| Input Data (all currency in US$) | | | Yellow-use only cell references | | Little Annin Flagmakers |
| | | | Blue-may type numbers here | | Sales Budget (US$) |
| Budgeted Sales | Expected | | | April | May | June | Quarter |
| April (units) | 2,500 | | Budgeted sales (units) | 2,500 | 6,000 | 3,000 | 11,500 |
| May (units) | 6,000 | | Selling price per unit | $120 | $120 | $120 | $120 |
| June (units) | 3,000 | | Total Sales | $ 300,000 | $ 720,000 | $ 360,000 | $ 1,380,000 |
| July (units) | 2,500 |
| August (units) | 2,000 |
| | | | | | Little Annin Flagmakers |
| Selling Price/Unit | $120.00 | | | | Schedule of Expected Cash Collections (US$) |
| | | | | April | May | June | Quarter |
| Cash Collection Pattern | | | Accounts receivable |
| Month of sale | 40% | | Beginning balance | $ 132,000 | | | $ 132,000 |
| Following month | 55% |
| Uncollectible | 5% | | April sales | $ 120,000 | $ 165,000 | | $ 285,000 |
| Cash Payments for Materials | | | May sales | | $ 288,000 | $ 396,000 | $ 684,000 |
| Month of purchase | 40% |
| Following month | 60% | | June sales | | | $ 144,000 | $ 144,000 |
| Production Requirements | | | Total Cash Collections | $ 252,000 | $ 453,000 | $ 540,000 | $ 1,245,000 |
| Raw material per unit (lb.) | 5 |
| Raw material cost per lb. | $7.00 | | Accounts Receivable as of June 30 | $ 198,000 |
| Direct labor hours per unit | 0.5 |
| Direct labor rate per hour | $40.00 | | | | Little Annin Flagmakers |
| Variable MOHD per direct labor hour | $10.00 | | | | Production Budget |
| Fixed MOHD per month | $57,950 | | | April | May | June | Quarter | July | August |
| Depreciation in fixed MOHD | $20,000 | | Budgeted sales | 2,500 | 6,000 | 3,000 | 11,500 | 2,500 | 2,000 |
| | | | Add: Desired ending inventory | 1,200 | 600 | 500 | 500 | 400 |
| Selling & Administrative (S&A) Costs | | | Total needs | 3,700 | 6,600 | 3,500 | 12,000 | 2,900 |
| Variable S&A cost per unit sold | $1.25 | | Less: Beginning inventory | (410) | (1,200) | (600) | (410) | (500) |
| Fixed S&A cost per month | $63,000 | | Required Production | 3,290 | 5,400 | 2,900 | 11,590 | 2,400 |
| Depreciation in fixed S&A cost | $10,000 |
| | | | | | Little Annin Flagmakers |
| Other Cash Outflows | | | | | Direct Materials Budget (US$) |
| Cash dividends paid each month | $15,000 | | | April | May | June | Quarter |
| Equipment purchases May | $47,820 | | Required production in units | 3,290 | 5,400 | 2,900 | 11,590 |
| Equipment purchases June | $154,600 | | Raw materials per unit (lbs.) | 5 | 5 | 5 | 5 |
| | | | Production needs (lbs.) | 16,450 | 27,000 | 14,500 | 57,950 |
| Desired Ending Inventory | | | Add: Desired ending inventory | 10,800 | 5,800 | 4,800 | 4,800 |
| Finished goods | 20% | | Total needs | 27,250 | 32,800 | 19,300 | 62,750 |
| Raw materials | 40% | | Less: Beginning inventory | (4,600) | (10,800) | (5,800) | (4,600) |
| Cash | $30,000 | | Raw materials to be purchased | 22,650 | 22,000 | 13,500 | 58,150 |
| | | | Cost of raw materials | $7.00 | $7.00 | $7.00 | $7.00 |
| Beginning Account Balances as of March 31 | | | Total Cost of Raw Materials | $ 158,550 | $ 154,000 | $ 94,500 | $ 407,050 |
| Cash | $37,745 |
| Accounts receivable | $132,000 |
