SUPERBUD

Twelve-Month Master Budget

Figaro Incorporated
Balance Sheet, December 31, 2000

Cash
Accounts receivable
Raw materials
Finished goods
Land
Plant and equipment $275,000
Less: accumulated depreciation 62,000
Total assets

Accounts payable to suppliers

Common stock $60,000
Retained earnings 291,148
Total liabilities and equity

Projected unit sales Gnu Tse

January 2,000 3,000
February 1,800 4,000
March 1,600 5,000
April 1,600 6,000
May 2,000 6,000
June 4,000 6,000
July 6,000 5,000
August 7,000 4,000
September 9,000 3,000
October 7,000 2,500
November 6,000 2,000
December 4,000 2,500
January 3,000 3,000
February 2,000 4,000

Selling price of Gnu per unit $34.00

Selling price of Tse per unit $12.00
Desired finished goods inventory
(% of next month's unit sales) 30%
Desired raw materials inventory
(% of next month's unit sales) 60%
Raw materials needed in production Gnu Tse
Hyun 3 1
Esta 5 1

Beginning inventory Units Cost

Gnu 600 $25.00
Tse 900 $8.60
Hyun 5,772 $1.50
Esta 8,100 $2.10

Collections from customers

Collected in the month of sale 60%
Collected in the following month 40%
Payment of purchases
Paid in the month of purchase 80%
Paid in the following month 20%
Direct labor time to produce one unit
Gnu 40
Tse 20
Cost of direct labor (per hour) $9
Factory overhead (per direct labor hour) $6
Fixed selling and administrative $6,000
Variable selling and administrative 10%
Plant and equipment depreciation $7,200
 $13,750
49,460
25,668
22,740
40,000

213,000
$364,618

$13,470

351,148
$364,618
minutes
minutes

per month
of sales
per year
 January February March
Budgeted Sales in Units 2,000 1,800 1,600
Selling price per unit 34 34 34
Total Budgeted Sales 68,000 61,200 54,400

January February March

Budgeted Sales in Units 3,000 4,000 5,000
Selling price per unit 12 12 12
Total Budgeted Sales 36,000 48,000 60,000
 Figaro Incorporated
Gnu
April May June July August
1,600 2,000 4,000 6,000 7,000
34 34 34 34 34
54,400 68,000 136,000 204,000 238,000

Figaro Incorporated
Tse
April May June July August
6,000 6,000 6,000 5,000 4,000
12 12 12 12 12
72,000 72,000 72,000 60,000 48,000
September October November December Total
9,000 7,000 6,000 4,000 52,000
34 34 34 34 34
306,000 238,000 204,000 136,000 1,768,000

September October November December Total

3,000 2,500 2,000 2,500 49,000
12 12 12 12 12
36,000 30,000 24,000 30,000 588,000
 January February March
Accounts Receivable- Beg. Balance 49,460
January Sales 62400 41600
February Sales 65520 43680
March Sales 68640
April Sales
May Sales
June Sales
July Sales
August Sales
September Sales
October Sales
November Sales
December Sales
Total cash collections 111,860 107,120 112,320
 Figaro Incorporated
April May June July August

45760
75840 50560
84000 56000
124800 83200
158400 105600
171600

121,600 134,560 180,800 241,600 277,200

September October November December Total
49,460
104,000
109,200
114,400
126,400
140,000
208,000
264,000
114400 286,000
205200 136800 342,000
160800 107200 268,000
136800 91200 228,000
99600 99,600
319,600 297,600 244,000 190,800 2,339,060
Jan Feb

66400
 January February March
Budgeted Sales in units 2,000 1,800 1,600
Add desired ending inventory 540 480 480
Total needs 2,540 2,280 2,080
Less beg. Inventory 600 540 480
Required Production 1,940 1,740 1,600

January February March

Budgeted Sales in units 3,000 4,000 5,000
Add desired ending inventory 1200 1500 1800
Total needs 4,200 5,500 6,800
Less beg. Inventory 900 1200 1500
Required Production 3,300 4,300 5,300
 Figaro Incorporated
Gnu
April May June July August
1,600 2,000 4,000 6,000 7,000
600 1200 1800 2100 2700
2,200 3,200 5,800 8,100 9,700
480 600 1200 1800 2100
1,720 2,600 4,600 6,300 7,600

