Professional Documents
Culture Documents
the company is preparing 2014 master budget with the following data:
task: prepare master budget for each month of the first quarter of 2014 and pro forma FS as of the en
a. PROJECTED DEC 31, 2013 BALANCE SHEET:
ASSETS
CASH
ACCOUNTS RECEIVABLE
5,080.00
26,500.00
800.00
2,104.00
1,200.00
300,000.00
ACCUM. DEPRECIATION
-20,000.00
TOTAL ASSETS
280,000.00
315,684.00
b. Accounts Receivable Balance at 12/31/13 represents the remaining balances of November and Dec
Sales were $70,000 and $ 65,000, respetively, in those two months.
c. Estimated sales in gallons of dye for January through May 2014 are as follows:
January
8,000.00
February
10,000.00
March
15,000.00
April
12,000.00
May
11,000.00
each gallon of dye sells for
12.00
e. Each gallon of dye has the following standard quantities and costs for direct material and direct lab
1.2 gallons of direct material (some
evaporation occurs during processing) x
0.80 per gallon
0.96
0.5 hour of direct labor x $ 6 per hour
3.00
f. Variable overhead (VOH) is applied to the product on a a mchine-hour basis.
Processing on gallon of dye takes five hours of machine time
g. There is no beginning Work in Process Inventory. All WIP is completed in the period in which it is sta
Raw Material Inventory at the beginning of the year consists of 1,000 gallons of direct material at a s
There are 400 gallons of dye in Finished Goods Inventory at the beginning of the year carried at a sta
Direct material
0.96
direc labor
3.00
VOH
0.30
FOH
1.00
5.26
h. Accounts Payable relates solely to raw material and is paid
in the month of purchase
60%
in the month after purch
40%
no discounts are received for prompt payment
i. Dividend will be pad in January 2014
j. a new piece of equipment will be purchased on March 1, 2014
cost
9,000.00
payment in march
80%
payment in april
20%
useful life
3 yrs
no salvage value
will be place into service on march 1
k. Notes payable interest rate
This situation will not be true at the beginning of 2014 due to miscalculation in sales for December
the ending inventory of Raw materials also should be 5% of next month's needs
n. Selling and administrative costs per month are as follows:
salaries
25,000.00
rent
7,000.00
utilities
o. the company's tax rate
800.00
32,800.00
35%
llowing data:
arter of 2014 and pro forma FS as of the end of the first quarter for 2014.
25,000.00
2,148.00
DIVIDENDS PAYABLE
TOTAL LIABILITIES
COMMON STOCK
PAID-IN-CAPITAL
100,000.00
50,000.00
RETAINED EARNINGS
128,536.00
sh discounts
and costs for direct material and direct labor:
mchine-hour basis.
10,000.00
37,148.00
278,536.00
315,684.00
nov sale
dec sale
250.00
3,300.00
21,700.00
4,700.00
15.67
70,000.00
65,000.00
7,000.00
13,000.00
6,500.00
217.00
JANUARY
10,000
250
32,800
FEBRUARY
###
217
###
32,800
MARCH
7,200
16
32,800
JANUARY
7,000
13,000
67,200
87,200
A/R balance , end:
FEBRUARY
6,500
19,200
84,000
###
109,700
MARCH
9,600
24,000
126,000
159,600
66,000.00
JANUARY
2,148
4,481
6,629
A/P balance , end:
FEBRUARY
2,987
6,036
###
9,024
5,647
MARCH
4,024
8,470
12,494
ustments:
TOTAL-1st Quarter
10,000 cash payment
7,200 80% cash pmt
467
16
98,400
Kalogridis Corp
Cash Budget
For the First Quarter of 2014
Beginning cash balance
Add: Cash collection
Cash available
JANUARY
5,080
87,200
92,280
FEBRUARY
5,071
109,700
114,771
Cash Disbursements:
Purchases
DL
VOH
FOH
Selling & Admin.
