KENSIC COMPANY

April
Units
Sales price per unit
Total Sales

20,000
89.2
1784000

April

SALES BUDGET
May
35,000
89.2
3122000

June

Total

50000

105,000

89.2
4460000

PRODUCTION BUDGET
May

89.2
9366000

June

Total

Sales in Units
Desired units of
ending inventory

20,000
7000

35,000
10000

50,000
9000

105,000
26000

Desired Total Units

27,000

45,000

59,000

131,000

Less: desired units of

beginning inventory

4000

7000

10000

21000

Total production units

23,000

38,000

49,000

110,000

June

Quarter

DIRECT MATERIALS BUDGET (No. 208)

April
May
Units to be produced
x 4 lbs.
Total material needs

23,000
4
92000

38,000
4
152000

49,000
4
196000

110,000
4
440000

Add: desired end. Inv.

76,000

98,000

84000

258,000

Total need
Less: Beginning
Inventory

168000

250000

280000

698000

46,000

76,000

98,000

46000

Total materals to be
purchased

122000

174000

182000

652000

$5.00

$5.00

$5.00

$5.00

$610,000.00

$870,000.00

$910,000.00

$3,260,000.00

x $5.00
Total cost of purchases

DIRECT MATERIALS BUDGET (No. 311)

April
May
June

Quarter

Units to be produced
x 9 feet
Total material needs

23,000
9
207000

38,000
9
342000

49,000
9
441000

110,000
9
990000

Add: Desired end. Inv.

Subtotal
Total need
Less: Beginning
Inventory

114000

147000

126000

387000

321000

489000

567000

1377000

69000

114000

147000

69000

Total materials to be
purchased

252000

375000

420000

1308000

$2.00

$2.00

$2.00

$2.00

$504,000.00

$750,000.00

$840,000.00

$2,616,000.00

x $2.00
Total cost of purchased

SCHEDULE OF CASH PAYMENTS FOR DIRECT MATERIALS

April
May
June
Quarter
Accounts Payable 3/31

$351,200

April

$557,000

May

$351,200
$557,000
$810,000

June
Total

$908,200

$1,367,000

DIRECT LABOR BUDGET

April
May

$1,114,000
$810,000

$1,620,000

$875,000

$875,000

$1,685,000

$3,960,200

June

Quarter

Units to be produced
x .25 (Shaping)

23,000
0.25

38,000
0.25

49,000
0.25

110,000
0.25

Hrs. Shaping Dept.

x $18.00

$18.00

$18.00

$18.00

$18.00

$103,500.00

$171,000.00

$220,500.00

$495,000.00

x .70 (Assembly)

0.7

0.7

0.7

0.7

Hrs. Assembly Dept.

x $16.00

$16.00

$16.00

$16.00

$16.00

$257,600.00

$425,600.00

$548,800.00

$1,232,000.00

Labor cost Shaping dept.

Labor cost for Assembly

dept.

x .10 (Finishing)

0.1

0.1

0.1

0.1

Hrs. Finishing Dept.

x $20.00

$20.00

$20.00

$20.00

$20.00

Labor cost Finishing

dept.

$46,000.00

$76,000.00

$98,000.00

$220,000.00

Total Labor Cost

$407,100.00

$672,600.00

$867,300.00

$1,947,000.00

June

Quarter

MANUFACTURING OVERHEAD BUDGET

April
May
Variable Overhead:
Utilities 1.78
Indirect Labor 0.97
Supplies 0.5
Other 0.25

$40,940.00
$22,310.00
$11,500.00
$5,750.00

$67,640.00
$36,860.00
$19,000.00
$9,500.00

$87,220.00
$47,530.00
$24,500.00
$12,250.00

$195,800.00
$106,700.00
$55,000.00
$27,500.00

Total Variable Overhead

$80,500.00

$133,000.00

$171,500.00

$385,000.00

Fixed Overhead

$385,667.00

$385,667.00

$385,667.00

$385,667.00

Total Overhead
less: depreciation

$466,167.00
$242,500.00

$518,667.00
$242,500.00

$557,167.00
$242,500.00

$770,667.00
$242,500.00

Total Overhead paid in

cash

$223,667.00

$276,167.00

$314,667.00

$528,167.00

June

Quarter

April
Total Cash Receipts

CASH BUDGET
May

$1,533,800.00

$2,647,200.00

$3,924,800.00

$8,105,800.00

$908,200.00
$407,100.00
$223,667.00
$400,000.00
$17,840.00

$1,367,000.00
$672,600.00
$276,167.00
$400,000.00
$31,220.00

$1,685,000.00
$867,300.00
$314,667.00
$400,000.00
$44,600.00

$3,960,200.00
$1,947,000.00
$528,167.00
$1,200,000.00
$93,660.00

-$423,007.00

-$99,787.00

$613,233.00

$376,773.00

$10,000.00

-$413,007.00

-$512,794.00

$10,000.00

-$413,007.00

-$512,794.00

$100,439.00

$100,439.00

Cash Payments:
Material Purchases
Direct Labor
Overhead
Fixed Sell. & Admin.
Variable Sell. & Admin.
Total Cash Payments
Excess (deficiency)
of cash
Beg. Balance of cash
Endng Balance of cash

February
Units
Sales price per unit
Total Sales

10,000
$75.00
$750,000.00

SALES BUDGET
March
14,000
$75.00
$1,050,000.00

(Repeated)
April
20000
$89.20
$1,784,000.00

SCHEDULE OF EXPECTED CASH COLLECTIONS

April
May
June

May
35,000
$89.20
$3,122,000.00

Quarter

February (.10)
March (.20; .10)

$75,000.00
$210,000.00

$105,000.00

April (.70;.20;.10)

$1,248,800.00

$356,800.00

$178,400.00

$1,784,000.00

$2,185,400.00

$624,400.00

$2,809,800.00

$3,122,000.00

$3,122,000.00

$3,924,800.00

$8,105,800.00

May (.70;.20)
June (.70)
Totals

$1,533,800.00

$2,647,200.00

$75,000.00
$315,000.00

July
45,000

July

August

45,000
6000

30,000

51,000
9000

42,000

July
42,000
4
168000

July

42,000
9
378000

$1,938,967.00

$2,715,767.00 $3,266,967.00

June
50,000
$89.20
$4,460,000.00

Quarter
105000
$89.20
$9,366,000.00