SALE BUDGET

MAHLE MANUFACTURING
NAME OF BUDGET
For the period of July 1- September 30,2023
MAHLE MANUFACTURING is preparing budgets for the quarter ending September 30. Budgeted sale for the next five months are:
JULY 20,000 units
AUGUST 50,000 units
SEPTEMBER 30,000 units
OCTOBER 25,000 units
NOVEMBER 15,000 units

The selling price is P10.00 per month

SALE BUDGETS JULY AUGUST SEPTEMBER Q3
Budgeted sale in unit 20,000 50,000 30,000 100,000
selling price in units 10 10 10 10
Budgeted sale 200000 500000 300000 1000000

SCHEDULE OF EXPECTED CASH COLLECTION

All sale are on account
The Company's Collection pattern is
70% collected in the months of sale
25% collected in the month following sale
5% uncollectible
June , 30 account Recievable of P30,000 will be collected in full

JULY AUGUST SEPTEMBER Q3

From A.R. JUNE 30 30,000 30,000
On July sale
70% 200,000 140000 140000
25% 200,000 50000 50000

On August sale
70% 500,000 350000 350000
25% 500,000 125000 125000

On September sale
70% 300,000 210000 210000
Total cash collection 170,000 400000 335000 905,000

PRODUCTION BUDGETS

The management of Mahle Manufactiring wants ending inventory to be equal to 20% of the following budgeted sale in units.
June 30, 4,000 units were on hand

JULY AUGUST SEPTEMBER Q3 OCTOBER

Budgeted sale in units 20000 50000 30000 100000 25000
ADD: Desired ending inventory 10,000 6,000 5,000 5000 3000
Total units needed 30,000 56,000 35,000 105,000 28,000
Less: beginning inventory 4000 10,000 6,000 4000 5,000
Total Production units 26,000 46,000 29,000 101,000 23,000
 DIRECT MATERIAL BUDGETS

The company five pounds of materials are required per units of product management wants material on hand at the end of each month equal to 10% of the following month production
On June 30. 13,000 pounds of materials a free on hand
The cost is 0.40 per pound.

JULY AUGUST SEPTEMBER Q3 JULY

Production Needed 26000 46000 29000 101000 23000
material needed per units(lb) 5 5 5 5 5
Total materials needed in production 130000 230000 145000 505000 115000
ADD:Desired ending inventory 23000 14500 11500 11500
Total needed materials 153000 244500 156500 516500
Less:Beginning inventory 13000 23000 14500 13000
Material purchases needed(units) 140000 221500 142000 503500
Material cost per units 0.4 0.4 0.4 0.4
Material purchases 56000 88600 56800 201400

SCHEDULE OF EXPECTED CASH DISBURSEMENT FOR MATERIALS

Mahle Manufacturing pay .40 per pound for its material

One- half of a months purchases is paid for the month of purchases, the other half is paid in the following months
The June 30, account payables balances is P12,000

JULY AUGUST SEPTEMBER Q3

From A.P JUNE 30 12000 12000
ON JULYMATERIAL PURCHASES
50% 56000 28000 28000
50% 56000 28000 28000
ON AUGUST MATERIAL PURCHASES
50% 88600 44300 44300
50% 88600 44300 44300
ON SEPTEMBER MATERIAL PURCHASES
50% 56800 28400 28400

TOTAL CASH DISBURSEMENT FOR MATERIAL 40000 72300 72700 185000

DIRECT LABOR BUDGET

At Mahle Manufacturing , each units of product require .05 hours( 3 minutes of direct labor)
For the purpose of our illustration , assume that Mahle Manufacturing has no lay off policy, workers are paid at the rate of P10.00 per hour regardless of the worked
For the next three months, the direct labor workforce will be paid for a minimum of P1,500 hours per months.

