44

Material Cost
April
137,000
0.50
68,500

Material purchased
Material cost per unit
Material cost (total)

May
350,500
0.50
175,250

Cash Disbursement (For Material)

June
186,500
0.50
93,250

Material cost

April
68,500

May
175,250

June
93,250

Opening balance
Half cost paid
Remaining half
Material cost paid

12,000
34,250
_------46,250

87,625
34,250
121,875

46,625
87,625
134,250

Direct Labour Budget

April
11,000
0.10
1,100
1,500
1,500
10
15,000

Production
Per unit hours
Guaranteed hours
Required hours
Rate/hour

May
37,000
0.10
3,700
1,500
3,700
10
37,000

Manufacturing overhead Budget

Direct labour hours
Variable rate
Variable overhead
Fixed manufacturing
- Non cash expenses (dep-)
Manufacturing overhead (cash base)

April
1,100
20
22,000
50,000
72,000
20,000
52,000

May
3,700
20
74,000
50,000
124,000
20,000
104,000

Selling & Administrative Budget

Budgeted sale per unit
Per unit cost
Variable selling cost
Fixed selling cost
Total selling & admin.
(Depreciation)
Cash base

April
10,000
0.50
50,000
70,000
75,000
10,000
65,000

May
40,000
0.50
20,000
70,000
90,000
10,000
80,000

Cash Budget

June
19,250
0.10
1,925
1,500
1,925
10
19,250
June
1,925
20
38,500
50,000
88,500
20,000
68,500
June
20,000
0.50
10,000
70,000
80,000
10,000
70,000

45
April

May

June

Opening balance of cash

+ Cash collection
Cash available
Less: Cash disbursement
Material
Labour cost
Manufacturing cost
Selling & admin. Exp.
Equipment purchased
Paid dividend
Total cash disbursement
Balance
Loan
Repayment
Interest (16%x1/12 x23,250)
Cash balance

40,000
94,000
234,000

30,000
686,000
716,000

205,865
448,000
653,865

46,250
15,000
52,000
65,000
-49,000
227,250
6,750
23,250
---_____
30,000

121,875
37,000
104,000
80,000
143,700
-486,575
229,425
-23,250
310
205,865

134,250
19,250
68,500
70,000
48,300
--____
340,300
313,565
----_____
313,565

Question#2

Sales Budget
April

May

June

July

Sales in dollars
Collection from Sales:Opening balance
Cash sales 60%
Credit sales 40% in following month
Cash available

60,000

72,000

90,000

48,000

20,000
36,000
-56,000

43,200
24,000
67,200

54,000
28,800
82,800

28,800
36,000
64,800

CGS 75% of sales

+Desired ending inventory

45,000
43,200
88,200
36,000
52,200

- Opening inventory
Purchase / CGS

54,000
54,000
108,000
43,200
64,800

67,500 36,000
28,800
96,300
54,000
42,300

Payment Budget

Opening balance
Half payment in current month
Remaining half paid
Total cash disbursement

April

May

June

21,000
26,100
_____
47,100

32,400
26,100
58,500

21,150
32,400
53,550

Disbursement on Operating Expenses

April

May

June

46
Commission (12% of sales)
Rent per month
Other expenses 6% of sales
Depreciation per month
Total expenses
Non-cash (Dep.)
Cash Expenses

7,200
2,500
3,600
900
14,200
900
13,300

8,640
2,500
4,320
900
16,360
900
15,640

10,800
2,500
5,400
900
19,600
900
18,700

Cash Budget

Opening cash balance

Cash collection
Cash available
Less: Cash disbursement:Cash paid for CGS
Operating expenses
Equipment purchased
Balance
Loan
Prepayment
Interest

Question#3

April

May

June

8,000
56,000
64,000

4,100
67,200
71,300

4,340
32,800
87,140

47,100
13,300
1,500
2,100
2,000
--4,100

58,500
15,640
_____
2,660
7,000
--4,340

53,550
18,700
______
14,890
--9,000
200
5,690

Cash Collection
Jan

Feb

March

Sales
Cash sales 20%
Credit sales 80%

400,000
80,000
320,000

600,000
120,000
480,000

300,000
60,000
240,000

Opening balance
Credit sales
Cash sales
Cash available

224,000
320,000
120,000
440,000

480,000
60,000
540,000

Jan

Feb

March

400,000

600,000

300,000

80,000
304,000

CGS Budget

Sales

47
CGS 60% of sales
+Desired ending inventory
Total need
Less: Opening Inventory
Purchase / CGS

240,000
90,000
330,000
60,000
270,000

360,000
45,000
405,000
90,000
315,000

180,000
30,000
210,000
45,000
165,000

Cash Disbursement for CGS/Purchase

Purchase/ CGS
Opening balance
50% paid in same month
50% paid in next month
Total disbursement

Jan

Feb

March

290,000
93,000
135,000
______
228,000

315,000

165,000

157,500
135,000
292,500

82,500
157,500
240,000

Operating Expense Budget

Salary
Advertisement
Shipping 5% (sales)
Other Expenses 3% (sales)
Depreciation Expense (42,000/3)
Total Expenses
Less: Non-cash
Cash Expenses

Jan

Feb

March

27,000
70,000
20,000
12,000
14,000
143,000
14,000
129,000

27,000
70,000
30,000
18,000
14,000
159,000
14,000
145,000

27,000
70,000
15,000
9,000
14,000
135,000
14,000
121,000

Cash Budget
Jan

Feb

March

48
Opening balance
Cash collection
Cash available
Less: Cash Disbursement:Cash paid for CGS
Operating Expenses
Machine purchase
Equipment
Dividend paid
Total cash disbursement
Balance
Loan
Repayment
Interest

48,000
304,000
352,000

30,000
440,000
470,000

30,800
540,000
570,800

228,000
129,000
--45,000
402,000
50,000
80,000
--

292,500
145,000
1,700
---_____
439,200
30,800
---

30,000

30,800

240,000
12,100
-84,500
--_____
445,500
125,300
-80,000
1,600
43,700