Sales

Budget
Ending
Finished Goods
Budget
Production
Budget

Direct Direct Manufacturing

Materials Labor Overhead
Budget Budget Budget

Selling and
Cash
Administrative
Budget
Budget
 October   November   December   Quarter  

Budgeted  Sales  in  units   2000 5000 3000 10,000

Selling  price  per  units   $10 $10 $10 $10

Total  budgeted  Sales   $20,000 $50,000 $30,000 $100,000

 October   November   December   Quarter  

Budgeted  Sales  in  units   2000 5000 3000 10,000

Add:  Desired  ending  inventory    

Total  Needs  

Less:  Beginning  inventory  

Required  production    
 October   November   December   Quarter  

Budgeted  Sales  in  units   2000 5000 3000 10,000

Add:  Desired  ending  inventory     1000

Total  Needs   3000

Less:  Beginning  inventory   400

Required  production     2600 ?

September 31 20% of November

ending inventory Sales (5000)
 October   November   December   Quarter  

Budgeted  Sales  in  units   2000 5000 3000 10,000

Add:  Desired  ending  inventory     1000 600

Total  Needs   3000 5600

Less:  Beginning  inventory   400 1000

Required  production     2600 4600

20% of December
Sales (3000)
 October   November   December   Quarter  

Budgeted  Sales  in  units   2000 5000 3000 10,000

Add:  Desired  ending  inventory     1000 600 500 500

Total  Needs   3000 5600 3500 10,500

Less:  Beginning  inventory   400 1000 600 400

Required  production     2600 4600 2900 10,100

20% of January
Sales (2500)
 October   November   December   Quarter  

Production   2,600 4,600 2,900 10,100

Materials  per  unit  (pounds)  

Production  Needs  

Add:  Desired  ending  inventory    

Total  needed  

Less:  Beginning  inventory  

Materials  to  be  purchased    

From production budget

 October   November   December   Quarter  

Production   2,600 4,600 2,900 10,100

Materials  per  unit  (pounds)   10 10 10 10

Production  Needs   26,000 46,000 29,000 101,000

Add:  Desired  ending  inventory    

Total  needed  

Less:  Beginning  inventory  

Materials  to  be  purchased    

 October   November   December   Quarter  

Production   2,600 4,600 2,900 10,100

Materials  per  unit  (pounds)   10 10 10 10

Production  Needs   26,000 46,000 29,000 101,000

Add:  Desired  ending  inventory     4,600

Total  needed   30,600

Less:  Beginning  inventory   2,000

Materials  to  be  purchased     28,600 ?

10% of following month’s

production needs
 October   November   December   Quarter  

Production   2,600 4,600 2,900 10,100

Materials  per  unit  (pounds)   10 10 10 10

Production  Needs   26,000 46,000 29,000 101,000

Add:  Desired  ending  inventory     4,600 2,900 3500 3500

Total  needed   30,600 48,900 32,500 104,500

Less:  Beginning  inventory   2,000 4,600 2,900 2000

Materials  to  be  purchased     28,600 53,500 35,400 102,500

 October   November   December   Quarter  

Production   2,600 4,600 2,900 10,100

Direct  labor  per  unit  

Total  labor  hours  

Hourly  rate  

Total  Direct  labor  cost  

 October   November   December   Quarter  

Production   2,600 4,600 2,900 10,100

Direct  labor  per  unit   0.5 0.5 0.5 0.5

Total  labor  hours   1,300 2,300 1,450 5,050

Hourly  rate  

Total  Direct  labor  cost  

 October   November   December   Quarter  

Production   2,600 4,600 2,900 10,100

Direct  labor  per  unit   0.5 0.5 0.5 0.5

Total  labor  hours   1,300 2,300 1,450 5,050

Hourly  rate  

Total  Direct  labor  cost  

 October   November   December   Quarter  

Production   2,600 4,600 2,900 10,100

Direct  labor  per  unit   0.5 0.5 0.5 0.5

Total  labor  hours   1,300 2,300 1,450 5,050

Hourly  rate   2 2 2 2

Total  Direct  labor  cost   2,600 4,600 2,900 10,100

 October   November   December   Quarter  

Budgeted  DLH   1,300 2,300 1,450 5,050

Variable  MOH  rate  

Variable  MOH  costs  

Fixed  MOH  costs  

Total  MOH  costs  

Direct Labor Budget

 October   November   December   Quarter  

Budgeted  DLH   1,300 2,300 1,450 5,050

Variable  MOH  rate   2 2 2 2

Variable  MOH  costs   2,600 4,600 2,900 10,100

Fixed  MOH  costs   3,350 3,350 3,350 10,050

Total  MOH  costs   5,950 7,950 6,250 20,150

Direct Labor Budget

Total MOH for quarter $20,150

≈ $4 per hour
Total labor hours required 5,050
Direct labor budget
Total MOH for quarter $20,150
≈ $4 per hour
Total labor hours required 5,050
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