JULY AUGUST SEPTEMBER Q3

Production needed 26000 46000 29000 101000
Direct Labor required per units(hrs) 0.05 0.05 0.05 0.05
Required labor hour for production 1300 2300 1450 5050

Compared with labor hours guaranteed paid 1500 1500 1500

Labor hours for payment 1500 2300 1500 5300
Direct labor cost per hour 10 10 10 10
Total direct labor cost 15000 23000 15000 53000

MANUFACTURING OVERHEAD BUDGET

The company overhead is applied to units of product on the basis of direct labor hours.
The variable manufacturing overhead rate is P20.00 per direct labor hours
Fixed Manufacturing overhead is P50,000 per months which includes 20,000 of non cash cost(primarily depreciation of plants assets)

JULY AUGUST SEPTEMBER Q3

Budgeted direct labor hours 1300 2300 1450 5050
variable manufacturing OH rate 20 20 20 20
variable manufcaturing OH cost 26000 46000 29000 101000
ADD:Fixed manufacturing OH cost 50000 50000 50000 150000
Total manufacturing OH cost 76000 96000 79000 251000

Less: Non Cash cost manufacturing cost 20000 20000 20000 60000
Tota cash disbursement for OH 56000 76000 59000 191000

OH APPLICATION RATE 251000 5050 49.702970297

Cost of Good Sold Budget
JULY AUGUST SEPTEMBER Q3
Materials
JULY 20000 5 0.4 40000
AUGUST 50000 5 0.4 100000
SEPTEMBER 30000 5 0.4 60000 200000
Labor
JULY 20000 0.05 10 10000
AUGUST 50000 0.05 10 25000
SEPTEMBER 30000 0.05 10 15000 50000
Overhead
JULY 20000 2.49 49800
AUGUST 50000 2.49 124500
SEPTEMBER 30000 2.49 74700 249000
Total COGS 99800 249500 149700 499000
 SELLING AND ADMINISTRATIVE EXPENSE BUDGETS

At Mahle Manufacturing the S/A expenses budget is divided into variable and fixed component
The variable S/EA expenses are P0.50 per unit sold Fixed cost are 70,000 per month
ThE fixed S/A expenses included P10,000 in COST (Primarily depreciation - that are not cash flow of the current month

JULY AUGUST SEPTEMBER Q3

Budgeted sale in units 20,000 50000 30000 100,000
Variable S/A RATE 0.5 0.5 0.5 0.5
Variable S/A expenses 10000 25000 15000 50000
ADD: Fixed S/A expenses 70000 70000 70000 210000
Total S/A expenses 80000 95000 85000 260000
Less: Non cash S/A expenses 10000 10000 10000 30000
Total Cash disbursement for S/A expenses 70000 85000 75000 230000

Cash Budget

Assume the ffg information

Annual interest rate for all borrowing is 16%
Maintain a minimum cash balance of P30,000
Borrow on the the first day of the moth and repay loan on the last day of quarter
Pay Cash divided of P49,000 in July
Purchases P143,700 of equipment in AUGUST and P48,300 in SEPTEMBER( BOTH purchases paid in cash)
Has an JULY 1 CASH BALANCE of P40,000

JULY AUGUST SEPTEMBER Q3

Beg,Cash Balance 40000 30000 30000 40000
ADD: cash collection made 170,000 400,000 335,000 905000
Total Cash Collection 210000 430000 365000 945000
LESS: cash disbursement
Material 40000 72300 72700 185000
Direct labor 15000 23000 15000 53000
Manufacturing overhead 56000 76000 59000 191000
Selling/Administrative expenses 70000 85000 75000 230000
Equipment purchases 143700 48300 192000
Dividends 49000 49000
Total cash disbursement 230000 400000 270000 900000
Excess CASH (Deficiency) -20000 30000 95000 45000
Financing Needed
Borrowing 50000 50000
Repayment 50000 50000 3months /12
Interest 2000 2000 50,000 16% 8000 0.25 2000
Total Financing Needed 50000 52000
Ending cash BALANCE 30000 30000 43000 43,000
 BUDGETED INCOME STATEMENT

JULY AUGUST SEPTEMBER Q3

Sales 200,000 500,000 300,000 1000000
COGS 99800 249500 149700 499000
Gross Profit 100200 250500 150300 501000
S.A EXPENSES 80000 95000 85000 260000
OPERATING INCOME 20200 155500 65300 241000
LESS INTEREST EXPENSES 2000 2000
NET INCOME 20200 155500 63300 239000

BUDGETED RETAINED EARNINGS

JULY AUGUST SEPTEMBER Q3
RETAINE EARNING,BEG 146,150 117,350 272,850 146,150
NET INCOME 20200 155500 63300 239,000
DIVIDEND 49000 49000
RETAINE EARNING,ENDING 117,350 272,850 336,150 336,150

