1st Quarter

Budgeted unit sales 112

Selling Price per Units 2,500
Total sales 280,000

Schedule of Expected Cash Collections

1st Quarter
Begging Account Receivable 15,000
collected 50% 140,000
collected 50%
155,000
 2nd Quarter 3rd Quarter 4th Quarter Year
93 83 109 397
2,500 2,500 2,500 2,500
232,500 207,500 272,500 992,500

Expected Cash Collections

2nd 3rd 4th total

116,250 103,750 136,250

140,000 116,250 103,750
256,250 220,000 240,000 871,250
Budgeted unit sales
Add Desired ending finished goods inventory
Total needed
Less Units of Begging finished Goods inventory
Required production

Required production in units

Raw materials need per units(picecs)
units of raw materials needed for Productions
Add desired ending inventory
Total raw material needed
less Beginnig inventory of raw materials
Units of raw materials purchased
Cost of Raw Materials per picces
Cost of raw materials to be purchased

Begging Acoounting Payable

50%
50%
Total Cash disbursements for Materials
Production Budget
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year
112 93 83 109 397
6 5 7 6 6
118 98 90 115 403
5 6 5 7 5
113 92 85 108 398

Direct Material Budget

1st 2nd 3rd 4th Year

113 92 85 108 398
5 5 5 5 5
565 460 425 540 1,990
45 42 54 50 50
610 502 479 590 2,040
55 45 42 40 55
555 457 437 550 1,985
400 400 400 400 400
222,000 182,800 174,800 220,000 794,000

Schedule of Expected cash Disbursements for Purchase of Materials

1st 2nd 3rd 4th Total
18,000
111,000 91,400 87,400 110,000
111,000 91,400 87,400
129,000 202,400 178,800 197,400 707,600
 1st
Required Production 113
Direct labor per day 0.5
Total needed 57
Direct labor cost per day 500
Total Direct labor cost 28,250

1st
Budgeted Direct Labor day 57
V.MOH rate 80
V.MOH 4,560
F.MOH 36,000
Total MOH 40,560

Predetermined Overhead RatTotal M.O.H./Budgeted D

 Direct Labor Budget

2nd 3rd 4th year

92 85 108 398
0.5 0.5 0.5 0.5
46 43 54 199
500 500 500 500
23,000 21,250 27,000 99,500

Manufacturing Overhead Budget

2nd 3rd 4th year

46 43 54 199
80 80 80 80
3,680 3,440 4,320 15,920
36,000 36,000 36,000 144,000
39,680 39,440 40,320 159,920

otal M.O.H./Budgeted D.L.H.

Selling & Administrative Expense Budget
 1st 2nd 3rd 4th
Budget sales 112 93 83 109
Variable selling & Ad. Expense per units 30 30 30 30
Variable selling & Ad. Expenses 3,360 2,790 2,490 3,270
Fixed selling & Ad. Expenses 96,000 96,000 96,000 96,000
Total S & Ad. Expenses 99,360 98,790 98,490 99,270
less: noncash Expenses 10,000 10,000 10,000 10,000
cash selling & administrative expenses 89,360 88,790 88,490 89,270
year
397
30
11,910
384,000
395,910
40,000
355,910
Cash Budget

Beginning cash balance

Add: Cash Collection
Total cash available
Less: Cash disbursements
D.M
D.L
MOH
S & AD. Expenses
Equipment purchase
Total cash Disbursements
Ending Cash Balance
1st 2nd 3rd 4th Year
20,000 30,000 30,000 30,000 20,000
155,000 256,250 220,000 240,000 871,250
175,000 286,250 250,000 270,000 891,250

129,000 201,400 177,800 197,400 705,600

28,500 23,000 21,500 27,000 100,000
40,560 39,680 39,440 40,320 160,000
89,360 88,790 88,490 89,270 355,910
40,000 40,000
287,420 392,870 327,230 353,990 1,361,510
(112,420) (106,620) (77,230) (83,990) (470,260)
Budgeted Income statement

Balance sheet

previous
Depreciation ?? previous

previous
Net income-Dividend paid (cash budget) ??
Sales 397*2500 992,500
COGS 5*1990+0.5*199+2 30,921

Gross Margin 961,579

Selling & administrative expenses 384,000
Net operating income 577,579
Interest Expense ??
Net Income ??

Current Asset

cash (470,260)
A/R 240000*10% 24,000
Raw materials inventory 400*50 20,000
Finished Goods inventory 15*2450 36,750
Total current Asset (389,510)

Property & Equipment:

Land 1,000,000
Equipment 1,065,179
Total Property & Equipment 2,065,179
Total Assets 1,675,669

Liabilites & Equities

A/P 220000*50% 110,000
Common stock 800,000 800,000
Retained Earning 200000+565669 765,669
1,675,669
e exibit8-3-b13

f 8-3-b14

g 8-3-b15

i 8-3-b23
exibit8-3-b13

120000