MUH NUR ZIQRA 1891011034

8–24
Briggs Manufacturing
For the Quarter Ended March 31,
1. Schedule 1: Sales Budget

   January    February     March              Total     

Units 40,000 50,000
60,000 150,000
Selling price      $215          $215            $215            $215
Sales $8,600,000 $10,750,000 $12,900,000 $32,250,000

2. Schedule 2: Production Budget

January February   March    Total  
Sales (Schedule 1) 40,000 50,000 60,000 150,000
Desired ending inventory 40,000 48,000 48,000 48,000
Total needs 80,000 98,000 108,000 198,000
Less: Beginning inventory 32,000 40,000 48,000 32,000
Units to be produced 48,000 58,000 60,000 166,000
3. Schedule 3: Direct Materials Purchases Budget
               January                             February              
     Metal     Components     Metal      Components
Units to be produced

(Schedule 2) 48,000 48,000 58,000 58,000

Direct materials
per unit (lbs.)               10             6               10             6

Production needs 480,000 288,000 580,000 348,000

Desired ending
inventory 250,000 150,000 300,000 180,000
Total needs 730,000 438,000 880,000 528,000
Less: Beginning
inventory 200,000 120,000 250,000 150,000
Direct materials to
be purchased 530,000 318,000 630,000 378,000
Cost per pound               $8           $2               $8           $2
Total cost $4,240,000 $636,000 $5,040,000 $756,000

(Schedule 3 continued)
               Mar                   Total                    
    Metal      ch                 
Components      Metal       Components
Units to be produced
 (Schedule 2) 60,000 60,000 166,000 166,000
Direct materials
per unit (lbs.)               10             6                 10                 6

Production needs 600,000 360,000 1,660,000 996,000

Desired ending
inventory 300,000 180,000 300,000 180,000
Total needs 900,000 540,000 1,960,000 1,176,000
Less: Beginning
inventory 300,000 180,000 200,000 120,000
Direct materials to
be purchased 600,000 360,000 1,760,000 1,056,000
Cost per pound               $8           $2                 $8               $2
Total cost $4,800,000 $720,000 $14,080,000 $2,112,000

4. Schedule 4: Direct Labor Budget

   January  February      March          Total     
Units to be produced
(Schedule 2) 48,000 58,000 60,000 166,000
Direct labor time
per unit (hours)                 4                 4                 4                 4

Total hours needed 192,000 232,000 240,000 664,000

Cost per hour         $9.25         $9.25         $9.25         $9.25
Total cost $1,776,000 $2,146,000 $2,220,000 $6,142,000

5. Schedule 5: Overhead Budget

 January   February     March        Total     
Budgeted direct labor
hours (Schedule 4) 192,000 232,000 240,000 664,000
Variable overhead rate     $3.40         $3.40         $3.40         $3.40
Budgeted variable overhead $652,800 $ 788,800 $ 816,000 $2,257,600
Budgeted fixed overhead 338,000 338,000 338,000 1,014,000
Total overhead $990,800 $1,126,800 $1,154,000 $3,271,600

6. Schedule 6: Selling and Administrative Expenses Budget

January February   March   
Planned sales (Schedule 1) 40,000 50,000 60,000
Variable selling and
administrative expenses
per unit     $3.60     $3.60     $3.60

Total variable expense $144,000 $180,000 $216,000

 Fixed selling and
administrative expenses:
Salaries $ 50,000 $ 50,000 $ 50,000
Depreciation 40,000 40,000 40,000
Other 20,000 20,000 20,000
Total fixed expenses $110,000 $110,000 $110,000
Total selling and
administrative expenses $254,000 $290,000 $326,000
7. Schedule 7: Ending Finished Goods Inventory Budget
Unit cost computation:
Direct materials: Metal (10 @ $8) = $80
Comp. (6 @ $2) =      12 $ 92.00

Direct labor (4  $9.25) 37.00

Overhead:
Variable (4 @ $3.40) 13.60
Fixed (4  $1,014,000/664,000) 6.11
Total unit cost $148.71
Finished goods inventory = Units  Unit cost
= 48,000  $148.71
= $7,138,080

8. Schedule 8: Cost of Goods Sold Budget

Direct materials used (Schedule 3)

Metal (1,660,000  $8) $13,280,000

Components (996,000  $2) 1,992,000 $15,272,000
Direct labor used (Schedule 4) 6,142,000
Overhead (Schedule 5) 3,271,600
Budgeted manufacturing costs $24,685,600
Add: Beginning finished goods (32,000  $148.71) 4,758,720
Goods available for sale $29,444,320
Less: Ending finished goods (Schedule 7) 7,138,080
Budgeted cost of goods sold $22,306,240
9. Schedule 9: Budgeted Income Statement

Sales (Schedule 1) $32,250,000

Less: Cost of goods sold (Schedule 8) 22,306,240
Gross margin $ 9,943,760
Less: Selling and admin. expenses (Schedule 6) 870,000
Income before income taxes $ 9,073,760
10. Schedule 10: Cash Budget
   January  February         March            Total     
Beg. balance $ 378,000 $ 1,321,200 $ 2,952,400 $ 378,000
Cash receipts 8,600,000 10,750,000 12,900,000 32,250,000
Cash available Less: $8,978,000 $12,017,200 $15,852,400 $32,628,000
Disbursements: $4,876,000 $5,796.000 $ 5,520,000 $16,192,000
Purchases

Direct labor 1,776,000 2,146,000 2,220,000 6,142,000

Overhead 790,800 926,800 954,000 2,671,600
Selling & admin. 214,000 250,000 286,000 750,000
Total $7,656,800 $9,118.80 $ 8,980,000 $25,755,600
Tentative ending
balance $1,321,200 2,952,400 $ 6,872,400 $6,872,400

Borrowed/(repaid)
Interest paid           —                —                                               
Ending balance $1,321,200 $ 2,952,400 $ 6,872,400 $ 6,872,400

*(0.12  2/12  $56,800) + (0.12  1/12  $6,800)

        Total     
150,000
           $215
$32,250,000

  Total  
150,000
48,000
198,000
32,000
166,000

Components

58,000

            6

348,000

180,000
528,000

150,000

378,000
          $2
$756,000

  Total                    
Components
 166,000

                6

996,000

180,000
1,176,000

120,000

1,056,000
              $2
$2,112,000

166,000

                4
664,000
        $9.25
$6,142,000

    Total     

664,000
        $3.40
$2,257,600
1,014,000
$3,271,600

  Total    
150,000

    $3.60

$540,000
 $150,000
120,000
60,000
$330,000

$870,000

$15,272,000
6,142,000
3,271,600
$24,685,600
4,758,720
$29,444,320
7,138,080
$22,306,240

$32,250,000
22,306,240
$ 9,943,760
870,000
$ 9,073,760

       Total     
 $ 378,000
32,250,000
$32,628,000
$16,192,000

6,142,000
2,671,600
750,000
$25,755,600

$6,872,400

                    
$ 6,872,400