| Finished goods inventory | $30,750 | | | | Little Annin Flagmakers |
| Finished goods cost per unit | $75.00 | | | | Schedule of Expected Cash Disbursements for Material (US$) |
| Finished goods inventory (units) | 410 | | | April | May | June | Quarter |
| Raw materials inventory | $32,200 | | Accounts payable |
| Raw materials (lb.) | 4,600 | | Beginning balance | $ 55,000 | | | $ 55,000 |
| Accounts payable | $55,000 |
| | | | April purchases | $ 63,420 | $ 95,130 | | $ 158,550 |
| Land | $520,000 |
| Buildings and equipment | $1,800,000 | | May purchases | | $ 61,600 | $ 92,400 | $ 154,000 |
| Accumulated depreciation | ($750,000) |
| Common stock | $500,000 | | June purchases | | | $ 37,800 | $ 37,800 |
| Retained earnings | $1,247,695 |
| | | | Total Cash Disbursements for Materials | $ 118,420 | $ 156,730 | $ 130,200 | $ 405,350 |
| | | | Accounts Payable as of June 30 | $ 56,700 |
| | | | | | Little Annin Flagmakers |
| | | | | | Direct Labor Budget (US$) |
| | | | | April | May | June | Quarter |
| | | | Units to be produced | 3,290 | 5,400 | 2,900 | 11,590 |
| | | | Direct labor hours per unit | 0.5 | 0.5 | 0.5 | 0.5 |
| | | | Total direct labor hours needed | 1,645 | 2,700 | 1,450 | 5,795 |
| | | | Direct labor cost per hour | $40.00 | $40.00 | $40.00 | $40.00 |
| | | | Total Direct Labor Cost | $ 65,800 | $ 108,000 | $ 58,000 | $ 231,800 |
| | | | | | Little Annin Flagmakers |
| | | | | | Manufacturing Overhead Budget (US$) |
| | | | | April | May | June | Quarter |
| | | | Budgeted direct labor hours | 1,645 | 2,700 | 1,450 | 5,795 |
| | | | Variable MOHD rate | $10 | $10 | $10 | $10 |
| | | | Total variable MOHD | $ 16,450 | $ 27,000 | $ 14,500 | $ 57,950 |
| | | | Fixed MOHD expense | $ 57,950 | $ 57,950 | $ 57,950 | $ 173,850 |
| | | | Total MOHD expense | $ 74,400 | $ 84,950 | $ 72,450 | $ 231,800 |
| | | | Less: Depreciation | $ (20,000) | $ (20,000) | $ (20,000) | $ (60,000) |
| | | | Cash Disbursements for MOHD | $ 54,400 | $ 64,950 | $ 52,450 | $ 171,800 |
| | | | MOHD rate | $29.65 | /direct labor hour |
| | | | | | Little Annin Flagmakers |
| | | | | | Unit Product Cost (US$) |
| | | | Absorption cost per unit | Quantity | Cost | Cost/unit |
| | | | Direct materials | 5 | $7.00 | $35.00 |
| | | | Direct labor | 0.50 | $40.00 | $20.00 | | beg | 34,911.56 |
| | | | Manufacturing overhead | 0.50 | $29.65 | $14.82 | | COGM-current | 809,250.00 |
| | | | Unit Product Cost | | | $69.82 | | SOLD | $ 858,338 |
| | | | | | | | | | $ (14,177) |
| | | | | | Little Annin Flagmakers |
| | | | | | Cost of Goods Sold Budget (USD) |
| | | | Cost of Goods Sold (FIFO) | Units | Cost/unit | Total Cost |
| | | | Beginning finished goods inventory | 410 | $ 75.00 | $ 30,750 |
| | | | Add: Cost of goods manufactured | 11,500 | $ 75.00 | $ 862,500 |
| | | | Good available for sale | | | $ 893,250 |
| | | | Less: Ending finished goods inventory | 500 | $ 69.82 | $ (34,912) |
| | | | Cost of Good Sold | | | $ 858,338 |
| | | | | | Little Annin Flagmakers |
| | | | | | Selling and Administrative Expense Budget (US$) |
| | | | | April | May | June | Quarter |
| | | | Budgeted sales in units | 2,500 | 6,000 | 3,000 | 11,500 |
| | | | Variable S&A per unit | $1.25 | $1.25 | $1.25 | $1.25 |
