SALES BUDGET JANUARY FEBRUARY MARCH

Sales (Units) 100 300 150

Unit Price 50 50 50
Budgeted Sales Revenue 5,000 15,000 7,500

PRODUCTION BUDGET JANUARY FEBRUARY MARCH

Unit Sales 100 300 150
Ending Inventory 10 30 15
Beginning Inventory 20 10 30
Budgeted Production 90 320 135

RM PURCHASES BUDGET JANUARY FEBRUARY MARCH

Budgeted Production 90 320 135
RM(kg) per Unit 4 4 4
Total Material Required (kg) 360 1280 540
Ending RM Inventory (kg) 18 64 27
Beginning RM Inventory (kg) 15 18 64
Total RM Purchases (kg) 363 1326 503
Cost per kg 5 5 5
Budgeted RM Purchases 1,815 6,630 2,515

DL BUDGET JANUARY FEBRUARY MARCH

Budgeted Production 90 320 135
DL Hours Per Unit 2 2 2
Total DL Hours 180 640 270
DL Rate Per Hour 3 3 3
Budgeted DL Cost 540 1,920 810
FACTORY OH BUDGET JANUARY FEBRUARY MARCH
Budgeted Production 90 320 135
DL Hours Per Unit 2 2 2
Total DL Hours 180 640 270
VOH Rate Per DL Hour 5 5 5
Budgeted VOH Cost 900 3,200 1,350
Budgeted FOH Cost 1,817 1,817 1,817
Budgeted Total OH Cost 2,717 5,017 3,167

Manufacturing costs (CGS) Per Unit

DM per unit 20
DL per unit 6
VOH per unit 10
FOH per unit 10
CGS per unit 46

CGS BUDGET JANUARY FEBRUARY MARCH

Unit Sales 100 300 150
CGS per unit 46 46 46
BUDGETED CGS 4,600 13,800 6,900

S&A EXPENSES BUDGET JANUARY FEBRUARY MARCH

Budgeted Sales Revenue 5,000 15,000 7,500
Variable S&A Expenses rate 1% 1% 1%
Budgeted Variable S&A E 50 150 75
Budgeted Fixed S&A E 100 100 100
Budgeted S&A Expenses 150 250 175
IS BUDGET JANUARY FEBRUARY MARCH
Sales Revenue 5,000 15,000 7,500
Less: Cost of Good Sold 4,600 13,800 6,900
Gross Margin 400 1,200 600
Less: S&A Expenses 150 250 175
Operating Income 250 950 425
CASH RECEIPTS BUDGET JANUARY FEBRUARY MARCH
Budgeted Sales Revenue 5,000 15,000 7,500

Cash Sales (30%) 1,500 4,500 2,250

Credit Sales (70%)
25% in the month of sale 875 2,625 1,313
75% in the following mont 3,000 2,625 7,875
Budgeted Cash Receipts 5,375 9,750 11,438

CASH PAYMENTS BUDGET JANUARY FEBRUARY MARCH

Material Purchases 1,815 6,630 2,515

20% in the month of purchase 363 1,326 503

80% in the following month 2,000 1,452 5,304
Cash paid for RM 2,363 2,778 5,807
Cash paid for DL 670 1,230 1,365
Factory overhead costs 2,717 5,017 3,167
Less: Depreciation (non cash) 817 817 817
Variable S&A Expenses 54 98 114
Fixed S&A Expenses 100 100 100
Budgeted Cash Payments 5,087 8,406 9,736
CASH BUDGET JANUARY FEBRUARY MARCH
Beginning Cash Balance 3,000 3,288 4,633
Plus: Cash Receipts 5,375 9,750 11,438
Less: Cash Payments (5,087) (8,406) (9,736)
Cash Balance Before Financing 3,288 4,633 6,334
Cash Borrowed (Repaid) 0 0 0
Ending Cash Balance 3,288 4,633 6,334

END OF MONTH BALANCES JANUARY FEBRUARY MARCH

Cash 3,288 4,633 6,334
Account Receivables 2,625 7,875 3,938
RM Inventory 90 320 135
Finished Goods Inventory 460 1,380 690

Accounts Payable 1,452 5,304 2,012

Wages Payable 270 960 405
SALES BUDGET 1ST Q 2ND Q 3RD Q 4TH Q
Sales (Units) 1,000 3,000 1,500 2,000
Unit Price 200 200 200 200
Budgeted Sales Revenue 200,000 600,000 300,000 400,000

PRODUCTION BUDGET 1ST Q 2ND Q 3RD Q 4TH Q

Unit Sales 1,000 3,000 1,500 2,000
Ending Inventory 300 150 200 250
Beginning Inventory 100 300 150 200
Budgeted Production 1,200 2,850 1,550 2,050

