Jody Warren-Bowie Introduction to Management Accounting Project - Premium Supplies Limited

7/29/2019 Jody Warren-Bowie Introduction to Management Accounting Project - Premium Supplies Limited

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PREMIUM SUPP

SALES BUDGET

WINDOWS Q4-2011 Q1-2012

Expected sales in units 50000 51000

Unit selling price $1,000 $1,000

Total Sales $50,000,000 $51,000,000

DOORS

Expected sales in units 20000 21000

Unit selling price $5,000 $5,000

Total Sales $100,000,000 $105,000,000

GRAND TOTAL $150,000,000 $156,000,000

SCHEDULE OF CASH COLLECTION FROM CUSTOMERS

Q4-2011

Cash Sales 50% $75,000,000

Sales on Credit 50% $75,000,000

Q1-2012

RECEIPTS FROM

DEBTORS:

received:

In the month

of sale 80% $62,400,000One month

after sale 20% $15,000,000

Cash Sales $78,000,000

TOTAL SALES RECEIPTS $155,400,000

PRODUCTION BUD


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Windows

Q4-2011 Q1-2012

Bugeted Sales 50000 51000

in units

Desired 10% 5000 5100

ending

inventory

Total units needed 55000 56100

Beginning inventory

in units ------ 5000Units to be produced 55000 51100

DOORS

Q4-2011 Q1-2012

Bugeted Sales 20000 21000

in units

Desired 10% 2000 2100

ending

inventory

Total units needed 22000 23100

Beginning inventory

in units ---- 2000

Units to be produced 22000 21100

PRODUCTION BUDGET FOR DOORS(Q1 OF 2013)


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Budgeted Sales 25000

in units

Desired 10% 2500

ending inv

Total units needed 27500

Beginning inventory

in units 2400

Units to be produced 25100

PRODUCTION BUDGET FOR WINDOWS(Q1 OF 2013)

Budgeted Sales 55000

in units

Desired 10% 5500

ending inv

Total units needed 60500

Beginning inventory 5400

in units



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DIRECT MATERIAL BUDGET FOR WOOD

WINDOWS Q4-2011 Q1-2012

Units to be 50100 51100

Produced

Material 0.5 0.5

Requirent

Quantity of 25,050.00$ 25550DM needed

for production

Desired 10% 2505 2555

ending inv

Total Quantity 27555 28105

of DM needed

Beginning inv 2455 2505

Quantity of 25100 25600

DM to be

purchased

Price per unit $150 $150

Purchases 3,765,000.00$ 3,840,000.00$


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DOORS Q4-2011 Q1-2012

Units to be 20100 21100

Produced

Material 10 10

Requirent


DM needed

for production

Desiredending inv 10% 20100 21100


of DM needed


Quantity of

DM to be 202000 212000

purchased


Purchases $30,300,000 $31,800,000

GRAND PURCHASES 34,065,000.00$ 35,640,000.00$

FOR WOOD


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DIRECT MATERIAL FOR GLASS

Windows Q4-2011 Q1-2012

Units to be 50100 51100

Produced

Material 1 1

Requirent


DM neededfor production

Desired 10% 5010 5110

ending inv


of DM needed



DM to be

purchased


Purchases $12,550,000 $12,800,000


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DOORS Q4-2011 Q1-2012

Units to be 20100 21100

Produced

Material 0.2 0.2

Requirent


DM needed

for production

Desired 10% 402 422

ending invTotal Quantity 4422 4642

of DM needed



DM to be

purchased


Purchases $1,010,000 $1,060,000

GRAND PURCHASES $13,560,000 $13,860,000

FOR GLASS

DIRECT LABOUR BUDGETQ1-2012


Labour hour per unit 0.1

Total labour hour 7220

needed for production

Standard Labour hour $400

per hour

TOTAL LABOUR COST 2,888,000.00$


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SCHEDULE OF CASH DISBURSEMENT TO SUPPLIERS FOR DIRECT MATERIALSQ1-2012 Q2-2012

Purchases $47,625,000.00 49,500,000.00$ 51,375,000.00$

Payments to

creditors:

In the month 70% 34,650,000.00$ 35,962,500.00$

of purchase

one month 30% 14,287,500.00$ 14,850,000.00$

after purchase

TOTAL PAYMENT 48,937,500.00$ 50,812,500.00$

Q1-2012 Q2-2012 Q3-2012

Total labour hours needed 7220 7420 7620

for production

Variable overhead rate

per unit 200 200 200

Total Variable 1,444,000.00$ 1,484,000.00$ 1,524,000.00$

Fixed overhead production 2,700,000.00$ 2,750,000.00$ 2,910,000.00$

Total Manufacturing Overhead 4,144,000.00$ 4,234,000.00$ 4,434,000.00$

Q1 Q2 Q3

RECEIPTS

From Customers $155,400,000 $161,400,000 $167,400,000

TOTAL RECEIPTS $155,400,000 $161,400,000 $167,400,000

PAYMENTS

To suppliers of materials 48,937,500.00$ 50,812,500.00$ 52,687,500.00$

MANUFACTURING BUDGET

CASH BUDGET


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Selling&Administrative expenses 9,535,841.12$ 9,758,317.76$ 9,980,794.39$

