This document contains sales, production, materials, labor, overhead, selling and administrative expense, and cash budgets for a company across 4 quarters. It also includes income statements and balance sheets. Key details include: - Quarterly sales revenue is projected to be $372,000 for the year. - Required production for the year is forecasted at 16,250 units to meet sales and ending inventory targets. - Materials, labor, overhead and other expenses are budgeted based on projected production levels. - The cash budget tracks projected cash receipts from sales and cash disbursements for expenses. - Income statements and balance sheets are also provided to summarize projected profitability and financial position.

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Sales Budget Q1 Q2 Q3 Q4 Total
Sales in Units 3,000 4,200 3,800 4,500 15,500
x selling price 24 24 24 24 24
Total sales revenue 72,000 100,800 91,200 108,000 372,000
Cash receipts Q1 Q2 Q3 Q4 Total
Accounts Receivable, Beginning Balance 6,000 0 0 0 6,000
First quarter sales 43,200 28,800 0 0 72,000
Second quarter sales 0 60,480 40,320 0 100,800
Third quarter sales 0 0 54,720 36,480 91,200
Fourth quarter sales 0 0 0 64,800 64,800
Total 49,200 89,280 95,040 101,280 334,800
Production Budget in Units Q1 Q2 Q3 Q4 Total Production Budget in Units Q1 2007
Sales in units 3,000 4,200 3,800 4,500 15,500 Sales Units 4000
plus desired Ending Inentory- FG 1,050 950 1,125 1,000 1,000 Plus Desired Ending Inventory - FG 1100
Less Beginning Inventory- FG 250 1,050 950 1,125 250 Less Beginning Inventory - FG 1,000
Required production 3,800 4,100 3,975 4,375 16,250 Required Production 4,100
Direct Materials Purchases Q1 Q2 Q3 Q4 Total Direct Materials Purchases Q1 2007
Required production 3,800 4,100 3,975 4,375 16,250 Required Production 4,100
Amt of Direct Materials per unit 5 5 5 5 5 Amt of DM Per Unit 5 Amt of DM per unit 5
Direct Materials needs for production 19,000 20,500 19,875 21,875 81,250 DM needs for Production 20500
plus desired Ending Inventory-DM 3,075 2,981 3,281 3,075 3,075 plus desired ending inventory - DM
less Beginning Inventory - DM 1,000 3,075 2,981 3,281 1,000 Beginning Inv (DM) 1000 less Beginning Inventory - DM
DM to be purchased 21,075 20,406 20,175 21,669 83,325 DM to be purchased
cost per per unit $0.50 $0.50 $0.50 $0.50 $0.50 Cost Per Unit($ lb.) 0.5 cost per unit
Total DM purchase cost 10,538 10,203 10,088 10,834 41,663 Total DM purchase cost
Cash Disbursement for Materials Purchases Budget Q1 Q2 Q3 Q4 Total
Accounts Payable, Beginning Balance 2,580 0 0 0 2,580 AP BeginningB $2,580
First quarter purchase 6,323 4,215 0 0 10,538
Second quarter purchase 0 6,122 4,081 0 10,203
Third quarter purchase 0 0 6,053 4,035 10,088
Fourth quarter purchase 0 0 0 6,501 6,501
Total 8,903 10,337 10,134 10,536 39,909
Direct Labor Budget Q1 Q2 Q3 Q4 Total
Units to be produced 3,800 4,100 3,975 4,375 16,250
