Royal Company

Budgeted Income Statement

For the Three Month Period Ending June 30, 20XX
Sales (100,000 units @ $10 each) $ 1,000,000.00
Less: Cost of Goods Sold $ (499,000.00)
Gross Profit $ 501,000.00
Less: Selling and Administrative Expense $ (260,000.00)
Operating Income $ 241,000.00
Less: Interest Expense $ (1,920.00)
Net Profit $ 239,080.00
 Royal Company
Budgeted Income Statement
As of June 30, 20XX
Current Assets Liabilities
Cash $ 80,580.00 Accounts Payable
Accounts Receivable $ 90,000.00 Total Liabilities
Raw Materials Inventory $ 4,600.00
Finished Goods Inventory $ 24,950.00 SHE
Total Current Assets $ 200,130.00 Common Stock
Retained Earnings
Non-Current Assets Total SHE
Land $ 50,000.00
Equipment $ 367,000.00
Total Non-Current Assets $ 417,000.00

Total Assets $ 617,130.00 Total Liabilities and SHE

Liabilities
$ 28,400.00
$ 28,400.00

SHE
$ 150,000.00
$ 438,730.00
$ 588,730.00

$ 617,130.00
 April May June
Budgeted Unit Sales 20,000 50,000 30,000
Selling Price $ 10.00 $ 10.00 $ 10.00
Total Budgeted Sales $ 200,000.00 $ 500,000.00 $ 300,000.00

Cash Collections
Previous Month $ 30,000.00 $ 60,000.00 $ 150,000.00
Current Month $ 140,000.00 $ 350,000.00 $ 210,000.00
Total Cash Collections $ 170,000.00 $ 410,000.00 $ 360,000.00

Cash Disbursements
Materials
Previous Month $ 12,000.00 $ 28,000.00 $ 44,300.00
Current Month $ 28,000.00 $ 44,300.00 $ 28,400.00
Total Materials Disbursement $ 40,000.00 $ 72,300.00 $ 72,700.00

Labor and MOH

Labor $ 13,000.00 $ 23,000.00 $ 14,500.00
MOH $ 76,000.00 $ 96,000.00 $ 79,000.00
Total Labor and MOH $ 89,000.00 $ 119,000.00 $ 93,500.00
Non-cash MOH Expense $ 20,000.00 $ 20,000.00 $ 20,000.00
Total Labor and MOH Disbursement $ 69,000.00 $ 99,000.00 $ 73,500.00

Selling and Administrative Expense

Variable $ 10,000.00 $ 25,000.00 $ 15,000.00
Fixed $ 70,000.00 $ 70,000.00 $ 70,000.00
Total Selling and Administratve $ 80,000.00 $ 95,000.00 $ 85,000.00
Non-cash S&A Expense $ 10,000.00 $ 10,000.00 $ 10,000.00
Total S&A Disbursement $ 70,000.00 $ 85,000.00 $ 75,000.00

Total Cash Disbursements $ 179,000.00 $ 256,300.00 $ 221,200.00

CASH BUDGET
Beginning Cash Balance $ 40,000.00 $ 30,000.00 $ 40,000.00
Add: Cash Collections $ 170,000.00 $ 410,000.00 $ 360,000.00
Less: Cash Disbursements $ (179,000.00) $ (256,300.00) $ (221,200.00)
Less: Equipment Purchase $ (143,700.00) $ (48,300.00)
Less: Cash Dividends $ (49,000.00)
Cash Balance $ (18,000.00) $ 40,000.00 $ 130,500.00
Add: Borrowing $ 48,000.00
Less: Repayment $ (48,000.00)
Less: Interest $ (1,920.00)
Ending Cash Balance $ 30,000.00 $ 40,000.00 $ 80,580.00
AMJ July August
100,000 25,000 15,000
$ 10.00 $ 10.00 $ 10.00
$ 1,000,000.00 $ 250,000.00 $ 150,000.00

$ 240,000.00 $ 90,000.00 $ 75,000.00

$ 700,000.00 $ 175,000.00 $ 105,000.00
$ 940,000.00 $ 265,000.00 $ 180,000.00

$ 84,300.00 $ 28,400.00
$ 100,700.00 $ 21,900.00
$ 185,000.00 $ 50,300.00

$ 50,500.00 $ 11,500.00 $ 6,000.00

$ 251,000.00 $ 73,000.00 $ 62,000.00
$ 301,500.00 $ 84,500.00 $ 68,000.00
$ 60,000.00 $ 20,000.00 $ 20,000.00
$ 241,500.00 $ 64,500.00 $ 48,000.00

$ 50,000.00 $ 12,500.00 $ 7,500.00

$ 210,000.00 $ 70,000.00 $ 70,000.00
$ 260,000.00 $ 82,500.00 $ 77,500.00
$ 30,000.00 $ 10,000.00 $ 10,000.00
$ 230,000.00 $ 72,500.00 $ 67,500.00

$ 656,500.00 $ 187,300.00

$ 40,000.00 $ 80,580.00
$ 940,000.00 $ 265,000.00
$ (656,500.00) $ (187,300.00)
$ (192,000.00)
$ (49,000.00)
$ 82,500.00 $ 158,280.00
$ 48,000.00
$ (48,000.00)
$ (1,920.00)
$ 80,580.00
 April May June AMJ July
Budgeted Unit Sales 20,000 50,000 30,000 100,000 25,000
Add: Desired Ending Inventory 10,000 6,000 5,000 5,000 3,000
Total Needs 30,000 56,000 35,000 105,000 28,000
Less: Beginning Inventory 4,000 10,000 6,000 4,000 5,000
Total Production 26,000 46,000 29,000 101,000 23,000

Direct Materials
Total Production 26,000 46,000 29,000 101,000 23,000
Materials per Unit 5 5 5 5 5
Productiuon Needs 130,000 230,000 145,000 505,000 115,000
Add: Desired Ending Inventory 23,000.0 14,500.0 11,500.0 11,500.0 6,000.0
Total Materials Needed 153,000 244,500 156,500 516,500.0 121,000
Less: Beginning Inventory 13,000 23,000 14,500 13,000 11,500
Materials to be Purchased 140,000 221,500 142,000 503,500 109,500
Cost of Materials (per Unit) 0.4 0.4 0.4 0.4 0.4
Total Cost of Materials 56,000 88,600 56,800 201,400 43,800

Labor
Total Production 26,000 46,000 29,000 101,000 23,000
Labor Hours per Unit 0.05 0.05 0.05 0.05 0.05
Labor Hours Required 1,300 2,300 1,450 5,050 1,150
Hourly Wage Rate 10 10 10 10 10
Total Labor Cost 13,000 23,000 14,500 50,500 11,500

MOH
Direct Labour Hours Required 1,300 2,300 1,450 5,050 1,150
Variable MOH Rate 20 20 20 20 20
Total Variable MOH Cost 26,000 46,000 29,000 101,000 23,000
Fixed MOH Cost 50,000 50,000 50,000 150,000 50,000
Total MOH Cost 76,000 96,000 79,000 251,000 73,000
August Cost per Item
15,000 DM $ 2.00
- DL 0.5
15,000 MOH 2.49
3,000 $ 4.99
12,000 EI Units 5,000.0
Ending Inventory $ 24,925.74

12,000
5
60,000

60,000

60,000

12,000
0.05
600
10
6,000

600
20
12,000
50,000
62,000