Base Case Master Budget for AWM Manufacturing Ltd. – Accounting Assignment Sample

QUESTION

 

 

ANSWER

 

Answer 1-

AWM MANUFACTURING LTD
Expected sales of canoes                            
    2019   2020              
    quarter 1 quarter 2 quarter 3 quarter 4 quarter 1 quarter2              
1. Budgeted Sales in (units)   3225 3245 3255 3300 3325 3350              
selling price $425                          
                             
Expected sales of Kayak                            
Budgeted Sales in (units)   2,000 2100 2150 2200 2225 2250              
Selling price $260                          
Percentage of Sales 100%                          
Both canoe and Kayak sales on account                            
Percentage of sales collected in quarter of the sales 50%                          
Percentage of sales collected in following quarter 25%                          
Percentage of sales collected in the second quarter following 22%                          
Remaining percent never collected(bad debt) 3%                          
                             
Account receivables collections                            
Balance of opening A/R will be collected in the first quarter of 2019 75%                          
Balance of opening A/R will be collected in the second quarter of 2019 25%                          
                             
2. Direct Materials of canoe                            
Polyurethane:                            
Amount of Litres 4.7                          
cost per Litre $16.30                          
                             
Styrofoam:                            
amount of Kilograms 7.6                          
cost per Kilogram $6.45                          
                             
Direct Labour of canoe                            
Direct Labour hours 2.6                          
Rate per hour $17                          
                             
Variable Overhead in canoe applied(basis of number of units produced)                            
Fixed overhead in canoe is applied(basis of Labour hours)                            
                             
Direct Materials of Kayak’s                            
Polypropylene:                            
Amount of Litres 2.4                          
Cost per Liter $25.50                          
                             
Fiberglass gel-coated:                            
Amount of Liters 5                          
cost per Litre $16.50                          
                             
Direct Labour of Kayak’s                            
Direct Labour hours 1.5                          
Rate per hour $19                          
                             
Variable Overhead in Kayak Department applied(basis of number of units produced)                            
Kayak department is automated                            
Amount of machine hours of Kayak 2.6                          
Fixed Overhead in the Kayak Department is applied(basis of machine hours)                            
                             
maintaining Direct material ending inventory as follows:                            
Polyurethane: % of the next quarter’s production 35%                          
Styrofoam: % of the next quarter’s production 35%                          
Polypropylene: % of the next quarter’s production 25%                          
Fiberglass gel-coat: % of the next quarter’s production 20%                          
                             
Raw Materials purchased                            
% of purchases paid in quarter of purchases 80%                          
% of purchases paid in the following quarter 20%   (Expected to pay full account payable balance in the first quarter of 2019 as noted on Dec 31st, 2018, Balance sheet)                      
                             
Maintaining ending finished goods inventory: % of next quarter’s forecasted sales 30%                          
No beginning or ending work-in-period (all canoes and Kayaks are started and finished in the same quarter                            
Beginning inventory of finished goods:                            
for canoe 160   *Ask the prof if these two should be added to use on production budget*                      
for Kayaks 120                          
                             
                             
3. Estimated variable overhead cost for Canoe Department: 2019                          
Indirect material $35,000                          
Indirect Labour 57,000                          
Employee benefits 84,000                          
Inspections 32,000                          
Utilities 42,000                          
Total $250,000   (ask prof if he wants formular here)                    
POHR     (Using predetermined overhead rate based on number of units produced)         *Ask prof if you can input formular here            
                             
                             
Canoe Department 2019                          
4.Fixed Manufacturing overhead cost                            
Supervisor’s salaries $214,000                          
Property tax 32,000   (cash paid in fourth quarter)                      
Insurance 35,000                          
Maintenance 41,000                          
Utilities 52,000                          
Engineering time 41,200                          
Depriciation 90,000                          
Total $505,200   (ask prof if he wants formular here)                    
POHR     (based on direct-labour hours)                      
Per quarter                            
                             
Kayak Department                            
5. Estimated variable overhead cost                            
Indirect material $32,000                          
Indirect Lbour 57,000                          
Employee benefits 82,000                          
Inspections 31,000                          
Utilities 41,000                          
Total $243,000                          
POHR     (based on number of units produced)                      
                             
6. Estimated Fixed Overhead Cost                            
Supervisor’s Salaries $205,000.00                          
Property Tax $28,000.00                          
Insurance $45,000.00                          
Maintenance $47,000.00                          
Utilities $51,000.00                          
Engineering Time $64,000.00                          
Depreciation $110,000.00                          
Total $550,000.00                          
POHR     (based on nos of machine hrs                      
Per Quarter                            
                             
7. Variable Selling and Administration Expenses                            
Sales Salaries $365,000.00                          
Administration Salaries $425,000.00                          
Travel $152,000.00                          
Insurance $55,000.00                          
Utilities $74,000.00                          
Depreciation $22,000.00                          
Other $5,200.00                          
Total $1,098,200.00                          
*commissions budgeted at 6% of slaes dollars for each quarter                            
Amount paid in quarter earned 75.00%                          
Amount paid in following quarter 25.00%                          
Variable Administration Costs $2.50   *paid for in quarter incurred                      
                             
8. Quarterly Income Tax Payments                            
Marginal Tax Rate 32.00%                          
                             
9. Financing and Investing Activities                            
Land Purchase       $250,000.00                    
Line of Credit – Increments of $2500       Borrow in increments of 2,500                    
Line of Credit Interest Rate – Annual 14.00%                          
Ending Cash Balance Minimum $25,000.00                          
Long Term Debt $240,000.00                          
Long Term Debt Repayment *End of quarter   $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00              
LTD Interest Rate 9.00%                          
                             
                             
10. The Company’s Unclassified Balance Sheet for December 31, 2018                            
Current Assets:                            
Cash $25,000.00                          
Accounts Receivable(net) $100,000.00                          
Raw Material Inventory $26,645.00                          
Finished goods inventory $94,800.00                          
Total Current Assets   $246,445.00                        
Long-term assets                            
Buildings and equipment $2,030,000.00                          
Accumulated depreciation $314,000.00 $1,716,000.00                        
Total Assets   $1,962,445.00                        
                             
