HAMPTON FREEZE INC. SALES BUDGET FOR THE YEAR ENDING DECEMBER 31, 2012
Budgeted sales in cases Selling price per case Total Sales
$ $
1 10,000 20.00 $ 200,000 $
QUARTER 2 30,000 20.00 $ 600,000 $
Precentage of collected in the period of the sales Precentage of collected in the period after the sales 70% Account receivable, beginning balance Q1 sales
2
Q2 sales
3
Q3 sales
4
Q4 sales
5
Total cash collections
6
1
Schedule of Expected Cash collections $
90,000
$
140,000
$
$
60,000
$
420,000
230,000 $
3 40,000 20.00 $ 800,000 $ 70% 30% 30 %
$
180,000
$
560,000
480,000 $
4 20,000 20.00 400,000
$
240,000
$
280,000
740,000 $
520,000
$ $
YEAR 100,000 20.00 2,000,000
$
90,000
$
200,000
$
600,000
$
800,000
$
280,000
$
1,970,000
HAMPTON FREEZE INC. PRODUCTION BUDGET FOR THE YEAR ENDING DECEMBER 31, 2012
Budgeted sales (prev sales budget) Add desired ending inventory of finished goods Total Needs Less Beginning inventory of finished goods Required production
1 10,000 6,000 16,000 2,000 14,000
QUARTER 2 30,000 8,000 38,000 6,000 32,000
3 40,000 4,000 44,000 8,000 36,000
4 20,000 3,000 23,000 4,000 19,000
Assum ed YEAR 100,000 3,000 103,000 2,000 101,000
HAMPTON FREEZE INC. DIRECT MATERIAL BUDGET FOR THE YEAR ENDING DECEMBER 31, 2012
QUARTER 2 32,000
1 14,000
Required production in cases
3 36,000
Raw materials needed per case (pounds) Production needs (pounds)
15 210,000
15 480,000
15 540,000
Add desired ending inventory of raw materials Total Needs
48,000 258,000
54,000 534,000
28,500 568,500
Less beginning inventory of raw materials Raw materials to be purchased
21,000 237,000
48,000 486,000
54,000 514,500
Cost of raw material per pounds
$
0.20
$
0.20 $
0.20
Cost of raw material to be purchased
$
47,400
$
97,200 $
102,900
Precentage of collected in the period of the sales Precentage of collected in the period after the sales
50% 50% Schedule of Expected Cash Disbursement of materials
Account receivable, beginning balance Q1 sales
3
Q2 sales
4
Q3 sales
5
Q4 sales
5
Total cash collections
6
2
$
25,800
$
23,700
$
$
23,700
$
48,600 $
48,600
$
51,450
49,500 $
72,300
$
100,050
Assumed 4 19,000
YEAR 101,000
15 285,000
### 1,515,000
22,500 307,500
### 1,537,500
28,500 279,000
21,000 1,516,500
$
0.20
$
55,800
### $
303,300
$
25,800
$
47,400
$
97,200
$
51,450
$
102,900
$
27,900
$
27,900
79,350
$
301,200
$
HAMPTON FREEZE INC. DIRECT LABOR BUDGET FOR THE YEAR ENDING DECEMBER 31, 2012
Required production in cases Direct labor-hours per case Total direct labor-hours needed Direct labor cost per hour
$
1 14,000 0.40 5,600 15.00 $
Total direct labor cost*
$
84,000 $
QUARTER 2 32,000 0.40 12,800 15.00 $ 192,000 $
3 36,000 0.40 14,400 15.00 216,000
$ $
4 19,000 0.40 7,600 15.00 $ 114,000
$
YEAR 101,000 0.40 40,400 15.00 606,000
HAMPTON FREEZE INC. MANUFACTURING OVERHEAD BUDGET FOR THE YEAR ENDING DECEMBER 31, 2012
1 5,600
Budgeted direct labor-hours Variable manufacturing overhead rate Variable manufacturing overhead
$ $
4.00 $ 22,400 $
QUARTER 2 12,800
3 14,400
4.00 51,200
4.00 57,600
$ $
Fixed manufacturing overhead Total manufacturing overhead
60,600 83,000
60,600 111,800
60,600 118,200
Less depreciation
15,000
15,000
15,000
68,000 $
96,800
Cash disbursements for manufacturing overhead Total manufacturing overhead (a) Budgeted direct labor-hours (b) predetermined overhead rate for the year (a/b)
$
$
103,200
4 7,600 $ $
$
YEAR 40,400
4.00 30,400 $
### 161,600
60,600 91,000
242,400 404,000
15,000
60,000
76,000 $
344,000
$
404,000 40,400
$
10.00
HAMPTON FREEZE INC. ENDING FINISHED GOODS INVENTORY BUDGET FOR THE YEAR ENDING DECEMBER 31, 2012
Item
Quantity
Cost
Production per case: Direct materials Direct labor
15 pounds 0.4 hours
$ $
0.20 per pound 15.00 per hour
