HANDY COMPANY

Sales Budget
For 1st Qtr, 2020
Description Units Price
Drills 60,000 $ 100
Saws 40,000 $ 125
Total

HANDY COMPANY
Production Budget
For 1st Qtr, 2020
Description Drills
Budget sales (from Sales budget in units) 60,000
Add: Desired ending inventory 25,000
Total inventory requirements 85,000
Less: Beginning inventory - 20,000
Budgeted production 65,000

HANDY COMPANY
Raw Material Purchases Budget
For 1st Qtr, 2020
Description Drills Saws
Metal Purchases:
Production units (from production budget) 65,000 42,000
Metals (lbs) per unit finished good 5 4
Production needs 325,000 168,000
Add: Desired ending inventory
Total metal needs
Less: Beginning inventory
Purchses needed
Cost per lb. of metal
Total purchases
Plastics Purchases:
Production units (from production budget) 65,000 42,000
Plastics (lbs) per unit finished good
Production needs
Add: Desired ending inventory
 Total plastics needs
Less: Beginning inventory
Purchses needed
Cost per lb. of plastic
Total purchases
Handle Purchases:
Production units (from production budget) 65,000 -
Handle per unit finished goods
Production needs
Add: Desired ending inventory
Total handles needs
Less: Beginning inventory
Purchses needed
Cost per handle
Total purchases
Total Purchases:
Metals
Plastics
Handles
Total

HANDY COMPANY
Manufacturing Disbursement Budget
For 1st Qtr, 2020
Description Drills Saws
Purchases (from Purchases budget)--->Raw material
Budget production (from Production budget) 65,000 42,000
Direct labor hours per unit 2 3
Total direct labor hours needed 130,000 126,000
Labor rate $ 12 $ 16
Labor expenditures $ 1,560,000 $ 2,016,000
Direct labor hours 130,000 126,000
Variable factory overhead rate $ 1.50 $ 1.50
Total variable overhead $ 195,000 $ 189,000
Fixed factory overhead
=($214.000 - $156.000)

HANDY COMPANY
Cash Budget
For 1st Qtr, 2020
Cash balance, beginning
Collections on sales:
Current quarter's sales (50% x 1st Qtr 2020's sales) $ 5,500,000
Previous quarter's sales (50% x 4th Qtr 2019's sales) $ 4,200,000
Cash from collection this period
Cash available from operations
Less budget disbursements:
Manufacturing $ 9,812,000
Selling and administrative $ 250,000

Cash balance, ending

Hirzt of Mfg costs:

Manufacturing cost per unit
Description Drill
Raw materials
Metal
Drill=5 lbs @ $8/lb $ 40.00
Saw=4 lbs @ $8/lb
Plastic: 3 lbs @ $5/lb $ 15.00
Handle $ 3.00
Direct labor
Drill=2 dlh @ $12/hr. $ 24.00
Saw=3 dlh @ $16/hr.
Variable factory overhead
Drill=2 dlh @ $1,50hr. $ 3.00
Saw=3 dlh @ $1,50/hr.
Fixed factory overhead: $214.000 / (65.000 + 42.000) $ 2.00
$ 87.00

HANDY COMPANY
Income Statement Pro Forma
For 1st Qtr, 2020

Sales (from sales budget)

Less costs of goods sold:
Drills (60.000 x $87) $ 5,220,000
 Saws (40.000 x $101,50) $ 4,060,000
COGS
Gross Profit
Less: Selling and Administrative expenses
Net Operating Income
 Sales
$ 6,000,000
$ 5,000,000
$ 11,000,000

Saws
40,000
10,000 ,-->kondisi pada 31 Maret 2020
50,000
- 8,000 -->kondisi 1 Januari 2020
42,000

Total

493,000 lbs.
36,000 lbs.
529,000 lbs.
- 32,000 lbs.
497,000 lbs.
$ 8
$ 3,976,000

107,000
3 lbs.
321,000 lbs.
32,000 lbs.
 353,000 lbs.
- 29,000 lbs.
324,000 lbs.
$ 5
$ 1,620,000

65,000
1
65,000
7,000
72,000
- 6,000
66,000
$ 3
$ 198,000

$ 3,976,000
$ 1,620,000
$ 198,000
$ 5,794,000

Total
$ 5,794,000 ;-->Direct material costs

$ 3,576,000 -->Direct labor costs

$ 384,000 -->Variable FOH costs

$ 58,000 -->Fixed FOH costs

$ 9,812,000
$ 1,800,000

$ 9,700,000
$ 11,500,000

$ 10,062,000
$ 1,438,000

Saw

$ 32.00
$ 15.00

$ 48.00

$ 4.50
$ 2.00
$ 101.50

$ 11,000,000
$ 9,280,000.00
$ 1,720,000
$ 340,000
$ 1,380,000 -->EBIT
HANDY COMPANY
Sales Budget
For 1st Qtr, 2020
Description Units Price
Drills 66,000 $ 100
Saws 44,000 $ 125
Total

