Case 4

Mike's Surf and Sea
Master Budget
Input Section
Sales Budget
Expected unit sales in the first quarter 150,000
Sales increase per quarter 5%
Selling price $ 9.00
Production Budget
Desired ending inventory 10% % of next quarter sales
Beginning Inventory 15,000 units
Cost of beginning inventory $ 7.40
Raw Materials Budget

Raw materials per unit 1.50 pounds
Cost per pound $ 2.50
Desired ending inventory 15%
Beginning inventory 33,000 pounds
Direct Labor Budget

Direct labor hours per unit 0.25
Direct labor cost per hour $ 12.00
Manufacturing Overhead Budget

Indirect labor $ 0.75 per hour
Indirect materials $ 0.60 per hour
Utilities $ 0.35 per hour
Maintenance $ 0.20 per hour
Supervisor salaries $ 72,000 per year
Rent $ 60,000 per year
Depreciation $ 24,000 per year
Insurance $ 12,000 per year
Selling and Administrative Expense Budget

Sales commissions 3.0% of sales
Delivery expenses $ 0.25 per unit
Sales salaries $ 120,000 per year
Office salaries $ 70,000 per year
Advertising expense $ 75,000 per year
Depreciation expense $ 6,000 per year
Insurance $ 24,000 per year
Rent $ 72,000 per year
Income Statement
Interest expense $ 14,000 per quarter
Income tax rate 20%
Cash Collections
Collected in quarter of sale 40%
Collected in the quarter following sale 60%
Cash payments
Paid in quarter of purchase 70%
Paid in following quarter 30%
Cash Budget
Sale of securities $ 5,000 fourth quarter
Purchase of equipment $ 50,000 first quarter
Balance Sheet, 12/31/03
Assets
Cash $ 120,000
Accounts Receivable 800,000
Finished goods inventory 111,000
Raw materials inventory 82,500
Investments 5,000
Equipment 150,000
Less: Accumulated depreciation 30,000
Total assets $ 1,238,500
Liabilities and Stockholders' Equity
Accounts payable $ 165,000

Notes payable 250,000
Common stock 500,000
Retained earnings, 12/31/03 323,500
Total liabilities and stockholders' equity $ 1,238,500
Mike's Surf and Sea
Operating Budgets
For the year ending 12/31/04
Sales Budget
Quarter 1 Quarter 2 Quarter 3
Expected unit sales

Selling price
Total Sales
Production Budget
Expected unit sales

Desired ending finished goods inventory
Total units required
Less: Beginning finished good inventory
Required unit production
Direct Materials Budget

Required unit production

Raw materials per unit (pounds)
Total pounds needed for production
Desired ending raw materials inventory
Total pounds required
Less: Beginning raw materials inventory
Raw materials purchases
Cost per pound

Total cost of raw materials purchases
Direct Labor Budget

Units to be produced
Direct labor hours per unit
Total direct labor hours required
Direct labor cost per hour
Total direct labor cost
Manufacturing Overhead Budget
Variable Costs
Indirect labor
Indirect materials
Utilities
Maintenance
Total variable costs
Fixed Costs
Supervisor salaries
Rent
Depreciation
Insurance
Total fixed costs

Total manufacturing overhead
Direct labor hours
Manufacturing overhead rate per direct labor hour
Selling and Administrative Expense Budget

Variable Expenses
Sales commissions
Delivery expenses
Total variable expenses
Fixed Expenses
Sales salaries
Office salaries
Advertising expense
Depreciation expense
Insurance
Rent
Total fixed expenses
Total selling and administrative expenses

Cost of One Unit
Quantity
Direct materials
Direct labor
Manufacturing overhead
Total unit cost
Budgeted Income Statement

Sales
Cost of goods sold
Gross profit
Selling and administrative expenses
Income from operations
Interest expense
Income before income tax
Income tax expense
Net income / (loss)
Quarter 4 Year
Quarter 4 Year
Quarter 4 Year
Quarter 4 Year
et
Quarter 4 Year
Budget
Quarter 4 Year
Cost/Rate Total
Quarter 4 Year
Mike's Surf and Sea
Financial Budgets
For the year ending 12/31/04
Schedule of Expected Cash Collections

Quarter 1 Quarter 2 Quarter 3 Quarter 4
Accounts receivable, 12/31/03

First quarter
Second quarter
Third quarter
Fourth quarter
Total collections
Schedule of Expected Cash Payments for Direct Materials

Accounts payable, 12/31/03

First quarter
Second quarter
Third quarter
Fourth quarter
Total payments
Cash Budget
Beginning cash balance
Add: Receipts
Collections from customers
Sale of securities
Total receipts
Total cash available
Less: Disbursements
Raw materials
Direct labor
Manufacturing overhead
Selling and administrative expenses
Equipment purchases
Interest
Income tax expense
Total disbursements
Ending Cash Balance
Budgeted Balance Sheet
December 31, 2004
Assets
Cash $ -
Accounts Receivable -
Finished goods inventory -
Direct materials inventory -
Investments 5,000
Equipment 150,000
Less: Accumulated depreciation 30,000
Total assets $ 125,000
Liabilities and Stockholders' Equity

Accounts payable $ -
Notes payable 250,000
Common stock 500,000
Retained earnings 323,500
Total liabilities and stockholders' equity $ 1,073,500

Case 4

Încărcat de

Informații document

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Case 4

Încărcat de

Drepturi de autor:

Formate disponibile

Mike's Surf and Sea

Raw Materials Budget

Direct Labor Budget

Manufacturing Overhead Budget

Selling and Administrative Expense Budget

Balance Sheet, 12/31/03

Liabilities and Stockholders' Equity

Accounts payable $ 165,000

Expected unit sales

Expected unit sales

Required unit production

Direct Materials Budget

Required unit production

Cost per pound

Direct Labor Budget

Total variable costs

Total fixed costs

Direct labor hours

Manufacturing overhead rate per direct labor hour

Selling and Administrative Expense Budget

Total variable expenses

Total fixed expenses

Total selling and administrative expenses

Total unit cost

Budgeted Income Statement

Schedule of Expected Cash Collections

Accounts receivable, 12/31/03

Schedule of Expected Cash Payments for Direct Materials

Accounts payable, 12/31/03

Beginning cash balance

Liabilities and Stockholders' Equity

S-ar putea să vă placă și