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Solution For C. Alvarez Manufacturing
Solution For C. Alvarez Manufacturing
Alvarez Manufacturing
Sales Budget
For the period April 1 - June 30, 2021
C. Alvarez Manufacturing
Schedule of Cash Collections on Sales
For the period April 1 - June 30, 2021
C. Alvarez Manufacturing
Production Budget
For the period April 1 - June 30, 2021
C. Alvarez Manufacturing
Direct Materials Budget
For the period April 1 - June 30, 2021
Production needed
Multiply by: Materials needed per unit (lbs.)
Total materials needed in production
Add: Desired ending inventory
Total needed materials
Less: Beginning inventory
Material purchases needed (units)
C. Alvarez Manufacturing
Schedule of Cash Disbursements on Material Purchases
For the period April 1 - June 30, 2021
C. Alvarez Manufacturing
Direct Labor Budget
For the period April 1 - June 30, 2021
Production needed
Multiply by: Direct labor required per unit (hrs.)
Required labor hours for production
Compare with: Labor hours guaranteed paid
Labor hours for payment
Multiply by: Direct labor cost per hour
Total direct labor cost
C. Alvarez Manufacturing
Manufacturing Overhead Budget
For the period April 1 - June 30, 2021
C. Alvarez Manufacturing
Selling and Administrative Expenses Budget
For the period April 1 - June 30, 2021
C. Alvarez Manufacturing
Cash Budget
For the period April 1 - June 30, 2021
C. Alvarez Manufacturing
Cost of Goods Sold Budget
For the period April 1 - June 30, 2021
Materials:
April - 20,000 units x 5 lbs. x $0.40
May - 50,000 units x 5 lbs. x $0.40
June - 30,000 units x 5 lbs. x $0.40
Labor:
April - 20,000 units x 0.05 hrs. x $10
May - 50,000 units x 0.05 hrs. x $10
June - 30,000 units x 0.05 hrs. x $10
Overhead:
April - 20,000 units x $2.49
May - 50,000 units x $2.49
June - 30,000 units x $2.49
Total Cost of Goods Sold
C. Alvarez Manufacturing
Budgeted Income Statement
For the period April 1 - June 30, 2021
Sales
Less: Cost of goods sold
Gross Profit
Less: Selling and Administrative Expenses
Operating Income
Less: Interest Expense
Net Income
C. Alvarez Manufacturing
Budgeted Statement of Retained Earnings
For the period April 1 - June 30, 2021
C. Alvarez Manufacturing
Budgeted Schedule of Accounts Receivable
For the period April 1 - June 30, 2021
C. Alvarez Manufacturing
Budgeted Schedule of Raw Materials
For the period April 1 - June 30, 2021
Desired materials ending inventory
Multiply by: Material cost per unit
Raw materials inventory
C. Alvarez Manufacturing
Budgeted Schedule of Finished Goods
For the period April 1 - June 30, 2021
C. Alvarez Manufacturing
Budgeted Schedule of Accounts Payable
For the period April 1 - June 30, 2021
C. Alvarez Manufacturing
Budgeted Balance Sheet
June 30, 2021
ASSETS
Cash
Accounts Receivable
Raw Materials Inventory
Finished Goods Inventory
Land
Equipment
Total assets
140,000 140,000
$ 50,000 50,000
350,000 350,000
$ 125,000 125,000
210,000 210,000
$ 170,000 $ 400,000 $ 335,000 $ 905,000
28,000 28,000
$ 28,000 28,000
44,300 44,300
$ 44,300 44,300
28,400 28,400
$ 40,000 $ 72,300 $ 72,700 $ 185,000
50,000 - - 50,000
- - - 50,000 - 50,000
- - - 2,000 - 2,000
50,000 - - 52,000 - 2,000
$ 30,000 $ 30,000 $ 43,000 $ 43,000
$ 40,000
$ 100,000
$ 60,000 $ 200,000
10,000
25,000
15,000 50,000
49,800
124,500
74,700 249,000
$ 99,800 $ 249,500 $ 149,700 $ 499,000
Quarter 2
$ 43,000
75,000
4,600
24,950
50,000
367,000
$ 564,550
$ 28,400
200,000
336,150
$ 564,550