In: Accounting
Cash Collections
Production Budget
Direct Materials Budget
Cash Disbursements
Cash Budget
Just the Cash Disbursements and Cash Budget need to be
completed.
April | May | June | ||
Cash collections from credit sales: | ||||
From Accounts Receivable | $25,000 | |||
From April Sales ($15*25,000*60/100); ($15*25,000*40/100) | $225,000 | $150,000 | ||
From May Sales ($15*50,000*60/100); ($15*50,000*40/100) | $450,000 | $300,000 | ||
From June Sales ($15*40,000*60/100) | $360,000 | |||
Total Cash Collections | $250,000 | $600,000 | $660,000 | |
April | May | June | ||
Budgeted Sales in Units | 25,000 | 50,000 | 40,000 | |
Add: Ending finished goods inventory (50,000*25/100); (40,000*25/100); (30,000*25/100) | 12,500 | 10,000 | 7,500 | |
Less: Beginning Finnished goods inventory (last month's ending inventory will be the beginning inventory in current month) (25,000*25/100) | 5,000 | 12,500 | 10,000 | |
Budgeted Production in Units (a) | 32,500 | 47,500 | 37,500 | |
Direct materials in pounds per unit (b) | 5 | 5 | 5 | |
Budgeted production in pounds (a*b) | 162,500 | 237,500 | 187,500 | |
Add: Ending direct mateials (237,500*10/100); (187,500*10/100); (30,000 + (25%*20,000) - 7,500 = 27,500*5*10/100) | 23,750 | 18,750 | 13,750 | |
Less: Beginning direct materials (last month's ending inventory will be the beginning inventory in current month) | 10,000 | 23,750 | 18,750 | |
Budgeted Purchases in Pounds (c ) | 176,250 | 232,500 | 182,500 | |
Cost per pound (d) | $0.50 | $0.50 | $0.50 | |
Budgeted Purchases in Dollars (c*d) | $88,125 | $116,250 | $91,250 | |
Cash Disbursements: | April | May | June | |
Cash Payments for purchases: | ||||
Payments to Accounts Payable | $10,000 | |||
For April Purchases ($88,125*60/100); ($88,125*40/100) | $52,875 | $35,250 | ||
For May Purchases ($116,250*60/100); ($116,250*40/100) | $69,750 | $46,500 | ||
For June Purchases ($91,250*60/100) | $54,750 | |||
Tota Cash Disbursements for material purchases | $62,875 | $105,000 | $101,250 | |
Cash Budget | ||||
April | May | June | Total | |
Beginning Cash Balance | $50,000 | $57,000 | $83,000 | $190,000 |
Add: Cash Receipts | $250,000 | $600,000 | $660,000 | $1,510,000 |
Total available cash | $300,000 | $657,000 | $743,000 | $1,700,000 |
Less: Cash Disbursements | ||||
For materials | ($62,875) | ($105,000) | ($101,250) | ($269,125) |
Direct labor | ($20,000) | ($22,000) | ($24,000) | ($66,000) |
Manufacturing overheads | ($50,000) | ($75,000) | ($60,000) | ($185,000) |
Selling and administrative expenses | ($60,125) | ($70,000) | ($75,000) | ($205,125) |
Dividends | ($50,000) | |||
Purchase of equipment | ($300,000) | ($350,000) | ||
Interest Expense | ($2,000) | |||
Ending Cash Balance | $57,000 | $83,000 | $132,750 |