SALES BUDGET

Problem A
Budgeted sales of ABC Corp. for the first six months of 2020 are listed below:

January February March April May June

Units 6,000 7,000 8,000 7,000 5,000 4,000

Selling price is $50 per unit. Determine the total sales budget for Q1.

Problem B
ABC Corp. sells 2 different types of product, Product A and Product B, at $50 and $30 per unit,
respectively. Estimated units to be sold for the next 6 months follows:

Units January February March April May June

Product A 10,000 12,000 9,000 8,000 12,000 15,000
Product B 15,000 13,000 11,000 12,000 18,000 20,000

Determine the total sales budget for Q2.

Problem C
ABC Corp. anticipates selling 10,000 units of Product A in July. Sales are expected to increase by
10% per month. Selling price is $75 per unit. Determine the total sales budget for Q3.

CASH RECEIPTS BUDGET

Problem A
Budgeted sales of ABC Corp. for the first six months of 2020 are listed below:

January February March April May June

Sales $276,000 $330,000 $310,000 $327,000 $285,000 $304,000

The company collects 40% of its sales in its current month and 60% on the following. Calculate
the cash collections and remaining accounts receivable for the month of April.

Problem B
Budgeted sales of ABC Corp. for the first six months of 2020 are listed below:

January February March April May June

Units 26,000 23,000 40,000 35,000 28,000 34,000

Selling price is $50 per unit. The company collects 20% of its sales in its current month, 70% on
the following month and the 10% in the second month after sale. Calculate the cash collections
and remaining accounts receivable for the month of May.

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PRODUCTION BUDGET
Problem A
Portion of production budget of ABC Corp. for the first six months of 2020 are listed below:

Units January February March April May June

Beginning Inventory 500 750 1,000 800 350 500
Sales 6,000 7,000 8,000 7,000 5,000 4,000
Ending Inventory 750 1,000 800 350 500 750

Determine the number of units to be produced in April.

Problem B
Portion of production budget of ABC Corp. for the first six months of 2020 are listed below:

Units January February March April May June

Ending Inventory 1,000 1,100 1,200 1,400 1,200 1,500
Sales 15,000 10,000 10,000 13,000 11,000 13,000

Determine the number of units to be produced in March.

Problem C
Budgeted sales of ABC Corp. for the first six months of 2020 are listed below:

January February March April May June

Sales in units 6,000 7,000 8,000 7,000 5,000 4,000

Desired ending inventory at end of each month is 10% of the following month’s sales.
Determine the number of units to be produced in May.

DIRECT MATERIALS BUDGET

Problem A
Portion of direct materials budget of ABC Corp. for Q2 are listed below:

April May June

Beginning raw materials inventory (pcs) 20,000 28,000 35,000
Ending raw materials inventory (pcs) 28,000 35,000 30,750
Sales (units) 30,000 60,000 55,000
Production (units) 20,000 35,000 50,000

Each unit of production requires 3 pcs of raw materials. Raw materials cost $0.50 per piece.
Determine the number of pcs and total cost required to be purchased for the month of May.

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Problem B
Portion of direct materials budget of ABC Corp. for Q2 are listed below:

April May June

Ending raw materials inventory (pcs) 20,000 27,500 20,000
Production (units) 30,000 32,500 30,750

Each unit of production requires 5 pcs of raw materials. Raw materials cost $2 per piece.
Determine the number of pcs and total cost required to be purchased for the month of June.

Problem C
Budgeted production of ABC Corp. for the first six months of 2020 are listed below:

January February March April May June

Production in units 6,000 7,000 8,000 7,000 5,000 4,000

Each unit of production requires 10 pcs of raw materials. Raw materials cost $5 per piece.
Desired ending inventory of raw materials at end of each month is 20% of the following
month’s production requirement. Determine the number of pcs and total cost of raw materials
needed to be purchased in April.

CASH DISBURSEMENTS BUDGET

Problem A
Budgeted purchases of ABC Corp. for the first six months of 2020 are listed below:

January February March April May June

Purchases $650,000 $575,000 $710,000 $590,000 $630,000 $695,000
Sales $1,200,000 $1,000,000 $1,500,000 $950,000 $1,400,000 $1,550,000

The company pays its 30% of its purchases in its current month and the balance on the
succeeding month. Calculate the cash payments and accounts payable for the month of May.

Problem B
Budgeted purchases of ABC Corp. for the first six months of 2020 are listed below:

January February March April May June

Units 25,000 30,000 40,000 35,000 27,000 32,000

Purchase price is $10 per unit. The company pays 40% of its purchases in the current month,
50% of on the next month and the balance on the 2nd month after purchase. Calculate the
cash payments and accounts payable for the month of March.

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DIRECT LABOR BUDGET
Problem A
Budgeted production of ABC Corp. for the first six months of 2020 are listed below:

January February March April May June

Sales in units 8,000 6,000 9,000 6,000 4,000 5,000
Production in units 6,000 7,000 8,000 7,000 5,000 4,000

Each unit produced requires 2 hours of labor. Direct labor costs $7.50 per hour. Determine the
total direct labor cost for March.

Problem B
Budgeted production of ABC Corp. for the first six months of 2020 are listed below:

January February March April May June

Production in units 6,000 7,000 8,000 7,000 5,000 4,000

Each unit produced requires 0.5 hours of labor. Guaranteed labor hours is 3,750 hours per
month. Direct labor costs $7.50 per hour. Determine the total direct labor cost for April.

SALES AND ADMINISTRATIVE EXPENSES BUDGET

Problem A
Details of sales and administrative budget of ABC Corp. for the first six months of 2020 are
listed below:

January February March April May June

Sales (units) 6,000 7,000 8,000 7,000 5,000 4,000
Production (units) 8,000 10,000 8,000 5,000 4,000 6,000

Selling price is $50 per unit. Variable costs per unit is $10. Fixed costs per month is $205,000,
including depreciation of $15,000. Determine the total sales and administrative expenses for
the month of April.

Problem B
Budgeted sales of ABC Corp. for the first six months of 2020 are listed below:

January February March April May June

Sales $480,000 $550,000 $515,000 $495,000 $520,000 $535,000

Selling price is $10 per unit. Variable costs per unit is $4. Fixed costs per month is $200,000,
including depreciation of $25,000. Determine the total sales and administrative expenses for
the month of April.

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