Current Liabilities:                            
Accounts payable $70,000.00                          
Commissions payable $15,740.00                          
Total Current Liabilities   $85,740.00                        
Long-term debt   $240,000.00                        
Total liabilities   $325,740.00                        
Shareholders’ Equity                            
Capital stock $1,299,000.00                          
Retained earnings $337,705.00 $1,636,705.00                        
Total Liabilities and Shareholders’ Equity   $1,962,445.00                        
                             
                             
Beginning Raw Materials Inventory:                            
400 liters of Polyurethane $16.30 $6,520.00                        
600 kgs of Styrofoam $6.25 $3,750.00                        
200 litres of Polyproylene $18.00 $3,600.00                        
350 litres of Fiberglass $36.50 $12,775.00                        
Total   $26,645.00                        
                             
                             
                             
    AWM MANUFACTURING, LTD                    
    Sales Budget                    
    For the Year Ended December 31,2019                    
                             
                             
Canoe Sales     2019     2020            
    Quarter   Quarter            
    1 2 3 4 Total 1 2            
Budget Sales in (units)   3,225 3,245 3,255 3,300 13,025 3,325 3,350            
selling price per unit   $425 $425 $425 $425 $425 $425 $425            
Total Sales   $1,370,625 $1,379,125 $1,383,375 $1,402,500 $5,535,625 $1,413,125 $1,423,750            
                             
Kayaks Sales                            
Budget saless in (units)   2000.00 2100.00 2150.00 2200.00 8450.00 $2,225 $2,250            
selling price per unit   $260.00 $260.00 $260.00 $260.00 $260.00 $260.00 $260.00            
Total sales   $520,000.00 $546,000.00 $559,000.00 $572,000.00 $2,197,000.00 $578,500.00 $585,000.00            
Totalsales of Canoe and Kayaks   $1,890,625 $1,925,125 $1,942,375 $1,974,500 $7,732,625 $1,991,625 $2,008,750            
                             
                             
                             
                             
Schedules of Expected cash Collections   1 2 3 4 Total 1 2            
Account Receivable,beginning balance   $75,000.00 $25,000.00     $100,000.00                
First- quarter sales   $945,312.50 $472,656.25 $415,937.50   $1,833,906.25                
Second-quarter sales     $962,562.50 $481,281.25 $423,527.50 $1,867,371.25                
Third-quarter sales       $971,187.50 $485,593.75 $1,456,781.25                
Fourth -quarter sales         $987,250 $987,250.00                
Total Cash collections   $1,020,312.50 $1,460,218.75 $1,868,406.25 $1,896,371.25 $6,245,308.75                
                             
                             
    AWM MANUFACTURING,LTD                    
      Production Budget                    
    For the Year Ended December 31, 2019                  
Canoe Sales                            
    1 2 3 4 ToTal                
Budgeted Sales( units)   3,225 3,245 3,255 3,300 13,025              

 

Sales Budget  
  Quarter-1 Quarter-2 Quarter-3 Quarter-4 Total  
Budgted Units-canoes 3225 3245 3255 3300 13,025  
Budgeted Units-Kayak 2,000 2,100 2,150 2,200 8,450  
Budgeted selling price/ unit      
canoes $425.00  
Kayak $260.00  
Budgeted sales            
canoes $1,370,625.00 $1,379,125.00 $1,383,375.00 $1,402,500.00 $5,535,625.00  
Kayak $520,000.00 $546,000.00 $559,000.00 $572,000.00 $2,197,000.00  
Total $1,890,625.00 $1,925,125.00 $1,942,375.00 $1,974,500.00 $7,732,625.00  
             
Schedule of Reciepts    
  Quarter-1 Quarter-2 Quarter-3 Quarter-4   Closing
sales collected in quarter of the sales $945,312.50 $962,562.50 $971,187.50 $987,250.00    
sales collected in following quarter 75000 $497,656.25 $481,281.25 $485,593.75   $246,812.50
sales collected in the second quarter following     $415,937.50 $423,527.50   $213,661.25
bad debt $56,718.75 $57,753.75 $58,271.25 $59,235.00    
Total Reciepts $1,020,312.50 $1,460,218.75 $1,868,406.25 $1,896,371.25 $6,245,308.75 $460,473.75
             
Production Budget  
  Quarter-1 Quarter-2 Quarter-3 Quarter-4 Sales Q-1 2020 Closing
Opening            
canoes 160 973.5 976.5 990 997.5  
Kayak 120 630 645 660 667.5  
Budgted Sales unit            
canoes 3225 3245 3255 3300 3325 3350
Kayak 2000 2100 2150 2200 2225 2250
Budgted Closing stock            
canoes 973.5 976.5 990 997.5 1005 1665
Kayak 630 645 660 667.5 675  
Budgeted Production            
canoes 4038.5 3248 3268.5 3307.5 3332.5 13862.5
Kayak 2510 2115 2165 2207.5 2232.5 8997.5
            22860
Direct Material Purchased Budget Closing
Budgeted Production Quarter-1 Quarter-2 Quarter-3 Quarter-4 Sales Q-1 2020  
canoes 4038.5 3248 3268.5 3307.5 3332.5  
Opening            
Polyurethane: 400 1136.8 1143.975 1157.625    
Styrofoam: 600 1136.8 1143.975 1157.625    
Production            
Polyurethane: 18980.95 15265.6 15361.95 15545.25    
Styrofoam: 30692.6 24684.8 24840.6 25137    
Closing          
Polyurethane: 1136.8 1143.975 1157.625 1166.375 19011.9125
Styrofoam: 1136.8 1143.975 1157.625 1166.375   7523.11875
Direct Material Required    
Canoes  
Polyurethane: 19717.75 15272.775 15375.6 15554    
Styrofoam: 31229.4 24691.975 24854.25 25145.75  
Kayak 2510 2115 2165 2207.5 2232.5  
Opening            
Polypropylene: 200 528.75 541.25 551.875    
Fiberglass gel-coated: 350 423 433 441.5    
Production            
Polypropylene: 6024 5076 5196 5298    
Fiberglass gel-coated: 12550 10575 10825 11037.5    
Closing            
Polypropylene: 528.75 1299 1324.5 1339.5   34157.25
Fiberglass gel-coated: 423 2165 2207.5 2232.5   36836.25
Direct Material Required   97528.53125
Kayak  
Polypropylene: 6352.75 5846.25 5979.25 6085.625    
Fiberglass gel-coated: 12623 12317 12599.5 12828.5  
             