RM PURCHASES BUDGET 1ST Q 2ND Q 3RD Q 4TH Q

Budgeted Production 1,200 2,850 1,550 2,050
RM(L) per Unit 5 5 5 5
Total Material Required (L) 6,000 14,250 7,750 10,250
Ending RM Inventory (L) 600 1,425 775 1,025
Beginning RM Inventory (L) 875 600 1,425 775
Total RM Purchases (L) 5,725 15,075 7,100 10,500
Cost per L 10 10 10 10
Budgeted RM Purchases 57,250 150,750 71,000 105,000

DL BUDGET 1ST Q 2ND Q 3RD Q 4TH Q

Budgeted Production 1,200 2,850 1,550 2,050
DL Hours Per Unit 4 4 4 4
Total DL Hours 4,800 11,400 6,200 8,200
DL Rate Per Hour 5 5 5 5
Budgeted DL Cost 24,000 57,000 31,000 41,000
FACTORY OH BUDGET 1ST Q 2ND Q 3RD Q 4TH Q
Budgeted Production 1,200 2,850 1,550 2,050
DL Hours Per Unit 4 4 4 4
Total DL Hours 4,800 11,400 6,200 8,200
VOH Rate Per DL Hour 12 12 12 12
Budgeted VOH Cost 57,600 136,800 74,400 98,400
Budgeted FOH Cost 56,250 56,250 56,250 56,250
Budgeted Total OH Cost 113,850 193,050 130,650 154,650

Manufacturing costs (CGS) Per Unit

DM per unit 50
DL per unit 20
VOH per unit 48
FOH per unit 30
CGS per unit 148

CGS BUDGET 1ST Q 2ND Q 3RD Q 4TH Q

Unit Sales 1,000 3,000 1,500 2,000
CGS per unit 148 148 148 148
BUDGETED CGS 148,000 444,000 222,000 296,000

S&A EXPENSES BUDGET 1ST Q 2ND Q 3RD Q 4TH Q

Budgeted Sales Revenue 200,000 600,000 300,000 400,000
Variable S&A Expenses rate 2% 2% 2% 2%
Budgeted Variable S&A E 4,000 12,000 6,000 8,000
Budgeted Fixed S&A E 3,000 3,000 3,000 3,000
Budgeted S&A Expenses 7,000 15,000 9,000 11,000
IS BUDGET 1ST Q 2ND Q 3RD Q 4TH Q
Sales Revenue 200,000 600,000 300,000 400,000
Less: Cost of Good Sold 148,000 444,000 222,000 296,000
Gross Margin 52,000 156,000 78,000 104,000
Less: S&A Expenses 7,000 15,000 9,000 11,000
Operating Income 45,000 141,000 69,000 93,000
CASH RECEIPTS BUDGET 1ST Q 2ND Q 3RD Q 4TH Q
Budgeted Sales Revenue 200,000 600,000 300,000 400,000

Cash Sales (20%) 40,000 120,000 60,000 80,000

Credit Sales (80%)
50% in the quarter of sale 80,000 240,000 120,000 160,000
30% in the following quart 30,000 48,000 144,000 72,000
20% two quarters after sal 30,000 20,000 32,000 96,000
Budgeted Cash Receipts 180,000 428,000 356,000 408,000

CASH PAYMENTS BUDGET 1ST Q 2ND Q 3RD Q 4TH Q

Material Purchases 57,250 150,750 71,000 105,000

20% in the month of purchase 11,450 30,150 14,200 21,000

80% in the following month 20,000 45,800 120,600 56,800
Cash paid for RM 31,450 75,950 134,800 77,800
Cash paid for DL 24,000 57,000 31,000 41,000
Factory overhead costs 113,850 193,050 130,650 154,650
Less: Depreciation (non cash) 3,000 3,000 3,000 3,000
Variable S&A Expenses 4,000 12,000 6,000 8,000
Fixed S&A Expenses 3,000 3,000 3,000 3,000
Budgeted Cash Payments 173,300 338,000 302,450 281,450

AR Prior Year
AR - 4th q sales (50%) 50,000
following quarter 30,000
2 quarters after sale 20,000

AR - 3rd q sales (20%) 30,000

 Next year
1ST Q 2ND Q CASH BUDGET 1ST Q 2ND Q
Beginning Cash Balance 30,000 106,700
Plus: Cash Receipts 180,000 428,000
Less: Cash Payments (173,300) (338,000)
Cash Balance Before Financing 36,700 196,700
Cash Borrowed (Repaid) 70,000 (70,000)
96,000 Ending Cash Balance 106,700 126,700
48,000 64,000

END OF MONTH BALANCES 1ST Q 2ND Q

Cash 106,700 126,700
Account Receivables 100,000 272,000
RM Inventory 6,000 14,250
Finished Goods Inventory 44,400 22,200

Accounts Payable 45,800 120,600

 3RD Q 4TH Q
126,700 126,700
356,000 408,000
(302,450) (281,450)
180,250 253,250
0 0
180,250 253,250

3RD Q 4TH Q
180,250 253,250
216,000 208,000
7,750 10,250
29,600 37,000

56,800 84,000