BUDGETING
ibrhim4
blank_brentware_solutions.xlsOP Budgets
| Operating Budgets for 1st Qtr. 200X | |||||
| Jan | Feb | March | |||
| 1. Revenues Budget | |||||
| Units sales | 1200 | 2000 | 2400 | ||
| Selling price | $15 | $15 | $15 | ||
| Total | $18,000 | $30,000 | $36,000 | ||
| 2. Production Budget | |||||
| Planned Sales | pots | 1200 | 2000 | 2400 | 2600 |
| + Required Closing Stock | 3000 | 3600 | 3900 | 4050 | |
| - Opening Stock | -1800 | -3000 | -3600 | -3900 | |
| = Production | pots | 2400 | 2600 | 2700 | 2750 |
| total pots = | 7700 | ||||
| 3. Materials Purchases Budget | |||||
| Required for production | pots X 8kgs | 19200 | 20800 | 21600 | 22000 |
| + Required Closing Stock | 20800 | 21600 | 22000 | ||
| - Opening Stock | -9600 | -20800 | -21600 | ||
| =Purchases | kgs | 30400 | 21600 | 22000 | |
| Purchases ($) @ | $0.50 | $15,200 | $10,800 | $11,000 | |
| 4. Direct Labour Budget | |||||
| Production | pots | 2400 | 2600 | 2700 | |
| X standard labour input (.50hrs/pot) | $0.50 | 1200 | 1300 | 1350 | |
| X standard labour rate ($10/hr) | $12,000 | $13,000 | $13,500 | ||
| 5. Manufacturing Overhead Budget | |||||
| Variable Manufacturing Overhead Budget: | |||||
| std. lab. hrs = | 1200 | 1300 | 1350 | ||
| X standard variable overhead rate (per dir lab hr) | $2.00 | $2,400 | $2,600 | $2,700 | |
| Fixed Manufacturing Overhead Budget: | |||||
| per schedule | $3,500 | $3,500 | $4,250 | $11,250 | |
| Total Manufacturing Overheads | $5,900 | $6,100 | $6,950 | ||
| 6. Selling & Administration Budget | |||||
| variable items (eg vary in relation to revenues): | per schedules | $2,000 | $2,500 | $2,500 | |
| sales commissions, bad debts, etc | $2,000 | $2,500 | $2,500 | ||
| fixed items: | |||||
| rent, salaries, vehicle exps, etc |
P&L Budget
| Inventories Budgets ($'s) for 1st Qtr. 200X | |||||
| Raw (Direct) Materials: | Jan | Feb | March | ||
| Beginning @/kg | $4,800 | $10,400 | $10,800 | ||
| Ending @/kg | $10,400 | $10,800 | $11,000 | ||
| Finished Goods: | Cost | ||||
| Unit Costs - | Quantities | Rates | per unit | ||
| Raw (Direct) Materials | 8 | kg @ | $0.50 | per kg | $4.00 |
| Direct Labour | 0.5 | hrs @ | $10.00 | per hour | $ 5.00 |
| Variable Manuf O/head Costs | 0.5 | labour hrs @ | $2.00 | per l hr | 1.00 |
| Fixed Manuf O/head Costs | $11,250 ÷ 7700 units = | $1.46 | per unit | 1.46 | |
| $11.46 | |||||
| Fin Goods Inventory Valuations - | Jan | ||||
| Beginning Inventory @ | $11.46 | $20,630 | $34,383 | $41,260 | |
| Ending Inventory @ | $11.46 | $34,383 | $41,260 | $44,698 | |
| BUDGETED INCOME (Profit & Loss) STATEMENT | |||||
| Jan | |||||
| Revenues | $18,000 | $30,000 | $36,000 | ||
| less Cost of Goods Sold: | |||||
| Opening Stock - Finished Goods | $20,630 | $34,383 | $41,260 | ||
| + Cost of Goods Manufactured | (see below*) | 27,500 | 29,500 | 31,250 | |
| less Closing Stock - Finished Goods | 34,383 | 41,260 | 44,698 | ||
| = Cost of Goods Sold | 13,747 | 22,623 | 27,812 | ||
| Gross Profit | $4,253 | $7,377 | $8,188 | ||
| less Operating Expenses | |||||
| Selling and Administration Expenses | -2,000 | -2,500 | -2,500 | ||
| Net Profit before Tax | $2,253 | $4,877 | $5,688 | ||
| less Income Tax Expense | - | 901 | 1,951 | 2,275 | |
| Net Profit after Tax | $1,352 | $2,926 | $3,413 | ||
| *Cost of Goods Manufactured: | |||||
| Direct (Raw) Materials: | |||||
| Opening Stock | $4,800 | $10,400 | $10,800 | ||
| + Purchases | $15,200 | $10,800 | $11,000 | ||
| - Closing Stock | $10,400 | 10,800 | 11,000 | ||
| 9,600 | 10,400 | 10,800 | |||
| Direct Labour | 12,000 | 13,000 | 13,500 | ||
| Manuf Overheads | 5,900 | 6,100 | 6,950 | ||
| *Cost of Goods Manufactured: | 27,500 | 29,500 | 31,250 |