Figaro Incorporated
Tse
April May June July August
6,000 6,000 6,000 5,000 4,000
1800 1800 1500 1200 900
7,800 7,800 7,500 6,200 4,900
1800 1800 1800 1500 1200
6,000 6,000 5,700 4,700 3,700
September October November December Total
9,000 7,000 6,000 4,000 52,000
2100 1800 1200 900 900
11,100 8,800 7,200 4,900 52,900
2700 2100 1800 1200 600
8,400 6,700 5,400 3,700 52,300

September October November December Total

3,000 2,500 2,000 2,500 49,000
750 600 750 900 900
3,750 3,100 2,750 3,400 49,900
900 750 600 750 900
2,850 2,350 2,150 2,650 49,000
January February
3,000 2,000
600
3,600 2,000
900 600
2,700 1,400

January February
3,000 4,000
1200
4,200 4,000
900 1200
3,300 2,800
 January February March
Required Production 1,940 1,740 1,600
Pounds materials required per unit 3 3 3
Production Needed 5820 5220 4800

January February March

Required Production 3,300 4,300 5,300
Pounds materials required per unit 1 1 1
Production Needed 3300 4300 5300

January February March

Total Production Needs 9120 9520 10100
Add Desired Ending Inventory 5712 6060 6696
Total Material Needs 14832 15580 16796
Less Beginning Inventory 5,772 5712 6060
Required Material Purchases 9,060 9,868 10,736
Cost per pound of raw materials $1.50 $1.50 $1.50
Cost of material purchase $13,590 $14,802 $16,104
 Figaro Incorporated
Gnu-Hyun
April May June July August
1,720 2,600 4,600 6,300 7,600
3 3 3 3 3
5160 7800 13800 18900 22800

Figaro Incorporated
Tse-Hyun
April May June July August
6,000 6,000 5,700 4,700 3,700
1 1 1 1 1
6000 6000 5700 4700 3700

Figaro Incorporated
Total Hyun
April May June July August
11160 13800 19500 23600 26500
8280 11700 14160 15900 16830
19440 25500 33660 39500 43330
6696 8280 11700 14160 15900
12,744 17,220 21,960 25,340 27,430
$1.50 $1.50 $1.50 $1.50 $1.50
$19,116 $25,830 $32,940 $38,010 $41,145
September October November December Total
8,400 6,700 5,400 3,700 52,300
3 3 3 3 3
25200 20100 16200 11100 156900

September October November December Total

2,850 2,350 2,150 2,650 49,000
1 1 1 1 1
2850 2350 2150 2650 49000

September October November December Total

28050 22450 18350 13750 205900
13470 11010 8250 6840 6840
41520 33460 26600 20590 212740
16830 13470 11010 8250 5,772
24,690 19,990 15,590 12,340 206,968
$1.50 $1.50 $1.50 $1.50 $1.50
$37,035 $29,985 $23,385 $18,510 $310,452
January
2,700
3
8100

January
3,300
1
3300

January
11400
 January February March
Required Production 1,940 1,740 1,600
Pounds materials required per unit 5 5 5
Production Needed 9700 8700 8000

January February March

Required Production 3,300 4,300 5,300
Pounds materials required per unit 1 1 1
Production Needed 3300 4300 5300

January February March

Total Production Needs 13000 13000 13300
Add Desired Ending Inventory 7800 7980 8760
Total Material Needs 20800 20980 22060
Less Beginning Inventory 8,100 7800 7980
Required Material Purchases 12,700 13,180 14,080
Cost per pound of raw materials $2.10 $2.10 $2.10
Cost of material purchase $26,670 $27,678 $29,568
 Figaro Incorporated
Gnu-Esta
April May June July August
1,720 2,600 4,600 6,300 7,600
5 5 5 5 5
8600 13000 23000 31500 38000

Figaro Incorporated
Tse-Esta
April May June July August
6,000 6,000 5,700 4,700 3,700
1 1 1 1 1
6000 6000 5700 4700 3700

Figaro Incorporated
Total Esta
April May June July August
14600 19000 28700 36200 41700
11400 17220 21720 25020 26910
26000 36220 50420 61220 68610
8760 11400 17220 21720 25020
17,240 24,820 33,200 39,500 43,590
$2.10 $2.10 $2.10 $2.10 $2.10
$36,204 $52,122 $69,720 $82,950 $91,539
September October November December Total
8,400 6,700 5,400 3,700 52,300
5 5 5 5 5
42000 33500 27000 18500 261500

September October November December Total

2,850 2,350 2,150 2,650 49,000
1 1 1 1 1
2850 2350 2150 2650 49000

September October November December Total

44850 35850 29150 21150 310500
21510 17490 12690 10080 10080
66360 53340 41840 31230 320580
26910 21510 17490 12690 8,100
39,450 31,830 24,350 18,540 312,480
$2.10 $2.10 $2.10 $2.10 $2.10
$82,845 $66,843 $51,135 $38,934 $656,208
January
2,700
5
13500

