Q2

S9-3

Duke Sports Medicine Inc.

Sales Budget
For the Months of July through September
July
August
September

Quarter

Number of exams performed (basic)

Multiply by: Price per exam
Sales Revenue (basic)

240
$105
$25,200

250
$105
$26,250

75
$105
$7,875

565
$105
$59,325

Number of exams performed (extended)

Multiply by: Price per exam
Sales Revenue (extended)

170
$160
$27,200

230
$160
$36,800

90
$160
$14,400

490
$160
$78,400

###

###

###

###

Total Sales Revenue

S9-4
Trader Cycles
Production Budget
For the Months of April through June
April May June Quarter July
Unit sales
1,000 1,180 1,320 3,500 1200
Plus: Desired ending inventory
354
396
360
360
360
(30% of next months unit sales)
Total needed
1,354 1,576 1,680 3,860 1,560
Less: Beginning inventory
-220
-354
-396
-220
-360

Number of units to produce

### ### ### 3,640 ###

S9-5
The Bakery by the Bay
Direct Materials Budget
For the Months of July through September

Units to be produced

July

August

September

1,460

1,920

1,760

Multiply by: Pounds of flour needed per unit

0.5

0.5

0.5

Quantity (lbs.) needed for production

730

960

880

96

88

74

Total quantity (lbs.) needed

826

1,048

954

Less: Beginning inventory of DM

-100

-96

-88

Quantity (lbs.) to purchase

726

952

866

Plus: Desired end inventory of DM (10% of the amount needed for next months production)

Multiply by: Cost per pound

Total cost of DM purchases

2.00

$1,452

###

$1,904

2.00

$1,732

Quarter
5,140
0.5
2,570
74
2,644
-100
2,544
$
2.00
$5,088

October
1,480
0.5

740
74
814

-88
726
$

2.00

###

S9-6
Cameron Manufacturing
Direct Labor Budget
For the Months of January through March
January
Units to be produced
Multiply by: Direct labor hours per unit
Total hours required
Multiply by: Direct labor cost per hour
Total direct labor cost

February
560
6.00
3,360
16.00

$53,760

600
###
3,600
### $
$57,600

March
860
6.00
5,160
16.00 $
$82,560

Quarter
2,020
6.00
12,120
16.00
$193,920

S9-7

DL hours (from DL Budget)

Multiply by: Variable MOH rate
Total Variable MOH
Plus: Fixed MOH
Total MOH

Probe Corporation
Manufacturing Overhead Budget
For the Months of April through June
April
May
490
770
$
1.60
### $
$
784
1,232
3,000
3,000
$3,784
$4,232

June
660
1.60 $
1,056
3,000
$4,056

Quarter
1,920
1.60
3,072
9,000
$12,072

S9-8
Davenport Corporation
Operating Expenses Budget
For the Months of July through September
July
Sales Units
(from Sales Budget)
Variable Op. Expenses ($6 per unit sold)
T. Variable Op. Expenses
Fixed Op. Expenses:
Salaries
Office Rent
Depreciation
Total Fixed Op. Expenses
Total Operating Expenses

$
$

August
1,210
6.00
7,260 $
5,100
3,300
2,200
10,600
$17,860

1,440
### $
8,640 $
5,100
3,300
2,200
10,600
$19,240

September

Quarter

1,700
6.00 $
10,200 $

4,350
6.00
26,100

5,100
3,300
2,200
10,600

15,300
9,900
6,600
31,800

$20,800

$57,900

S9-9

Bell Simpson
Budgeted Income Statement
For the Month ended January 31
Sales (800 units @ $2,350 each)
Less: Cost of Goods Sold (800 units @ $1,400 each)
Gross Profit
Less: Operating Expenses
Variable Portion (800 units @ $1.10 each)
Fixed Portion
Operating Income
Less: Interest Expense
Less: Income Tax expense
Net Income

$1,880,000
1,120,000
760,000
880
8,580
7,700
751,420 751,420
3,700
299,088
$448,632

S9-10

Cash sales (20% of sales)

Collections on credit sales:
30% month of sale
60% month after
6% two months after
Total cash collections

Emerald Service
Cash Collections Budget
For the Months of January through March
January
$3,100
3,720
5,040
792
$12,652

Nov
$
T. Sales
Credit Sale (80%) $
Feb.
$2,400
2,880
7,440
504
$13,224

March
$2,800
3,360
5,760
744
$12,664

Quarter
$8,300
9960
18240
2040
$38,540

Note: The 4% of credit sales that are never collected are not included in the cash collections budget; no cash is ever collected for these sales.

Dec
16,500.00 $
13,200.00 $

Jan
10,500.00 $
8,400.00 $

15,500.00
12,400.00

Feb
$
$

March
12,000.00 $
14,000.00
9,600.00 $
11,200.00

S9-11
Stately Corporation
Cash Payments Budget
Cash Payments for DM:
Last month's purchases (45%)
This month's purchases (55%)
Cash Payments for DL
Cash Payments for MOH
Cash Payments for Operating Expenses
Cash Payment for Taxes
Total Cash Payments

Cash payment estimated for direct material purchase

$83,950

$35,550
48,400
35,000
38,000
42,600 $
7,600 $
$207,150

49,000
46,000

Dep
$
$

Bad Debt
11,000
1,400

Cash Exp
$
38,000
2,000 $
42,600