Schedule of disbursement    
  Quarter-1 Quarter-2 Quarter-3 Quarter-4    
Polyurethane: 19717.75 15272.775 15375.6 15554    
Styrofoam: 31229.4 24691.975 24854.25 25145.75    
Polypropylene: 6352.75 5846.25 5979.25 6085.625    
Fiberglass gel-coated: 12623 12317 12599.5 12828.5    
             
Money Required for Direct Material $893,103.58 $760,519.35 $771,294.82 $782,573.98    
Disbursement in Same quarter $714,482.86 $608,415.48 $617,035.85 $626,059.18    
Disbursement in following quarter   $178,620.72 $152,103.87 $154,258.96 $156,514.80  
Disbursement of last Year $70,000.00          
Total $1,677,586.44 $1,368,934.82 $1,388,330.67 $1,408,633.16    
             
Direct Labour Budget    
  Quarter-1 Quarter-2 Quarter-3 Quarter-4    
canoes 4038.5 3248 3268.5 3307.5    
Kayak 2510 2115 2165 2207.5    
Direct Labour Hours            
canoes 10500.1 8444.8 8498.1 8599.5    
Kayak 3765 3172.5 3247.5 3311.25    
Direct Labour Hours Required 14265.1 11617.3 11745.6 11910.75    
Direct Labour Budget $250,036.70 $203,839.10 $206,170.20 $209,105.25    
             
Overhead Budget  
  Quarter-1 Quarter-2 Quarter-3 Quarter-4 Total  
Variable Overhead            
Canoe $72,831.38 $58,575.29 $58,945.00 $59,648.33 $250,000.00  
Kayak $67,788.83 $57,120.87 $58,471.24 $59,619.06 $243,000.00  
Fixed Overhead            
Canoe $147,177.65 $118,368.95 $119,116.05 $120,537.35 $505,200.00  
Kayak-Machine Hours 6526 5499 5629 5739.5    
Kayak $153,431.51 $129,285.91 $132,342.32 $134,940.26 $550,000.00  
Total Overhead $441,229.37 $363,351.02 $368,874.60 $374,745.00 $1,548,200.00  
Cash Disbursement            
Property Tax-Canoe -9322 -7498 -7545 -7635    
Property Tax-Kayak -7811 -6582 -6737 -6870    
Property Tax       60000    
Total Cash Disbursement for OH $424,095.90 $349,271.56 $354,592.22 $420,240.33 $1,548,200.00  
             
Selling and Administrative Overhead Budget  
  Quarter-1 Quarter-2 Quarter-3 Quarter-4 Total  
Total S&A 268509.642585797 273409.388790999 275859.2618936 280421.706729603 1098200  
Commission $82,237.50 $82,747.50 $83,002.50 $84,150.00 $332,137.50  
Variable Admin Cost 13062.5 13362.5 13512.5 13750 $53,687.50  
Total 363809.642585797 369519.388790999 372374.2618936 378321.706729603 1484025  
Cash Disbursement-Same Quarter 272857.231939348 277139.541593249 279280.6964202 283741.280047203    
Cash Disbursement-Following Quarter 15740 68214.307984837 69284.8853983124 69820.17410505   $21,037.50
Total Disbursement for S&A $288,597.23 $345,353.85 $348,565.58 $353,561.45    
             
Cash Budget  
  Quarter-1 Quarter-2 Quarter-3 Quarter-4 Total  
Opening $25,000.00 $27,315.56 $27,016.81 $25,721.22 $25,000.00  
Reciepts $1,020,312.50 $1,460,218.75 $1,868,406.25 $1,896,371.25 $6,245,308.75  
Disbursement for direct material $1,677,586.44 $1,368,934.82 $1,388,330.67 $1,408,633.16 $5,843,485.09  
Direct Labour Budget $250,036.70 $203,839.10 $206,170.20 $209,105.25 $869,151.25  
Total Cash Disbursement for OH $424,095.90 $349,271.56 $354,592.22 $420,240.33 $1,548,200.00  
Total Disbursement for S&A $288,597.23 $345,353.85 $348,565.58 $353,561.45 $1,336,078.12  
Principal Payment of debt $15,000.00 $15,000.00 $15,000.00 $15,000.00 $60,000.00  
Interest Payment of debt $5,400.00 $5,062.50 $4,725.00 $4,387.50 $19,575.00  
Payment For Land     $250,000.00   $250,000.00  
Interest on Borrwing   $58,275.00 $90,037.50 $118,387.50 $266,700.00  
Tax $22,280.67 $22,280.67 $22,280.67 $22,280.67 $89,122.68  
Closing Cash before borrowing $-1,637,684.44 $-880,483.19 $-784,278.78 $-629,503.39    
Borrowing $1,665,000.00 $907,500.00 $810,000.00 $655,000.00 $4,037,500.00  
Closing Cash $27,315.56 $27,016.81 $25,721.22 $25,496.61 $25,496.61 $0.00
             
Cost Of goods Manufactured Budget          
  Total          
Direct Material $3,034,486.63          
Direct Labour $869,151.25          
Overhead $1,548,200.00          
Total $5,451,837.88          
             
Cost of Goods Sold Budget          
Cost of Goods Manufactured $5,451,837.88          
Selling and Admin Oh $1,484,025.00          
Total $6,935,862.88          
             
Proforma Income statement          
Revenue $7,732,625.00          
COGS $5,451,837.88          
Gross Profit $2,280,787.13          
Selling and Admin $1,484,025.00          
Bad Debt $231,978.75          
Profit Before interest and Tax $564,783.38          
Interest $286,275.00          
Profit Before Tax $278,508.38          
Tax $89,122.68          
Profit After Tax $189,385.70          
             
Proforma Balance sheet        
Current Assets:            
Cash $25,496.61          
Accounts Receivable(net) $460,473.75          
Raw Material Inventory $97,528.53          
Finished goods inventory $397,082.68          
Total Current Assets   $980,581.57        
Long-term assets            
Buildings and equipment $2,280,000.00          
Accumulated depreciation $419,200.00 $1,860,800.00        
Total Assets   $2,841,381.57        
             
