Cash receipts budget managerial accounting

Managerial Accounting - Budgeting Assignment

Sheet1
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 $