Best Design Stores

1
4th quarter 2020
Sales unit 2,800.00
Price $ 550.00
Sales revenue $ 1,540,000.00

2
4th quarter 2020
Collections in the month of sale $ 1,078,000.00
Collections in month following sale
Total cash receipts $ 1,078,000.00

3
4th quarter 2020
Sales in units 2,800.00
Add: Desired ending inventory of finished goods 300.00
Total units required 3,100.00
Less: Expected beginning inventory of finished goods 280.00
Units to be produced 2,820.00

4
4th quarter 2020
Material: Oak wood
Units to be produced 2,820.00
Raw material required per unit 3
Raw material required for production 8,460.00

Add: Desired ending inventory of raw material 1,920.00

Total raw material required 10,380.00

Less: Expected beginning inventory of raw material 1,692.00

Raw material to be purchased 8,688.00

Cost per unit of material 12

Total cost of raw material purchases 104,256.00

Material: Stained wood

Units to be produced 2,820.00
Raw material required per unit 3
Raw material required for production 8,460.00
Cost per unit of material 10
Total cost of raw material purchases $ 84,600.00
Total cost of raw material purchases 188,856.00

Cutting labor
Units to be produced
Direct labor required per unit (hours)
Total direct labor hours required
Direct labor cost per hour
Total direct labor cost

Finishing labor
Units to be produced
Direct labor required per unit (hours)
Total direct Labor hours required
Direct labor cost per hour
Total direct labor cost

Total labor required

6 M

Indirect material
Indirect labor
Electricity and ultilties
Insurance
Maintenance
Rent on factory building
Depreciation
Total manufacturing overhead

Less: Depreciation
Total cash disbursements for overhead

7 Selling, Gen

Administrative salaries
Computer operator salaries
Other administrative expenses
 Sales personnel salaries
Sales commissions
Advertising
Uncollectible accounts
Total of General Expenses

Cash payments for purchases made during the quarter

Cash payments for prior month´s purchases
Total cash payments for raw material purchases
Other cash disbursements:
Direct labor
Total cash disbursements for overhead
Administrative salaries
Computer operator salaries
Other administrative expenses
Sales personnel salaries
Sales commissions
Advertising
Total of other cash disbursements
Total cash disbursements

Cash receipts
Less: Cash disbursements
Change in cash balance due to operations
Proceeds from bank loan
Payments of principal of bank loan
Interest on bank loan
Investment in Machinery
Change in cash balance during the quarter
Cash balance 01/01/2021
Cash balance 12/31/2021

10 Budgeted Sch
Fo
Direct Material
Raw Material Inventory, January1st 23,040.00
Add: Purchases of raw material 959,424.00
Raw material available for use 982,464.00
 Deduct: Raw Material Inventory, December 31st 26,784.00
Direct material used 955,680.00
Direct Labor 810,880.00
Manufacturing Overhead $ 992,100.00
Total manufacturing costs 2,758,660.00
Add: Work-in-process inventory, January1st. 0
Subtotal 2,758,660.00
Deduct: Work-in-process inventory, December 31st 200000
Cost of goods manufactured 2,558,660.00

Add: (Initial inventory)Finished goods inventory, January1st 57,156.00

Cost of goods available for sale 2,615,816.00
Deduct: (Final inventory)Finished goods inventory, December 31st 72398
Cost of goods sold 2,543,418.00

11
Fo
Sales Revenue 7,920,000.00
Cost of goods sold 2,543,418.00
Gross profit 5,376,582.00
Other expenses
Selling, general and administrative expenses $ 1,742,400.00
Interest expense $ 27,000.00
Total other expenses $ 1,769,400.00
Income before taxes 3,607,182.00
Income taxes 1,082,154.60
Net Income 2,525,027.40
Best Design Stores
Sales Budget
1 quarter 2021 2 quarter 2021 3 quarter 2021 4 quarter 2021 Total of year
3,000.00 5,000.00 3,500.00 2,900.00 14,400.00
$ 550.00 $ 550.00 $ 550.00 $ 550.00 550.00
$ 1,650,000.00 $ 2,750,000.00 $ 1,925,000.00 $ 1,595,000.00 7,920,000.00

Cash Receipts Budget

1 quarter 2021 2 quarter 2021 3 quarter 2021 4 quarter 2021 Total of year
$ 1,155,000.00 $ 1,925,000.00 $ 1,347,500.00 $ 1,116,500.00 $ 5,544,000.00
$ 431,200.00 $ 462,000.00 $ 770,000.00 $ 539,000.00 $ 2,202,200.00
$ 1,586,200.00 $ 2,387,000.00 $ 2,117,500.00 $ 1,655,500.00 $ 7,746,200.00

