assignment
Prof.Alexiah N
budgets.xlsxSheet1
| Chic Cointainers Inc. | |||
| Sales Budget | |||
| Year | units | selling price($) | Revenue($) |
| 2002 | 60,000 | 10 | 600,000 |
| 2003 | 70,000 | 10 | 700,000 |
| Total | 1,300,000 | ||
| Schedule for Cash Collections | |||
| 2002 | 2003 | ||
| Projected Cash Collections($) | Projected Cash Collections($) | ||
| Beg. Account Receivable | 20,000 | 450,000 | |
| 25% of the Sales | 150,000 | 175,000 | |
| Total | 170,000 | 625,000 | |
Sheet2
| Chic Cointainers Inc. | ||
| Production Budget | ||
| Year | 2002 | 2003 |
| Units | Units | |
| Sales | 60,000 | 70,000 |
| Add Closing Stock | 3,000 | 3,500 |
| Total Requirements | 63,000 | 73,500 |
| Less Openind Stock | -3,000 | -3,000 |
| Production Budget | 60,000 | 70,500 |
| closing stock is 5% of the sales and the closing stock of 2002 is the opening stock of 2003 | ||
Sheet3
| Chic Cointainers Inc. | |||
| Direct Material Budget | |||
| Direct Materials utilization Budget | |||
| Year | Units produced | Yards used /unit | Utilization (Yards used) |
| 2002 | 60,000 | 1.5 | 90000 |
| 2003 | 70,500 | 1.5 | 105,750 |
| Total Yards used | |||
| Direct Materials Purchase Budget | |||
| 2002 | 2003 | ||
| Units | Units | ||
| Current Usage | 90,000 | 105,750 | |
| Add Closing Stock | 2,000 | 0 | |
| Total Requirement | 92,000 | 105,750 | |
| Less opening Stock | 1,600 | 2,000 | |
| Materials need to be Purchased | 90,400 | 103,750 | |
| Cost per Yard ($) | 0.5 | 0.5 | |
| Materials Purchase Budget($) | 45,200 | 51,875 |
Sheet4
| Chic Cointainers Inc. | |||||
| Direct Labor Budget | |||||
| Units to be produced | Hours taken to produce unit | Total hours | Standard pay rate/hr()$ | Direct Labor Cost | |
| 2002 | 60,000 | 0.25 | 15,000 | 10 | 150,000 |
| 2003 | 70500 | 0.25 | 17,625 | 10 | 176,250 |
| Total Labor cost | 326,250 | ||||
Sheet5
| Chic Cointainers Inc. | ||
| Manufacturing Overhead budget | ||
| 2002 | 2003 | |
| Cost ($) | Cost($) | |
| Variable overheads | 90,000 | 105,750 |
| Depreciation | 30,000 | 30,000 |
| Inspector's Salary | 25,000 | 25,000 |
| Property Tax | 8,000 | 8,000 |
| Supervisor's Salary | 30,000 | 30,000 |
| Total | 183,000 | 198,750 |
| Notes:Variable costs are equal to the current production multipled byoverhead rate of $1.50, that is 60,000*$1.50= $90,000 and 70500*$1.50 = $105,750 |
Sheet6
| Chic Cointainers Inc. | ||
| Selling and Administrative Expense Budget | ||
| 2002 | 2003 | |
| cost($) | cost($) | |
| Variable expense | 45,000 | 52,500 |
| Depreciation | 10,000 | 10,000 |
| Sales Staff | 40,000 | 40,000 |
| Advertising | 5,000 | 5,000 |
| President's Salary | 45,000 | 45,000 |
| Total | 145,000 | 152,500 |
| Notes: To work out Variable sales expense ,multiplying sales units by $0.75, that is 60,000*$0.75= $45,000 and 70,000*$0.75=$52,500 |