BUDGETED SCHEDULE OF A/R

JULY AUGUST SEPTEMBER Q3

A/R BEG 30,000 50,000 125,000 30,000

ADD: CREDIT SALE 200,000 500,000 300,000 1,000,000
LESS: COLLECTION A/R 170,000 400,000 335,000 905,000
A/R ENDING 60,000 150,000 90,000 125,000
LESS: BAD DEBTS 5% 10,000 25,000 15,000 50,000
NET REALIZABLE VALUE OF AR 50,000 125,000 75,000 75,000

BUDGETED SCHEDULE OF RAW MATERIALS

JULY AUGUST SEPTEMBER Q3
DESIRED MATERIALS ENDING INVENTORY 23,000 14,500 11,500 11,500
MATERIAL COST PER UNITS 0.4 0.4 0.4 0.4
RAW MATERIAL INVENTORY 9200 5800 4600 4600
 BUDGETED SCHEDULE OF FINISHED GOODS
JULY AUGUST SEPTEMBER Q3
DESIRED ENDING INVENTORY 10,000 6,000 5,000 5,000
UNIT COST 2 0.5 2.49 4.99 4.99 4.99 4.99
FINISHED GOOD INVENTORY 49900 29940 24950 24950

BUDGETED SCHEDULE OF ACCOUNT PAYABLE

JULY AUGUST SEPTEMBER Q3
ACCOUNT PAYABLE,BEG 12,000 28,000 44,300 12,000
CREDIT PURCHASES 56,000 88,600 56,800 201,400
PAYMENT MADE 40,000 72,300 72,700 185,000
ACCOUNT PAYABLE ENDING 28,000 44,300 28,400 28,400

BUDGETED BALANCE SHEET

ASSET
CASH 43,000
A.R 75,000
RAW MAT"S INVENTORY 4,600
FINISHED GOOD INVENTORY 24,950
LAND 50,000
EQUIPMENT 367,000
TOTAL ASSET 564,550

LIABILITIES & EQUITY

AP 28,400
C.STOCK 200,000
RETAINED EARNINGS 336,150
564,550
 SALE BUDGET

MAHLE MANUFACTURING is preparing budgets for the quarter ending September 30. Budgeted sale for the next five months
JULY 20,000 units
AUGUST 50,000 units
SEPTEMBER 30,000 units
OCTOBER 25,000 units
NOVEMBER 15,000 units

The selling price is P10.00 per month

SALE BUDGETS JULY AUGUST SEPTEMBER
Budgeted sale in unit 20,000 50,000 30,000
selling price in units 10 10 10
Budgeted sale 200000 500000 300000

SCHEDULE OF EXPECTED CASH COLLECTION

All sale are on account
The Company's Collection pattern is
70% collected in the months of sale
25% collected in the month following sale
5% uncollectible
June , 30 account Recievable of P30,000 will be collected in full

JULY AUGUST SEPTEMBER

From A.R. JUNE 30 30,000
On July sale
70% 200,000 140000
25% 200,000 50000

On August sale
70% 500,000 350000
25% 500,000 125000

On September sale
70% 300,000 210000
Total cash collection 170,000 400000 335000

PRODUCTION BUDGETS

The management of Mahle Manufactiring wants ending inventory to be equal to 20% of the following budgeted sale in units.
June 30, 4,000 units were on hand
 JULY AUGUST SEPTEMBER
Budgeted sale in units 20000 50000 30000
ADD: Desired ending inventory 10,000 6,000 5,000
Total units needed 30,000 56,000 35,000
Less: beginning inventory 4000 10,000 6,000
Total Production units 26,000 46,000 29,000

DIRECT MATERIAL BUDGETS

The company five pounds of materials are required per units of product management wants material on hand at the end of ea
On June 30. 31,0000 pounds of materials afre on hand
The cost is 0.40 per pound.

JULY AUGUST SEPTEMBER

Production Needed 26000 46000 29000
material needed per units(lb) 5 5 5
Total materials needed in production 130000 230000 145000
ADD:Desired ending inventory 23000 14500 11500
Total needed materials 153000 244500 156500
Less:Beginning inventory 13000 23000 14500
Material purchases needed(units) 140000 221500 142000
Material cost per units 0.4 0.4 0.4
Material purchases 56000 88600 56800

SCHEDULE OF EXPECTED CASH DISBURSEMENT FOR MATERIALS

Mahle Manufacturing pay .40 per pound for its material

One- half of a months purchases is paid for the month of purchases, the other half is paid in the following months
The June 30, account payables balances is P12,000

