SALES BUDGET

April May
Budgeted sales in units 20,000.00 50,000.00
Selling price per unit 10.00 10.00
Total budgeted sales 200,000.00 500,000.00

CASH COLLECTION BUDGET

April May
Accounts receivable, 3/31 30,000.00
April Sales
70% x 200,000 140,000.00
25% x 200,000 50,000.00
May Sales
70% x 500,000 350,000.00
25% x 500,000
June Sales
70% x 300,000
170,000.00 400,000.00

PRODUCTION BUDGET
April May
Budgeted Sales 20,000.00 50,000.00
Add: Desired ending inventory 10,000.00 6,000.00
Total Needs 30,000.00 56,000.00
Less: Beginning inventory - 4,000.00 - 10,000.00
Required production 26,000.00 46,000.00

DIRECT MATERIALS BUDGET

April May
Production 26,000.00 46,000.00
Materials per unit (pounds) 5.00 5.00
Production needs 130,000.00 230,000.00
Add: Desired ending inventory 23,000.00 14,500.00
Total needed 153,000.00 244,500.00
Less: Beginning inventory - 13,000.00 - 23,000.00
Materials to be purchased 140,000.00 221,500.00
Cost per unit 0.40 0.40
Cost of materials to be purchased 56,000.00 88,600.00

CASH DISBURSEMENT FOR MATERIALS

April May
Accounts payable 12,000.00
April purchases
50% x 56,000 28,000.00
50% x 56,000 28,000.00
May purchases
50% x 88,600 44,300.00
50% x 88,600
June purchases
50% x 56,800
Total cash disbursement 40,000.00 72,300.00

DIRECT LABOR BUDGET

April May
Units of production 26,000.00 46,000.00
Direct labor per unit 0.05 0.05
Labor hours required 1,300.00 2,300.00
Hourly wage rate 10.00 10.00
Total direct labor costs 13,000.00 23,000.00

MANUFACTURING OVERHEAD BUDGET

April May
Budgeted direct labor hours 1,300.00 2,300.00
Variable manufacturing overhead rate 20.00 20.00
Variable manufacturing overhead costs 26,000.00 46,000.00
Fixed manufacturing overhead costs 50,500.00 50,500.00
Total manufacturing overhead costs 76,500.00 96,500.00
Less: Noncash costs - 20,500.00 - 20,500.00
Cash disbursements for manufacturing overhead 56,000.00 76,000.00

Total manufacturing overhead costs 76,500.00 96,500.00

Budgeted direct labor hours 1,300.00 2,300.00
Predetermined manufacturing overhead rate 58.85 41.96

ENDING FINISHED GOODS INVENTORY BUDGET

Production costs per unit Quantity Cost
Direct materials 5.00 0.40
Direct labor 0.05 10.00

April May
Unit product cost 5.44 4.60

Using FIFO
Budgeted finished good inventory April May
Ending inventory in units 10,000.00 6,000.00
Unit product cost 5.44 4.60
Ending finished goods inventory 54,423.08 27,586.96
SELLING AND ADMINISTRATIVE EXPENSE BUDGET
April May
Budgeted sales 20,000.00 50,000.00
Variable selling and administrative rate 0.50 0.50
Variable selling and administrative expenses 10,000.00 25,000.00
Fixed selling and administrative expenses 70,000.00 70,000.00
Total selling and administrative expenses 80,000.00 95,000.00
Less: Noncash expenses - 10,000.00 - 10,000.00
Cash selling and administrative expenses 70,000.00 85,000.00

CASH BUDGET
April May
Beginning cash balance 40,000.00 30,000.00
Cash collections 170,000.00 400,000.00
Total cash available 210,000.00 430,000.00
Less: Cash disbursements
Direct materials - 40,000.00 - 72,300.00
Direct labor - 13,000.00 - 23,000.00
Manufacturing overhead - 56,000.00 - 76,000.00
Selling and administrative expense - 70,000.00 - 85,000.00
Equipment purchases - 143,700.00
Dividend - 51,000.00
Total disbursements - 230,000.00 - 400,000.00
Excess (Deficiency) - 20,000.00 30,000.00
Financing:
Borrowing 50,000.00
Repayments
Interest
Total financing 50,000.00 -
Ending cash balance 30,000.00 30,000.00