HANDY COMPANY
Production Budget
For 1st Qtr, 2020
Description Drills
Budget sales (from Sales budget in units) 66,000
Add: Desired ending inventory 25,000
Total inventory requirements 91,000
Less: Beginning inventory - 20,000
Budgeted production 71,000

HANDY COMPANY
Purchases Budget
For 1st Qtr, 2020
Description Drills Saws
Metal Purchases:
Production units (from production budget) 71,000 46,000
Metals (lbs) per unit finished good 5 4
Production needs 355,000 184,000
Add: Desired ending inventory
Total metal needs
Less: Beginning inventory
Purchses needed
Cost per lb. of metal
Total purchases
Plastics Purchases:
Production units (from production budget) 71,000 46,000
Plastics (lbs) per unit finished good
Production needs
Add: Desired ending inventory
Total plastics needs
 Less: Beginning inventory
Purchses needed
Cost per lb. of plastic
Total purchases
Handle Purchases:
Production units (from production budget) 71,000 -
Handle per unit finished goods
Production needs
Add: Desired ending inventory
Total handles needs
Less: Beginning inventory
Purchses needed
Cost per handle
Total purchases
Total Purchases:
Metals
Plastics
Handles
Total

HANDY COMPANY
Manufacturing Disbursement Budget
For 1st Qtr, 2020
Description Drills Saws
Purchases (from Purchases budget)--->Raw material
Budget production (from Production budget) 71,000 46,000
Direct labor hours per unit 2 3
Total direct labor hours needed 142,000 138,000
Labor rate $ 12 $ 16
Labor expenditures $ 1,704,000 $ 2,208,000
Direct labor hours 142,000 138,000
Variable factory overhead rate $ 1.50 $ 1.50
Total variable overhead $ 213,000 $ 207,000
Fixed factory overhead
=($214.000 - $156.000)

HANDY COMPANY
Cash Budget
For 1st Qtr, 2020
Cash balance, beginning
Collections on sales:
Current quarter's sales (50% x 1st Qtr 2020's sales) $ 6,050,000
Previous quarter's sales (50% x 4th Qtr 2019's sales) $ 4,200,000

Cash available from operations

Less budget disbursements:
Manufacturing $ 10,720,000
Selling and administrative (exclude depreciations) $ 250,000

Cash balance, ending

Hirzt of Mfg costs:

Manufacturing cost per unit
Description Drill
Raw materials
Metal
Drill=5 lbs @ $8/lb $ 40.00
Saw=4 lbs @ $8/lb
Plastic: 3 lbs @ $5/lb $ 15.00
Handle $ 3.00
Direct labor
Drill=2 dlh @ $12/hr. $ 24.00
Saw=3 dlh @ $16/hr.
Variable factory overhead
Drill=2 dlh @ $1,50hr. $ 3.00
Saw=3 dlh @ $1,50/hr.
Fixed factory overhead: $214.000 / (65.000 + 42.000) $ 1.83
$ 86.83

HANDY COMPANY
Income Statement Pro Forma
For 1st Qtr, 2020

Sales (from sales budget)

Less costs of goods sold:
Drills (60.000 x $87) $ 5,730,718
Saws (40.000 x $101,50) $ 4,458,479
 COGS
Gross Profit
Less: Selling and Administrative expenses
Net Operating Income
 Sales
$ 6,600,000
$ 5,500,000
$ 12,100,000

Saws
44,000
10,000 ,-->kondisi pada 31 Maret 2020
54,000
- 8,000 -->kondisi 1 Januari 2020
46,000

Total

539,000 lbs.
36,000 lbs.
575,000 lbs.
- 32,000 lbs.
543,000 lbs.
$ 8.00
$ 4,344,000

117,000
3 lbs.
351,000 lbs.
32,000 lbs.
383,000 lbs.
- 29,000 lbs.
354,000 lbs.
$ 5
$ 1,770,000

71,000
1
71,000
7,000
78,000
- 6,000
72,000
$ 3
$ 216,000

$ 4,344,000
$ 1,770,000
$ 216,000
$ 6,330,000

Total
$ 6,330,000

$ 3,912,000

$ 420,000

$ 58,000
$ 10,720,000
$ 1,800,000

$ 10,250,000
$ 12,050,000

$ 10,970,000
$ 1,080,000

Saw

$ 32.00
$ 15.00

$ 48.00

$ 4.50
$ 1.83
$ 101.33

$ 12,100,000
$ 10,189,196.58
$ 1,910,803
$ 340,000
$ 1,570,803
HANDY COMPANY
Sales Budget
For 1st Qtr, 2020
Description Units Price
Drills 72,000 $ 100
Saws 40,000 $ 125
Total

