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Expected Month Cost Percent Collections

This document contains budgets and forecasts for sales, production, labor costs, manufacturing overhead, and raw material purchases for a company over four quarters (Q1-Q3). Key details include: - Sales are projected to be $399k, $441k, and $567k for Q1-Q3 respectively, for a total of $1.407 million. - Planned production is 19,800 units in Q1, 23,400 in Q2, and 26,600 in Q3, for a total of 69,800 units. - Direct labor costs are budgeted at $1.804 million for Q1, $2.030 million for Q2, and $252,860

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0% found this document useful (0 votes)
35 views4 pages

Expected Month Cost Percent Collections

This document contains budgets and forecasts for sales, production, labor costs, manufacturing overhead, and raw material purchases for a company over four quarters (Q1-Q3). Key details include: - Sales are projected to be $399k, $441k, and $567k for Q1-Q3 respectively, for a total of $1.407 million. - Planned production is 19,800 units in Q1, 23,400 in Q2, and 26,600 in Q3, for a total of 69,800 units. - Direct labor costs are budgeted at $1.804 million for Q1, $2.030 million for Q2, and $252,860

Uploaded by

Austin Reevu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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Solution

a)
Expected
Month Cost Percent Collections
Q4 -
Q3 458,100 52% 238,212
Q2 396,100 28% 110,908
Q1 378,700 19% 71,953
421,073

b)
Months Sales Q3 Q4 Q5 Q6
Q1 322,300 61,237 - -
Q2 338,100 94,668 64,239 -
Q3 312,900 162,708 87,612 59,451 -
Q4 298,200 - 155,064 83,496 -
Q5 308,700 - - 160,524
Q6 -
Total 318,613 306,915 303,471 -
Total Q Forecast Collection Schedule
61,237 220,144 In the month of sale 52%
158,907 A/R @ MM/DD In 1st month after sale 28%
309,771 A/R @ MM/DD In 2nd month after sale 19%
238,560 56,658 Uncollectable 0
160,524 145,089
- -
928,999 201,747 Verify: 928,999
Sales Budget: Q1 Q2 Q3 Total Q
Sales (units) 19,000 21,000 27,000 67,000
Sale price per set ($/unit) 21 21 21 21
Sales Revenue 399,000 441,000 567,000 1,407,000

Production Budget: Q1 Q2 Q3 Total Q


Sales 19,000 21,000 27,000 67,000
Add: Desired Ending Inventory (%) 8,400 10,800 10,400 10,400
Total Requirements 27,400 31,800 37,400 77,400
Deduct: Projected Beginning Inventory 7,600 8,400 10,800 7,600
Planned Production 19,800 23,400 26,600 69,800

Direct Labor Budget: Q1 Q2 Q3 Total Q


Planned production (set) 19,200 21,600 2,690 43,490
DLH per unit 0 0 0 0
DLH Required 96,000 108,000 13,450 217,450
Cost per hour 19 19 19 19
Planned Direct Labor cost 1,804,800 2,030,400 252,860 4,088,060

MOH: Q1 Q2 Q3 Total Q
DLH Required 96,000 108,000 13,450 217,450
VMOH per DLH 12 12 12 12
Total VMOH 1,185,600 1,333,800 166,108 2,685,508
Fixed MOH 11,667 11,667 11,667 35,000
Total MOH 1,197,267 1,345,467 177,774 2,720,508
Deduct: Depreciation- 2,333 2,333 2,333 7,000
Total MOH Cash Expenditure 1,194,933 1,343,133 175,441 2,713,508

Raw Material Purchase: Q1 Q2 Q3 Total Q


Planned Production (chair) 19,200 21,600 2,690 43,490
Raw material required per board meter 1 1 1 1
Raw material required for production 15,360 17,280 2,152 34,792
Add: Desired Ending Inventory
of Raw Material in board meter (%) 6,912 861 24,900 24,900
Total requirements 22,272 18,141 27,052 59,692
Deduct: Projected Beginning inventory
of Raw material in board meter (%) 6,144 6,912 861 6,144
Planned purchase of Raw material (boa 16,128 11,229 26,191 53,548
Cost per board meter 9 9 9 9
Planned purchase of Raw material ($) 137,088 95,445 222,625 455,158
Ending Month's production requirement: 40% Q4
Sale for the following month: 26,000

Verify: 69,800

Sale for the following month: 26000

Ending Month's production requirement: 40%


Sale for the following month: 24900

Verify: 455,158

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