Current Liabilities:            
Accounts payable $156,514.80          
Commissions payable $21,037.50          
Short Term Debt $657,738.58          
Total Current Liabilities   $835,290.88        
Long-term debt   180000        
Total liabilities   $1,015,290.88        
Shareholders’ Equity            
Capital stock 1299000          
Retained earnings $527,090.70 $1,826,090.70        
Total Liabilities and Shareholders’ Equity   $2,841,381.57      

 

 

Answer 2-

Price increase and Credit Tight

             
Sales Budget  
  Quarter-1 Quarter-2 Quarter-3 Quarter-4 Total  
Budgted Units-canoes 3128.25 3147.65 3157.35 3201 12,634  
Budgeted Units-Kayak 1,940 2,037 2,086 2,134 8,197  
Budgeted selling price/ unit      
canoes $425.00  
Kayak $260.00  
Budgeted sales            
canoes $1,462,456.88 $1,471,526.38 $1,476,061.13 $1,496,467.50 $5,906,511.88  
Kayak $554,840.00 $582,582.00 $596,453.00 $610,324.00 $2,344,199.00  
Total $2,017,296.88 $2,054,108.38 $2,072,514.13 $2,106,791.50 $8,250,710.88  
             
Schedule of Reciepts    
  Quarter-1 Quarter-2 Quarter-3 Quarter-4   Closing
sales collected in quarter of the sales $1,613,837.50 $1,643,286.70 $1,658,011.30 $1,685,433.20    
sales collected in following quarter 75000 $327,594.53 $308,116.26 $310,877.12   $421,358.30
sales collected in the second quarter following            
bad debt $100,864.84 $102,705.42 $103,625.71 $105,339.58    
Total Reciepts $1,688,837.50 $1,970,881.23 $1,966,127.56 $1,996,310.32 $7,622,156.61 $421,358.30
             
Production Budget  
  Quarter-1 Quarter-2 Quarter-3 Quarter-4 Sales Q-1 2020 Closing
Opening            
canoes 160 944.295 947.205 960.3 967.575  
Kayak 120 611.1 625.65 640.2 647.475  
Budgted Sales unit            
canoes 3128.25 3147.65 3157.35 3201 3225.25 3350
Kayak 1940 2037 2085.5 2134 2158.25 2250
Budgted Closing stock            
canoes 944.295 947.205 960.3 967.575 1005 1615.05
Kayak 611.1 625.65 640.2 647.475 675  
Budgeted Production            
canoes 3912.545 3150.56 3170.445 3208.275 3262.675 13441.825
Kayak 2431.1 2051.55 2100.05 2141.275 2185.775 8723.975
            22165.8
Direct Material Purchased Budget Closing
Budgeted Production Quarter-1 Quarter-2 Quarter-3 Quarter-4 Sales Q-1 2020  
canoes 3912.545 3150.56 3170.445 3208.275 3262.675  
Opening            
Polyurethane: 400 1102.696 1109.65575 1122.89625    
Styrofoam: 600 1102.696 1109.65575 1122.89625    
Production            
Polyurethane: 18388.9615 14807.632 14901.0915 15078.8925    
Styrofoam: 29735.342 23944.256 24095.382 24382.89    
Closing          
Polyurethane: 1102.696 1109.65575 1122.89625 1141.93625 18613.560875
Styrofoam: 1102.696 1109.65575 1122.89625 1141.93625   7365.4888125
Direct Material Required    
Canoes  
Polyurethane: 19091.6575 14814.59175 14914.332 15097.9325    
Styrofoam: 30238.038 23951.21575 24108.6225 24401.93  
Kayak 2510 2115 2165 2207.5 2185.775  
Opening            
Polypropylene: 200 528.75 541.25 551.875    
Fiberglass gel-coated: 350 423 433 441.5    
Production            
Polypropylene: 6024 5076 5196 5298    
Fiberglass gel-coated: 12550 10575 10825 11037.5    
Closing            
Polypropylene: 528.75 1299 1324.5 1311.465   33442.3575
Fiberglass gel-coated: 423 2165 2207.5 2185.775   36065.2875
Direct Material Required   95486.6946875
Kayak  
Polypropylene: 6352.75 5846.25 5979.25 6057.59    
Fiberglass gel-coated: 12623 12317 12599.5 12781.775  
             
Schedule of disbursement    
  Quarter-1 Quarter-2 Quarter-3 Quarter-4    
Polyurethane: 19091.6575 14814.59175 14914.332 15097.9325    
Styrofoam: 30238.038 23951.21575 24108.6225 24401.93    
Polypropylene: 6352.75 5846.25 5979.25 6057.59    
Fiberglass gel-coated: 12623 12317 12599.5 12781.775    
             
Money Required for Direct Material $876,503.99 $748,273.06 $758,966.85 $768,856.58    
Disbursement in Same quarter $701,203.19 $598,618.45 $607,173.48 $615,085.26    
Disbursement in following quarter   $175,300.80 $149,654.61 $151,793.37 $153,771.32  
Disbursement of last Year $70,000.00          
Total $1,647,707.18 $1,346,891.51 $1,366,140.33 $1,383,941.85    
             
Direct Labour Budget    
  Quarter-1 Quarter-2 Quarter-3 Quarter-4    
canoes 3912.545 3150.56 3170.445 3208.275    
Kayak 2431.1 2051.55 2100.05 2141.275    
Direct Labour Hours            
canoes 10172.617 8191.456 8243.157 8341.515    
Kayak 3646.65 3077.325 3150.075 3211.9125    
Direct Labour Hours Required 13819.267 11268.781 11393.232 11553.4275    
Direct Labour Budget $242,220.84 $197,723.93 $199,985.09 $202,832.09    
             
Overhead Budget  
  Quarter-1 Quarter-2 Quarter-3 Quarter-4 Total  
Variable Overhead            
Canoe $72,768.11 $58,596.21 $58,966.04 $59,669.63 $250,000.00  
Kayak $67,716.53 $57,144.44 $58,495.37 $59,643.66 $243,000.00  
Fixed Overhead            
Canoe $147,049.80 $118,411.22 $119,158.58 $120,580.39 $505,200.00  
Kayak-Machine Hours 6320.86 5334.03 5460.13 5567.315    
Kayak $153,267.86 $129,339.26 $132,396.93 $134,995.95 $550,000.00  
Total Overhead $440,802.31 $363,491.13 $369,016.93 $374,889.63 $1,548,200.00  
Cash Disbursement            
Property Tax-Canoe -9314 -7500 -7548 -7638    
Property Tax-Kayak -7803 -6585 -6740 -6873    
Property Tax       60000    
Total Cash Disbursement for OH $423,685.26 $349,406.27 $354,729.07 $420,379.40 $1,548,200.00  
             