January
3,300
1
3300

January
16800
 January February March
Accounts Payable– Beginning Balance $13,470
January $32,208.00 $8,052.00
February $33,984.00 $8,496.00
March $36,537.60
April
May
June
July
August
September
October
November
December
Total $45,678 $42,036 $45,034
 Figaro Incorporated
Purching schedule
April May June July August

$9,134.40
$44,256.00 $11,064.00
$62,361.60 $15,590.40
$82,128.00 $20,532.00
$96,768.00 $24,192.00
$106,147.20

$53,390 $73,426 $97,718 $117,300 $130,339

September October November December Total
$13,470
$40,260
$42,480
$45,672
$55,320
$77,952
$102,660
$120,960
$26,536.80 $132,684
$95,904.00 $23,976.00 $119,880
$77,462.40 $19,365.60 $96,828
$59,616.00 $14,904.00 $74,520
$45,955.20 $45,955
$122,441 $101,438 $78,982 $60,859 $968,641
January

$11,488.80
 January February March
Required Production 1,940 1,740 1,600
Direct labor hours per unit $0.67 $0.67 $0.67
Total direct labor hours needed $1,293.33 $1,160.00 $1,066.67
Direct labor hour rate $9 $9 $9
Direct labor hour cost 11640 10440 9600

January February March

Required Production 3,300 4,300 5,300
Direct labor hours per unit 0.33 0.33 0.33
Total direct labor hours needed 1100 1433.33 1766.67
Direct labor hour rate $9 $9 $9
Direct labor hour cost $9,900 $12,900 $15,900

January February March

Total direct labor hours needed $2,393.33 $2,593.33 $2,833.33
Direct labor hour rate $9 $9 $9
Direct labor hour cost 21,540 23,340 25,500
 Figaro Incorporated
Direct labor- Gnu
April May June July August
1,720 2,600 4,600 6,300 7,600
$0.67 $0.67 $0.67 $0.67 $0.67
$1,146.67 $1,733.33 $3,066.67 $4,200.00 $5,066.67
$9 $9 $9 $9 $9
10320 15600 27600 37800 45600

Direct labor- Tse

April May June July August
6,000 6,000 5,700 4,700 3,700
0.33 0.33 0.33 0.33 0.33
2000.00 2000.00 1900.00 1566.67 1233.33
$9 $9 $9 $9 $9
$18,000 $18,000 $17,100 $14,100 $11,100

Overall Direct labor

April May June July August
$3,146.67 $3,733.33 $4,966.67 $5,766.67 $6,300.00
$9 $9 $9 $9 $9
28,320 33,600 44,700 51,900 56,700
September October November December Total
8,400 6,700 5,400 3,700 52,300
$0.67 $0.67 $0.67 $0.67 $0.67
$5,600.00 $4,466.67 $3,600.00 $2,466.67 $34,866.67
$9 $9 $9 $9 $9
50400 40200 32400 22200 313800

September October November December Total

2,850 2,350 2,150 2,650 49,000
0.33 0.33 0.33 0.33 0.33
950.00 783.33 716.67 883.33 16333.33
$9 $9 $9 $9 $9
$8,550 $7,050 $6,450 $7,950 $147,000

September October November December Total

$6,550.00 $5,250.00 $4,316.67 $3,350.00 $51,200.00
$9 $9 $9 $9 $9
58,950 47,250 38,850 30,150 460,800
 January February
Required Direct labor hours $2,393.33 $2,593.33
Variable overhead rate $6 $6
Total Manufacturing overhead 14360 15560
Less Depreciation (NON CASH) $600 $600
Cash Disbursements of Manufacturing Overhead $13,760 $14,960
 Figaro Incorporated
MOH
March April May June July
$2,833.33 $3,146.67 $3,733.33 $4,966.67 $5,766.67
$6 $6 $6 $6 $6
17000 18880 22400 29800 34600
$600 $600 $600 $600 $600
$16,400 $18,280 $21,800 $29,200 $34,000
August September October November December Total
$6,300.00 $6,550.00 $5,250.00 $4,316.67 $3,350.00 $51,200.00
$6 $6 $6 $6 $6 $6
37800 39300 31500 25900 20100 307200
$600 $600 $600 $600 $600 $7,200
$37,200 $38,700 $30,900 $25,300 $19,500 $300,000
 January February
Budgeted Sales in dollars $68,000 $61,200
Variable Selling & Administrative expense rate $0 $0
Total Variable Expense $6,800 $6,120

