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PR6-3A

a)

Heads Up Athletic Co.


Sales Budget
For The Month Ended January 31, 2010
Product
Batting helmet
Football helmet
Total revenue from sales

b)

Unit Sales Volume

3,700
7,200

Total Sales
259,000
1,022,400
1,281,400

Heads Up Athletic Co.


Production Budget
For The Month Ended January 31, 2010

Expected units to be sold


Plus desired ending inventory, January 31, 2010
Total
Less estimated beginning inventory, January 1, 2010
Total units to be produced
c)

Selling Price
70
142

Units
Batting helmet
Football helmet
3,700
7,200
290
520
3,990
7,720
310
420
3,680
7,300

Heads Up Athletic Co.


Direct Materials Purchases Budget
For The Month Ended January 31, 2010
Direct Materials
Plastic
Foam Lining
Pounds required for production:
Batting helmet
4,416
1,840
Football helmet
20,440
10,220
Plus desired inventory, January 31,2010
1,240
450
Total
26,096
12,510
Less estimated inventory, January 1, 2010
800
520
Total lbs to be purchased
25,296
11,990
Unit price (per lbs)
8
5
Total direct materials to be purchased
189,720
59,950

Total

249,670

d)

Heads Up Athletic Co.


Direct Labor Cost Budget
For The Month Ended January 31, 2010
Molding
Hours required for production:
Batting helmet
Football helmet
Total
Hourly rate
Total direct labor cost

e)

Assembly

736
2,190
2,926
15
43,890

1,840
4,745
6,585
13
85,605

129,495

Heads Up Athletic Co.


Factory Overhead Cost Budget
For The Month Ended January 31, 2010
Indirect factory wages
Depreciation of plant and equipment
Power and light
Insurance and property tax
Total factory overhead cost

f)

Total

Heads Up Athletic Co.


Cost of Goods Sold Budget
For The Month Ended January 31, 2010
Finished goods inventory, 01/31/10
Work in process inventory, 01/31/10
13,500
Direct materials
Direct materials inventory, 01/31/10
11,550
Direct materials purchases
189,720
Cost of direct materials available
for use
201,270
Less direct materials inventory
8,600
Direct labor
129,495
Factory overhead
173,700
Total manufacturing costs
513,065
Total work in process during period
526,565
Less work in process inventory, 01/01/10
12,500
Cost of goods manufactured
Cost of finished goods available
for sale
Less finished goods inventory, 01/01/10

Cost of goods sold

115000
32000
18000
8700
173700

40,020

514,065
554,085
40,020
514,065

g)

Heads Up Athletic Co.


Selling and Administrative Expenses Budget
For The Month Ended January 31, 2010
Selling expenses
Sales salaries expenses
Advertising expenses
Office salaries expenses
Travel-expense ---selling
Telephone expense-selling
Total selling expenses
Administrative expenses
Depreciation expenses- office equipment
Telephone expense-administrative
Office supplies expense
Miscellaneous administrative expense
Total administrative expenses
Total selling and administrative expense

h)

275,300
139,500
83,100
46,200
3,200
547,300
5,800
900
4,900
5,200
16,800
564,100

Heads Up Athletic Co.


Budgeted Income Statement
For The Month Ended January 31, 2010
Revenue from sales
Cost of goods sold

1,281,400
514,065

Gross profit
Selling and administrative expenses:
Selling expenses
Administrative expenses
Total selling and administrative expenses
Income from operations
Other income:
Interest revenue
Other expenses:
Interest expense
Income before tax
Income tax
Net income

1,281,400
547,300
16,800
564,100
717,300
14,500
17,400

(2,900)
720,200
216,060
504,140

PR6-4A

Heads Up Athletic Co.


Schedule of Collection from Sales
For Three Months Ending August 31, 2010
June
Estimated cash receipt from:
Cash sales
Collection of accounts receivable
Interest revenue
Total cash receipts
Estimated cash payments for:
Manufacturing costs
Selling and administrative expenses
Capital additions
Interest expense
Income taxes
Total cash payments
Cash increase
Cash at the beginning of the month
Cash at the end of the month
Minimum cash balance
Excess (deficiency)

July

August

12000
64800

150000
136200

200000
121800

8000

8000

8000