HANDY COMPANY
Production Budget
For 1st Qtr, 2020
Description Drills
Budget sales (from Sales budget in units) 72,000
Add: Desired ending inventory 25,000
Total inventory requirements 97,000
Less: Beginning inventory - 20,000
Budgeted production 77,000

HANDY COMPANY
Purchases Budget
For 1st Qtr, 2020
Description Drills Saws
Metal Purchases:
Production units (from production budget) 77,000 42,000
Metals (lbs) per unit finished good 5 4
Production needs 385,000 168,000
Add: Desired ending inventory
Total metal needs
Less: Beginning inventory
Purchses needed
Cost per lb. of metal
Total purchases
Plastic Purchases:
Production units (from production budget) 77,000 42,000
Plastics (lbs) per unit finished good
Production needs
Add: Desired ending inventory
Total metal needs
 Less: Beginning inventory
Purchses needed
Cost per lb. of plastic
Total purchases
Handle Purchases:
Production units (from production budget) 77,000 -
Handle per unit finished goods
Production needs
Add: Desired ending inventory
Total metal needs
Less: Beginning inventory
Purchses needed
Cost per handle
Total purchases
Total Purchases:
Metals
Plastics
Handles
Total

HANDY COMPANY
Manufacturing Disbursement Budget
For 1st Qtr, 2020
Description Drills Saws
Purchases (from Purchases budget)--->Raw material
Budget production (from Production budget) 77,000 42,000
Direct labor hours per unit 2 3
Total direct labor hours needed 154,000 126,000
Labor rate $ 12 $ 16
Labor expenditures $ 1,848,000 $ 2,016,000
Direct labor hours 154,000 126,000
Variable factory overhead rate $ 1.50 $ 1.50
Total variable overhead $ 231,000 $ 189,000
Fixed factory overhead
=($214.000 - $156.000)

HANDY COMPANY
Cash Budget
For 1st Qtr, 2020
Cash balance, beginning
Collections on sales:
Current quarter's sales (50% x 1st Qtr 2020's sales) $ 6,100,000
Previous quarter's sales (50% x 4th Qtr 2019's sales) $ 4,200,000

Cash available from operations

Less budget disbursements:
Manufacturing $ 10,275,000
Selling and administrative (exclude depreciations) $ 250,000

Cash balance, ending

Hirzt of Mfg costs:

Manufacturing cost per unit
Description Drill
Raw materials
Metal
Drill=5 lbs @ $8/lb $ 35.00
Saw=4 lbs @ $8/lb
Plastic: 3 lbs @ $5/lb $ 15.00
Handle $ 3.00
Direct labor
Drill=2 dlh @ $12/hr. $ 24.00
Saw=3 dlh @ $16/hr.
Variable factory overhead
Drill=2 dlh @ $1,50hr. $ 3.00
Saw=3 dlh @ $1,50/hr.
Fixed factory overhead: $214.000 / (65.000 + 42.000) $ 2.00
$ 82.00

HANDY COMPANY
Income Statement Pro Forma
For 1st Qtr, 2020

Sales (from sales budget)

Less: Cost of Good Sold (COGS)
Drills (60.000 x $87) $ 5,904,000
Saws (40.000 x $101,50) $ 3,900,000
 COGS
Gross Profit
Less: Selling and Administrative expenses
Net Operating Income
 Sales
$ 7,200,000
$ 5,000,000
$ 12,200,000

Saws
40,000
10,000 ,-->kondisi pada 31 Maret 2020
50,000
- 8,000 -->kondisi 1 Januari 2020
42,000

Total

553,000 lbs.
36,000 lbs.
589,000 lbs.
- 32,000 lbs.
557,000 lbs.
$ 7
$ 3,899,000

119,000
3 lbs.
357,000 lbs.
32,000 lbs.
389,000 lbs.
- 29,000 lbs.
360,000 lbs.
$ 5
$ 1,800,000

77,000
1
77,000
7,000
84,000
- 6,000
78,000
$ 3
$ 234,000

$ 3,899,000
$ 1,800,000
$ 234,000
$ 5,933,000

Total
$ 5,933,000

$ 3,864,000

$ 420,000

$ 58,000
$ 10,275,000
$ 1,800,000

$ 10,300,000
$ 12,100,000

$ 10,525,000
$ 1,575,000

Saw

$ 28.00
$ 15.00

$ 48.00

$ 4.50
$ 2.00
$ 97.50

$ 12,200,000
$ 9,804,000.00
$ 2,396,000
$ 340,000
$ 2,056,000