Expected units sold

Q1 Q2 Q3 Q4
Good (projected sales x 50%) 37,000 46,000 40,000 51,000
Fair (projected sales x 30%) 15,000 24,000 21,000 27,000
Bad (projected sales x 20% 8,000 10,000 9,000 12,000
Projected unit sales (expected value) 60,000 80,000 70,000 90,000

Schedule 1. Budgeted Sales

Q1 Q2 Q3 Q4
Budgeted sales in units 60,000 80,000 70,000 90,000
x Unit Sales Price ₱20 ₱20 ₱20 ₱20
Budgeted Sales in Pesos ₱1,200,000 ₱1,600,000 ₱1,400,000 ₱1,800,000

Schedule 2. Budgeted Collections from customer

From sales of Credit sales Q1 Q2 Q3 Q4
Q3, 2019 1,600,000 128,000
Q4, 2019 1,200,000 360,000 96,000
Q1, 2020 1,200,000 720,000 360,000 96,000
Q2, 2020 1,600,000 960,000 480,000 128,000
Q3, 2020 1,400,000 840,000 420,000
Q4, 2020 1,800,000 1,080,000
Budgeted collections from customers 1,208,000 1,416,000 1,416,000 1,628,000

Schedule 3. Budgeted Production

Q1 Q2 Q3 Q4
Budgeted sales in units 60,000 80,000 70,000 90,000
+ Finished goods - end 16,000 14,000 18,000 15,000
Total 76,000 94,000 88,000 105,000
- Finished goods - beg 12,000 16,000 14,000 18,000
Budgeted production 64,000 78,000 74,000 87,000

Schedule 4. Budgeted Materials Purchases

Q1 Q2 Q3 Q4
Budgeted production 64,000 78,000 74,000 87,000
x Standard materials per unit 3 lbs 3 lbs 3 lbs 3 lbs
Budgeted materials usages (in lbs) 192,000 234,000 222,000 261,000
+ Materials inventory - end 57,600 70,200 66,600 78,300
Total materials needs 249,600 304,200 288,600 339,300
Materials inventory - beg 75,000 57,600 70,200 66,600
Budgeted materials purchases (in lbs) 174,600 246,600 218,400 272,700
x Materials cost per lb 1.20 1.20 1.20 1.20
Budgeted materials purchases (in pesos) 209,520 295,920 262,080 327,240

Schedule 5. Budgeted payments to merchandise suppliers

Credit
To Purchases of Purchases Q1 Q2 Q3 Q4
Q4, 2019 180,000 81,000
Q1, 2020 209,520 112,931 94,284
Q2, 2020 295,920 159,501 133,164
 Q3, 2020 262,080 141,261 117,936
Q4, 2020 327,240 176,382
Budgeted payments to supplier 193,931 253,785 274,425 294,318

Schedule 6. Budgeted labor costs

Q1 Q2 Q3 Q4
Budgeted production 64,000 78,000 74,000 87,000
x Standard direct labor hours per unit 0.25 hr 0.25 hr 0.25 hr 0.25 hr
Budgeted DLH 16,000 19,500 18,500 21,750
x DL rate per hour 20 20 20 20
Budgeted direct labor cost 320,000 390,000 370,000 435,000

Schedule 7. Budgeted factory overhead

Q1 Q2 Q3 Q4
Variable factory overhead 80,000 97,500 92,500 108,750
Fixed factory overhead 75,000 75,000 75,000 75,000
Budgeted factory overhead 155,000 172,500 167,500 183,750

Schedule 8. Budgeted cash payments to labor and overhead

Payments of factory Overhead
Variable Overhead Amount Q1 Q2 Q3 Q4
Q4, 2019 84,000 8,400
Q1, 2020 80,000 72,000 8,000
Q2, 2020 97,500 87,750 9,750
Q3, 2020 92,500 83,250 9,250
Q4, 2020 108,750 97,875
Budgeted payments to variable overhea 80,400 95,750 93,000 107,125

Cash fixed overhead

Q4, 2019 (70,000 x 49,000 4,900
Q1, 2020 (75,000 x 52,500 47,250 5,250
Q2, 2020 (75,000 x 52,500 47,250 5,250
Q3, 2020 (75,000 x 52,500 47,250 5,250
Q4, 2020 (75,000 x 52,500 47,250
Budgeted payments to fixed overhead 52,150 52,500 52,500 52,500

Total payments to overhead 132,550 148,250 145,500 159,625

Direct labor cost 320,000 390,000 370,000 435,000
Budgeted payments to conversion costs 452,550 538,250 515,500 594,625

Schedule 9. Budgeted cost of goods manufactured and sold

Reference Q1 Q2 Q3 Q4
Materials used Sch. 4 230,400 280,800 266,400 313,200
Direct labor Sch. 6 320,000 390,000 370,000 435,000
Factory overhead Sch. 7 155,000 172,500 167,500 183,750
Total factory costs 705,400 843,300 803,900 931,950
+ WIP inventory, beginning 75,000 70,540 84,330 80,390
Total costs put in process 780,400 913,840 888,230 1,012,340
- WIP inventory, ending 70,540 84,330 80,390 93,195
Cost of goods manufactured 709,860 829,510 807,840 919,145
+ FG inventory, beginning Sch. 3 70,800 94,400 82,600 106,200
Total goods available for sale 780,660 923,910 890,440 1,025,345
- FG inventory, ending Sch. 3 94,400 82,600 106,200 88,500
Cost of goods sold 686,260 841,310 784,240 936,845