Manufacturing overhead
0.4 hours
$
10.00 per hour
Unit product cost Budgeted finished goods inventory: Ending finished goods inventory Unit Product Cost Ending finished goods inventory
Total $ $
3.00 6.00
$
4.00
$
13.00
3,000 $
13.00
$
39,000.00
HAMPTON FREEZE INC. SELLING AND ADMINISTRATIVE EXPENSE BUDGET FOR THE YEAR ENDING DECEMBER 31, 2012
Budgeted sales in cases Variable selling and administrative expense per case Variable selling and administrative expense Fixed selling and administrative expense: Advertising Executive salaries Insurance Property taxes
$ $
Depreciation Total fixed selling and administrative expense Total selling and administrative expense
$
Less depreciation Cash disbursement for selling and administrative expenses
1 10,000
QUARTER 2 30,000
3 40,000
1.80 $ 18,000 $
1.80 54,000 $
### 72,000
20,000 55,000 10,000 4,000
20,000 55,000 10,000 4,000
### ### ### ###
10,000
10,000
###
99,000 117,000 $ 10,000
$
107,000 $
99,000 153,000 $ 10,000 143,000 $
99,000 171,000 ### 161,000
4 20,000 $ $
$
1.80 $ 36,000 $
1.80 180,000
20,000 55,000 10,000 4,000
80,000 220,000 40,000 16,000
10,000
40,000
99,000 135,000 $ 10,000
$
YEAR 100,000
125,000 $
396,000 576,000 40,000 536,000
HAMPTON FREEZE INC. CASH BUDGET FOR THE YEAR ENDING DECEMBER 31, 2012
TAB Cash balance, beginning Add receipts: Collections from customers Total cash available Less disbursements: Direct materials Direct labor Manufacturing overhead Selling and administrative Equipment purchases
QUARTER $
Sales budget
$
230,000
$
272,500
Direct material Direct labor Manufacturing overhead Selling & Admin
49,500 84,000 68,000 107,000 50,000
Dividends Total Disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings (at the beginning quarters) Repayments (at the end of the year) Interest Total Financing Cash balance, ending
1 42,500.00
8,000 $
366,500 (94,000.00)
$
130,000.00
$ $
130,000.00 36,000.00
INC.
MBER 31, 2012
$
QUARTER 2 36,000.00 $
$ $
3 33,900.00 $
4 165,650.00 $
YEAR 42,500.00
480,000 $
740,000 $
520,000 $
1,970,000
516,000 $
773,900 $
685,650 $
2,012,500
72,300 192,000 96,800 143,000 40,000
100,050 216,000 103,200 161,000 20,000
79,350 114,000 76,000 125,000 20,000
301,200 606,000 344,000 536,000 130,000
8,000
32,000
8,000 $ $
$ $
552,100 (36,100.00) $
### 608,250 165,650.00 $
70,000.00
70,000.00 $ 33,900.00 $
422,350 263,300.00 $ $
$ $ - $ 165,650.00 $
(200,000.00) (21,900.00) $ (221,900.00) $ 41,400.00 $
1,949,200 63,300.00 200,000.00 ### (21,900.00) (21,900.00) 41,400.00
HAMPTON FREEZE INC. BUDGETED INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2012
Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income interest expense Net Income
See Sales tab See sales & Ending inventory
2,000,000 1,300,000 700,000 576,000 124,000 21,900
See selling & Admin See cash $
102,100
HAMPTON FREEZE INC. BUDGETED BALANCE SHEET FOR THE YEAR ENDING DECEMBER 31, 2012 Assets Current assets: Cash Account receivable Raw materials inventory Finished goods inventory Total current assets Plant and equipment: Land Buildings and equipment Accumulated depreciation
$ $ $
41,400.00 120,000.00 4,500.00
$
39,000.00 $
204,900.00
Plant and equipment, net
$
518,000.00
Total Assets
$
722,900.00
$
27,900.00
$ $
695,000.00 722,900.00
$ $ $
80,000.00 830,000.00 (392,000.00)
Liabilities and Stockholder's equity Current liabilities: Account payable (raw materials) Stockholder's equity: Common stock Retained earnings Total Stockholder's equity Total liabilities and stockholder's equity
$ $
175,000.00 519,100.00
balanced sheet 2011, no change balanced sheet 2011 + total additional equipment on cash budget balanced sheet 2011 + MO + Selling & Admin
balanced sheet 2011, no change