January February
Budgeted Sales in dollars $36,000 $48,000
Variable Selling & Administrative expense rate $0 $0
Total Variable Expense $3,600 $4,800

January February
Total Variable Expense $10,400 $10,920
Fixed Expense $6,000 $6,000
Depreciation $600 $600
Total Fixed Expenses $6,600 $6,600
Total Selling & Admin Expenses $17,000 $17,520
Less Depreciation (NON CASH) $600 $600
Cash Disbursement $16,400 $16,920
 Figaro Incorporated
S&A- Gnu
March April May June
$54,400 $54,400 $68,000 $136,000
$0 $0 $0 $0
$5,440 $5,440 $6,800 $13,600

S&A- Tse
March April May June
$60,000 $72,000 $72,000 $72,000
$0 $0 $0 $0
$6,000 $7,200 $7,200 $7,200

Overall Selling & Admin Wxpenses

March April May June
$11,440 $12,640 $14,000 $20,800
$6,000 $6,000 $6,000 $6,000
$600 $600 $600 $600
$6,600 $6,600 $6,600 $6,600
$18,040 $19,240 $20,600 $27,400
$600 $600 $600 $600
$17,440 $18,640 $20,000 $26,800
July August September October November
$204,000 $238,000 $306,000 $238,000 $204,000
$0 $0 $0 $0 $0
$20,400 $23,800 $30,600 $23,800 $20,400

July August September October November

$60,000 $48,000 $36,000 $30,000 $24,000
$0 $0 $0 $0 $0
$6,000 $4,800 $3,600 $3,000 $2,400

July August September October November

$26,400 $28,600 $34,200 $26,800 $22,800
$6,000 $6,000 $6,000 $6,000 $6,000
$600 $600 $600 $600 $600
$6,600 $6,600 $6,600 $6,600 $6,600
$33,000 $35,200 $40,800 $33,400 $29,400
$600 $600 $600 $600 $600
$32,400 $34,600 $40,200 $32,800 $28,800
December Total
$136,000 $1,768,000
$0 $0
$13,600 $176,800

December Total
$30,000 $588,000
$0 $0
$3,000 $58,800

December Total
$16,600 $235,600
$6,000 $72,000
$600 $7,200
$6,600 $79,200
$23,200 $314,800
$600 $7,200
$22,600 $307,600
Item Quantity Cost
Direct Materials:Hyun 3 $1.50
Direct Materials:Esta 5 $2.10
Direct Labor 0.67 $9
Manufacturing Overhead 0.67 $6
Gnu Unit Product Cost

January February
Ending Finished Goods Inventory in units 540 480
Budgeted cost per unit $25 $25
Ending Finished Goods Inventory in dollars $13,500 $12,000

Item Quantity Cost

Direct Materials:Hyun 1 $1.50
Direct Materials:Esta 1 $2.10
Direct Labor 0.33 $9
Manufacturing Overhead 0.33 $6
Gnu Unit Product Cost

January February
Ending Finished Goods Inventory in units 1200 1500
Budgeted cost per unit $8.6 $8.6
Ending Finished Goods Inventory in dollars $10,320 $12,900

Overall Finished Goods Inventory in dollars $23,820 $24,900

 Figaro Incorporated
Ending Inventory:Gnu
Total
$4.50
$10.50
$6.00
$4.00
$25.00

March April May June July

480 600 1200 1800 2100
$25 $25 $25 $25 $25
$12,000 $15,000 $30,000 $45,000 $52,500

Ending Inventory:Tse

Total
$1.50
$2.10
$3.00
$2.00
$8.60

March April May June July

1800 1800 1800 1500 1200
$8.6 $8.6 $8.6 $8.6 $8.6
$15,480 $15,480 $15,480 $12,900 $10,320

$27,480 $30,480 $45,480 $57,900 $62,820

August September October November December
2700 2100 1800 1200 900
$25 $25 $25 $25 $25
$67,500 $52,500 $45,000 $30,000 $22,500

