Sales Budget

Dec
Unit Sales
Price Per Unit
Sales Revenue

8,444
9
76,000

Jan
8,900
9
80,100

Feb
9,900
9
89,100

Mar
9,200
9
82,800

Apr
9,500
9
85,500

May
Quarter
8,600
28,000
9
9
77,400
252,000

Apr
9,500
1290
10,790
1,425
9,365

May
8,600

Cash Collections Budget

Cash Sales
Credit Sales
Total Cash Collections

Jan
20,025
57,000
77,025

Feb
22,275
60,075
82,350

Mar
Quarter
20,700
63,000
66,825
183,900
87,525
246,900

Production Budget
Unit Sales
Plus Desired End Inv
Total Needed
Less Beginning Inv
Units to Produce

Jan
8,900
1,485
10,385
1,335
9,050

Feb
9,900
1,380
11,280
1,485
9,795

Mar
Quarter
9,200
28,000
1,425
1,425
10,625
29,425
1,380
1,335
9,245
28,090

Direct Materials Budget

Units to be Produced
Multiply by Quant of
DM Needed Per Unit (lbs)
Quant of DM Needed for Produce (lbs)
Plus: Desired End Inv of DM (lbs)

Jan
9,050

Feb
9,795

Mar
9,245

Quarter
28,090

Apr
9,365

2
18,100
1,959

2
19,590
1,849

2
18,490
1,873

2
56,180
1,873

2
18,730

Total Quantity of DM Needed (lbs)

Less: Beginning Inv of DM (lbs)
Quant of DM to Pruchase (lbs)
Multiply by: Cost Per lb
Total Cost of DM Purchases

20,059
1,810
18,249
1.50
27,374

21,439
1,959
19,480
1.50
29,220

20,363
1,849
18,514
1.50
27,771

58,053
1,810
56,243
1.50
84,365

Cash Payments for DM Purchases Budget

30% of Current Month DM Purch
70% of Prev Month DM Purch
Total Cash Purchases of DM

Jan
8,212
22,000
30,212

Feb
8,766
19,161
27,927

Mar
Quarter
8,331
25,309
20,454
61,615
28,785
86,925

Cash Payments for Diret Labor Budget

Units Produced
Multiply by Hours Per Unit
Direct Labor Hours
Multiply by DL Rates Per Hour
Direct Labor Cost

Jan
9,050
0.03
272
13
3,530

Feb
9,795
0.03
294
13
3,820

Mar
Quarter
9,245
28,090
0.03
0.03
277
843
13
13
3,606
10,955

Cash Payments for MOH Budget

Variable MOH Costs
Rent (fixed)
Other MOH (fixed)
Cash Payments for MOH

Jan
12,670
6,500
2,100
21,270

Feb
13,713
6,500
2,100
22,313

Mar
12,943
6,500
2,100
21,543

Quarter
39,326
19,500
6,300
65,126

Cash Payments for Opearting Expenses Budget

Variable Opearting Expenses

Jan
10,680

Feb
11,880

Mar
11,040

Quarter
33,600

Fixed Opearting Expenses

Cash Payments for Opearting Expenses

1,400
12,080

1,400
13,280

1,400
12,440

4,200
37,800

Combined Cash Budegt

Cash Balance, Beginning
Plus Cash Collections
Total Cash Acailable
Less Cash Payments:
DM Purchases
Direct Labor
MOH Costs
Operating Expenses
Tax Payment
Equipment Purchases
Total Cash Payments
Ending Cash Before Financing
Financing:
Borrowing
Repayments
Interest Payments
Cash Balance, Ending

Jan
6,000
77,025
83,025

Feb
4,933
82,350
87,283

Mar
5,143
87,525
92,668

Quarter
6,000
246,900
252,900

30,212
3,530
21,270
12,080

28,785
3,606
21,543
12,440

15,000
82,092
933

27,927
3,820
22,313
13,280
10,800
6,000
84,141
3,143

4,000
70,374
22,294

86,925
10,955
65,126
37,800
10,800
25,000
236,606
16,294

4,000

2,000
6,000
240
16,054

6,000
6,000
240
16,054

4,933

5,143

Budgeted Mfg Costs Per Unit

Direct Materials Cost/Unit
Direct Labor Cost/Unit
Variable MOH Cost/Unit
Fixed MOH Cost/Unit
Cost of Manufacturing Each Unit

3.00
0.39
1.40
0.60
5.39

Budgeted Income Statement

Sales Revenue
Less: COGS
Gross Profit
Less Operating Exp
Less Depreciation Exp
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