{l} m \\ 3 \end{tabular} & & & 0.00% & & & & \\ \hline & \multicolumn{2}{|c|}{ Direct labor tale per how } & 14.00 & & & & \\ \hline 30 & DLH per hour se & nattivity & 0.00% & & & & \\ \hline \end{tabular} Manufacturing Overhead: Variable Variable overhead rate per DLH $6.00 Fixed Fixed overhead EXCEPT FOR depreciation per quarter Fixed overhead depreciation per quarter Total fixed overhead \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ Quarter 1} & \multicolumn{2}{|c|}{ Quarter 2} & \multicolumn{2}{|c|}{ - Quarter 3} & \multicolumn{2}{|c|}{ Quarter 4} \\ \hline$ & 80,000 & $ & 80,000 & $ & 80,000 & $ & 80,000 \\ \hline & 200,000 & & 200,000 & & 200,000 & & 200,000 \\ \hline$ & 280,000 & $ & 280,000 & $ & 280,000 & 5 & 280,000 \\ \hline \end{tabular} Selling, General \& Administrative: Sales and Marketing Expenses Variable marketing expense per brick SOLD Fixed Expenses (per quarter): Salaries Advertising Depreciation Travel Research \& Development Expenses (per quarter): Salaries Prototype design \& development Administrative Expenses (per quarter): Salaries Insurance Depreciation Travel E F G H 1 0.03 Quarter 1 Quarter 2 Quarter 3 Quarter 4 \begin{tabular}{lrr} $ & 30,000 & $ \\ $ & 20,000 & $ \\ $ & 2,000 & $ \\ $ & 3,000 & $ \end{tabular} 30,000 20,000 2,000 3,000 \begin{tabular}{ll} 1 & $ \\ 0 & $ \\ & $ \end{tabular} \begin{tabular}{rrrr} 30,000 & $ & 30,000 \\ 20,000 & $ & 20,000 \\ 2,000 & $ & 2,000 \\ 3,000 & $ & 3,000 \end{tabular} Quarter 1 Quarter 2 Quarter 3 Quarter 4 \begin{tabular}{ll} \$ & 20,000 \\ \$ & 20,000 \end{tabular} $ 20,000 20,000 $ $ 20,000 20,000 $ $ 20,000 20,000 Quarter 1 Quarter 2 Quarter 3 Quarter 4 \begin{tabular}{|lr|} \hline$ & 50,000 \\ $ & 20,000 \\ $ & 10,000 \\ $ & 2,000 \\ \hline \end{tabular} 50,00020,00010,0002,000 50,000 20,000 10,000 Cash Information: Cash collections \begin{tabular}{|l|l|} \hline Percentage of sales collected in cash & 50% \\ \hline Percentage of sales on credit & 50% \\ \hline & \\ \hline Credit Sales Collection percentages & 70% \\ \hline Percent collected in the quarter of the sale & 30% \\ \hline Percent collected in the quarter following sale & \end{tabular} Cash payments: Material purchases \begin{tabular}{ll} \hline Percent paid in the quarter of the sale & 80% \\ \hline Percent paid in the quarter following sale & 20% \\ \hline \end{tabular} \begin{tabular}{l|l|l|} \hline Taxes: & Tax rate & 30% \\ \hline \end{tabular} All other expenses paid in the quarter incurred \begin{tabular}{|l|r|} \hline Minimum cash balance required at end of quarter & $100,000 \\ \hline Interest rate on financing & 5% \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline Capital Acquisitions & \\ \hline Equipment purchases (1st Quarter) & $600,000 \\ \hline \end{tabular} Balance Sheet (December 31, 2023) \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{4}{|c|}{ ASSETS } & & & \\ \hline \multicolumn{7}{|c|}{ Current Assets: } \\ \hline & Cash & f & & $ & 120,000 & \\ \hline 0 & \multicolumn{3}{|c|}{ Accounts receivable } & & 300,000 & \\ \hline 1 & \multicolumn{3}{|c|}{ Materials inventory (2,000,000lbs$0.04 per Ib) } & & 80,000 & \\ \hline 02 & \multicolumn{3}{|c|}{ Finished goods inventory ( 100,000 bricks at $0.55/ brick) } & & 55,000 & \\ \hline 03 & \multicolumn{3}{|c|}{ Total current assets } & & & 555,000 \\ \hline \multicolumn{7}{|c|}{ Property, Plant \& Equipment } \\ \hline 105 & Land & & & & 2,500,000 & \\ \hline 106 & \multicolumn{3}{|c|}{ Buidlings and equipment } & & 9,000,000 & \\ \hline 107 & \multicolumn{3}{|c|}{ Accumulated depreciation } & & (4,500,000) & \\ \hline 108 & Total PP8 & & & & & 7,000,000 \\ \hline 109 & TOTAL ASSETS & & . & & & 7,555,000 \\ \hline 110 & & & & & & \\ \hline 111 & \multicolumn{3}{|c|}{ LIABILITIES AND STOCKHOLDERS' EQUITY } & & a. & \\ \hline 112 & Current liabilities & & & & & \\ \hline 113 & \multicolumn{2}{|c|}{ Accounts payable } & & & & 100,000 \\ \hline 114 & \multicolumn{2}{|c|}{ Interest payable } & & & & 120 \\ \hline 115 & \multicolumn{2}{|c|}{ Income taxes payable } & & & & 15,000 \\ \hline 116 & \multirow{2}{*}{\multicolumn{2}{|c|}{\begin{tabular}{l} Line of credit, short-term \\ Stockholders' equity \end{tabular}}} & & & & 28,000 \\ \hline 117 & & & & & & \\ \hline 118 & \multicolumn{2}{|c|}{ Common stock, no par } & & $ & 600,000 & \\ \hline 119 & \multicolumn{2}{|c|}{ Retained earnings } & & & 6,811,880 & \\ \hline 120 & \multirow{2}{*}{\multicolumn{3}{|c|}{ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY }} & & & 7,411,880 \\ \hline 121 & & & & & & 7,555,000 \\ \hline \end{tabular} a. Sales Budget - DOUARS \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{2}{|r|}{ n } & \multicolumn{2}{|r|}{1} & \multicolumn{2}{|r|}{1} & \multirow{2}{*}{\multicolumn{3}{|c|}{ k }} & \multirow[t]{2}{*}{1} & \multirow[t]{2}{*}{ M } \\ \hline & & & = & & & & & & & \\ \hline & arter 1. & & Quarter 2 & & Quarter 3 & & Quarter 4 & & Year & \\ \hline & 2,500,000 & & 9,500,000 & & 8,500.000 & & 2,500,000 & & & \% \\ \hline$ & 0.75 & 5 & 0.75 & 5 & 0.80 & $ & 0.80 & & & = \\ \hline$ & 1,875,000 & 5 & 7,125,000 & 5 & 6.800,000 & 5 & 20000,000 & s & 17,800,000 & \\ \hline & arter 1 & & Quarter 2 & & Ouarter 3 & & Quarter 4 & & Year & \\ \hlines & 937,500 & 5 & 3,602,500 & 5 & 3,400,000 & 5 & 1,000,000 & 5 & B,900,000 & \\ \hline & 937,500 & & 3,602,500 & & 3.400 .000 & & 1,000,000 & & 8,500,000 & \\ \hline & 656.250 & & 2,493,750 & & 2,380,000 & & 700,000 & & 6,230,000 & \\ \hline & 300,000 & & \begin{tabular}{r} 281,250 \\ \end{tabular} & & 1,068,750 & & 1,020,000 & & 2,670,000 & AR-Dec 31,2024 \\ \hline 3 & 1,893,750 & $ & 6.337 .500 & 5 & 6.43750 & s & 2720.000 & 5 & 17,800,000 & 300,000 \\ \hline \end{tabular} C. Production Budgot - in bricks Sales in units (brids) Ads: Desired ending inventory of FG units (bricks) Total urits required Less: expected beginning invertory of FG units (bricks) Units (bricks) to be produced 1. Direct-Labor Budget-DOLLARS Units (bricks) to be produced Direct labor hours required per brick (unit) Budgeted direct labor hours Direct labor cost per hour Total direct labor costs 9. Manufacturing-Overhead Budget - DOUARS h. SGSA Expense Budget Marketing expenses? Variable Portion Fixed Portion: Salaries Advertising Depreciation Travel TOTAL MARKETING EXPENSES Flesearch and development expenses Sasies Protchpe design \& development TOTAL RESEARCH ANO DEVELOPMENT EXPENSES Adrinistrative Expenses savares Insurance Depreciation Tiarel TOTM. ADMINUSTRATIVE EXPENSES Quarter 1 \begin{tabular}{rr} & 3,000,000 \\ & 0.015 \\ \hline 5 & 45,000 \\ \hline 5 & 14.00 \\ \hline \end{tabular} Quarter 2 9,500,000 0.015 Quarter 3 8,000,000 0.015 5 142,500 120 14.00 s Quarter 2 Quarter 3 Quarter 4 Year Budgeted direct labor hours Variable overtead rate per DLH Budgeted variable overhead Budgeled fixed overhead - total Total budgeted overhead Quarter 1 1,995,000$ 1,680.000; Quarter 4 L. x 2,500,000 Year \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline & ther 1 & & Quarter 2 & & Quarter 3 & & Quarter 4 & & Year \\ \hline & 3,000,000 & & 9,500,000 & & 8,000,000 & & 2,500,000 & & \\ \hline & 0.015 & & 0.015 & & 0.015 & & 0.015 & & \\ \hline & 45,000 & & 142,500 & & 120,000 & & 37,500 & & 345,000 \\ \hline$ & 14.00 & $ & 14.00 & 5 & 14.00 & 5 & 14.00 & 5 & 14.00 \\ \hline 5 & 630,000 & 5 & 1,905,000 & $ & 1,680,000 & 3 & 525,000 & 5 & 4,830,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline \multirow{4}{*}{$} & 45,000 & & 142,500 & & 120,000 & & 37,500 \\ \hline & 6.00 & $ & 6.00 & 5 & 6.00 & 5 & 6.00 \\ \hline & 270,000 & & 855,000 & & 720,000 & & 225,000 \\ \hline & 280,000 & & 280.000 & & 280,000 & & 200,000 \\ \hline$ & $50.000 & $ & 1,135,000 & $ & 1.000 .000 & 5 & 505,000 \\ \hline \end{tabular} Quarter 4 Year 6) (4) is is 67 in. (4) 70 n 27 7 an nis Wh in n 10 at 4111 TOTAL RESEARCH ANO DEVELOPMENT EXPENSES Quarter 1 \begin{tabular}{|c|c|c|} \hline \multirow[t]{5}{*}{s} & 75,000 & 5 \\ \hline & 30,000 & \\ \hline & 20,000 & \\ \hline & 2000 & \\ \hline & 3,000 & \\ \hline \multirow[t]{3}{*}{5} & 130,000 & $ \\ \hline & & \\ \hline & 20,000 & \\ \hline \multirow[t]{5}{*}{5} & \begin{tabular}{c} 20,000 \\ 40,000 \end{tabular} & 3 \\ \hline & & \\ \hline & 60,000 & \\ \hline & \begin{tabular}{l} 20,000 \\ 10,000 \end{tabular} & \\ \hline & 2,000 & \\ \hline 5 & 82,000 & 3 \\ \hline \end{tabular} Quarter 2 Quarter 3 285,000$ 5 5 $ 5 690,000 120,000 80,000 8,000 12,000 970,000 \begin{tabular}{rrr} 30,000 & 30,000 & 30,000 \\ 20,000 & 20,000 & 20,000 \\ 2,000 & 2,000 & 2,000 \\ 3,000 & 3,000 & 3,000 \\ 340,000 \$ & 310,000 \$ & 130,000 \\ \hline \end{tabular} 5 \begin{tabular}{lr} 20,000 & 20,000 \\ 20,000 & 20,000 \\ \hline 40,000=8 & 40,000 \\ \hline \end{tabular} 80,000 80,000 160,000 Bubgeted Schedile of Cost of Goods Manufsctured and coGs (including Coet per brick computstion) The computation at lef is criticai to detemining your value for ending friahed goods invertery and ultimstely Cost of Cosdo sold so you muat have this comect to get ichedale i is work
