RUBINO, Anna

SBU 201 45
Professor Warfield

Input Area:
SHU MANUFACTURING
Additional information for PRODUCTION BUDGET:
Beginning Finished Goods Inventory in units for Q1 2022 is: 500
Each quarter's Finished Goods Inventory should contain: 10%
Estimated Q1 2023 Expected Unit Sales are projected to be: 5,000

Additional information for DIRECT MATERIALS BUDGET:

3.5
20%
19,250
Beginning inventory for Q1 2022 was: 2,295
Total cost per pound of direct material is: $ 4.75

Additional information for DIRECT LABOR BUDGET:

2.2
Direct labor is: $ 11.25

Additional information for MANUFACTURING OVERHEAD BUDGET:

Variable Cost
a. Indirect Materials $ 1.00
b. Indirect Labor $ 1.50
c. Utilities $ 0.40
d. Maintenance $ 0.50
Fixed Cost
a. Supervisory Salaries $ 30,000
b. Depreciation $ 20,000
c. Property taxes and Insurance $ 10,000
d. Maintenance/Utilities $ 7,000

Manufacturing Overhead is applied to production on the basis of direct labor hours.

Additional information for SELLING AND ADMINISTRATIVE EXPENSES BUDGET:

Variable Cost
a. Sales Commission $ 3.40
b. Freight-Out $ 1.10
Fixed Cost
a. Advertising $ 5,000
b. Sales salaries $ 15,000
c. Office salaries $ 7,500
d. Depreciation $ 1,000
 Property taxes and insurance $ 1,500

Additional information for BUDGETED INCOME STATEMENT:

Interest Income of: $ 5,000
Tax rate is: 30%

Cost of Goods Calculation: Quantity x Unit Cost

Cost Element Quantity Unit Cost Total
Direct Materials 3.5 $ 4.75 $ 16.63
Direct Labor 2.2 $ 11.25 $ 24.75
Manufacturing Overhead 2.2 $ 3.40 $ 7.48
Total Unit Cost $ 48.86

Cost of Goods Sold = Total Expected Unit Sales x Total Unit Cost
units
of the following quarter's Expected Units Sales
units

pounds direct materials per unit of finished goods

of the next quarter's production materials are required to be in ending direct materials inventory
pounds of material are estimated to be needed for Q1 2023 production
pounds of direct materials

hours of direct labor needed to produce one unit of finished goods

per hour

per hour
per hour
per hour
per hour

per quarter
per quarter
per quarter
per quarter

per unit
per unit

per quarter
per quarter
per quarter
per quarter
per quarter

is expected to be paid in 2022

 SHU MANUFACTURING
Sales Budget
For the Year Ending December 31, 2022
Quarter
1 2
Expected unit sales 8,000 10,000
Unit selling price $ 65.00 $ 65.00
Total Sales $ 520,000 $ 650,000

SHU MANUFACTURING
Production Budget
For the Year Ending December 31, 2022
Quarter
1 2
Expected unit sales 8,000 10,000
Add: Desired ending finished goods units 1,000 800
Total required units 9,000 10,800
Less: Beginning finished goods units 500 1,000
Required production units 8,500 9,800

SHU MANUFACTURING
Direct Materials Budget
For the Year Ending December 31, 2022
Quarter
1 2
Units to be produced 8,500 9,800
Direct materials per unit 3.5 3.5
Total pounds required for production 29,750 34,300
Add: Desired ending direct materials (Pounds) 6,860 5,880
Total materials required 36,610 40,180
Less: Beginning direct materials (Pounds) 2,295 6,860
Direct materials purchases 34,315 33,320
Cost per pound $ 4.75 $ 4.75
Total cost of direct materials purchases $ 162,996.25 $ 158,270.00