DL hours needed per unit 0.7 0.7 0.7 0.7 0.7 DL hrs per unit 0.7
DL hours needed 2,660 2,870 2,783 3,063 11,375
cost per hour $5.50 $5.50 $5.50 $5.50 $5.50 cost per hour $5.50
Total budgeted DL 14,630 15,785 15,304 16,844 62,563
Overhead Budget Q1 Q2 Q3 Q4 Total
DL hours needed 2,660 2,870 2,783 3,063 11,375
Variable overhead rate /hour $3.00 $3.00 $3.00 $3.00 $3.00 VOH per DLH $3.00
Budgeted variable overhead $ 7,980 $ 8,610 $ 8,348 $ 9,188 $ 34,125
Budgeted fixed overhead $ 7,400 $ 7,400 $ 7,400 $ 7,400 $ 29,600 Fixed OH per Q $7,400
Total overhead $ 15,380 $ 16,010 $ 15,748 $ 16,588 $ 63,725
Less Depreciation $ 1,400 $ 1,400 $ 1,400 $ 1,400 $ 5,600 Depreciation $1,400
Cash disbursement for overhead $ 13,980 $ 14,610 $ 14,348 $ 15,188 $ 58,125
Selling and Administrative Expense Budget Q1 Q2 Q3 Q4 Total
Units sold 3,000 4,200 3,800 4,500 15,500
Var S&A rate $2 $2 $2 $2 $2 Var S+A Rate per unit sold $2
Budgeted variable S&A $ 6,000 $ 8,400 $ 7,600 $ 9,000 $ 31,000
Budgted fixed S&A $ 12,000 $ 12,000 $ 12,000 $ 12,000 $ 48,000 Fixed S+A Rate $12,000
Total S&A $ 18,000 $ 20,400 $ 19,600 $ 21,000 $ 79,000
Less Depreciation $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 4,000 Depreciation per Q $1,000
Cash disbursement for S&A $ 17,000 $ 19,400 $ 18,600 $ 20,000 $ 75,000
Cash Budget Q1 Q2 Q3 Q4 Total
Beg Bal. Cash $ 5,000 $ 4,188 $ 19,236 $ 54,391 $ 5,000 Beginning Balance Cash $5,000
Cash Receipts $ 49,200 $ 89,280 $ 95,040 $ 101,280 $ 334,800
Cash Available $ 54,200 $ 93,468 $ 114,276 $ 155,671 $ 339,800
Cash disbursements
Materials $ 8,903 $ 10,337 $ 10,134 $ 10,536 $ 39,909
Labor $ 14,630 $ 15,785 $ 15,304 $ 16,844 $ 62,563
Overhead $ 13,980 $ 14,610 $ 14,348 $ 15,188 $ 58,125
S&A $ 17,000 $ 19,400 $ 18,600 $ 20,000 $ 75,000
Dividends $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 6,000 Quarterly Dividends $1,500
Purchase equip $ 4,000 $ 2,000 $ - $ - $ 6,000 Equipment Purchases $4,000 $2,000
Total disbursements $ 60,013 $ 63,632 $ 59,885 $ 64,067 $ 247,596
Ending cash balance ($5,813) $29,836 $54,391 $91,604 $92,204
Repay $ 10,000 $ - $ - $ 10,000
Interest $ 600 $ - $ - $ 600
Borrowing $ 10,000 $ - $ - $ - $ 10,000
Cash at end of period $ 4,188 $ 19,236 $ 54,391 $ 91,604 $ 91,604 Minimum Cash Balance $4,000
Budgeted income statement Cost Per Unit
Sales $ 372,000 DM 2.5
less COGS $ 159,141 DL $3.85
Gross margin $ 212,859 OH $ 3.92
Selling and admin $ 79,000 Total per unit $ 10.27
Interest expense $ 600
Net income before tax $ 133,259
Budgeted Balance sheet
Cash $ 91,604
Accounts Receivable $ 43,200
Inventory: raw materials $ 1,538
Inventory: Finished Goods $ 10,272
Land $ 8,000 Land $8,000
Building and Equip $ 81,000 Buildings and Equipment $75,000
Accum. Deprec. $ 38,800 Accumulated Depreciation $29,200
Total Assets $ 196,813
Acct Payable $ 4,334
Capital stock $ 19,000 Capital Stock $19,000
Retained Earnings $ 173,479 Retained Earnings $46,220
Total Liab and Stockholders $ 196,813