Sales Budget

December
Unit Sales
Price per Unit
Sales Revenue

8,444
$9.00
76,000

Cash Collections Budget

January
$20,025
$57,000
$77,025

Cash sales 25%

Credit sales 75%
Total cash collections

Production Budget
January
8900
1485
10,385
(1,335)
9,050

Unit sales
Plus: Desired ending inventory
Total needed
Less: Beginning inventory
Units to produce

Direct Materials Budget

Units to be produced
Multiply by: Quantity of DM needed per unit (lbs.)
Quantity of DM needed for production (lbs.)
Plus: Desired ending inventory of DM (lbs.)
Total quantity of DM needed (lbs.)
Less: Beginning inventory of DM (lbs.)
Quantity of DM to purchase (lbs.)
Multiply by: Cost per pound
Total cost of DM purchases

December Purchases (From AP)

January Purchases

Cash Payments for Direct Material Purchases Budget

January
$
22,000
8,212

February Purchases
March Purchases
Total Payments

Units Produced
Hours Per Unit
Direct Labor Hours
Direct Rate per Hour
Direct Labor Costs

30,212

Cash Payments for Direct Labor Budget

January
9,050
0.03
272
$
13
3,530

Cash Payments for Manufacturing Overhead Bu

Rent (fixed)
Other Manufacturing Overhead (fixed)
Variable Manufacturing Overhead Costs
Total Disbursements

Cash Payments for Operating Expenses Budg

Variable Operating Expenses
Fixed Operating Expenses
Cash Payments for Operating Expenses

Cash Balance, beginning

Plus: Cash Collections
Total Cash Available
Less Cash Payments:
DM Purchases
Direct Labor

Combined Cash Budget

January
$
6,000
$
77,025
83,025
30,212
3,530

Manufacturing Overhead costs

Operating expenses
Tax payment
Equipment purchases
Total Cash Payments
Ending Cash before financing
Financing:
Borrowings
Repayments
Interest payments
Total Financing
Cash Balance, ending

21,270
12,080
15,000
82,092
933
4000
0
0
4000
4,933

Budgeted Manufacturing Cost per Unit

Direct materials cost per unit
Direct labor cost per unit
Variable manufacturing costs per unit
Fixed manufacturing overhead per unit
Cost of manufacturing each unit

3.00
0.39
1.4
0.6
5.39

Budgeted Income Statement

For the Quarter Ended March 31
Sales Revenue
Less: Cost of goods sold
Gross Profit
Less: Operating expenses
Less: Depreciation expense
Operating income
Less: interest expense
Less: income tax expense
Net Income

$
$

252,000
(150,920)
101,080
(37,800)
(5,200)
58,080
(240)
(16,195)
41,645

Sales Budget
January
8,900
$9.00
$
80,100 $

February
9,900
$9.00
89,100 $

March

April

9,200
$9.00
82,800 $

9,500
$9.00
85,500

tions Budget
February
$22,275
$60,075
$82,350

March
$20,700
$66,825
$87,525

Quarter
$63,000
$183,900
$246,900

February

March

Quarter
28000
1425
29,425
(1,335)
28,090

on Budget
9900
1380
11,280
(1,485)
9,795

irect Materials Budget

January
9,050

2.0
18,100
1,959
20,059
(1,810)
18,249
1.50
27,374

Material Purchases Budget

February
$

19,161

9200
1425
10,625
(1,380)
9,245

February
9,795
2.0
19,590
1,849
21,439
(1,959)
19,480
### $
29,220

March

March
9,245
2.0
18,490
1,873
20,363
(1,849)
18,514
1.50 $
27,771

Quarter
22,000
27,374

Quarter
28,090
2.0
56,180
1,873
58,053
(1,810)
56,243
1.50
84,365

8,766 $
$

27,927 $

Direct Labor Budget

February

20,454
8,331
28,785.30 $

March
9,795

0.03

9,245
0.03

294
13
3,820

277
###

$
3,606

for Manufacturing Overhead Budget

January
February
$
6,500
### $
2,100
2,100

12,670
21,270 $

13,713
22,313 $

ts for Operating Expenses Budget

January
February
10,680
11,880
1,400
###
12,080
13,280

29,220
8,331
86,925

Quarter
28,090
0.03
843
13
10,955

March
6,500 $
2,100

Quarter
19,500
6,300

12,943
21,543 $

39,326
65,126

March
11,040
1,400
12,440

Cash Budget
February
$
$

March

4,933 $
82,350 $
87,283

5,143 $
87,525 $
92,668

27,927
3,820

28,785
3,606

Quarter
6,000
246,900
252,900
86,925
10,955

Quarter
33,600
4,200
37,800

22,313
13,280
10,800
6,000
84,141
3,143

21,543
12,440
4,000
70,374
22,294

2000
0
0
2000
5,143

0
(6000)
(240)
(6,000)
16,054

65,126
37,800
10,800
25,000
236,606
16,294
0
6000
(6000)
(240)
(240)
16,054

May

8,600
$9.00
77,400