Question

Use the following to fill in the blanks

Perky Turkey Jerky, LLC
Budgeting Assumptions
For the Quarter Ending June 30, 2018
	Month
	April	May	June	July
Sales Budget
Budgeted Sales in units	10,000	12,000	15,000	15,000
Selling Price Per Unit	$9.00	$9.00	$9.00
Percentage of Sales collected in the month of the sale	90%	90%	80%
Percentage of Sales collected in the month after the sale	10%	10%	20%
Production Budget
Percentage of next month's sales in ending finished goods inventory	20%	25%	30%
Direct Materials Budget
Meat per pound	$2.50	$2.50	$2.50
Pounds of meat per unit	2	2	2
Percentage of next months production needs in ending inventory	10%	10%	10%
Percentage of purchases paid in the month purchased	60%	60%	60%
Percentage of purchases paid in the month after purchase	40%	40%	40%
Direct Labor Budget
Direct labor hours required per unit (20 units per labor hour)	0.05	0.05	0.05
Cost per direct labor hour	$15.00	$15.00	$15.00
Manufacturing Overhead Budget
Variable manufacturing overhead per direct labor hour	$5.00	$5.00	$5.00
Fixed manufacturing overhead	$15,000	$15,000	$15,000
Manufacturing Depreciation	$10,000	$10,000	$10,000
Variable Selling and Administrative Expense Budget
Sales Commissions	$0.15	$0.15	$0.15
Fixed selling and administrative expenses
Advertising	$2,500	$2,500	$2,500
Manager Salaries	$5,000	$5,000	$5,000
Insurance	$2,000	$2,000	$2,000
Depreciation on Office Equipment	$500	$500	$500
Total fixed selling and administrative expenses	$10,000	$10,000	$10,000
Cash Budget
Minimum cash balance	$50,000	$50,000	$50,000
Simple annual interest rate	3%	3%	3%

Perky Turkey Jerky, LLC
Balance Sheet
March 31, 2018
Assets
Current Assets
Cash	52,000.00
Accounts Receivable	9,000.00
Raw Materials Inventory	2,750.00
Finished Goods Inventory	14,300.00
Total Current Assets		78,050.00
Plant and Equipment
Equipment	930,000.00
Accumulated Depreciation	(63,000.00)
Plant and Equipment, Net		867,000.00
Total Assets		945,050.00
Liabilities and Stockholders' Equity
Liabilities
Accounts Payable		7,500.00
Bonds Payable		100,000.00		(for simplicity, ignore interest on Bonds Payable)
Stockholders' Equity
Common Stock	800,000.00
Retained Earnings	37,550.00
Total Stockholders' Equity		837,550.00
Total Liabilities and Stockholders' Equity		945,050.00		-

Perky Turkey Jerky, LLC
Sales Budget
For the Quarter Ending June 30, 2018
	Month			Quarter Total
	April	May	June
Budgeted Sales (in units)
Selling price per unit
Total Sales
Schedule of Expected Cash Collections
Beginning Accounts Receivable
April sales
May sales
June sales
Total cash collections

Perky Turkey Jerky, LLC
Sales Budget
For the Quarter Ending June 30, 2018
	Month			Quarter Total
	April	May	June
Budgeted sales in units
Add: Desired Ending Inventory
Total units needed
Less: Units of beginning finished goods inventory
Required production in units

Perky Turkey Jerky, LLC
Direct Materials Budget
For the Quarter Ending June 30, 2018
	Month			Quarter Total
	April	May	June
Required production (in units)
Pounds of raw materials per unit
Pounds of raw materials needed for production
Add: Desired Raw Materials ending inventory
Total pounds of Raw Materials needed
Less: Beginning Raw Materials inventory
Pounds of Raw Materials to be purchased
Cost of Raw Materials per pound
Cost of Raw Materials to be purchased
Schedule of Expected Cash Disbursements for the Purchase of Materials
Beginning Accounts Payable
April purchases
May purchases
June purchases

Answer 1

Sales Budget
For the Quarter Ending June 30, 2018
	April	May	June	Quarter Total	Jul
Budgeted Sales (in units)	10,000	12,000	15,000	37,000	15,000
Selling price per unit	$             9	$                9	$                9	$                            9
Total Sales	$   90,000	$   108,000	$   135,000	$               333,000
Schedule of Expected Cash Collections:
Beginning Accounts Receivable	$     9,000			$                   9,000
April sales	$   81,000	$        9,000		$                 90,000
May sales		$     97,200	$     10,800	$               108,000
June sales			$   108,000	$               108,000
Total cash collections	$   90,000	$   106,200	$   118,800	$               315,000
Production Budget
For the Quarter Ending June 30, 2018
	April	May	June	Quarter Total	Jul
Budgeted sales in units	10,000	12,000	15,000	37,000	15,000
Add: Desired Ending Inventory	2,400	3,750	4,500	4,500
Total units needed	12,400	15,750	19,500	41,500
Less: Units of beginning finished goods inventory	(2,000)	(2,400)	(3,750)	(2,000)
Required production in units	10,400	13,350	15,750	39,500
Direct Materials Budget
For the Quarter Ending June 30, 2018
	April	May	June	Quarter Total	Jul
Required production (in units)	10,400	13,350	15,750	39,500
Pounds of raw materials per unit	2	2	2	2
Pounds of raw materials needed for production	20,800	26,700	31,500	79,000
Add: Desired Raw Materials ending inventory (Assumed for June)	2,670	3,150	3,000
Total pounds of Raw Materials needed	23,470	29,850	34,500	79,000
Less: Beginning Raw Materials inventory ($2,750/2.50)	(1,100)	(2,670)	(3,150)	(1,100)
Pounds of Raw Materials to be purchased	22,370	27,180	31,350	77,900
Cost of Raw Materials per pound	$          2.5	$            2.5	$            2.5	$                        2.5
Cost of Raw Materials to be purchased	$   55,925	$     67,950	$     78,375	$               194,750
Schedule of Expected Cash Disbursements for the Purchase of Materials
Beginning Accounts Payable	$     7,500			$                   7,500
April purchases	$   33,555	$     22,370		$                 55,925
May purchases		$     40,770	$     27,180	$                 67,950
June purchases			$     47,025	$                 47,025
Total Purchase	$   41,055	$     63,140	$     74,205	$               178,400