Labour Cost $2,888,000.00 $2,968,000.00 $3,048,000.00

Production Overhead 3,744,000.00$ 3,834,000.00$ 4,034,000.00$

Dividends 2,500,000.00$ 2,500,000.00$ 2,500,000.00$

TOTAL PAYMENTS 67,605,341.12$ 69,872,817.76$ 72,250,294.39$

NET INFLOW/(OUTFLOW $87,794,658.88 $91,527,182.24 $95,149,705.61

OPENING CASH BALANCE 10,695,000.00$ 105,614,658.88$ 194,266,841.12$

EXCESS CASH (DEFICIENCY) $98,489,658.88 $197,141,841.12 $289,416,546.73

FINANCINGBorrowings 10,000,000.00$

Less Repayments 2,500,000.00$ 2,500,000.00$ 2,500,000.00$

Less Interest Payments 375,000.00$ 375,000.00$ 375,000.00$

Ending Cash Balance 105,614,658.88$ 194,266,841.12$ 286,541,546.73$

Opening stock of raw materials 4,931,250.00$

Purchases 209,250,000.00$

Goods Available 214,181,250.00$

Less Closing Stock $5,493,750.00

Raw Materials Consumed 208,687,500.00$

Direct Labour 12,032,000.00$

Manufacturing Overhead 17,146,000.00$

Total Manufacturing Cost 237,865,500.00$

Add Opening Finished Goods 5,344,500.00$

243,210,000.00$

Less Closing Finished Goods 5,943,000.00$

Cost of Goods Sold 237,267,000.00$

COST OF GOODS MANUFACTURED BUDGET

BUDGETED INCOME STATEMENT


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Sales $660,000,000.00

Less Cost of Goods Sold 237,267,000.00$

Gross Profit $422,733,000.00

Less Expenses

Selling and Administrative Expenses 39,478,224.30$

Interest Expense 1,500,000.00$ 40,978,224.30$

Income Before Taxes $381,754,775.70

Tax 33.33% 127,238,866.74$

Profit After Tax $254,515,908.96

Net Income $254,515,908.96

Less Dividends 10,000,000.00$

Retained Earnings for the Year 244,515,908.96$

Add Retained Earnings b/f 62,557,580.00$

Retained Earnings c/d 307,073,488.96$

Non Current Assets

Plant and Equipment 105,500,000.00$

Depreciation 1,600,000.00$Total Current Asset 103,900,000.00$

Current Assets

Cash 382,738,775.70$

Finished Goods 5,943,000.00$

Raw Materials 5,493,750.00$

Accounts Receivable $17,400,000.00 411,575,525.70$

Total Assets 515,475,525.70$

Liabilities and Equity

Accounts Payable 16,537,500.00$

Retained Earnings 307,073,488.96$

BUDGETED BALANCE SHEET

STATEMENT OF RETAINED EARNINGS


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Common Stock 64,625,670.00$

Taxation Payable 127,238,866.74$

515,475,525.70$


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IES LIMITED

Q2-2012 Q3-2012 Q4-2012 FY-2012

52000 53000 54000 210000

$1,000 $1,000 $1,000 $1,000

$52,000,000 $53,000,000 $54,000,000 $210,000,000

22000 23000 24000 90000

$5,000 $5,000 $5,000 $5,000

$110,000,000 $115,000,000 $120,000,000 $450,000,000

$162,000,000 $168,000,000 $174,000,000 $660,000,000

Q1-2012 Q2-2012 Q3-2012 Q4-2012 FY-2012

$78,000,000 $81,000,000 $84,000,000 $87,000,000 $330,000,000

$78,000,000 $81,000,000 $84,000,000 $87,000,000 $330,000,000

Q2-2012 Q3-2012 Q4-2012 FY-2012

$64,800,000 $67,200,000 $69,600,000 $264,000,000

$15,600,000 $16,200,000 $16,800,000 $63,600,000

$81,000,000 $84,000,000 $87,000,000 $330,000,000

$161,400,000 $167,400,000 $173,400,000 $657,600,000

ET


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Q2-2012 Q3-2012 Q4-2012 FY-2012

52000 53000 54000 210000

5200 5300 5400 5400

57200 58300 59400 215400

5100 5200 5300 500052100 53100 54100 210400

Q2-2012 Q3-2012 Q4-2012 FY-2012

22000 23000 24000 90000

2200 2300 2400 2400

24200 25300 26400 92400

2100 2200 2300 2000

22100 23100 24100 90400


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Q2-2012 Q3-2012 Q4-2012 Q1-2013 FY-2012

