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  • Activity 9: Production Budget

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    Private Titanium
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    This document contains production budgets and direct materials budgets for 2021, 2022, and 2023. It outlines planned production units, material needs, inventory levels, and expected cash payments on a quarterly basis. Key details include planned production increasing each year, with materials needs and purchase costs rising accordingly. Payment terms have materials purchases paid 75% in the purchase quarter and 25% in the following quarter.

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    Activity 9

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    This document contains production budgets and direct materials budgets for 2021, 2022, and 2023. It outlines planned production units, material needs, inventory levels, and expected cash payments on a quarterly basis. Key details include planned production increasing each year, with materials needs and purchase costs rising accordingly. Payment terms have materials purchases paid 75% in the purchase quarter and 25% in the following quarter.

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    © All Rights Reserved
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    13 views4 pages

    Activity 9: Production Budget

    Uploaded by

    Private Titanium
    This document contains production budgets and direct materials budgets for 2021, 2022, and 2023. It outlines planned production units, material needs, inventory levels, and expected cash payments on a quarterly basis. Key details include planned production increasing each year, with materials needs and purchase costs rising accordingly. Payment terms have materials purchases paid 75% in the purchase quarter and 25% in the following quarter.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 4

    FEBRUARY 19, 2021

    ACTIVITY 9: PRODUCTION BUDGET

    Production Budget
    For the Year 2021
    Q1 Q2 Q3 Q4
    Sales Units 1,100 1,150 1,200 1,250
    Planned Ending Units 220 245 270 295
    Beginning Units 180 220 245 270
    Planned Production 1,140 1,175 1,225 1,275
    in Units

    Production Budget
    For the Year 2022
    Q1 Q2 Q3 Q4
    Sales Units 1,458 1,123 1,524 2,425
    Planned Ending Units 250 223 300 459
    Beginning Units 164 250 223 300
    Planned Production 1,544 1,096 1,601 2,584
    in Units

    Production Budget
    Year 2023
    Q1 Q2 Q3 Q4
    Sales Units 2,015 2,312 2,236 2,587
    Planned Ending Units 365 423 392 512
    Beginning Units 224 365 423 392
    Planned Production 2,156 2,370 2,205 2,707
    in Units
    DIRECT MATERIALS BUDGET
    Direct Materials Budget
    For the Year Ending 2021
    Quarter
    1 2 3 4
    Planned Production 1,140 1,175 1,225 1,275
    in Units
    *Material Need per 2 2 2 2
    Unit
    =Material Needs for 2,280 2,350 2,450 2,550
    Production
    +Planned Ending 235 245 255 700
    Inventory in Units
    =Total Needs 2,515 2,595 2,705 3,250
    -Beginning Inventory 228 235 245 255
    in Units
    =Materials to be 2,287 2,360 2,460 2,995
    Purchased
    *Unit Price 10 10 10 10
    Purchase Cost in 22,870 23,600 24,600 29,950
    Units

    Direct Materials Budget


    For the Year Ending 2022
    Quarter
    1 2 3 4
    Planned Production 1,544 1,096 1,601 2,584
    in Units
    *Material Need per 2 2 2 2
    Unit
    =Material Needs for 3,088 2,192 3,202 5,168
    Production
    +Planned Ending 219.2 320.2 516.8 700
    Inventory in Units
    =Total Needs 3,307.2 2,512.2 3,718.8 5,868
    -Beginning Inventory 308.8 219.2 320.2 516.8
    in Units
    =Materials to be 2,998.4 2,293 3,398.6 5,351.2
    Purchased
    *Unit Price 10 10 10 10
    Purchase Cost in 29,984 22,930 33,986 53,512
    Units
    Direct Materials Budget
    For the Year Ending 2023
    Quarter
    1 2 3 4
    Planned Production 2,156 2,370 2,205 2,707
    in Units
    *Material Need per 2 2 2 2
    Unit
    =Material Needs for 4,312 4,740 4,410 5,414
    Production
    +Planned Ending 474 441 541.4 700
    Inventory in Units
    =Total Needs 4,786 5,181 4,951.4 6,114
    -Beginning Inventory 431.2 474 441 541.4
    in Units
    =Materials to be 4,354.8 4,707 4,510.4 5,572.6
    Purchased
    *Unit Price 10 10 10 10
    Purchase Cost in 43,548 47,070 45,104 55,726
    Units