Selling and Administrative Overhead Budget  
  Quarter-1 Quarter-2 Quarter-3 Quarter-4 Total  
Total S&A 268509.642585797 273409.388790999 275859.2618936 280421.706729603 1098200  
Commission $87,747.41 $88,291.58 $88,563.67 $89,788.05 $354,390.71  
Variable Admin Cost 12670.625 12961.625 13107.125 13337.5 $52,076.88  
Total 368927.680085797 374662.596290999 377530.0543936 383547.256729604 1504667.5875  
Cash Disbursement-Same Quarter 276695.760064348 280996.947218249 283147.5407952 287660.442547203    
Cash Disbursement-Following Quarter 15740 69173.940016087 70249.2368045624 70786.8851988   $22,447.01
Total Disbursement for S&A $292,435.76 $350,170.89 $353,396.78 $358,447.33    
             
Cash Budget  
  Quarter-1 Quarter-2 Quarter-3 Quarter-4 Total  
Opening $25,000.00 $24,127.64 $24,555.45 $26,333.41 $25,000.00  
Reciepts $1,688,837.50 $1,970,881.23 $1,966,127.56 $1,996,310.32 $7,622,156.61  
Disbursement for direct material $1,647,707.18 $1,346,891.51 $1,366,140.33 $1,383,941.85 $5,744,680.87  
Direct Labour Budget $242,220.84 $197,723.93 $199,985.09 $202,832.09 $842,761.95  
Total Cash Disbursement for OH $423,685.26 $349,406.27 $354,729.07 $420,379.40 $1,548,200.00  
Total Disbursement for S&A $292,435.76 $350,170.89 $353,396.78 $358,447.33 $1,354,450.75  
Principal Payment of debt $15,000.00 $15,000.00 $15,000.00 $15,000.00 $60,000.00  
Interest Payment of debt $5,400.00 $5,062.50 $4,725.00 $4,387.50 $19,575.00  
Payment For Land     $250,000.00   $250,000.00  
Interest on Borrwing   $35,437.50 $49,612.50 $74,287.50 $159,337.50  
Tax $75,760.82 $75,760.82 $75,760.82 $75,760.82 $303,043.29  
Closing Cash before borrowing $-988,372.36 $-380,444.55 $-678,666.59 $-512,392.76    
Borrowing $1,012,500.00 $405,000.00 $705,000.00 $537,500.00 $2,660,000.00  
Closing Cash $24,127.64 $24,555.45 $26,333.41 $25,107.24 $25,107.24 $0.00
             
Cost Of goods Manufactured Budget          
  Total          
Direct Material $2,981,637.22          
Direct Labour $842,761.95          
Overhead $1,548,200.00          
Total $5,372,599.18          
             
Cost of Goods Sold Budget          
Cost of Goods Manufactured $5,372,599.18          
Selling and Admin Oh $1,504,667.59          
Total $6,877,266.76          
             
Proforma Income statement          
Revenue $8,250,710.88          
COGS $5,372,599.18          
Gross Profit $2,878,111.70          
Selling and Admin $1,504,667.59          
Bad Debt $247,521.33          
Profit Before interest and Tax $1,125,922.78          
Interest $178,912.50          
Profit Before Tax $947,010.28          
Tax $303,043.29          
Profit After Tax $643,966.99          
             
Proforma Balance sheet        
Current Assets:            
Cash $25,107.24          
Accounts Receivable(net) $421,358.30          
Raw Material Inventory $95,486.69          
Finished goods inventory $379,572.02          
Total Current Assets   $921,524.25        
Long-term assets            
Buildings and equipment $2,280,000.00          
Accumulated depreciation $419,200.00 $1,860,800.00        
Total Assets   $2,782,324.25        
             
Current Liabilities:            
Accounts payable $153,771.32          
Commissions payable $22,447.01          
Short Term Debt $145,433.93          
Total Current Liabilities   $321,652.26        
Long-term debt   180000        
Total liabilities   $501,652.26        
Shareholders’ Equity            
Capital stock 1299000          
Retained earnings $981,671.99 $2,280,671.99        
Total Liabilities and Shareholders’ Equity   $2,782,324.25      

Inventory Change

             
Sales Budget  
  Quarter-1 Quarter-2 Quarter-3 Quarter-4 Total  
Budgted Units-canoes 3225 3245 3255 3300 13,025  
Budgeted Units-Kayak 2,000 2,100 2,150 2,200 8,450  
Budgeted selling price/ unit      
canoes $425.00  
Kayak $260.00  
Budgeted sales            
canoes $1,370,625.00 $1,379,125.00 $1,383,375.00 $1,402,500.00 $5,535,625.00  
Kayak $520,000.00 $546,000.00 $559,000.00 $572,000.00 $2,197,000.00  
Total $1,890,625.00 $1,925,125.00 $1,942,375.00 $1,974,500.00 $7,732,625.00  
             
Schedule of Reciepts    
  Quarter-1 Quarter-2 Quarter-3 Quarter-4   Closing
sales collected in quarter of the sales $945,312.50 $962,562.50 $971,187.50 $987,250.00    
sales collected in following quarter 75000 $497,656.25 $481,281.25 $485,593.75   $246,812.50
sales collected in the second quarter following     $415,937.50 $423,527.50   $213,661.25
bad debt $56,718.75 $57,753.75 $58,271.25 $59,235.00    
Total Reciepts $1,020,312.50 $1,460,218.75 $1,868,406.25 $1,896,371.25 $6,245,308.75 $460,473.75
             
