Hampton Freeze, Inc

Sales budget
For the year ended December 31,2

1
Budgeted sales in cases 10,000
selling price per case $20.00
Total sales $200,000

Percentage of sales collected in the period of the sale

Percentage of sales collected in the period after the sale

Schedule of expected cash collectio

Acccounts receivable, beginning balance1 $90,000
First quarter sales 140,000
Second quarter sales
Third quarter sales
Fourth quarter sales
Total Cash collections $230,000
mpton Freeze, Inc
Sales budget
r the year ended December 31,2008
Quarter
2 3 4 year
30,000 40,000 20,000 100,000
$20.00 $20.00 $20.00 $20.00
$600,000 $800,000 $400,000 $2,000,000

70%
30%

hedule of expected cash collections

$90,000
$60,000 200,000
420,000 180,000 600,000
560,000 $240,000 800,000
280,000 280,000
$480,000 $740,000 $520,000 1,970,000
 Hampton Freeze, inc.
Production Budget
For the Year Ended December 31, 2008
(in cases)

Quarter
1 2 3 4
Bugeted sales (schedule 1) 10,000 30,000 40,000 20,000
20% 20% 20%
Add desired ending inventory of finished g 6,000 8,000 4,000 3,000
Total needs 16,000 38,000 44,000 23,000

(Less) beginning inventory of finished goods 2,000 6,000 8,000 4,000

Required Production 14,000 32,000 36,000 19,000

Assumed

Year
1,00,000

3,000
103,000

2,000

101,000
 Hampton Freee, inc.z
Direct Materials Budget
For the Year Ended December 31, 2008

1 2
Required production in cases(schedule 2) 14,000 32,000
Raw materials needed per case(pounds) 15 15
Production needs(pounds) 210,000 480,000
10% 10%
Add desired ending inventory of raw materials1 48,000 54,000
Total needs 258,000 534,000
(Less) beginning inventory of raw materials 21,000 48,000
Raw materials to be purchased 237,000 486,000
Cost of raw materials per pounds $ 0. 20 $0.20
cost of raw materials to be purchased $47,400 97,200

percentage of purchases paid for in the period of the purchase

percentage of purchases paid for in the period after purchase

Schedule of Expected Cash Disbersments for Materials

Accounts payable, beginning balance2 $25,800

First Quarter purchases 3 23700 $23,700
Secound quarter purchases4 48,600
Third quarter purchases 5
Fourth quarter purchases 6
Total cash disbersments for materials $49,500 $72,300
er 31, 2008
Assumed
Quarter
3 4 Year
36,000 19,000 101,000
15 15 15
540,000 285,000 1,515,000
10%
28,500 22,500 22,500
508,500 307,500 1,537,500
54,000 28,500 21,000
514,500 279,000 1,516,500
$0.20 $0.20 $0.20
$102,900 $55,800 $303,300

50%
50%

25,800
47,400
$48,600 97,200
51,450 51,450 102,900
27,900 27,900
$100,050 $79,350 $301,200
 For the Year Ended December 3

1
Required production in cases (schedule 2) 14,000
Direct labour- hour per case 0.4
Total direct labour -hours needed 5,600
Direct labour cost per hour $15.00
Total direct labour cost* 84,000
 Hampton Freeze, inc.
Direct Labour Budget
the Year Ended December 31, 2008

Quarter
2 3 4 Year
32,000 36,000 19,000 101,000
0.4 0.4 0.4 0.4
12,800 14,400 7,600 40,400
$15.00 $15.00 $15.00 $15.00
$192,000 $216,000 $114,000 $606,000
 Manufacturaing Overhead Budge
For the Year Ended Dcember 31, 2

1
Budget direct labour labour-hours(schedule 4) 5,600
Variable manufacturing overhead rate $4.00
Variable manufacturing overhead $22,400
Fixed manufacturing overhead 60,600
Total manufacturing overhead 83,000
(Less) depreciation 15,000
cash disbersment for manufacturing overhead $68,000

Total manufacturing overhead (a)

Budgeted direct labour- hours (b)
Predetermined overhead rate for the year(a)/(b)
 Hampton Freez, inc.
nufacturaing Overhead Budget
the Year Ended Dcember 31, 2008
Quarter
2 3 4 Year
12,800 14,400 7,600 40,400
$4.00 $4.00 $4.00 $4.00
$51,200 $57,600 $30,400 $161,600
60,600 60,600 60,600 242,400
111,800 118,200 91,000 404,000
15,000 15,000 15,000 60,000
$96,800 $103,200 $76,000 $344,000

$404,000
40,400
$10.00
 Hampton Freez, Inc.
selling and administrative Expense Budget
For the Year Ended Dcember 31, 2008

1
Budgetd sales in cases(schedule 1) 10,000
Variable selling and administrative expense per case $1.80
Variable selling and administrative expense $18,000
Fixed selling and administrative expense:
Advertising 20,000
Executive salaries 55,000
Insurance 10,000
Property taxes 4,000
Depreciation 10,000
Total fixed selling and administrative expenses 99,000
Total selling and administrative expenses 117,000
(Less) depreciation 10,000
Cash disbersment for selling and administrative expenses $107,000
Expense Budget
er 31, 2008

Quarter
2 3 4 Year
30,000 40,000 20,000 100,000
$1.80 $1.80 $1.80 $1.80
$54,000 $72,000 $36,000 $180,000

20,000 20,000 20,000 80,000

55,000 55,000 55,000 220,000
10,000 10,000 10,000 40,000
4,000 4,000 4,000 16,000
10,000 10,000 10,000 40,000
99,000 99,000 99,000 396,000
153,000 171,000 135,000 576,000
10,000 10,000 10,000 40,000
$143,000 $161,000 $125,000 $536,000
 Schedule 1 2
Cash Balance , beginning $42,500 $36,000
Add reciepts:
Collections from customers 1 230,000 480,000
Total Cash Avalable 272,500 516,000
Less disbursements:
Direct materials 3 49500 72300
Direct Labor 4 84000 192000
Manufacturing Overhead 5 68000 96800
Selling and administrative 7 107000 143000
Equipment purchases 50000 40000
Dividends 8000 8000
Total disbusements 366500 552100
Excess ( -94000 -36100
Deficienc) of cash available over disbursement
Financing :
Borrowings (at the beginning of the quarters) 130000 70000
Repayments ( At the end of year)
Interest
Total Financing 130000 70000
Cash Balance , Ending $36,000 $33,900
Hampton Freeze, INC
Cash Budget
For the year ended December 31st, 2008

Quarter
3 4 year
$33,900 $165,650 $42,500

740,000 520,000 1,970,000

773,900 685,650 2,012,500

100050 79350 301200

216000 114000 606000
103200 76000 344000
161000 125000 536000
20000 20000 130000
8000 8000 32000
608250 422350 1949200
165650 263300 63300

200000
-200000 -200000
-21900 -21900
-221900 -21900
$165,650 $41,400 $41,400