JULY AUGUST SEPTEMBER

From A.P JUNE 30 12000
ON JULYMATERIAL PURCHASES
50% 56000 28000
50% 56000 28000
ON AUGUST MATERIAL PURCHASES
50% 88600 44300
50% 88600 44300
ON SEPTEMBER MATERIAL PURCHASES
50% 56800 28400
TOTAL CASH DISBURSEMENT FOR MATERIAL 40000 72300 72700

DIRECT LABOR BUDGET

At Mahle Manufacturing , each units of product require .05 hours( 3 minutes of direct labor)
For the purpose of our illustration , assume that Mahle Manufacturing has no lay off policy, workers are paid at the rate of P1
For the next three months, the direct labor workforce will be paid for a minimum of P1,500 hours per months.

JULY AUGUST SEPTEMBER

Production needed 26000 46000 29000
Direct Labor required per units(hrs) 0.05 0.05 0.05
Required labor hour for production 1300 2300 1450

Compared with labor hours guaranteed paid 1500 1500 1500

Labor hours for paymenr 1500 2300 1500
Direct labor cost per hour 10 10 10
Total direct labor cost 15000 23000 15000

MANUFACTURING OVERHEAD BUDGET

The company overhead is applied to units of product on the basis of direct labor hours.
The variable manufacturing overhead rate is P20.00 per direct labor hours
Fixed Manufacturing overhead is P50,000 per months which includes 20,000 of non cash cost(primarily depreciation of plants

JULY AUGUST SEPTEMBER

Budgeted direct labor hours 1300 2300 1450
variable manufacturing OH rate 20 20 20
variable manufcaturing OH cost 26000 46000 29000
ADD:Fixed manufacturing OH cost 50000 50000 50000
Total manufacturing OH cost 76000 96000 79000

Less: non Cash cost manufacturing cost 20000 20000 20000

Tota cash disbursement for OH 56000 76000 59000

OH APPLICATION RATE 251000 5050 49.702970297

Cost of Good Sold Budget

JULY AUGUST SEPTEMBER
Materials
JULY 20000 5 0.4 40000
AUGUST 50000 5 0.4 100000
SEPTEMBER 30000 5 0.4 60000
Labor
JULY 20000 0.05 10 10000
AUGUST 50000 0.05 10 25000
SEPTEMBER 30000 0.05 10 15000
Overhead
JULY 20000 2.49 49800
AUGUST 50000 2.49 124500
SEPTEMBER 30000 2.49 74700
Total COGS 99800 249500 149700

SELLING AND ADMINISTRATIVE EXPENSE BUDGETS

At Mahle Manufacturing the S/A expenses budget is divided into variable and fixed component
The variable S/EA expenses are P0.50 per unit sold Fixed cost are 70,000 per month
ThE fixed S/A expenses included P10,000 in COST (Primarily depreciation - that are not cash flow of the current month

JULY AUGUST SEPTEMBER

Budgeted sale in units 20,000 50000 30000
Variable S/A RATE 0.5 0.5 0.5
Variable S/A expenses 10000 25000 15000
ADD: Fixed S/A expenses 70000 70000 70000
Total S/A expenses 80000 95000 85000
Less: Non cash S/A expenses 10000 10000 10000
Total Cash disbursement for S/A expenses 70000 85000 75000

Cash Budget

Assume the ffg information

Annual interest rate for all borrowing is 16%
Maintain a minimum cash balance of P30,000
Borrow on the the first day of the moth and repay loan on the last day of quarter
Pay Cash divided of P49,000 in July
Purchases P143,700 of equipment in AUGUST and P48,300 in SEPTEMBER( BOTH purchases paid in cash)
Has an JULY 1 CASH BALANCE of P40,000

JULY AUGUST SEPTEMBER

Beg,Cash Balance 40000 30000 30000
ADD: cash collection made 170,000 400,000 335,000
Total Cash Collection 210000 430000 365000
LESS: cash disbursement
Material 40000 72300 72700
Direct labor 15000 23000 15000
Manufacturing overhead 56000 76000 59000
S/A expenses 70000 85000 75000
Equipment purchases 143700 48300
Dividends 49000
Total cash disbursement 230000 400000 270000
Excess CASH (Deficiency) -20000 30000 95000
Financing Needed
Borrowing 50000
Repayment 50000
Interest 2000
Total Financing Needed 50000 52000
Ending cash BALANCE 30000 30000 43000