August September October November December

900 750 600 750 900
$8.6 $8.6 $8.6 $8.6 $8.6
$7,740 $6,450 $5,160 $6,450 $7,740

$75,240 $58,950 $50,160 $36,450 $30,240

Total
15900
$25
$397,500

Total
14700
$8.6
$126,420

$523,920
 January February March April
Cash, beginning balance $13,750 $28,232 $38,096 $46,042
Cash Collections 111,860 107,120 112,320 121,600
Cash Available $125,610 $135,352 $150,416 $167,642
Less Cash Disbursements:
Direct Materials $45,678 $42,036 $45,034 $53,390
Direct Labor 21540 23340 25500 28320
Manufacturing Overhead $13,760 $14,960 $16,400 $18,280
Selling & Administrative $16,400 $16,920 $17,440 $18,640
Total Disbursements $97,378 $97,256 $104,374 $118,630
Excess (Deficiency) of cash $28,232 $38,096 $46,042 $49,012
 Figaro Incorporated
Cash Budget
May June July August September
$49,012 $34,746 $17,128 $23,128 $41,489
134,560 180,800 241,600 277,200 319,600
$183,572 $215,546 $258,728 $300,328 $361,089

$73,426 $97,718 $117,300 $130,339 $122,441

33600 44700 51900 56700 58950
$21,800 $29,200 $34,000 $37,200 $38,700
$20,000 $26,800 $32,400 $34,600 $40,200
$148,826 $198,418 $235,600 $258,839 $260,291
$34,746 $17,128 $23,128 $41,489 $100,798
October November December Total
$100,798 $186,010 $258,078 $13,750
297,600 244,000 190,800 2,339,060
$398,398 $430,010 $448,878 $2,352,810

$101,438 $78,982 $60,859 $968,641

47250 38850 30150 460800
$30,900 $25,300 $19,500 $300,000
$32,800 $28,800 $22,600 $307,600
$212,388 $171,932 $133,109 $2,037,041
$186,010 $258,078 $315,769 $315,769
 January February March April
Sales $104,000 $109,200 $114,400 $126,400
COGS $75,800 $79,400 $83,000 $91,600
Gross Profit $28,200 $29,800 $31,400 $34,800
Selling Expense $16,400 $16,920 $17,440 $18,640
Net Income $11,800 $12,880 $13,960 $16,160
 Figaro Incorporated
Income Statement
May June July August September
$140,000 $208,000 $264,000 $286,000 $342,000
$101,600 $151,600 $193,000 $209,400 $250,800
$38,400 $56,400 $71,000 $76,600 $91,200
$20,000 $26,800 $32,400 $34,600 $40,200
$18,400 $29,600 $38,600 $42,000 $51,000
October November December Total
$268,000 $228,000 $166,000 $2,356,000
$196,500 $167,200 $121,500 $1,721,400
$71,500 $60,800 $44,500 $634,600
$32,800 $28,800 $22,600 $307,600
$38,700 $32,000 $21,900 $327,000
 January February March
Cash $28,232 $38,096 $46,042
Account receivable $41,600 $43,680 $45,760
Raw materials $24,948 $25,848 $28,440
Finished goods $23,820 $24,900 $27,480
Land $40,000 $40,000 $40,000
Plant and equipment $275,000 $275,000 $275,000
Less: accumulated depreciation $62,600 $63,200 $63,800
Total assets $371,000 $384,324 $398,922

Accounts payable to suppliers $8,052 $8,496 $9,134

Common stock $60,000 $60,000 $60,000
retained earnings $302,948 $315,828 $329,788
Total liabilities and equities $371,000 $384,324 $398,922
 Figaro Incorporated
Blance Sheet
April May June July August
$49,012 $34,746 $17,128 $23,128 $41,489
$50,560 $56,000 $83,200 $105,600 $114,400
$36,360 $53,712 $66,852 $76,392 $81,756
$30,480 $45,480 $57,900 $62,820 $75,240
$40,000 $40,000 $40,000 $40,000 $40,000
$275,000 $275,000 $275,000 $275,000 $275,000
$64,400 $65,000 $65,600 $66,200 $66,800
$417,012 $439,938 $474,480 $516,740 $561,085

$11,064 $15,590 $20,532 $24,192 $26,537

$60,000 $60,000 $60,000 $60,000 $60,000
$345,948 $364,348 $393,948 $432,548 $474,548
$417,012 $439,938 $474,480 $516,740 $561,085
September October November December
$100,798 $186,010 $258,078 $315,769
$136,800 $107,200 $91,200 $66,400
$65,376 $53,244 $39,024 $31,428
$58,950 $50,160 $36,450 $30,240
$40,000 $40,000 $40,000 $40,000
$275,000 $275,000 $275,000 $275,000
$67,400 $68,000 $68,600 $69,200
$609,524 $643,614 $671,152 $689,637

$23,976 $19,366 $14,904 $11,489

$60,000 $60,000 $60,000 $60,000
$525,548 $564,248 $596,248 $618,148
$609,524 $643,614 $671,152 $689,637