Production Budget
1 quarter 2021 2 quarter 2021 3 quarter 2021 4 quarter 2021 Total year
3,000.00 5,000.00 3,500.00 2,900.00 14,400.00
500.00 350.00 290.00 380.00 380.00
3,500.00 5,350.00 3,790.00 3,280.00 14,780.00
300.00 500.00 350.00 290.00 300.00
3,200.00 4,850.00 3,440.00 2,990.00 14,480.00

Direct Material Budget

1 quarter 2021 2 quarter 2021 3 quarter 2021 4 quarter 2021 Total year

3,200.00 4,850.00 3,440.00 2,990.00 14,480.00

3 3 3 3 3
9,600.00 14,550.00 10,320.00 8,970.00 43,440.00

2,910.00 2,064.00 1,794.00 2,232.00 2,232.00

12,510.00 16,614.00 12,114.00 11,202.00 45,672.00

1,920.00 2,910.00 2,064.00 1,794.00 1,920.00

10,590.00 13,704.00 10,050.00 9,408.00 43,752.00

12 12 12 12 12

127,080.00 164,448.00 120,600.00 112,896.00 525,024.00

3,200.00 4,850.00 3,440.00 2,990.00 14,480.00

3 3 3 3 3
 9,600.00 14,550.00 10,320.00 8,970.00 43,440.00
10 10 10 10 10
$ 96,000.00 $ 145,500.00 $ 103,200.00 $ 89,700.00 $ 434,400.00
223,080.00 309,948.00 223,800.00 202,596.00 959,424.00

Direct Labor Budget

1 quarter 2021 2 quarter 2021 3 quarter 2021 4 quarter 2021 Total year

3,200.00 4,850.00 3,440.00 2,990.00 14,480.00

2 2 2 2 2
6,400.00 9,700.00 6,880.00 5,980.00 28,960.00
18.00 18.00 18.00 18.00 18.00
115,200.00 174,600.00 123,840.00 107,640.00 521,280.00

3,200.00 4,850.00 3,440.00 2,990.00 14,480.00

1.00 1.00 1.00 1.00 1.00
3,200.00 4,850.00 3,440.00 2,990.00 14,480.00
20 20 20 20 20
64,000.00 97,000.00 68,800.00 59,800.00 289,600.00

179,200.00 271,600.00 192,640.00 167,440.00 810,880.00

Manufacturing Overhead Budget 2021

1 quarter 2021 2 quarter 2021 3 quarter 2021 4 quarter 2021 Total year
$ 22,000.00 $ 38,000.00 $ 20,100.00 $ 18,000.00 $ 98,100.00
$ 80,000.00 $ 120,000.00 $ 90,000.00 $ 80,000.00 $ 370,000.00
$ 55,000.00 $ 55,000.00 $ 55,000.00 $ 55,000.00 $ 220,000.00
$ 11,000.00 $ 11,000.00 $ 11,000.00 $ 11,000.00 $ 44,000.00
$ 4,000.00 $ 4,000.00 $ 4,000.00 $ 4,000.00 $ 16,000.00
$ 50,000.00 $ 50,000.00 $ 50,000.00 $ 50,000.00 $ 200,000.00
$ 11,000.00 $ 11,000.00 $ 11,000.00 $ 11,000.00 $ 44,000.00
$ 233,000.00 $ 289,000.00 $ 241,100.00 $ 229,000.00 $ 992,100.00

$ 11,000.00 $ 11,000.00 $ 11,000.00 $ 11,000.00 $ 44,000.00

$ 222,000.00 $ 278,000.00 $ 230,100.00 $ 218,000.00 $ 948,100.00

Selling, General and Administrative Expenses Budget 2021

1 quarter 2021 2 quarter 2021 3 quarter 2021 4 quarter 2021 Total year
$ 220,000.00 $ 220,000.00 $ 220,000.00 $ 220,000.00 $ 880,000.00
$ 20,000.00 $ 20,000.00 $ 20,000.00 $ 20,000.00 $ 80,000.00
$ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 20,000.00
$ 22,000.00 $ 22,000.00 $ 22,000.00 $ 22,000.00 $ 88,000.00
$ 82,500.00 $ 137,500.00 $ 96,250.00 $ 79,750.00 $ 396,000.00
$ 30,000.00 $ 30,000.00 $ 30,000.00 $ 30,000.00 $ 120,000.00
$ 33,000.00 $ 55,000.00 $ 38,500.00 $ 31,900.00 $ 158,400.00
$ 412,500.00 $ 489,500.00 $ 431,750.00 $ 408,650.00 $ 1,742,400.00

