Name:

8-22

Enter the appropriate numbers in the shaded cells. An asterisk (*) indicates an incorrect number in the cell to the right of the asteris

Woodruff Manufacturing
For the Quarter Ended March 31, 20xx
Schedule 1: Sales Budget
January
40,000
$205
$8,200,000

February
50,000
$205
$10,250,000

March
60,000
$205
$12,300,000

Total
150,000
$205
$30,750,000

Schedule 2: Production Budget

January
Sales (Schedule 1)
40,000
Desired ending inventory
40,000
Total needs
80,000
Less: Beginning inventory
32,000
Units to be produced
48,000

February
50,000
48,000
98,000
40,000
58,000

March
60,000
48,000
108,000
48,000
60,000

Total
150,000
48,000
198,000
32,000
166,000

Units
Selling price
Sales

Schedule 3: Direct Materials Purchases Budget

January
Metal
Components
Units to be produced
(Schedule 2)
48,000
48,000
Direct materials
per unit (lbs.)
10
6
Production needs
480,000
288,000
Desired ending inventory
290,000
174,000
Total needs
770,000
462,000
Less: Beginning inventory
240,000
144,000
Direct materials to be
purchased
530,000
318,000
Cost per pound
$8
$5
Total cost
$4,240,000
$1,590,000
Schedule 4: Direct Labor Budget
January
Units to be produced
(Schedule 2)
48,000
Direct labor time
per unit (hours)
3
Total hours needed
144,000
Cost per hour
$14.25
Total cost
$2,052,000
Schedule 5: Overhead Budget
January
Budgeted direct labor
hours (Schedule 4)
144,000
Variable overhead rate
$2.40
Budgeted var. overhead
$345,600
Budgeted fixed overhead
338,000
Total overhead
$683,600

February

Metal

February
Components

58,000

58,000

60,000

10
580,000
300,000
880,000
290,000

6
348,000
180,000
528,000
174,000

10
600,000
308,000
908,000
300,000

590,000
$8
$4,720,000

354,000
$5
$1,770,000

608,000
$8
$4,864,000

March

Total

58,000

60,000

166,000

3
174,000
$14.25
$2,479,500

3
180,000
$14.25
$2,565,000

3
498,000
$14.25
$7,096,500

February
174,000
$2.40
$417,600
338,000
$755,600

March
Metal

March
180,000
$2.40
$432,000
338,000
$770,000

Total
498,000
$2.40
$1,195,200
1,014,000
$2,209,200

Schedule 6: Selling and Administrative Expenses Budget

January
February
Planned sales (Schedule 1)
40,000
50,000
Variable selling and
administrative expenses
per unit
$3.60
$3.60
Total variable expense
$144,000
$180,000
Fixed selling and
administrative expenses:
Salaries
$50,000
$50,000
Depreciation
40,000
40,000
Other
20,000
20,000
Total fixed expenses
$110,000
$110,000
Total selling and
administrative expenses
$254,000
$290,000
Schedule 7: Ending Finished Goods Inventory Budget
Unit cost computation:
units
x
Direct materials:
Metal
10
Components
6
hours
x
Direct labor:
3
Overhead:
Variable
Fixed
Total unit cost
Finished goods inventory

hours

x
3
3

units
x
48,000

Schedule 8: Cost of Goods Sold Budget

Direct materials used (Schedule 3)
units
x
Metal
1,660,000
Components
996,000
Direct labor used (Schedule 4)
Overhead (Schedule 5)
Budgeted manufacturing costs
Add: Beginning finished goods
Goods available for sale
Less: Ending finished goods (Schedule 7)
Budgeted cost of goods sold

unit cost
$166.06 =

unit cost
$8.00 =
$5.00 =

March
60,000

Total
150,000

$3.60
$216,000

$3.60
$540,000

$50,000
40,000
20,000
$110,000

$150,000
$120,000
$60,000
$330,000

$326,000

$870,000

cost
$8 =
$5 =

80.00
30.00

rate
$14.25 =

42.75

rate
$2.40 =
$2.04 =

7.20
6.11
$166.06

$7,970,805

13,280,000
4,980,000

$18,260,000
7,096,500
2,209,200
$27,565,700
5,313,920
$32,879,620
7,970,805
$24,908,815

Schedule 9: Budgeted Income Statement

Sales (Schedule 1)
$30,750,000
Less:Cost of goods sold (Schedule 8)
24,908,815
Gross margin
$5,841,185
Less: Selling & admin. expenses (Schedule 6) $
870,000
Income before income taxes
$4,971,185
Schedule 10: Cash Budget
Beginning balance

January
$400,000

February
$50,000

March
$284,900

Total
$400,000

Cash receipts
Cash available
Less:
Disbursements:
Purchases
Direct labor
Overhead
Selling & administrative
Total

8,200,000
$8,600,000

10,250,000
$10,300,000

12,300,000
$12,584,900

30,750,000
$31,150,000

$5,830,000
2,052,000
683,600
254,000
$8,819,600

$6,490,000
2,479,500
755,600
290,000
$10,015,100

$6,688,000
2,565,000
770,000
326,000
$10,349,000

$19,008,000
7,096,500
2,209,200
870,000
$29,183,700

Tentative ending balance

Borrowed
Repaid
Interest paid
Ending balance

($219,600)
269,600

$284,900
0

0
$50,000

0
$284,900

$2,235,900
0
-269,600
-8,088
$1,958,212

$1,966,300
0
-269,600
-8,088
$1,958,212

Name: ASST Djatun

t number in the cell to the right of the asterisk.

uring
ch 31, 20xx

April
60000
49600
109600
48,000
61,600
616000
March
Components

369600

Metal

Total
Components

60,000

166,000

166,000

6
360,000
184,800
544,800
180,000

10
1,660,000
308,000
1,968,000
240,000

6
996,000
184,800
1,180,800
144,000

364,800
$5
$1,824,000

1,728,000
$8
$13,824,000

1,036,800
$5
$5,184,000