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Schedule 6: Selling and Administrative Expenses Budget

January February March Total

Planned sales (Schedule 1 40,000 50,000 60,000 150,000

Variable selling and

administrative expenses

per unit $3.60 $3.60 $3.60 $3.60

Total variable expense $144,000 $180,000 $216,000 $540,000Fixed selling and

administrative expenses:

Salaries $50,000 $50,000 $50,000 $150,000

Depreciation 40,000 40,000 40,000 $120,000

Other 20,000 20,000 20,000 $60,000

Total fixed expenses $110,000 $110,000 $110,000 $330,000

Total selling and

administrative expenses $254,000 $290,000 $326,000 $870,000

Schedule 7: Ending Finished Goods Inventory Budget

Unit cost computation:

units x cost

Direct materials: Metal 10 $8 = 80.00Components 6 $5 = 30.00

hours x rate

Direct labor: 3 $14.25 = 42.75

Overhead: hours x rate

Variable 3 $2.40 = 7.20

Fixed 3 $2.04 = 6.11

Total unit cost $166.06

Finished goods inventory units x unit cost

48,000 $166.06 = $7,970,805

Schedule 8: Cost of Goods Sold Budget

Direct materials used (Schedule 3)units x unit cost

Metal 1,660,000 $8.00 = 13,280,000

Components 996,000 $5.00 = 4,980,000 $18,260,000

Direct labor used (Schedule 4) 7,096,500

Overhead (Schedule 5) 2,209,200

Budgeted manufacturing costs $27,565,700

Add: Beginning finished goods 5,313,920

Goods available for sale $32,879,620

Less: Ending finished goods (Schedule 7) 7,970,805

Budgeted cost of goods sold $24,908,815

Schedule 9: Budgeted Income Statement

Sales (Schedule 1) $30,750,000Less:Cost of goods sold (Schedule 8) 24,908,815

Gross margin $5,841,185

Less: Selling & admin. expenses (Schedule 6 870,000$

Income before income taxes $4,971,185

Schedule 10: Cash Budget

January February March Total

Beginning balance $400,000 $50,000 $284,900 $400,000

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Cash receipts 8,200,000 10,250,000 12,300,000 30,750,000

Cash available $8,600,000 $10,300,000 $12,584,900 $31,150,000

Less:

Disbursements:

Purchases $5,830,000 $6,490,000 $6,688,000 $19,008,000

Direct labor 2,052,000 2,479,500 2,565,000 7,096,500

Overhead 683,600 755,600 770,000 2,209,200

Selling & administrative 254,000 290,000 326,000 870,000Total $8,819,600 $10,015,100 $10,349,000 $29,183,700

Tentative ending balance ($219,600) $284,900 $2,235,900 $1,966,300

Borrowed 269,600 0 0 0

Repaid -269,600 -269,600

Interest paid 0 0 -8,088 -8,088

Ending balance $50,000 $284,900 $1,958,212 $1,958,212

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the right of the asterisk.

April

60000

49600

109600

48,000

61,600616000 369600

Components Metal Components

60,000 166,000 166,000

6 10 6

360,000 1,660,000 996,000

184,800 308,000 184,800

544,800 1,968,000 1,180,800

180,000 240,000 144,000

364,800 1,728,000 1,036,800$5 $8 $5

$1,824,000 $13,824,000 $5,184,000

e: ASST Djatun

arch Total

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