| Garneau Manufacturing |
| Sales Budget |
| for the quarter ended March 31, 2019 |
| Jan | Feb | Mar | total |
| expected units to be sold | 11,000 | 10,000 | 13,000 | 34,000 |
| unit selling price | $ 60 | $ 60 | $ 60 | $ 60 |
| budgeted sales revenue | $ 660,000 | $ 600,000 | $ 780,000 | $ 2,040,000 |
| Garneau Manufacturing |
| Schedule of Expected Cash Receipts |
| for the quarter ended March 31, 2019 |
| Jan | Feb | Mar | total |
| November Sales $600,000 | $ 180,000 | $ - | $ - | $ 180,000 |
| December Sales $720,000 | $ 216,000 | $ 216,000 | $ - | $ 432,000 |
| January Sales $660,000 | $ 264,000 | $ 198,000 | $ 198,000 | $ 660,000 |
| February Sales $600,000 | $ - | $ 240,000 | $ 180,000 | $ 420,000 |
| March Sales$780,000 | $ - | $ - | $ 312,000 | $ 312,000 |
| total cash received | $ 660,000 | $ 654,000 | $ 690,000 | $ 2,004,000 |
| Garneau Manufacturing |
| Production Budget |
| for the quarter ended March 31, 2019 |
| Jan | Feb | Mar | total | april | may |
| expected units to be sold | 11,000 | 10,000 | 13,000 | 34,000 | 11,000 | 11,000 |
| Add: Desired ending inventory -20% | 2,000 | 2,600 | 2,200 | 2,200 | 2200 |
| Less: Beginning inventory | 2,200 | 2,000 | 2,600 | 2,200 | 2,200 |
| Required production | 10,800 | 10,600 | 12,600 | 34,000 | 11,000 |
| Garneau Manufacturing |
| Raw Materials Purchases Budget |
| for the quarter ended March 31, 2019 |
| Jan 1 - Mar 31 |
| Jan | Feb | Mar | total | april |
| Required production | 10,800 | 10,600 | 12,600 | 34,000 | 11,000 |
| raw materials per one finished unit of 5KG | 5 | 5 | 5 | 5 | 5 |
| raw materials for current production | 54,000 | 53,000 | 63,000 | 170,000 | 55,000 |
| desired ending raw material inventory 25% | 13,250 | 15,750 | 13,750 | 13,750 |
| Less the opening raw materials inventory | 13,500 | 13,250 | 15,750 | 13,500 |
| raw materials to be purchased | 53,750 | 55,500 | 61,000 | 170,250 |
| cost of raw materials at $.60 per KG | $ 32,250 | $ 33,300 | $ 36,600 | $ 102,150 |
| Garneau Manufacturing |
| Schedule of Expected Cash Disbursements for Raw Materials |
| for the quarter ended March 31, 2019 |
| Jan 1 - Mar 31 |
| Jan | Feb | Mar | total |
| Decembers Raw materials puchases | $ 24,000 | $ 24,000 |
| January Raw material purchases | $ 12,900 | $ 19,350 | $ 32,250 |
| February Raw material purchases | $ 13,320 | $ 19,980 | $ 33,300 |
| March Raw material purchases | $ 14,640 | $ 14,640 |
| estimated cash disbursements for raw materials | $ 36,900 | $ 32,670 | $ 34,620 | $ 104,190 |
| Garneau Manufacturing |
| Direct Labor Budget |
| for the quarter ended March 31, 2019 |
| Jan 1 - Mar 31 |
| Jan | Feb | Mar | total | april |
| Required production | 10800 | 10600 | 12600 | 34000 | 11000 |
| direct labor hours to produce 1 unit | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 |
| direct labor hours for current production | 13500 | 13250 | 15750 | 42500 | 13750 |
| direct labor rate per hour | $ 16 | $ 16 | $ 16 | $ 16 | $ 16 |
| total estimated direct labor cost | $ 216,000 | $ 212,000 | $ 252,000 | $ 680,000 | $ 220,000 |
| Garneau Manufacturing |
| Manufacturing Overhead Budget |
| for the quarter ended March 31, 2019 |
| Jan 1 - Mar 31 |
| Jan | Feb | Mar | total | april |
| Variable Manufacturing Overhead: |
| total estimated direct labor cost | $ 216,000 | $ 212,000 | $ 252,000 | $ 680,000 | $ 220,000 |
| variable overhead is 50% | $ 108,000 | $ 106,000 | $ 126,000 | $ 340,000 | $ 110,000 | Variable overhead per hour | $ 8 |
| Fixed Manufacturing Overhead: |
| salaries | $ 75,000 | $ 75,000 | $ 75,000 | $ 225,000 | $ 75,000 |
