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Data for Budget Assignment: Master Budget Case for

Version v(C.0)
fiscal year end
Opening balance sheet
Cash
Accounts receivable
Inventory-raw materials
Inventory-finished goods
Capital assets (net)

Accounts payable
Income tax payable
Capital stock
Retained earnings

64,165
490,438
28,125
45,625
724,000
861,915

$
$
$
$
$

167,084
21,500
1,000,000
163,769
861,915

Toy World
Sales Budget
For the quarter ended March 31, 2012
Jan
5%
25,000

Percent of Annual Sales

Expected sales in units

Feb
10%
50,000

Selling price per unit

10.00

Total Budgeted Sales

250,000 $

Mar
5%
25,000

10.00
500,000 $

Quarter
20%
100,000

### $
250,000

10.00
1,000,000

Toy World
Schedule of Expected Cash Collections
For the quarter ended March 31, 2012
Current month sales 55%
Prior month's sales 35%

Jan
137,500 $
332,500

537,688 $

Two months prior sales 9.5%

Total cash collections

67,688

Feb
275,000 $
87,500
90,250
452,750 $

Mar
137,500
175,000

Quarter
550,000
595,000

23,750
336,250

181,688
$

1,326,688

Toy World
Schedule of Expected Cash Collections
For the quarter ended March 31, 2012
AR from November
AR from December
Jan
Feb
Mar

Jan
67,688
332,500
137,500

537,688

Feb
90,250
87,500
275,000
452,750

Mar

23,750
175,000
137,500

Quarter
67,688
422,750
248,750
450,000
137,500

336,250

1,326,688

Toy World
Production Budget
For the quarter ended March 31, 2012

Budgeted sales in units

Add desired ending inventory of
finished goods
Total needs
Less beginning inventory of finished
goods
Required production

Variable overhead rate per unit

Variable manufacturing overhead
Fixed manufacturing overhead:
Training and development
Repairs and Maintenance
Supervisor Salaries
Amortization on equipment
Insurance

Mar
25,000

Quarter
100,000

12,500
37,500

6,250
56,250

8,750
33,750

8,750
108,750

41,250

6,250

12,500

6,250

6,250

8,750

31,250

43,750

27,500

102,500

32,500

Mar
27,500

Quarter
102,500

Jan
31,250
$
$

Feb
43,750

1.30 $
40,625 $

1.30 $
56,875 $

1.30 $
35,750 $

3,600
3,250
12,450
14,900
8,000

3,600
3,250
12,450
14,900
8,000

3,600
3,250
12,450
14,900
8,000

10,800
9,750
37,350
44,700
24,000

Other
Total fixed manufacturing OH
Total manufacturing OH
Less prepaid insurance

9,800
52,000
92,625
8,000

9,800
52,000
108,875
8,000

9,800
52,000
87,750
8,000

29,400
156,000
289,250
24,000

Less amortization
Cash disbursements for
manufacturing OH

14,900

14,900

14,900

44,700

69,725 $

85,975 $

64,850 $

May

Feb
50,000

Toy World
Manufacturing Overhead Budget
For the quarter ended March 31, 2012

Production in Units

April

Jan
25,000

1.30
133,250

220,550

35000
6250

25000

Toy World
Direct Materials Budget - SAA (kilograms)
For the quarter ended March 31, 2012

Units to be produced
Raw Materials needed per unit
Production needs
Add desired ending inventory
Total needs
Less beginning inventory
Raw materials to be purchased

Jan
31,250

Feb
43,750

Mar
27,500

Quarter
102,500

April
32,500

5
156,250

5
218,750

5
137,500

5
512,500

162,500

87,500
243,750

55,000
273,750

65,000
202,500

65,000
577,500

62,500
181,250

87,500
186,250

55,000
147,500

62,500
515,000

Cost of SAA per kilogram

0.45 $

0.45 $

0.45 $

0.45

Total cost of purchases of SAA

81,563 $

83,813 $

66,375 $

231,750

Toy World
Schedule of Expected Cash Disbursement for Purchases of Raw Material SAA
For the quarter ended March 31, 2012

Current month's purchases 20%

Prior month's purchases 45%
Two month's prior purchases 35%
Total cash disbursements for purchases of raw
material

Jan
16,313 $
59,738
60,884

136,934 $

Feb
16,763 $
36,703

Mar
Quarter
13,275 $
46,350
37,716 $
134,156

46,463

28,547 $

135,893

99,928 $

79,538 $

316,399

Toy World
Direct Labour Budget
For the quarter ended March 31, 2012

Units to be Produced
Direct Labour time per unit (hours)
Total hours of direct labour time
needed

