#1.

Sales Budget May June July August September October November

430,000.00 May 86,000.00 301,000.00 43,000.00
540,000.00 June 108,000.00 378,000.00 54,000.00
600,000.00 July 120,000.00 420,000.00 60,000.00
900,000.00 August 180,000.00 630,000.00 90,000.00
500,000.00 September 100,000.00 350,000.00 50,000.00
541,000.00 654,000.00 790,000.00 440,000.00 50,000.00
1,985,000.00 490,000.00

#2. Production Budget June July August September October

Units to be Sold 30,000 45,000 60,000 50000
Add: Ending Inventory Requirement 3000 4,500 6,000 5,000
Total Units Required 34,500 51,000 65,000
Less: Beginning Inventory 3,000 4,500 6,000 5000
Units to be Produced 31,500 46,500 59,000
137,000.00

#3. Direct Materials Budget 1st 2nd 3rd 4th TOTAL

Units to be Produced 60,000 90,000 150,000 100,000
x No of RM per Unit 3 3 3 3
Total RM Required for Production 180,000 270,000 450,000 300,000
Add: Ending Inventory Requirement 54,000 90,000 60,000 48,000
RM Requirement 234,000 360,000 510,000 348,000
Less: Beginning Inventory 36,000 54,000 90,000 60,000
RM to be Purchased 198,000 306,000 420,000 288,000 1,212,000
Unit Price 2.00 2.00 2.00 2.00
Total Raw Material Purchases 396,000.00 612,000.00 840,000.00 576,000.00 2,424,000.00

#4. Direct Labor Budget 1st 2nd 3rd 4th TOTAL

Units to be Produced 5,000 4,400 4,500 4,900
x DL Hours Requirement Per Unit 0.4 0.4 0.4 0.4
Budgeted DL Hours 2,000 1,760 1,800 1,960 7,520
DL Cost per Hour 11 11 11 11
Adjusted Budgeted DL Cost 22,000.00 19,360.00 19,800.00 21,560.00 82,720.00

DL Hours Requirement 2,000 1,760 1,800 1,960 7,520

Fixed DL Hours 1,800 1,800 1,800 1,800 7,200
x Fixed DL Cost per Hour 11 11 11 11
Total Fixed DL Cost 19,800 19,800 19,800 19,800 79,200

Add: Excess DL Hours over Fixed DLH 200 - - 160 360

x Excess DL rate per hour 16.50 16.50 16.50 16.50
Total Additional DL Cost 3,300.00 - - 2,640.00 5,940.00
Not Adjusted Total DL Cost 23,100.00 19,800.00 19,800.00 22,440.00 85,140.00

#5. Manufacturing Overhead Budget 1st 2nd 3rd 4th TOTAL

Budgeted DL Hours 5,000 4,800 5,200 5,400 20,400
Variable MOH rate 1.75 1.75 1.75 1.75
Total Variable Manufacturing Overhead 8,750.00 8,400.00 9,100.00 9,450.00 35,700.00
Add: Total Fixed Manufacturing Overhead 35,000.00 35,000.00 35,000.00 35,000.00 140,000.00
Total Manufacturing Overhead 43,750.00 43,400.00 44,100.00 44,450.00 175,700.00
Less: Non-Cash Manufacturing Overhead 15,000.00 15,000.00 15,000.00 15,000.00 60,000.00
Cash Disbursement for MOH 28,750.00 28,400.00 29,100.00 29,450.00 115,700.00

Manufacturing Over Head Rate Total Manufacturing Overhead Cost 175,700.00 8.61
Total Direct Labor Hours 20,400 per DL Hours

#6. Selling and Administrative Budget 1st 2nd 3rd 4th TOTAL
Units Sold 12,000 14,000 11,000 10,000 47,000
x Variale S&A expenses/unit 2.75 2.75 2.75 2.75
Total Variable S&A Expenses 33,000.00 38,500.00 30,250.00 27,500.00 129,250.00
Add: Fixed S&A Expenses 68,000.00 68,000.00 68,000.00 68,000.00 272,000.00
Add: Other S&A Expenses - 6,000.00 6,000.00 6,000.00 18,000.00
Total S&A Expenses 101,000.00 112,500.00 104,250.00 101,500.00 419,250.00
Less: Non-cash S&A Expenses 16,000.00 16,000.00 16,000.00 16,000.00 64,000.00
Cash Disbursement for S&A 85,000.00 96,500.00 88,250.00 85,500.00 355,250.00
#7 Cash Budget 1st 2nd 3rd 4th Year
Cash balance, beginning 9,000.00 5,000.00 5,000.00 5,000.00 9,000.00
Add: Collections 76,000.00 90,000.00 125,000.00 100,000.00 391,000.00
Total Cash Available 85,000.00 95,000.00 130,000.00 105,000.00 400,000.00
Less: Disbursements
Purchase of Inventory 40,000.00 58,000.00 36,000.00 32,000.00 166,000.00
Operating Expenses 36,000.00 42,000.00 54,000.00 48,000.00 180,000.00
Equipment Purchases 10,000.00 8,000.00 8,000.00 10,000.00 36,000.00
Dividends 2,000.00 2,000.00 2,000.00 2,000.00 8,000.00
Total Disbursements 88,000.00 110,000.00 100,000.00 92,000.00 390,000.00
Excess (deficiency) (3,000.00) (15,000.00) 30,000.00 13,000.00 10,000.00

Financing:
Borrowings 8,000.00 20,000.00 - - 28,000.00
Repayments (incl interest) - - (25,000.00) (7,000.00) 32,000.00
Total Financing 8,000.00 20,000.00 (25,000.00) (7,000.00) (4,000.00)
Cash balance, ending 5,000.00 5,000.00 5,000.00 6,000.00 6,000.00