Price

Units per unit

Estimated Sales 6,400 800

Finished goods inventory

Beginning 900 500
Ending 1,000 500
Worki in process inventory
None
Raw Materials:
Materials
R S
Materials required per unit of finished product 3 5
Beginning inventory 2,200 4,000
Ending inventory 1,300 4,600
Unit Cost 10 30
Direct labor 146

Overhead is estimated as follows:

Variable:
Indirect materials and supplies 5.85
Materials handling 9.07
Other direct labor 5.07
Fixed:
Supervisor labor 175,000
Maintenance and repairs 85,000
Plant administration 173,000
Utilities 87,000
Depreciation 280,000
Insurance 43,000
Property Taxes 117,000

Other 41,000
Marketing and Administartive expenses are budgeted as follows:
Variable marketing costs:
Sales commission 40.625
Other marketing costs 16.25
Fixed marketing costs:
Sales salaries 100,000
Advertising 193,000
Other 78,000
Administrative costs:
Administrative salaries 254,000
Data processing services 103,000
Legal and other professional fees 180,000
Depreciation-building,furniture, and equipment 94,000
Taxes-other than income 160,000
Other 26,000

Additional:
Sales and Collections 5,185,000
Equipment sold 300,000
Depreciation 275,000
Equipment Purchased 320,000
Accounts Payable 15,000
Income tax rate 0.35
Income tax paid 252,000
Dividend 140,000
Interest rate 0.08
 Gilbert Company
Statement of Financial Position
December 31, 2018

Asset Equities
Current Assets Current Liabilities
Cash 150,000 Accounts Payable
Accounts Receivble 220,000 Taxes Payable
Inventories 592,000 Current Portion of Long-term Debt
Other Current Assets 23,000 Total Current Liabilities
Total Current Assets 985,000 Long-term Liabilities
Total Liabilities
Long-term Assets
Property, Plant and equipment 2,475,000 Equity
Less: Accumulated Depreciation 850,000 Share Capital
Net 1,625,000 Retained Earnings
Total
Total Assets 2,610,000 Total Equities
 Equities

140,000
156,000
f Long-term Debt 83,000
379,000
576,000
955,000

350,000
s 1,305,000
1,655,000
2,610,000
 Sales Budget
For 2019

Price Total Sales

Units per unit Revenue
Estimated Sales 6,400 800 5,120,000
 Production Budget
For 2019

Units to be sold 6,400

Add: Desired ending inventory 1,000
Total 7,400
Less: Beginning inventory 900
Units to be produced 6,500
 Raw Materials
For 2019

Materials
R S
Units required for production:
R 19,500
S 32,500
Add: Desired ending inventory 1,300 4,600
Total units required 20,800 37,100
Less: Beginning inventory 2,200 4,000
Units to be produced 18,600 33,100
Unit price 10 30
Total purchases 186,000 993,000
 Direct Labor Budget
For2019

Number of units to be produced 6,500

Multiply by: Direct labor cost per unit 146
Total budgeted direct labor costs 949,000
 Budgeted Manufacturing Overhead
For 2019

Variable overhead: units needed to produce 6,500

Indirect materials and supplies 38,025
Materials handling 58,955
Other indirect labor 32,955
Total 129,935
Fixed manufacturing overhead:
Supervisor labor 175,000
Maintenance & repairs 85,000
Plant administration 173,000
Utilities 87,000
Depreciation 280,000
Insurance 43,000
Property taxes 117,000
Others 41,000
Total 1,001,000
Total manufacturing costs 1,130,935
 Bidgeted Statement of Cost of Sales
For 2019

Beginning work in process inventory -

Manufacturing costs
Direct materials
Beginning inventory 142,000
Purchases 1,179,000
Total 1,321,000
Less: Ending inventory 151,000
Total direct materials cost 1,170,000
Direct labor 949,000
Manufacturing overhead 1,130,935
Total manufacturing cost 3,249,935
Less: Ending work in process inventory -
Cost of goods manufactured 3,249,935
Add: Beginning finished goods inventory 450,000
Total available for sale 3,699,935
Less: Ending finished goods inventory 500,000
Cost of sales 3,199,935
 Budgeted Marketing and Administrative Costs
For 2019

Variable marketing costs

Sales commission 260,000
Others 104,000
Total 364,000
Fixed marketing costs
Sales salaries 100,000
Advertising 193,000
Others 78,000
Total 371,000
Total marketing costs 735,000
Administrative costs (all fixed)
Administrative salaries 254,000
Data processing services 103,000
Legal and other professional fees 180,000
Depreciation-building,furniture and equipment 94,000
Taxes-other than income 107,280
Others 26,000
Total 764,280
Total marketing and administrative costs 1,499,280
 Gilbert Manufacturing Company
Cash Budget
For the Year Ending December 31, 2019

Cash balance, January 1, 2018 150,000

Add: Estimated receipts
Collections from customer 5,185,000
Sale of Assets 25,000
Total 5,210,000
Total cash available 5,360,000
Less: Estimated disbursements
Payments for materials purchases 1,164,000
Direct labor 949,000
Manufacturing overhead 850,935
Marketing & Administrative expenses 1,458,000
Payments for income tax 252,000
Dividends 140,000
Reduction in long-term debt 83,000
Acquisition of new assets 320,000
Total disbursements 5,216,935
Cash balnce, December 31 143,065
 Gilbert Manufacturing Company
Budgeted Income Statement
For the Year Ending Decmber 31, 2019

Sales 5,120,000
Less: Cost of Sales 3,199,935
Gross profit 1,920,065
Less: Marketing and Administrative costs 1,499,280
Net opearating profit 420,785
Less: Interst expense 52,720
Net income before taxes 368,065
Less: Provision for income taxes 128,823
Net income after taxes 239,242
 Gilbert Manufacturing Company
Budgeted Statement of Financial Position
December 31, 2018

Asset Equities
Current Assets Current Liabilities
Cash 143,065 Accounts Payable
Accounts Receivble 155,000 Taxes Payable
Inventories 651,000 Current Portion of Long-term Deb
Other Current Assets 23,000 Total Current Liabilities
Total Current Assets 972,065 Long-term Liabilities
Total Liabilities
Long-term Assets
Property, Plant and equipment 2,495,000 Equity
Less: Accumulated Depreciation 949,000 Share Capital
Net 1,546,000 Retained Earnings
Total
Total Assets 2,518,065 Total Equities
 Equities
ilities
s Payable 155,000
yable 32,823
Portion of Long-term Debt -
rrent Liabilities 187,823
rm Liabilities 576,000
abilities 763,823

apital 350,000
d Earnings 1,404,242
1,754,242
s 2,518,065