Schedule 10. Budgeted Statement of Profit or Loss

Reference Q1 Q2 Q3 Q4
Sales Sch. 1 1,200,000 1,600,000 1,400,000 1,800,000
- Cost of goods sold Sch. 9 686,260 841,310 784,240 936,845
- Operating expenses 240,000 320,000 280,000 360,000
+ Other income 60,000 80,000 70,000 90,000
Income before income tax 333,740 518,690 405,760 593,155
- Income tax (40%) 133,496 207,476 162,304 237,262
Net profit (loss) 200,244 311,214 243,456 355,893

Schedule 11. Budgeted cash payments to operating expenses

Q1 Q2 Q3 Q4
Operating expenses incurred 240,000 320,000 280,000 360,000
Add: Accrued expense - beg 12,000 15,000 22,000 14,000
Prepaid expenses - end 6,000 6,500 7,400 8,800
Total 258,000 341,500 309,400 382,800
Less: Accrued expenses - end 15,000 22,000 14,000 15,000
Prepaid expenses - beg 3,000 6,000 6,500 7,400
Operating expenses paid 240,000 313,500 288,900 360,400

Schedule 12. Budgeted cash receipts from other revenues

Q1 Q2 Q3 Q4
Other revenue earned 60,000 80,000 70,000 90,000
Add: Accrued income - beg 4,400 900 3,500 7,900
Prepaid income - end 3,300 4,400 9,700 8,200
Total 67,700 85,300 83,200 106,100
Less: Accrued income - end 900 3,500 7,900 8,600
Prepaid income - beg 2,100 3,300 4,400 9,700
Other revenue received 64,700 78,500 70,900 87,800

Schedule 13. Cash Budget

Reference Q1 Q2 Q3 Q4
Cash balance - beg 400,000 411,219 470,809 657,884
Add: Cash receipts
Collections from customeSch. 2 1,208,000 1,416,000 1,416,000 1,628,000
From other revenues Sch. 12 64,700 78,500 70,900 87,800
Sale of noncurrent assets 174,000
Total cash available for needs 1,672,700 1,905,719 2,131,709 2,373,684
Less: Cash disbursements
Merchandise purchases Sch. 5 193,931 253,785 274,425 294,318
Conversion costs Sch. 8 452,550 538,250 515,500 594,625
 Operating expenses Sch. 11 240,000 313,500 288,900 360,400
Acquisition of noncurrent assets 200,000 145,000
Dividends 500,000 250,000
Total cash disbursements 1,386,481 1,305,535 1,473,825 1,249,343
Minimum cash balance desired 400,000 400,000 400,000 400,000
Total cash needed 1,786,481 1,705,535 1,873,825 1,649,343
Cash excess (deficiency) (113,781) 200,184 257,884 724,340
Financing
Borrowing (at beginning) 125,000 - - -
Repayment (at end) - (125,000)
Interest (at 14% per annum) - (4,375)
Total effects of financing 125,000 (129,375) - -
Cash balance, ending 411,219 470,809 657,884 1,124,340

Schedule 14. Budgeted Statement of Cash Flows

Reference Q1 Q2 Q3 Q4
Operating Activities
Collections from customeSch. 2 1,208,000 1,416,000 1,416,000 1,628,000
From other revenue Sch. 12 64,700 78,500 70,900 87,800
To merchandise suppliersSch. 5 (193,931) (253,785) (274,425) (294,318)
To conversion costs Sch. 8 (452,550) (538,250) (515,500) (594,625)
To operating expenses Sch. 11 (240,000) (313,500) (288,900) (360,400)
Net operating inflows (outflows) 386,219 388,965 408,075 466,457
Investing Activities
Sale of noncurrent assets - - 174,000 -
Acquisition of noncurrent assets - (200,000) (145,000) -
Net investing activities - (200,000) 29,000 -
Financing Activities
Dividends paid (500,000) - (250,000) -
Borrowings 125,000 - - -
Payment to borrowings - (125,000) - -
Interests paid - (4,375) - -
Net financing activities (375,000) (129,375) (250,000) -
Net cash inflows (outflows) 11,219 59,590 187,075 466,457
Add: Cash balance - beg 400,000 411,219 470,809 657,884
Cash balance - end 411,219 470,809 657,884 1,124,340
 Total
300,000
₱20
₱6,000,000

Total
128,000
456,000
1,176,000
1,568,000
1,260,000
1,080,000
5,668,000

Total
300,000
15,000
315,000
12,000
303,000

Total
303,000
3 lbs
909,000
78,300
987,300
75,000
912,300
1.20
1,094,760

Total
81,000
207,215
292,665
 259,197
176,382
1,016,460

Total
303,000
0.25 hr
75,750
20
1,515,000

Total
378,750
300,000
678,750

Total
8,400
80,000
97,500
92,500
97,875
376,275

4,900
52,500
52,500
52,500
47,250
209,650

585,925
1,515,000
2,100,925

Total
1,090,800
1,515,000
678,750
3,284,550
75,000
3,359,550
93,195
3,266,355
 70,800
3,337,155
88,500
3,248,655

Total
6,000,000
3,248,655
1,200,000
300,000
1,851,345
740,538
1,110,807

Total
1,200,000
12,000
8,800
1,220,800
15,000
3,000
1,202,800

Total
300,000
4,400
8,200
312,600
8,600
2,100
301,900

Total
400,000

5,668,000
301,900
174,000
6,543,900

1,016,460
2,100,925
1,202,800
345,000
750,000
5,415,185
400,000
5,815,185
728,715

125,000
(125,000)
(4,375)
(4,375)
1,124,340

Total

5,668,000
301,900
(1,016,460)
(2,100,925)
(1,202,800)
1,649,715

174,000
(345,000)
(171,000)

(750,000)
125,000
(125,000)
(4,375)
(754,375)
724,340
400,000
1,124,340
180,000