Cash disbursements Budget 2021

1 quarter 2021 2 quarter 2021 3 quarter 2021 4 quarter 2021 Total year
156,156.00 216,963.60 156,660.00 141,817.20 671,596.80
56,656.80 66,924.00 92,984.40 67,140.00 283,705.20
212,812.80 283,887.60 249,644.40 208,957.20 955,302.00

179,200.00 271,600.00 192,640.00 167,440.00 810,880.00

$ 222,000.00 $ 278,000.00
$ 220,000.00 $ 220,000.00
$ 20,000.00 $ 20,000.00
$ 5,000.00 $ 5,000.00
$ 22,000.00 $ 22,000.00
$ 82,500.00 $ 137,500.00
$ 30,000.00 $ 30,000.00
780,700.00 984,100.00
993,512.80 1,267,987.60
$ 230,100.00 $ 218,000.00 948,100.00
$ 220,000.00 $ 220,000.00 880,000.00
$ 20,000.00 $ 20,000.00 80,000.00
$ 5,000.00 $ 5,000.00 20,000.00
$ 22,000.00 $ 22,000.00 88,000.00
$ 96,250.00 $ 79,750.00 396,000.00
$ 30,000.00 $ 30,000.00 120,000.00
815,990.00 762,190.00 3,342,980.00
1,065,634.40 971,147.20 4,298,282.00

Cash Budget 2021

1 quarter 2021 2 quarter 2021 3 quarter 2021 4 quarter 2021 Total year
$ 1,586,200.00 $ 2,387,000.00 $ 2,117,500.00 $ 1,655,500.00 $ 7,746,200.00
993,512.80 1,267,987.60 1,065,634.40 971,147.20 $ 4,298,282.00
$ 592,687.20 $ 1,119,012.40 $ 1,051,865.60 $ 684,352.80 $ 3,447,918.00
$ 500,000.00 $ 500,000.00
$ 70,000.00 $ 70,000.00 $ 70,000.00 $ 210,000.00
$ 9,000.00 $ 9,000.00 $ 9,000.00 $ 27,000.00
$ 300,000.00 $ 300,000.00
$ 3,410,918.00
$ 1,500,000.00 $ 1,500,000.00
$ 4,910,918.00

Budgeted Schedule of Cost of Goods Manufactured and Sold

For the period January-December 2021
 Budgeted Income Statement
For the period January-December 2021
1 quarter 2022
3,800.00
$ 550.00
$ 2,090,000.00

1 quarter 2022
$ 1,463,000.00
$ 446,600.00
$ 1,909,600.00

1 quarter 2022
3,800.00

3,800.00
380.00
3,420.00

1 quarter 2022

11,160.00
 Best Design Store
Fixed Costs $132,000.00
Sales renevue $594,000.00
Variable costs $43.00
Cost of goods sold $132,043.00
Unit Sales Price $66.00
Units $9,000.00
Unit Variable Cost $0.00
Margin Contribution $66.00
Units to be sold to obtain TNP of
BEP in Units (FC/MC) $2,000.14 62610.59
Break-even sales revenue $132,009.56 $4,132,299.14
VC $9.56 $299.14
Margin Contribution $132,000.00 $4,132,000.00
FC $132,000.00 $132,000.00
Net income $0.00 $4,000,000.00
TNP $4,000,000.00
FC + TNP $4,132,000.00
 Direct labor
Units to be produced $14,480.00
Direct labor required per unit cutting (hours) $2.00
Total direct labor hours required $28,960.00
Direct labor required per unit finishing (hours) $1.00
Total direct labor hours required $14,480.00
Total costs for cutting $521,280.00 $28,960.00
Total costs for finishing $289,600.00 $14,480.00
Total direct labor $810,880.00 $43,440.00

Activity Cost driver Budgeted activity Budgeted cost

Purchasing Purchase orders
Material handling Setups
Quality control Batches
Cutting labor Cutting hours
Finishing labor Finishing hours
Total manufacturing overhead
Total manufacturing / overhead cost
Units
Unitary cost