Production Budget  
  Quarter-1 Quarter-2 Quarter-3 Quarter-4 Sales Q-1 2020 Closing
Opening            
canoes 160 129.8 130.2 132 129.01  
Kayak 120 84 86 88 86.33  
Budgted Sales unit            
canoes 3225 3245 3255 3300 3225.25 3350
Kayak 2000 2100 2150 2200 2158.25 2250
Budgted Closing stock            
canoes 129.8 130.2 132 129.01 134 215.34
Kayak 84 86 88 86.33 90  
Budgeted Production            
canoes 3194.8 3245.4 3256.8 3297.01 3230.24 12994.01
Kayak 1964 2102 2152 2198.33 2161.92 8416.33
            21410.34
Direct Material Purchased Budget Closing
Budgeted Production Quarter-1 Quarter-2 Quarter-3 Quarter-4 Sales Q-1 2020  
canoes 3194.8 3245.4 3256.8 3297.01 3230.24  
Opening            
Polyurethane: 400 1135.89 1139.88 1153.9535    
Styrofoam: 600 1135.89 1139.88 1153.9535    
Production            
Polyurethane: 15015.56 15253.38 15306.96 15495.947    
Styrofoam: 24280.48 24665.04 24751.68 25057.276    
Closing          
Polyurethane: 1135.89 1139.88 1153.9535 1130.584 18428.5192
Styrofoam: 1135.89 1139.88 1153.9535 1130.584   7292.2668
Direct Material Required    
Canoes  
Polyurethane: 15751.45 15257.37 15321.0335 15472.5775    
Styrofoam: 24816.37 24669.03 24765.7535 25033.9065  
Kayak 2510 2115 2165 2207.5 2161.92  
Opening            
Polypropylene: 200 528.75 541.25 551.875    
Fiberglass gel-coated: 350 423 433 441.5    
Production            
Polypropylene: 6024 5076 5196 5298    
Fiberglass gel-coated: 12550 10575 10825 11037.5    
Closing            
Polypropylene: 63.45 64.95 66.225 64.8576   1653.8688
Fiberglass gel-coated: 63.45 64.95 66.225 64.8576   1070.1504
Direct Material Required   28444.8052
Kayak  
Polypropylene: 5887.45 4612.2 4720.975 4810.9826    
Fiberglass gel-coated: 12263.45 10216.95 10458.225 10660.8576  
             
Schedule of disbursement    
  Quarter-1 Quarter-2 Quarter-3 Quarter-4    
Polyurethane: 15751.45 15257.37 15321.0335 15472.5775    
Styrofoam: 24816.37 24669.03 24765.7535 25033.9065    
Polypropylene: 5887.45 4612.2 4720.975 4810.9826    
Fiberglass gel-coated: 12263.45 10216.95 10458.225 10660.8576    
             
Money Required for Direct Material $769,291.12 $694,001.15 $702,417.53 $712,255.92    
Disbursement in Same quarter $615,432.90 $555,200.92 $561,934.02 $569,804.73    
Disbursement in following quarter   $153,858.22 $138,800.23 $140,483.51 $142,451.18  
Disbursement of last Year $70,000.00          
Total $1,454,724.02 $1,249,202.07 $1,264,351.56 $1,282,060.65    
             
Direct Labour Budget    
  Quarter-1 Quarter-2 Quarter-3 Quarter-4    
canoes 3194.8 3245.4 3256.8 3297.01    
Kayak 1964 2102 2152 2198.33    
Direct Labour Hours            
canoes 8306.48 8438.04 8467.68 8572.226    
Kayak 2946 3153 3228 3297.495    
Direct Labour Hours Required 11252.48 11591.04 11695.68 11869.721    
Direct Labour Budget $197,184.16 $203,353.68 $205,282.56 $208,380.25    
             
Overhead Budget  
  Quarter-1 Quarter-2 Quarter-3 Quarter-4 Total  
Variable Overhead            
Canoe $61,466.78 $62,440.31 $62,659.64 $63,433.27 $250,000.00  
Kayak $56,705.48 $60,689.87 $62,133.50 $63,471.16 $243,000.00  
Fixed Overhead            
Canoe $101,592.30 $103,201.34 $103,563.85 $104,842.50 $413,200.00  
Kayak-Machine Hours 5106.4 5465.2 5595.2 5715.658    
Kayak $108,977.19 $116,634.45 $119,408.82 $121,979.55 $467,000.00  
Total Overhead $328,741.75 $342,965.97 $347,765.81 $353,726.47 $1,373,200.00  
Cash Disbursement            
Property Tax-Canoe -7868 -7992 -8020 -8119    
Property Tax-Kayak -6534 -6993 -7159 -7314    
Property Tax       60000    
Total Cash Disbursement for OH $314,340.04 $327,980.54 $332,585.96 $398,293.46 $1,373,200.00  
             
Selling and Administrative Overhead Budget  
  Quarter-1 Quarter-2 Quarter-3 Quarter-4 Total  
Total S&A 268509.642585797 273409.388790999 275859.2618936 280421.706729603 1098200  
Commission $82,237.50 $82,747.50 $83,002.50 $84,150.00 $332,137.50  
Variable Admin Cost 13062.5 13362.5 13512.5 13750 $53,687.50  
Total 363809.642585797 369519.388790999 372374.2618936 378321.706729603 1484025  
Cash Disbursement-Same Quarter 272857.231939348 277139.541593249 279280.6964202 283741.280047203    
Cash Disbursement-Following Quarter 15740 68214.307984837 69284.8853983124 69820.17410505   $21,037.50
Total Disbursement for S&A $288,597.23 $345,353.85 $348,565.58 $353,561.45    
             
Cash Budget  
  Quarter-1 Quarter-2 Quarter-3 Quarter-4 Total  
Opening $25,000.00 $385,661.66 $499,747.38 $618,200.09 $25,000.00  
Reciepts $1,020,312.50 $1,460,218.75 $1,868,406.25 $1,896,371.25 $6,245,308.75  
Disbursement for direct material $1,454,724.02 $1,249,202.07 $1,264,351.56 $1,282,060.65 $5,250,338.29  
Direct Labour Budget $197,184.16 $203,353.68 $205,282.56 $208,380.25 $814,200.65  
Total Cash Disbursement for OH $314,340.04 $327,980.54 $332,585.96 $398,293.46 $1,373,200.00  
Total Disbursement for S&A $288,597.23 $345,353.85 $348,565.58 $353,561.45 $1,336,078.12  
Principal Payment of debt $15,000.00 $15,000.00 $15,000.00 $15,000.00 $60,000.00  
Interest Payment of debt $5,400.00 $5,062.50 $4,725.00 $4,387.50 $19,575.00  
Payment For Land     $250,000.00   $250,000.00  
Interest on Borrwing   $58,275.00 $90,037.50 $118,387.50 $266,700.00  
Tax $49,405.39 $49,405.39 $49,405.39 $49,405.39 $197,621.56  
Closing Cash before borrowing $-1,279,338.34 $-407,752.62 $-191,799.91 $85,095.13    
Borrowing $1,665,000.00 $907,500.00 $810,000.00 $655,000.00 $4,037,500.00  
Closing Cash $385,661.66 $499,747.38 $618,200.09 $740,095.13 $740,095.13 $0.00
             