    SCHEDULE OF EXPECTED CAHS PAYMENTS


    Year 2021
    a.) Q1 Purchase = 22,870
    Payments in Q1 = ₱ 22,870 x 75% = ₱17,152.5; Payments in Q2= ₱ 22,870 x 25% = ₱ 5,717.5
    b.) Q2 Purchase = 23,600
    Payments in Q2 = ₱ 23,600 x75% = ₱17,700; Payments in Q3= ₱23,600 x 25% = ₱ 5,900
    c.) Q3 Purchase = ₱ 24,600
    Payments in Q3 = ₱ 24,600 x 75% = ₱18,450; Payments in Q4= ₱ 24,600 x 25% = ₱6,150
    d.) Q4 Purchase = ₱ 29,950
    Payments in Q4 = ₱ 29,950 x 75% = ₱22,462.5

    Schedule of Expected Cash Payments


    For the Year Ending 2021
    Quarter Total
    Beginning AR 0 0
    Quarter 1 Purchase (a) 17,152.5 5,717.5 22,870
    Quarter 2 Purchase (b) 17,700 5,900 23,600
    Quarter 3 Purchase (c) 18,450 6,150 24,600
    Quarter 4 Purchase (d) 22,462.5 22,462.5
    Total Expected 17,152.5 23,417.5 24,350 28,612.5 ₱ 93,532.5
    Payments
    Year 2022
    a.) Q1 Purchase = 29,984
    Payments in Q1 = ₱ 29,984 x 75% = ₱22,488; Payments in Q2= ₱ 29,984 x 25% = ₱ 7,487
    b.) Q2 Purchase = 22,930
    Payments in Q2 = ₱ 22,930 x75% = ₱17,197.5; Payments in Q3= ₱22,930 x 25% = ₱ 5,732.5
    c.) Q3 Purchase = ₱ 33,986
    Payments in Q3 = ₱ 33,986 x 75% = ₱25,489.5; Payments in Q4= ₱ 33,986 x 25% = ₱8,496.5
    d.) Q4 Purchase = ₱ 53,512
    Payments in Q4 = ₱ 53,512 x 75% = ₱40,134

    Schedule of Expected Cash Payments


    For the Year Ending 2022
    Quarter Total
    Beginning AR 7,487.5 7,487.5
    Quarter 1 Purchase (a) 22,488 7,487 29,975
    Quarter 2 Purchase (b) 17,197.5 5,732.5 22,930
    Quarter 3 Purchase (c) 25,489.2 8,496.5 33,985.7
    Quarter 4 Purchase (d) 40,134 40,134
    Total Expected 29,975.5 24,684.5 31,221.7 48,630.5 ₱ 134,512.2
    Payments

    Year 2023
    a.) Q1 Purchase = 43,548
    Payments in Q1 = ₱ 43,548 x 75% = ₱32,661; Payments in Q2= ₱ 43,548 x 25% = ₱ 10,887
    b.) Q2 Purchase = 47,070
    Payments in Q2 = ₱47,070 x75% = ₱35,302.5; Payments in Q3= ₱47,070x 25% = ₱ 11,767.5
    c.) Q3 Purchase = ₱ 45,104
    Payments in Q3 = ₱ 45,104x 75% = ₱33,828; Payments in Q4= ₱ 45,104x 25% = ₱11,276
    d.) Q4 Purchase = ₱ 55,726
    Payments in Q4 = ₱ 55,726 x 75% = ₱41,794.5

    Schedule of Expected Cash Payments


    For the Year Ending 2023
    Quarter Total
    Beginning AR 13,378 13,378
    Quarter 1 Purchase (a) 32,661 10,887 43,548
    Quarter 2 Purchase (b) 35,302.5 11,767.5 47,070
    Quarter 3 Purchase (c) 33,828 11,276 45,104
    Quarter 4 Purchase (d) 41,794.5 41,794.5
    Total Expected 46,039 46,189.5 45,595.5 53,070.5 ₱190,894.5
    Payments

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