| | | | Total variable S&A | $ 3,125 | $ 7,500 | $ 3,750 | $ 14,375 |
| | | | Total fixed S&A | $ 63,000 | $ 63,000 | $ 63,000 | $ 189,000 |
| | | | Total S&A expense | $ 66,125 | $ 70,500 | $ 66,750 | $ 203,375 |
| | | | Less: Depreciation | $ (10,000) | $ (10,000) | $ (10,000) | $ (30,000) |
| | | | Cash Disbursements for S&A | $ 56,125 | $ 60,500 | $ 56,750 | $ 173,375 |
| | | | | | Little Annin Flagmakers |
| | | | | | Cash Budget (US$) |
| | | | | April | May | June | Quarter |
| | | | Beginning Cash Balance | $ 37,745 | $ 30,000 | $ 30,000 | $ 37,745 |
| | | | Add: Receipts |
| | | | Cash collections | $ 252,000 | $ 453,000 | $ 540,000 | $ 1,245,000 |
| | | | Total Cash Available | $ 289,745 | $ 483,000 | $ 570,000 | $ 1,282,745 |
| | | | Less disbursements |
| | | | Direct materials | $ 118,420 | $ 156,730 | $ 130,200 | $ 405,350 |
| | | | Direct labor | $ 65,800 | $ 108,000 | $ 58,000 | $ 231,800 |
| | | | Manufacturing overhead | $ 54,400 | $ 64,950 | $ 52,450 | $ 171,800 |
| | | | Selling and administrative | 56,125 | 60,500 | 56,750 | 173,375 |
| | | | Dividends | 15,000 | 15,000 | 15,000 | 45,000 |
| | | | Equipment purchases | | 47,820 | 154,600 | 202,420 |
| | | | Total Disbursements | $ 309,745 | $ 453,000 | $ 467,000 | $ 1,229,745 |
| | | | Excess (deficiency) of cash available | $ (20,000) | $ 30,000 | $ 103,000 | $ 53,000 |
| | | | Financing |
| | | | Borrowing | $ 50,000 | $ - | | $ 50,000 |
| | | | Repayments | | | $ 50,000 | $ (50,000) |
| | | | Interest | | | $ 2,000 | $ (2,000) |
| | | | Total Financing | $ 50,000 | $ - | $ 52,000 | $ (2,000) |
| | | | Ending Cash Balance | $ 30,000 | $ 30,000 | $ 51,000 | $ 51,000 |
| | | | | | Little Annin Flagmakers |
| | | | | | Budgeted Income Statement (US$) |
| | | | | | Quarter Ending June 30 |
| | | | Net sales | | | | $ 1,311,000 |
| | | | Less: Cost of goods sold | | | | $ 858,338 |
| | | | Gross margin | | | | $ 452,662 |
| | | | Less: S&A expenses | | | | $ 173,375 |
| | | | Net operating income | | | | $ 279,287 |
| | | | Less: Interest expense | | | | $ 2,000 |
| | | | Net income | | | | $ 277,287 |
| | | | Computation of Net Sales |
| | | | Sales | $ 1,380,000 |
| | | | Less uncollectible amounts | $ 69,000 |
| | | | Net Sales | $ 1,311,000 |
| | | | | | | Little Annin Flagmakers |
| | | | | | | Budgeted Balance Sheet (US$) |
| | | | | | Ending March 31 | | Ending June 30 |
| | | | Current assets |
| | | | Cash | $ 37,745 | | $ 51,000 |
| | | | Accounts receivable | $ 132,000 | | $ 198,000 |
| | | | Raw materials inventory | $ 32,200 | | $ 33,600 |
| | | | Finished goods inventory | $ 30,750 | $ 232,695 | $ 34,912 | $ 317,512 |
| | | | Plant and equipment |
| | | | Land | $ 520,000 | | $ 520,000 |
| | | | Buildings and equipment | $ 1,800,000 | | $ 2,002,420 |
| | | | Accumulated depreciation | $ (750,000) | $ 1,570,000 | $ (840,000) | $ 1,682,420 |
| | | | Total Assets | | $ 1,802,695 | | $ 1,999,932 |
| | | | Liabilities |
| | | | Accounts payable | $ 55,000 | $ 55,000 | $ 56,700 | $ 56,700 |
| | | | Stockholder's equity |
| | | | Common stock | $ 500,000 | | $ 500,000 |
| | | | Retained earnings | $ 1,247,695 | $ 1,747,695 | $ 1,479,982 | $ 1,979,982 |
| | | | Total Liabilities and Stockholder's Equity | | $ 1,802,695 | | $ 2,036,682 |