BUDGETED INCOME STATEMENT

JULY AUGUST SEPTEMBER

SALES 200,000 500,000 300,000
COGS 99800 249500 149700
GROSS PROFIT 100200 250500 150300
S.A EXPENSES 80000 95000 85000
OPERATING INCOME 20200 155500 65300
LESS INTEREST EXPENSES 2000
NET INCOME 20200 155500 63300

BUDGETED RETAINED EARNINGS

JULY AUGUST SEPTEMBER
RETAINE EARNING,BEG 146,150 117,350 272,850
NET INCOME 20200 155500 63300
DIVIDEND 49000
RETAINE EARNING,ENDING 117,350 272,850 336,150

BUDGETED SCHEDULE OF A/R

JULY AUGUST SEPTEMBER

A/R BEG 30,000 50,000 125,000

ADD: CREDIT SALE 200,000 500,000 300,000
LESS: COLLECTION A/R 170,000 400,000 335,000
A/R ENDING 60,000 150,000 90,000
LESS: BAD DEBTS 5% 10,000 25,000 15,000
NET REALIZABLE VALUE OF AR 50,000 125,000 75,000

BUDGETED SCHEDULE OF RAW MATERIALS

JULY AUGUST SEPTEMBER
DESIRED MATERIALS ENDING INVENTORY 23,000 14,500 11,500
MATERIAL COST PER UNITS 0.4 0.4 0.4
RAW MATERIAL INVENTORY 9200 5800 4600

BUDGETED SCHEDULE OF FINISHED GOODS

JULY AUGUST SEPTEMBER
DESIRED ENDING INVENTORY 10,000 6,000 5,000
UNIT COST 2 0.5 2.49 4.99 4.99 4.99
FINISHED GOOD INVENTORY 49900 29940 24950

BUDGETED SCHEDULE OF ACCOUNT PAYABLE

JULY AUGUST SEPTEMBER
ACCOUNT PAYABLE,BEG 12,000 28,000 44,300
CREDIT PURCHASES 56,000 88,600 56,800
PAYMENT MADE 40,000 72,300 72,700
ACCOUNT PAYABLE ENDING 28,000 44,300 28,400

BUDGETED BALANCE SHEET

ASSET
CASH 43,000
A.R 75,000
RAW MAT"S INVENTORY 4,600
FINISHED GOOD INVENTORY 24,950
LAND 50,000
EQUIPMENT 367,000
TOTAL ASSET 564,550

LIABILITIES & EQUITY

AP 28,400
C.STOCK 200,000
RETAINED EARNINGS 336,150
564,550
ed sale for the next five months are:

Q3
100,000
10
1000000

Q3
30,000

140000
50000

350000
125000

210000
905,000

ollowing budgeted sale in units.

 Q3 OCTOBER
100000 25000
5000 5000
105,000 28,000
4000 5,000
101,000 23,000

material on hand at the end of each month equal to 10% of the following month production

Q3 JULY
101000 23000
5 5
505000 115000
11500
516500
13000
503500
0.4
201400

e following months

Q3
12000

28000
28000

44300
44300

28400
 185000

orkers are paid at the rate of P10.00 per hour regardless of the worked
urs per months.

Q3
101000
0.05
5050

5300
10
53000

primarily depreciation of plants assets)

Q3
5050
20
101000
150000
251000

60000
191000

Q3
 200000

50000

249000
499000

ow of the current month

Q3
100,000
0.5
50000
210000
260000
30000
230000

Q3
40000
905000
945000
 185000
53000
191000
230000
192000
49000
900000
45000

50000
50000 3months /12
2000 50,000 16% 8000 0.25 2000

43,000

Q3
1000000
499000
501000
260000
241000
2000
239000

Q3
146,150
239,000
49000
336,150

Q3

30,000
1,000,000
905,000
125,000
50,000
 75,000

Q3
11,500
0.4
4600

Q3
5,000
4.99
24950

Q3
12,000
201,400
185,000
28,400
 SALE BUDGET

Assume that Mendoza Merchandising is expecting to have the following quarterly sales:
First quarter 1,200 units
Second quarter 1,050 units
Third quarter 1,350 units
fourth quarter 1,450 units

assume that 65 % of the expected sales were collected in the first quarter of the sale, 30% were collected in the quarter after
collected in the quarter after the sale and 5 % were uncollected and the selling price units is P 120.