| insurance | $ 1,400 | $ 1,400 | $ 1,400 | $ 4,200 | $ 1,400 |
| rent | $ 8,000 | $ 8,000 | $ 8,000 | $ 24,000 | $ 8,000 |
| depreciation | $ 1,200 | $ 1,200 | $ 1,200 | $ 3,600 | $ 1,200 |
| total fixed overhead | $ 85,600 | $ 85,600 | $ 85,600 | $ 256,800 | $ 85,600 | fixed overhead rate | $ 6.04 |
| Total budged manufacturing overhead | $ 193,600 | $ 191,600 | $ 211,600 | $ 596,800 | $ 195,600 |
| deduct depreciation (non-cash) | $ 1,200 | $ 1,200 | $ 1,200 | $ 3,600 | $ 1,200 |
| cash to be disubursed for overhead | $ 192,400 | $ 190,400 | $ 210,400 | $ 593,200 | $ 194,400 |
| Garneau Manufacturing |
| Ending Finished Goods inventory budget |
| at March 31, 2019 | do one at the end of the fiscal year |
| manufacturing costs: | Rate | Quantity | Costs |
| direct materials | $ 0.60 | 5kg | $ 3.00 |
| direct labor | $ 16.00 | 1.25 hours | $ 20.00 |
| variable manufacturing overhead | $ 8.00 | 1.25 hours | $ 10.00 |
| fixed manufacturing overhead | $ 6.04 | 1.25 hours | $ 7.55 | desired finish goods inventory |
| total absorption cost per unit | $ 40.55 | 2200 units | 89210 | total cost of ending inventory |
| total variable cost per unit | $ 33.00 | 2200 units | 72600 | total cost of ending inventory |
| Garneau Manufacturing |
| Selling and Administrative budget |
| for the quarter ended March 31, 2019 |
| Jan 1 - Mar 31 |
| Jan | Feb | Mar | total | april |
| Variable Selling and administrative: |
| Shipping $4 | $ 44,000 | $ 40,000 | $ 52,000 | $ 136,000 | 0 |
| Commission 10% | $ 66,000 | $ 60,000 | $ 78,000 | $ 204,000 | $ -0 |
| total variable selling and administrative | $ 110,000 | $ 100,000 | $ 130,000 | $ 340,000 |
| fixed selling and administrative |
| advertising | $ 300 | $ 300 | $ 300 | $ 900 |
| depreciation | $ 15,000 | $ 15,000 | $ 15,000 | $ 45,000 |
| insurance | $ 250 | $ 250 | $ 250 | $ 750 |
| salaries | $ 4,000 | $ 4,000 | $ 4,000 | $ 12,000 |
| other | $ 14,550 | $ 14,550 | $ 14,550 | $ 43,650 |
| total fixed selling and administraitve | $ 34,100 | $ 34,100 | $ 34,100 | $ 102,300 |
| total selling and administrative | $ 144,100 | $ 134,100 | $ 164,100 | $ 442,300 |
| less depreciation (non cash) | $ 15,000 | $ 15,000 | $ 15,000 | $ 45,000 |
| total cash to be disbursed | $ 129,100 | $ 119,100 | $ 149,100 | $ 397,300 |
| Garneau Manufacturing |
| Cash budget |
| for the quarter ended March 31, 2019 |
| Jan 1 - Mar 31 |
| Jan | Feb | Mar | total |
| opening cash balance | $ 80,000 | $ 30,000 | $ 80,000 |
| cash receipts | $ 660,000 | $ 654,000 | $ 690,000 | $ 2,004,000 |
| total cash available | $ 740,000 | $ 684,000 |
| estimated cash disbursements: |
| cash disburesments for raw materials | $ 36,900 | $ 32,670 | $ 34,620 | $ 104,190 |
| cash disbursments for direct labor | $ 216,000 | $ 212,000 | $ 252,000 | $ 680,000 | 220000 |
| cash disbursed for overhead | $ 192,400 | $ 190,400 | $ 210,400 | $ 593,200 | 194400 |
| cash disbursed for selling and admin | $ 129,100 | $ 119,100 | $ 149,100 | $ 397,300 |
| Purchase of equipment | $ 300,000 |
| Interest of 6% long term notes payable | $ 4,500 | $ 4,500 | $ 4,500 | $ 13,500 | add taxes and dividends here |
| total cash disbursments | $ 878,900 | $ 558,670 | $ 650,620 | $ 1,788,190 |
| cash surplus (deficeny) | -$ 138,900 | $ 125,330 |
| Financing: |
| borrowing | 169749 | 0 | 138900 + x + 0.005x = 30000 |
| repayment end of the month | 0 | $ 94,482 |
| interest at .5% per month | 848.745 | 848.745 |
| total financing | $ 168,900 | -$ 95,330 |
| ending cash balance | $ 30,000 | $ 30,000 |
mathwiz10101
Budget_assignment_sample_format.xlsx