Cost Of goods Manufactured Budget          
  Total          
Direct Material $2,925,378.23          
Direct Labour $814,200.65          
Overhead $1,373,200.00          
Total $5,112,778.87          
             
Cost of Goods Sold Budget          
Cost of Goods Manufactured $5,112,778.87          
Selling and Admin Oh $1,484,025.00          
Total $6,596,803.87          
             
Proforma Income statement          
Revenue $7,732,625.00          
COGS $5,112,778.87          
Gross Profit $2,619,846.13          
Selling and Admin $1,484,025.00          
Bad Debt $231,978.75          
Profit Before interest and Tax $903,842.38          
Interest $286,275.00          
Profit Before Tax $617,567.38          
Tax $197,621.56          
Profit After Tax $419,945.82          
             
Proforma Balance sheet        
Current Assets:            
Cash $740,095.13          
Accounts Receivable(net) $460,473.75          
Raw Material Inventory $28,444.81          
Finished goods inventory $48,162.11          
Total Current Assets   $1,277,175.79        
Long-term assets            
Buildings and equipment $2,280,000.00          
Accumulated depreciation $419,200.00 $1,860,800.00        
Total Assets   $3,137,975.79        
             
Current Liabilities:            
Accounts payable $142,451.18          
Commissions payable $21,037.50          
Short Term Debt $737,836.29          
Total Current Liabilities   $901,324.97        
Long-term debt   180000        
Total liabilities   $1,081,324.97        
Shareholders’ Equity            
Capital stock 1299000          
Retained earnings $757,650.82 $2,056,650.82        
Total Liabilities and Shareholders’ Equity   $3,137,975.79      

 

Both Chang

             
Sales Budget  
  Quarter-1 Quarter-2 Quarter-3 Quarter-4 Total  
Budgted Units-canoes 3128.25 3147.65 3157.35 3201 12,634  
Budgeted Units-Kayak 1,940 2,037 2,086 2,134 8,197  
Budgeted selling price/ unit      
canoes $425.00  
Kayak $260.00  
Budgeted sales            
canoes $1,462,456.88 $1,471,526.38 $1,476,061.13 $1,496,467.50 $5,906,511.88  
Kayak $554,840.00 $582,582.00 $596,453.00 $610,324.00 $2,344,199.00  
Total $2,017,296.88 $2,054,108.38 $2,072,514.13 $2,106,791.50 $8,250,710.88  
             
Schedule of Reciepts    
  Quarter-1 Quarter-2 Quarter-3 Quarter-4   Closing
sales collected in quarter of the sales $1,613,837.50 $1,643,286.70 $1,658,011.30 $1,685,433.20    
sales collected in following quarter 75000 $327,594.53 $308,116.26 $310,877.12   $421,358.30
sales collected in the second quarter following            
bad debt $100,864.84 $102,705.42 $103,625.71 $105,339.58    
Total Reciepts $1,688,837.50 $1,970,881.23 $1,966,127.56 $1,996,310.32 $7,622,156.61 $421,358.30
             
Production Budget  
  Quarter-1 Quarter-2 Quarter-3 Quarter-4 Sales Q-1 2020 Closing
Opening            
canoes 160 125.906 126.294 128.04 129.01  
Kayak 120 81.48 83.42 85.36 86.33  
Budgted Sales unit            
canoes 3128.25 3147.65 3157.35 3201 3225.25 3350
Kayak 1940 2037 2085.5 2134 2158.25 2250
Budgted Closing stock            
canoes 125.906 126.294 128.04 129.01 134 215.34
Kayak 81.48 83.42 85.36 86.33 90  
Budgeted Production            
canoes 3094.156 3148.038 3159.096 3201.97 3230.24 12603.26
Kayak 1901.48 2038.94 2087.44 2134.97 2161.92 8162.83
            20766.09
Direct Material Purchased Budget Closing
Budgeted Production Quarter-1 Quarter-2 Quarter-3 Quarter-4 Sales Q-1 2020  
canoes 3094.156 3148.038 3159.096 3201.97 3230.24  
Opening            
Polyurethane: 400 1101.8133 1105.6836 1120.6895    
Styrofoam: 600 1101.8133 1105.6836 1120.6895    
Production            
Polyurethane: 14542.5332 14795.7786 14847.7512 15049.259    
Styrofoam: 23515.5856 23925.0888 24009.1296 24334.972    
Closing          
Polyurethane: 94.44114 94.77288 96.0591 96.9072 1579.58736
Styrofoam: 94.44114 94.77288 96.0591 96.9072   625.05144
Direct Material Required    
Canoes  
Polyurethane: 14236.97434 13788.73818 13838.1267 14025.4767    
Styrofoam: 23010.02674 22918.04838 22999.5051 23311.1897  
Kayak 2510 2115 2165 2207.5 2161.92  
Opening            
Polypropylene: 200 528.75 541.25 551.875    
Fiberglass gel-coated: 350 423 433 441.5    
Production            
Polypropylene: 6024 5076 5196 5298    
Fiberglass gel-coated: 12550 10575 10825 11037.5    
Closing            
Polypropylene: 63.45 64.95 66.225 64.8576   1653.8688
Fiberglass gel-coated: 63.45 64.95 66.225 64.8576   1070.1504
Direct Material Required   4928.658
Kayak  
Polypropylene: 5887.45 4612.2 4720.975 4810.9826    
Fiberglass gel-coated: 12263.45 10216.95 10458.225 10660.8576  
             
Schedule of disbursement    
  Quarter-1 Quarter-2 Quarter-3 Quarter-4    
Polyurethane: 14236.97434 13788.73818 13838.1267 14025.4767    
Styrofoam: 23010.02674 22918.04838 22999.5051 23311.1897    
Polypropylene: 5887.45 4612.2 4720.975 4810.9826    
Fiberglass gel-coated: 12263.45 10216.95 10458.225 10660.8576    
             