SHU MANUFACTURING
Direct Labor Budget
For the Year Ending December 31, 2022
Quarter
1 2
Units to be produced 8,500 9,800
Direct labor time (Hours) per unit 2.2 2.2
Total required direct labor hours 18,700 21,560
Direct labor cost per hour $ 11.25 $ 11.25
Total direct labor cost $ 210,375 $ 242,550

SHU MANUFACTURING
Manufacturing Overhead Budget
For the Year Ending December 31, 2022
Quarter
1 2
Variable costs
Indirect Materials ($1.00/hour) $ 18,700 $ 21,560
Indirect Labor ($1.50/hour) 28,050 32,340
Utilities ($0.40/hour) 7,480 8,624
Maintenance ($0.50/hour) 9,350 10,780
Total variable costs 63,580 73,304
Fixed costs
Supervisory salaries 30,000 30,000
Depreciation 20,000 20,000
Property taxes and insurance 10,000 10,000
Maintenance/Utilities 7,000 7,000
Total fixed costs 67,000 67,000
Total manufacturing overhead $ 130,580 $ 140,304

Direct labor hours 18,700 21,560

Manufacturing overhead rate per direct labor hour

SHU MANUFACTURING
Selling and Administrative Expense Budget
For the Year Ending December 31, 2022
Quarter
1 2
Budgeted unit sales 8,000 10,000
Variable cost
Sales commissions ($3.40/unit) $ 27,200 $ 34,000
Freight-out ($1.10/unit) 8,800 11,000
Total variable cost 36,000 45,000
Fixed cost
Advertising 5,000 5,000
Sales salaries 15,000 15,000
Office salaries 7,500 7,500
Depreciation 1,000 1,000
Property taxes and insurance 1,500 1,500
Total fixed cost 30,000 30,000
Total selling and administrative expenses $ 66,000 $ 75,000

SHU MANUFACTURING
Budgeted Income Statement
For the Year Ending December 31, 2022
Sales $ 2,530,000
Cost of goods sold 1,856,490
Gross profit 673,510
Selling and administrative expenses 291,000
Income from operations 382,510
Interest expense 5,000
Income before taxes 377,510
Income tax expense 113,253
Net income (loss) $ 264,257
RING

ber 31, 2022

Quarter
3 4 Year
8,000 12,000 38,000
$ 65.00 $ 70.00
$ 520,000 $ 840,000 $ 2,530,000

RING
get
ber 31, 2022
Quarter
3 4 Year
8,000 12,000
1,200 500
9,200 12,500
800 1,200
8,400 11,300 38,000

RING
udget
ber 31, 2022
Quarter
3 4 Year
8,400 11,300
3.5 3.5
29,400 39,550
7,910 3,850
37,310 43,400
5,880 7,910
31,430 35,490
$ 4.75 $ 4.75
$ 149,292.50 $ 168,577.50 $ 639,136.25

RING
get
ber 31, 2022
Quarter
3 4 Year
8,400 11,300
2.2 2.2
 18,480 24,860
$ 11.25 $ 11.25
$ 207,900 $ 279,675 $ 940,500

RING
ad Budget
ber 31, 2022
Quarter
3 4 Year

$ 18,480 $ 24,860 $ 83,600

27,720 37,290 125,400
7,392 9,944 33,440
9,240 12,430 41,800
62,832 84,524 284,240

30,000 30,000 120,000

20,000 20,000 80,000
10,000 10,000 40,000
7,000 7,000 28,000
67,000 67,000 268,000
$ 129,832 $ 151,524 $ 552,240

18,480 24,860 83,600

$ 6.61

RING
xpense Budget
ber 31, 2022
Quarter
3 4 Year
8,000 12,000 38,000

$ 27,200 $ 40,800 $ 129,200

8,800 13,200 41,800
36,000 54,000 171,000

5,000 5,000 20,000

15,000 15,000 60,000
7,500 7,500 30,000
1,000 1,000 4,000
1,500 1,500 6,000
30,000 30,000 120,000
$ 66,000 $ 84,000 $ 291,000