create the initial documents for the master budget:
• sales budget
• production budget
• direct materials purchases budget
• direct labor budget
• overhead budget
• selling and administrative expense budget
• cash budget include a schedule of cash collections and payments
• finished goods inventory calculation
Then, Create the following schedules, financial statements, and
calculations
A) Pro forma cost of goods manufactured
B) Pro forma Cost of goods sold- both financial and variable cost basis
C) Pro forma income statement (financial basis)
D) Pro forma balance sheet
E)Pro forma Income statement (variable cost basis)
F) Pro forma statement of retained earnings
G) breakeven analysis: 1. breakeven sales level in units and dollars. 2. cost volume profit graph showing the breakeven point
H) Flexible Budget
1. Create the flecxible budget results for production costs as if actual production were 160,000 units in the first quarter of 2019
2. Add flexible budget results for slightly higher and slightly lower production at 170,000 units and 150,000 units, respectively.
Here is the template for everything
Solution:
Part 1 – Production Budget
Production Budget |
|||||
First Quarter |
Second Quarter |
Third Quarter |
Fourth Quarter |
Annual |
|
Sales needs (Production units) |
37300 |
34500 |
31000 |
43000 |
145800 |
Plus: Desired Ending Finished Goods Inventory |
15500 |
19000 |
19500 |
15000 |
15000 |
Total Needs |
52800 |
53500 |
50500 |
58000 |
160800 |
Less: Estimated Beginning Finished Goods Inventory |
0 |
15500 |
19000 |
19500 |
0 |
Required Production in Units |
52800 |
38000 |
31500 |
38500 |
160800 |
Part 2 – Direct materials purchase budget
Raw Materials Budget |
|||||
First quarter |
Second quarter |
Third Quarter |
Fourth Quarter |
Annual |
|
Finished goods produced (units) |
52,800 |
38,000 |
31,500 |
38,500 |
160,800 |
DM needed per unit |
3 |
3 |
3 |
3 |
3 |
Direct materials needed for production |
158400 |
114000 |
94500 |
115500 |
482400 |
Plus: Desired Raw Material Ending Inventory (25% of next month's production needs) |
28500 |
23625 |
28875 |
26000 |
26000 |
Total direct materials needed |
186900 |
137625 |
123375 |
141500 |
508400 |
Less: Estimated Beginning Raw materials Inventory |
28436 |
28500 |
23625 |
28875 |
28436 |
Budgeted Raw Materials purchases in units |
158464 |
109125 |
99750 |
112625 |
479964 |
Direct materials cost per unit |
$84.25 |
$84.25 |
$84.25 |
$84.25 |
$84.25 |
Budgeted cost of direct materials |
$13,350,592.00 |
$9,193,781.25 |
$8,403,937.50 |
$9,488,656.25 |
$40,436,967.00 |
Part 3 – Direct labor budget
Direct Labor Budget |
|||||
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
Annual |
|
FG Units to be produced |
52,800 |
38,000 |
31,500 |
38,500 |
|
Required Direct Labor Hour per unit |
4.50 |
4.50 |
4.50 |
4.50 |
|
Total Direct Labor Hours Required |
237,600 |
171,000 |
141,750 |
173,250 |
|
Direct Labor Cost per hour |
$19.5 |
$19.5 |
$19.5 |
$19.5 |
|
Budgeted Direct Labor Cost |
$4,633,200 |
$3,334,500 |
$2,764,125 |
$3,378,375 |
$14,110,200 |
Part 4 – Overhead Budget
Overhead Budget |
|||||
First quarter |
Second quarter |
third quarter |
fourth quarter |
Annual |
|
Budgeted Hours |
237600 |
171000 |
141750 |
173250 |
|
Variable overhead rate ($/Hour) |
$9.50 |
$9.50 |
$9.50 |
$9.50 |
|
Budgeted Variable Overhead |
$2,257,200 |
$1,624,500 |
$1,346,625 |
$1,645,875 |
|
Budgeted Fixed Overhead without Depreciation |
$915,000 |
$915,000 |
$915,000 |
$915,000 |
|
Depreciation |
$326,000 |
$326,000 |
$326,000 |
$326,000 |
|
Total Overhead |
$3,498,200 |
$2,865,500 |
$2,587,625 |
$2,886,875 |
$11,838,200 |
Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you
Pls ask separate question for remaining parts
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