Money Required for Direct Material $732,954.25 $658,768.62 $666,853.85 $677,556.65    
Disbursement in Same quarter $586,363.40 $527,014.90 $533,483.08 $542,045.32    
Disbursement in following quarter   $146,590.85 $131,753.72 $133,370.77 $135,511.33  
Disbursement of last Year $70,000.00          
Total $1,389,317.66 $1,185,783.51 $1,200,336.93 $1,219,601.97    
             
Direct Labour Budget    
  Quarter-1 Quarter-2 Quarter-3 Quarter-4    
canoes 3094.156 3148.038 3159.096 3201.97    
Kayak 1901.48 2038.94 2087.44 2134.97    
Direct Labour Hours            
canoes 8044.8056 8184.8988 8213.6496 8325.122    
Kayak 2852.22 3058.41 3131.16 3202.455    
Direct Labour Hours Required 10897.0256 11243.3088 11344.8096 11527.577    
Direct Labour Budget $190,953.88 $197,253.07 $199,124.08 $202,373.72    
             
Overhead Budget  
  Quarter-1 Quarter-2 Quarter-3 Quarter-4 Total  
Variable Overhead            
Canoe $61,376.10 $62,444.92 $62,664.26 $63,514.72 $250,000.00  
Kayak $56,605.32 $60,697.38 $62,141.18 $63,556.11 $243,000.00  
Fixed Overhead            
Canoe $101,442.43 $103,208.96 $103,571.49 $104,977.13 $413,200.00  
Kayak-Machine Hours 4943.848 5301.244 5427.344 5550.922    
Kayak $108,784.72 $116,648.88 $119,423.59 $122,142.81 $467,000.00  
Total Overhead $328,208.57 $343,000.13 $347,800.53 $354,190.76 $1,373,200.00  
Cash Disbursement            
Property Tax-Canoe -7856 -7993 -8021 -8130    
Property Tax-Kayak -6522 -6994 -7160 -7323    
Property Tax       60000    
Total Cash Disbursement for OH $313,830.01 $328,013.25 $332,619.21 $398,737.54 $1,373,200.00  
             
Selling and Administrative Overhead Budget  
  Quarter-1 Quarter-2 Quarter-3 Quarter-4 Total  
Total S&A 268509.642585797 273409.388790999 275859.2618936 280421.706729603 1098200  
Commission $87,747.41 $88,291.58 $88,563.67 $89,788.05 $354,390.71  
Variable Admin Cost 12670.625 12961.625 13107.125 13337.5 $52,076.88  
Total 368927.680085797 374662.596290999 377530.0543936 383547.256729604 1504667.5875  
Cash Disbursement-Same Quarter 276695.760064348 280996.947218249 283147.5407952 287660.442547203    
Cash Disbursement-Following Quarter 15740 69173.940016087 70249.2368045624 70786.8851988   $22,447.01
Total Disbursement for S&A $292,435.76 $350,170.89 $353,396.78 $358,447.33    
             
Cash Budget  
  Quarter-1 Quarter-2 Quarter-3 Quarter-4 Total  
Opening $25,000.00 $66,750.91 $104,324.64 $152,500.92 $25,000.00  
Reciepts $1,688,837.50 $1,970,881.23 $1,966,127.56 $1,996,310.32 $7,622,156.61  
Disbursement for direct material $1,389,317.66 $1,185,783.51 $1,200,336.93 $1,219,601.97 $4,995,040.07  
Direct Labour Budget $190,953.88 $197,253.07 $199,124.08 $202,373.72 $789,704.75  
Total Cash Disbursement for OH $313,830.01 $328,013.25 $332,619.21 $398,737.54 $1,373,200.00  
Total Disbursement for S&A $292,435.76 $350,170.89 $353,396.78 $358,447.33 $1,354,450.75  
Principal Payment of debt $15,000.00 $15,000.00 $15,000.00 $15,000.00 $60,000.00  
Interest Payment of debt $5,400.00 $5,062.50 $4,725.00 $4,387.50 $19,575.00  
Payment For Land     $250,000.00   $250,000.00  
Interest on Borrwing   $21,875.00 $30,100.00 $48,737.50 $100,712.50  
Tax $65,149.29 $65,149.29 $65,149.29 $65,149.29 $260,597.15  
Closing Cash before borrowing $-558,249.09 $-130,675.36 $-379,999.08 $-163,623.61    
Borrowing $625,000.00 $235,000.00 $532,500.00 $357,500.00 $1,750,000.00  
Closing Cash $66,750.91 $104,324.64 $152,500.92 $193,876.39 $193,876.39 $-0.00
             
Cost Of goods Manufactured Budget          
  Total          
Direct Material $2,876,288.30          
Direct Labour $789,704.75          
Overhead $1,373,200.00          
Total $5,039,193.05          
             
Cost of Goods Sold Budget          
Cost of Goods Manufactured $5,039,193.05          
Selling and Admin Oh $1,504,667.59          
Total $6,543,860.64          
             
Proforma Income statement          
Revenue $7,709,808.48          
COGS $5,039,193.05          
Gross Profit $2,670,615.42          
Selling and Admin $1,504,667.59          
Bad Debt $231,294.25          
Profit Before interest and Tax $934,653.58          
Interest $120,287.50          
Profit Before Tax $814,366.08          
Tax $260,597.15          
Profit After Tax $553,768.94          
             
Proforma Balance sheet        
Current Assets:            
Cash $193,876.39          
Accounts Receivable(net) $421,358.30          
Raw Material Inventory $4,928.66          
Finished goods inventory $47,468.93          
Total Current Assets   $667,632.28        
Long-term assets            
Buildings and equipment $2,280,000.00          
Accumulated depreciation $419,200.00 $1,860,800.00        
Total Assets   $2,528,432.28        
             
Current Liabilities:            
Accounts payable $135,511.33          
Commissions payable $22,447.01          
Total Current Liabilities   $157,958.34        
Long-term debt   $180,000.00        
Total liabilities   $337,958.34        
Shareholders’ Equity            
Capital stock $1,299,000.00          
Retained earnings $891,473.94 $2,190,473.94        
Total Liabilities and Shareholders’ Equity   $2,528,432.28      

 

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