Hampton Freeze, Inc.

Juberbien, Indah Maria

Balance sheet Kakunsi, Mitchell Juan
Kamu, Verentia Jesika
Selling price 0.2 Kapoh, Torry Marcelino Fabricio
Pound 21000 Karen, Inka Natasha Angeline
Sugar price per pound 15
Cases 2000
Unit cost 13

December 31, 2013

Assets
Current assets
Cash $42,500
Accounts receivable 90000
Raw materials (21000) 4200
Finished goods (2000) 26000
Total Current assets $162,700
Plant and equiptment
Land 80000
Buildings and equipment 700000
Accumulated depreciation -292000
Plant and equiptment net 488000
Total assets $650,700

Liabilities and stockholder's equity

Current liabilites
Accounts payable $25,800
Stockholder's equity
Common stock $175,000
retained earnings 449900
Total stockholder's equity 624900
Total liabillities and stockholder's equity $650,700
y Marcelino Fabricio
Natasha Angeline
 Hampton Freeze, Inc.
Budgeting Assumptions
For the Year Ended December 31, 2014

All 4 Quarters
Sales budget
Budgeted sales in cases
Selling price per case $ 20.00
Percentage of sales collected in the quarter of sale 70%
Percentage of sales collected in the quarter after sale 30%

Production budget
Percentage of next quarter's sales in ending finished goods inventory 20%

Direct materials budget

Pounds of sugar per case 15
Cost per pound of sugar $ 0.20
Percentage of next quarter's production needs in ending inventory 10%
percentage of purchases paid in the quarter purchased 50%
Percentage of purchases paid in the quarter after purchase 50%

Direct labor budget

Direct labor-hours required per case 0.4
Direct labor cost per hour $ 15.00

Manufacturing overhead budget

variable manufacturing overhead per direct labor- hour $ 4.00
Fixed manufacturing overhead per quarter $ 60,600
Deprectiation per quarter $ 15,000

Selling and administrative expense budget

Variable selling and administrative expense per case $ 1.80
Fixed selling and administrative expense per quarter;
Advertising $20,000
Executive salaries $55,000
Insurance $10,000
Property tax $4,000
Depreciation $10,000

Cash budget
Minimum cash balance $30,000
Equipment purchases
Dividends $8,000
Simple interest rate per quarter 3%
, Inc.
ptions
mber 31, 2014

Quarter
1 2 3 4
10000 30000 40000 20000

$50,000 $40,000 $20,000 $20,000

 Hompton Freeze, Inc.
Sales Budget
For The Year Ended December 31, 2014

Quarter
1 2 3 4 Year
Budgeted unit sales 10,000 30,000 40,000 20,000 100,000
Sales 20 20 20 20 20
Total sales 200,000 600,000 800,000 400,000 2,000,000

70% 30%
Schedule of Expected Cash Collections
Beginning accounts receivable 90,000 90,000
First-quarter sales 140,000 60,000 200,000
Second-quarter sales 420,000 180,000 600,000
Third quarter sales 560,000 240,000 800,000
Fourth quarter sales 280,000 280,000
Total cash collection 230,000 480,000 740,000 520,000 1,970,000
 Hampton Freeze, Inc.
Production budget
For the Year Ended December 31, 2014
(in cases)

Quarter
1 2 3 4 Year
Budgeted unit sales (Schedule 1) 10,000 30,000 40,000 20,000 100,000
Add desired units of ending finish goods inventory 6,000 8,000 4,000 3,000 3,000
Total needs 16,000 38,000 44,000 23,000 103,000
Less unit of beginning finish goods inventory 2,000 6,000 8,000 4,000 2,000
Required production in units 14,000 32,000 36,000 19,000 101,000
 Hampton Freeze, Inc.
Direct Materials Budget
For the Year Ended December 31, 2014

Quarter
1 2 3
Required production in units 14,000 32,000 36,000
Units of raw materials needed per case 15 15 15
Units of raw materials needed to meet introduction 210,000 480,000 540,000
Add desired units of ending raw materials inventory 48,000 54,000 28,500
Total units of raw materials needed 258,000 534,000 568,500
Less units of beginning raw materials inventory 21,000 48,000 54,000
Units of raw materials to be purchased 237,000 486,000 514,500
Cost of raw materials per pound $ 0.20 $ 0.20 $ 0.20
Cost of raw materials to be purchased $47,400 $97,200 $102,900

50% 50%
Schedule of excpected cash disbursements for purchases of materials

Beginning accounts payable $25,800

First-quarter purchase $23,700 $23,700
Second-quarter purchase $48,600 $48,600
Third-quarter purchase $51,450
Fourth-quarter purchase
Total cost disbursement for materials $49,500 $72,300 $100,050
 4 Year
19,000 101,000
15 15
285,000 1,515,000
22,500 22,500
307,500 1,537,500
28,500 21,000
279,000 1,516,500
$ 0.20 $ 0.20
$55,800 $303,300

of materials

$25,800
47400
97200
$51,450 $102,900
$27,900 $27,900
$79,350 $301,200
 Hampton Freeze, Inc.
Direct labor budget
For the Year Ended December 31, 2014