52100 53100 54100 55100 210400

0.5 0.5 0.5 0.5 0.5

26050 26550 27050 27550 105200

2605 2655 2705 2755 2705

28655 29205 29755 30305 107905

2555 2605 2655 2705 2505

26100 26600 27100 27600 105400

$150 $150 $150 $150 $150

3,915,000.00$ 3,990,000.00$ 4,065,000.00$ 4,140,000.00$ 15,810,000.00$


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Q2-2012 Q3-2012 Q4-2012 Q1-2013 FY-2012

22100 23100 24100 25100 90400

10 10 10 10 10

221000 231000 241000 251000 904000

22100 23100 24100 25100 24100

243100 254100 265100 276100 928100

21100 22100 23100 24100 20100

222000 232000 242000 252000 908000

$150 $150 $150 $150 $150

$33,300,000 $34,800,000 $36,300,000 $37,800,000 $136,200,000

37,215,000.00$ 38,790,000.00$ 40,365,000.00$ 41,940,000.00$ 152,010,000.00$


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Q2-2012 Q3-2012 Q4-2012 Q1-2013 FY-2012

52100 53100 54100 55100 210400

1 1 1 1 1

52100 53100 54100 55100 210400

5210 5310 5410 5510 5410

57310 58410 59510 60610 215810

5110 5210 5310 5410 5010

52200 53200 54200 55200 210800

$250 $250 $250 $250 $250

$13,050,000 $13,300,000 $13,550,000 $13,800,000 $52,700,000


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Q2-2012 Q3-2012 Q4-2012 Q1-2013 FY-2012

22100 23100 24100 25100 90400

0.2 0.2 0.2 0.2 0.2

4420 4620 4820 5020 18080

442 462 482 502 482

4862 5082 5302 5522 18562

422 442 462 482 402

4440 4640 4840 5040 18160

$250 $250 $250 $250 $250

$1,110,000 $1,160,000 $1,210,000 $1,260,000 $4,540,000

$14,160,000 $14,460,000 $14,760,000 $15,060,000 $57,240,000

Q2-2012 Q3-2012 Q4-2012 FY-2012

74200 76200 78200 300800

0.1 0.1 0.1 0.1

7420 7620 7820 30080

$400 $400 $400 $400

2,968,000.00$ 3,048,000.00$ 3,128,000.00$ 12,032,000.00$


19/24

Q3-2012 Q4-2012 FY-2012

53,250,000.00$ 55,125,000.00$ 209,250,000.00$

37,275,000.00$ 38,587,500.00$ 146,475,000.00$

15,412,500.00$ 15,975,000.00$ 60,525,000.00$

52,687,500.00$ 54,562,500.00$ 207,000,000.00$

Q4 FY-2012

7820 30080

200 200

1,564,000.00$ 6,016,000.00$

2,770,000.00$ 11,130,000.00$

4,334,000.00$ 17,146,000.00$

Q4 TOTAL

$173,400,000 $657,600,000

$173,400,000 $657,600,000

54,562,500.00$ 207,000,000.00$


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10,203,271.03$ 39,478,224.30$

$3,128,000.00 12,032,000.00$

3,934,000.00$ 15,546,000.00$

2,500,000.00$ 10,000,000.00$

74,327,771.03$ 284,056,224.30$

$99,072,228.97 $373,543,775.70

286,541,546.73$ 10,695,000.00$

$385,613,775.70 $384,238,775.70

10,000,000.00$

2,500,000.00$ 10,000,000.00$

375,000.00$ 1,500,000.00$

382,738,775.70$ 382,738,775.70$


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Years Quarters

2010 1

2

3

4

2011 1

2

3

Q4* Q1 Q2

Variable:

Total expected sales units 70,000 72,000 74,000

rate per unit 111.24$ 111.24$ 111.24$

Total Variable 7,786,682.24$ 8,009,158.88$ 8,231,635.51$

Fixed Cost: 1,526,682.24$ 1,526,682.24$ 1,526,682.24$Total Selling and administrative co 9,313,364.49$ 9,535,841.12$ 9,758,317.76$

Selling and Administrative BudgetWindows & Doors Units

50,000

65,000

38,000

65,000

55,000

48,000

45,000


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Q3 Q4 TOTAL

76,000 78,000 300,000

111.24$ 111.24$ 111.24$

8,454,112.15$ 8,676,588.79$ 33,371,495.33$

1,526,682.24$ 1,526,682.24$ 6,106,728.97$9,980,794.39$ 10,203,271.03$ 39,478,224.30$

Selling and Administrative Cost

6,800,000.00

8,800,000.00

fixed cost =

5,700,000.00

8,600,000.00

8,000,000.00

Variable cost per unit=

cost function = $1,526,66,800,000.00

6,700,000.00


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111.24$

1,526,682.24$

2.24 +$111.24x

Jody Warren-Bowie Introduction to Management Accounting Project - Premium Supplies Limited

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