BUDGETED INCOME STATEMENT

April May
Sales 200,000.00 500,000.00
Cost of Goods Sold - 107,076.92 - 238,336.12
Gross margin 92,923.08 261,663.88
Doubtful accounts expense - 10,000.00 - 25,000.00
Selling and administrative expenses - 80,000.00 - 95,000.00
Operating income 2,923.08 141,663.88
Interest expense - 500.00 - 500.00
Net income 2,423.08 141,163.88
DM 52,000.00 92,000.00
DL 13,000.00 23,000.00
MOH 76,500.00 96,500.00
TMC 141,500.00 211,500.00
FG, beg 20,000.00 54,423.08
TGAS 161,500.00 265,923.08
EI - 54,423.08 - 27,586.96
COGS 107,076.92 238,336.12

BUDGETED BALANCE SHEET

April May
Current assets
Cash 30,000.00 30,000.00
Accounts receivable 50,000.00 125,000.00
Raw materials inventory 9,200.00 5,800.00
Finished goods inventory 54,423.08 27,586.96
Total current assets 143,623.08 188,386.96
Property and equipment
Land 400,000.00 400,000.00
Equipment 1,610,000.00 1,753,700.00
Accumulated depreciation - 780,500.00 - 811,000.00
Total property and equipment 1,229,500.00 1,342,700.00
Total assets 1,373,123.08 1,531,086.96

Accounts payable 78,500.00 95,300.00

Common stock 200,000.00 200,000.00
Retained earnings 1,094,623.08 1,235,786.96
Total liabilities and equities 1,373,123.08 1,531,086.96

Check - -
 June Quarter
30,000.00 100,000.00
10.00
300,000.00 1,000,000.00 3

June Quarter
30,000.00
-
140,000.00
50,000.00
-
350,000.00
125,000.00 125,000.00
-
210,000.00 210,000.00
335,000.00 905,000.00 3

June July Quarter

30,000.00 25,000.00 100,000.00
5,000.00 3,000.00 5,000.00
35,000.00 28,000.00 105,000.00
- 6,000.00 - 5,000.00 - 4,000.00
29,000.00 23,000.00 101,000.00 3

June July
29,000.00 23,000.00
5.00 5.00
145,000.00 115,000.00
11,500.00
156,500.00
- 14,500.00
142,000.00
0.40
56,800.00 3

June
 44,300.00

28,400.00
72,700.00 3

June Quarter
29,000.00 101,000.00
0.05 0.05
1,450.00 5,050.00
10.00 10.00
14,500.00 50,500.00 3

June
1,450.00
20.00
29,000.00
50,500.00
79,500.00
- 20,500.00
59,000.00 3

79,500.00 252,500.00
1,450.00 5,050.00
54.83 50.00

Total
2.00
0.50

June Quarter
5.24 5.00

June Quarter
5,000.00 5,000.00
5.24 5.00
26,206.90 25,000.00 3

Using Weighted Average Quarter

Finished Goods, Beg. Inv. 20,000.00
COGM = TMC 505,000.00
Total costs 525,000.00
Required production 101,000.00
Unit cost 5.20
Finished Goods, End. Inv. 25,990.10

June
30,000.00
0.50
15,000.00
70,000.00
85,000.00
- 10,000.00
75,000.00 3

June
30,000.00
335,000.00
365,000.00

- 72,700.00
- 14,500.00
- 59,000.00
- 75,000.00
- 48,800.00

- 270,000.00
95,000.00

- 50,000.00
- 1,500.00
- 51,500.00
43,500.00 3

June Quarter
300,000.00 1,000,000.00
- 153,380.06 - 500,000.00
146,619.94 500,000.00 450,000
- 15,000.00 - 50,000.00
- 85,000.00 - 260,000.00
46,619.94 190,000.00
- 500.00 - 1,500.00
46,119.94 188,500.00 189,706.90 3
 58,000.00 202,000.00
14,500.00 50,500.00
79,500.00 252,500.00
152,000.00 505,000.00
27,586.96 20,000.00
179,586.96 525,000.00
- 26,206.90 - 25,000.00
153,380.06 500,000.00

June Quarter

43,500.00 43,500.00
75,000.00 75,000.00
4,600.00 4,600.00
26,206.90 25,000.00
149,306.90 148,100.00

400,000.00 400,000.00
1,802,500.00 1,802,500.00
- 841,500.00 - 841,500.00
1,361,000.00 1,361,000.00
1,510,306.90 1,509,100.00

28,400.00 28,400.00
200,000.00 200,000.00
1,281,906.90 1,280,700.00
1,510,306.90 1,509,100.00 3

- - 36