Quarter
1 2 3 4
Required production in cases 14,000 32,000 36,000 19,000
Direct labor-hours per case 0.4 0.4 0.4 0.4
Total direct labor-hours needed 5,600 12,800 14,400 7,600
Direct labor-hours needed $ 15.00 $ 15.00 $ 15.00 $ 15.00
Total direct labor-hours cost $84,000 $192,000 $216,000 $114,000
Year
101,000
0.4
40,400
$ 15.00
$606,000
 Hampton Freeze, Inc.
Manufacturing Overhead Budget
For the Year Ended December 31, 2014

1 2 3
Budgeted direct labor-hours 5,600 12,800 14,400
Variable manufacturing overhead rate $ 4.00 $ 4.00 $ 4.00
Variable manufacturing overhead $22,400 $51,200 $57,600
Fixed manufacturing overhead 60600 60600 60600
Total manufacturing overhead 83000 111800 118200
Less depreciation 15000 15000 15000
Cash disbursements for manufacturing overhead $68,000 $96,800 $103,200

Total manufacturing overhead (a)

Budgeted direct labor-hours (b)
Predetermined overhead rate for the year (a)/(b)
 4 Year
7,600 40,400
$ 4.00 $ 4.00
$30,400 $161,600
60600 242400
91000 404000
15000 60000
$76,000 $344,000

$404,000
40,400
$ 10.00
 Hampton Freeze, Inc.
Ending Finished Goods Inventory Budget
(absorption costing basis)
For the Year Ended December 31, 2014

Item Quantity Cost

Production cost per case
Direce materials 15 pounds $ 0.20
Direct labor 0.4 hours $ 15.00
Manufacturing overhead 0.4 hours $ 10.00
Unit product cost

Budgeted finished goods inventory:

Ending finished goods inventory in cases
Unit product cost
Ending finished goods inventory in dollars
dget

014

Cost Total

per pound $3
per hour $ 6.00
per hour $ 4.00
$ 13.00

3,000
$ 13.00
$39,000
 Hampton Freeze, Inc.
Selling and Administrative Expense budget
For the Year Ended December 31, 2014

Year
1 2 3
Budgeted units sales 10,000 30,000 40,000
Variable selling and administrative expense per case 1.8 1.8 1.8
Variable selling and administrative expense 18,000 54,000 72,000
Fixed selling and administrative
Advertising 20,000 20,000 20,000
Executive salaries 55,000 55,000 55,000
Insurance 10,000 10,000 10,000
Property tax 4,000 4,000 4,000
Depreciation 10,000 10,000 10,000
Total fixed selling and administrative expenses 99,000 99,000 99,000
Total selling and administrative expenses 117,000 153,000 171,000
Less depreciation 10,000 10,000 10,000
Cash dishbursement 107,000 143,000 161,000
 4 Year
20,000 100,000
1.8 1.8
36,000 180,000

20,000 80,000
55,000 220,000
10,000 40,000
4,000 16,000
10,000 40,000
99,000 396,000
135,000 576,000
10,000 40,000
125,000 536,000
 Hampton Freeze, Inc.
Cash Budget
For the Year Ended December 31, 2014

Quarter
Schedule 1
Beginning cash balance 42500
Add cash receipts 230,000
Collections from costumers
Total cash available 272,500
Less cash disbursement
Direct material 49500
Direct labor 84000
Manufacturing overhead 68000
Selling and administrative 107,000
Equipment purchases 50000
Dividends 8000
Total cash disbursements 366500
Excess (deficiency) of cash available over disbursements - 94,000
Financing:
Borrowings (at the beginning of quarters) 130000
Repayments (at the end of the year)
Interest
Total financing 130000
Ending cash balance 36,000
e, Inc.
et
ember 31, 2014

Quarter
2 3 4 Year
36,000 33900 165650 42500
480,000 740,000 520,000 1,970,000

516,000 773,900 685,650 2,012,500

72300 100050 79350 301200

192000 216000 114000 606000
96800 103200 76000 344000
143,000 161,000 125,000 536000
40000 20000 20000 130000
8000 8000 8000 32000
552100 608250 422350 1949200
- 36,100 165,650 263,300 63,300

70000 200000
-200000 -200000
-21900 -21900
70000 0 -221900 -21900
33,900 165,650 41,400 41,400
 Hampton Freeze, Inc.
Budgeted Income Statement
For the Year Ended December 31, 2014

Schedules
Sales 2,000,000
Cost of Goods sold 1,300,000
Gross margin 700,000
Selling and administrative expenses 576,000
Net operating Income 124,000
Interest expense -21900
Net income 102,100
 Hampton Freeze, Inc.
Budgeted balanced sheet
December 31, 2014

Assets
Current assets
Cash $41,400
Accounts receivable 120,000
Raw materials 4,500
Finished goods inventory 39000
Total current assets $204,900
Plant and equipment
Land 80000
Buildings and equipment 830000
Accumulated depreciation - 392,000
Plant and equipment, net 518000
Total assets $722,900

Liabilities and stockholders' equity

Current liabilities
Accounts payable $27,900
Stockholder's equity:
Common stock, no par 175000
Retained earnings 520,000
Total stockholder's equity 695000
Total liabilities and stockholder's equity 722900