Jan
31,250

Feb
43,750

Mar
27,500

Quarter
102,500

0.30

0.30

0.30

0.30

9,375

13,125

8,250

30,750

Direct Labour cost per hour

9.00 $

9.00 $

9.00 $

9.00

Total direct labour cost

84,375 $

118,125 $

74,250 $

276,750

Toy World
Selling and Administrative Expense Budget
For the quarter ended March 31, 2012

Budgeted sales in units

Variable selling and administrative
expense per unit
Variable expenses
Fixed selling and administrative
expenses

Jan
25,000
$
$

Bad Debts

0.65
16,250

Feb
50,000

Mar
25,000

Quarter
100,000

### $
32,500 $

0.65 $
16,250 $

44,580

44,580

44,580

133,740

1,250

2,500

1,250

5,000

0.65
65,000

Total budgeted selling and

administrative expenses
Less: non-cash items

$
$

62,080
1,250

$
$

79,580 $
2,500 $

62,080 $
1,250 $

203,740
5,000

Cash disbursements for selling and

administrative expenses

60,830

77,080 $

60,830 $

198,740

Toy World
Ending Finished Goods Inventory Budget
For the quarter ended March 31, 2012
Item
Production cost per unit:
Direct materials:
Direct Labour
Manufacturing overhead

Quantity
5.00
0.30
1.00

Cost/unit
kg.
hr
unit

Total

0.45
9.00
2.82

2.25
2.70
2.82

Unit product cost

7.77

Budgeted finished goods inventory:

Ending finished goods inventory in units
Unit product costs (see above)

8,750
7.77

Ending finished goods inventory in dollars

68,005

Budgeted cost of goods sold:

Beginning finished goods inventory
Plus cost of goods manufactured

45,625
796,625

Less: ending inventory

Budgeted cost of goods sold in dollars:

68,005
$

774,245

Toy World
Cash Budget
For the quarter ended March 31, 2012
Cash balance, beginning
Add receipts:

Collections from customers

Total cash available before financing
Less disbursements:
Direct materials
Direct labour
Manufacturing overhead
Selling and administrative expenses
Tax remittance
Tax payable
Prepaid insurance
Capital asset purchases

Jan
64,165 $

Feb
30,809 $

Mar
Quarter
20,916 $
64,165

537,688

452,750

336,250

1,326,688

601,853

483,559

357,166

1,390,853

136,934
84,375
69,725
60,830
1,500
96,000
121,680

99,928
118,125
85,975
77,080
1,500
182,520

79,538
74,250
64,850
60,830
1,500
21,500
-

316,399
276,750
220,550
198,740
4,500
21,500
96,000
304,200

Dividend payment
Total disbursements
Excess (deficiency) of cash available over
disbursements

50,000

50,000

571,044

565,128

352,468

1,488,639

30,809 -

Financing:
Borrowing (at the beginning of the month)
Repayment (at the end of the month)

Interest expense (paid monthly)

81,569

4,698 -

97,787

103,000
515

16,000
595

119,000
1,110

515

595

1,110

30,809 $

20,916 $

20,103 $

Total financing
Cash balance, ending

20,103

Toy World
Budgeted Income Statement
For the quarter ended March 31, 2012
Sales
Cost of goods sold
Gross Margin
Less:
Selling & administrative expenses
Net operating income
Less: Interest expense
Net income before taxes
Income taxes (25% of NIBT)
Net Income

1,000,000
774,245
225,755
203,740
22,015
1,110
20,905
5,226
15,678

Toy World
Budgeted Balance Sheet
For the Year ended March 31, 2012
Assets
Cash
Accounts Receivable
Inventory: Raw Materials
Inventory: Finished goods
Prepaid Insurance
Capital assets (net)
Total Assets

20,103
163,751
29,250
68,005
72,000
983,500
1,336,608

Liabilities and Shareholders' Equity

Liabilities
Bank Loan Payable
Accounts payable
Income taxes payable
Total Liabilities
Shareholders' Equity
Capital stock
Retained earnings
Total Shareholders' equity
Total Liabilities & Shareholders' Equity

119,000
82,434
5,726
207,160
1,000,000
129,447
1,129,447
1,336,608

Student Info
1) Alysandra Noce
1151503
2) Matthew Paonessa 1131242
Date: April 3, 2014
SOC SCI 2AC3
Carlo Avolio