Equipment
Total
6,629
24,300
2,430
7,500
32,800
73,659
9,024
30,750
3,075
7,500
32,800
###
83,149
Cash excess(deficiency)
Min. desired cash balance
Cash available
18,621
5,000
13,621
31,623
5,000
26,623
Financing:
borrowing (repayment)
issue (reacquire) C/S
sell(acquire)plan assets
receive(pay) dividends
receive(pay) interest
investment
total
ending balance
3,300 -
21,700
10,000
250 - 13,550 5,071
217
4,700
26,617
5,006
2014
MARCH
5,006
159,600
164,606
12,494
44,550
4,455
7,500
32,800
7,200
108,999
5,080
356,500
361,580
28,147
99,600
9,960
22,500
98,400
7,200
265,807
55,606
5,000
50,606
95,773
5,000
90,773
TOTAL
25,000
10,000
451
55,300
90,751
5,022
BUDGET
PREPARED BY
SALES BUDGET
Sales/Marketing Department
PRODUCTION BUDGET
PURCHASE BUDGET
Purchasing Dept
DIRECT LABOR BUDGET
VOH BUDGET
FOH BUDGET
CASH BUDGET
COST OF GOODS MANUFACTURED
Budgeted Income Statement
Budgeted Balance Sheet
OTHERS
DATA FROM PROBLEM #61
SOLUTION STRATEGIES
units of sales x SP per unit = dollar sales
unit sales + unit desired ending inventory - unit in beginning inventory = units to be produced
OTHER NOTES
demand driven, prepared in both units and dollars
for manufacturing only, prepared after sales budget; sales info is combined with beg and end FG inven
for direct and indirect materials
Sales Budget for the Three Months and Quarter Ending March 31, 2014
JANUARY
FEBRUARY
MARCH
Sales in units
8,000.00
10,000.00
15,000.00
Selling price per unit
12.00
12.00
12.00
Sales in dollars
96,000.00
120,000.00
180,000.00
TOTAL-1st Quarter
33,000.00
12.00
APRIL
12,000.00
12.00
396,000.00
144,000.00
Production Budget for the Three Months and Quarter Ending March 31, 2014
JANUARY
FEBRUARY
Sales in units (from sales budget)
8,000.00
10,000.00
Add: Desired ending inventory
500.00
750.00
Total neeeded
8,500.00
10,750.00
Less: Beginning inventory
400.00
500.00
Units to be produced
8,100.00
10,250.00
MARCH
15,000.00
600.00
15,600.00
750.00
14,850.00
Queen-A:
g
so if 400 ending inventory last decem , which will be the
for january, then 400/8000 is 5% of sales , thus for feb 5%
so on
TOTAL-1st Quarter
33,000.00
600.00
33,600.00
400.00
33,200.00
APRIL
12,000.00
550.00 Ending Finished Goods Inventory should include 5% of the next month's
12,550.00
600.00
11,950.00
Purchases Budget for the Three Months and Quarter Ending March 31, 2014
JANUARY
FEBRUARY
Units to be produced
8,100
10,250
Multiply: Gallon needed per unit
1.20
###
Total gallons needed
9,720
12,300
Add: Desired Ending inventory
615
891
Less: Beginning Inventory
1,000
615
Total gallons to purchase
9,335
12,576
Multiply: Price per gallon
0.80
###
Total cost of purchases
7,468
10,061
MARCH
14,850
1.20
17,820
717
891
17,646
0.80
14,117
TOTAL-1st Quarter
33,200
1.20
39,840
717
1,000
39,557
0.80
31,646
APRIL
11,950
1
14,340
Direct Labor Budget for the Three Months and Quarter Ending March 31, 2014
JANUARY
FEBRUARY
Units to be produced
8,100.00
10,250.00
Multiply: direct labor hour per unit
0.50
###
Total Direct Labor hours
4,050.00
5,125.00
Multiply: direct labor rate
6.00
###
Total Direct Labor cost
24,300.00
30,750.00
31, 2014
MARCH
14,850.00
0.50
7,425.00
6.00
44,550.00
TOTAL-1st Quarter
33,200.00
0.50 Standard hours allowed
16,600.00 Total hours allowed
6.00 Per hour DL cost
99,600.00
Variable Overhead Budget for the Three Months and Quarter Ending March 31, 2014
JANUARY
FEBRUARY
MARCH
Units to be produced
8,100.00
10,250.00
14,850.00
Multiply: machine hour per unit
5
###
5
Total machine hours
40,500.00
51,250.00
74,250.00
Multiply: variable overhead rate
0.06
###
0.06
Total VOH cost
2,430.00
3,075.00
4,455.00
TOTAL-1st Quarter
33,200.00
5
166,000.00
0.06
9,960.00
Fixed Overhead Budget for the Three Months and Quarter Ending March 31, 2014
JANUARY
FEBRUARY
Salaries
6,500.00
6,500.00
Utilties
1,000.00
1,000.00
Insurance
200.00
200.00
Depreciation
2,300.00
2,300.00
Total FOH cost
cash disbursements exc. Depr. And ins.
10,000.00
10,000.00
7,500.00
7,500.00
31, 2014
MARCH
6,500.00
1,000.00
200.00
2,550.00
TOTAL-1st Quarter
19,500.00
3,000.00
600.00
7,150.00
10,250.00
30,250.00
7,500.00
Queen-A:
increase in depreciation
expense due to newly
purchased equipment and
right away put in use in march
1
9,000/3= 3,000 annual
3,000/12= 250 monthly
Kalogridis Corp
Budgeted Schedule of Cost of Goods Manufactured
For the First Quarter of 2014
WIP, beginning
Raw material used:
Beginning
PurchaseS
Available for use
Ending inventory
Cost of raw material used
Direct labor
VOH
FOH
Total mfg. costs in process
WIP, ending
Cost of goods manufactured
800
31,646
32,446
574
31,872
99,600
9,960
30,250
Manufactured
014
-
171,682
171,682
171,682
Kalogridis Corp
Budgeted Income Statement
For the First Quarter of 2014
Sales
COGS:
396,000
FG inventory, beginning
Add: CGM
CGAS
2,104
171,682
173,786
3,156
170,630
225,370
98,400
126,970
467
16
451
126,519
44,282
82,237
ent
014
Kalogridis Corp
Budgeted Balance Sheet
March 31,2014
ASSETS
CASH
ACCOUNTS RECEIVABLE
RAW MATERIAL INVENTORY
FINISHED GOODS INVENTORY
PREPAID INSURANCE
INVESTMENT
BLDG. & MACHINERY
ACCUM. DEPRECIATION
TOTAL ASSETS
5,022
66,000
574
3,156
600
55,300
-
309,000
27,150
281,850
412,501
100,000
50,000
210,773
1,800
5,647
44,282
51,729
360,773
412,502