Hampton Freeze, Inc.

Sales Budget
For the Year Ended December 31,2015

Quarter
1 2 3 4 Year
Budegeted unit sales (in ca 10,000 30,000 40,000 20,000 100,000
Sellling price per unit $20.00 $20.00 $20.00 $20.00 $20.00
Total Sales $200,000.00 $600,000.00 $800,000.00 $400,000.00 $2,000,000.00

70% 30%
Schedule of Expected Cash Collections
Beginning accounts receiva 90,000 90,000
First-quarter Sales $140,000.00 $60,000.00 $200,000.00
Second-quarter Sales $420,000.00 $180,000.00 $600,000.00
Third-quarter Sales $560,000.00 $240,000.00 $800,000.00
Fourth-quarter Sales $280,000.00 $280,000.00
Total Cash Collections $230,000.00 $480,000.00 $740,000.00 $520,000.00 $1,970,000.00
 Hampton Freeze, Inc.
Production Budget
For the Year Ended December 31, 2015
(in cases)

Quarter
1 2 3 4
Budgeted unit sales (Schedule 1) 10,000 30,000 40,000 20,000
Add edsired units of ending finished goods inventory 6000 8000 4000 3000
Total needs 16,000 38,000 44,000 23,000
Less units of Beginning finished goods invetory 2,000 6,000 8,000 4,000
Requred Production units 14,000 32,000 36,000 19,000
Assumed

Year
100,000
3000
103,000
2,000
101,000
 Hampton Freeze, Inc.
Direct Materials Budget
For the Year Ended December 31, 2015

Quarter
1 2 3 4
Required production in cases (Schedule 2) 14000 32000 36000 19000
Units of raw materials needed per case 15 15 15 15
Units of raw materials needed to meet production 210000 480000 540000 285000
Add desired units of ending raw materials inventory 48000 54000 28500 22500
Total units of raw materials needed 258000 534000 568500 307500
Less units of beginning raw materials inventory 21000 48000 54000 28500
Units of raw materials to be purchased 237000 486000 514500 279000
Cost of raw materials per pound $0.20 $0.20 $0.20 $0.20
Cost of raw materials to be purchased $47,400.00 $97,200.00 $102,900.00 $55,800.00

Schedule of Expected Cash Disbursements for Purchases of Materials

Beginning Accounts Payable $25,800

First-quarter purchases $23,700.00 $23,700.00
Second-quarter purchases $48,600.00 $48,600.00
Third-quarter purchases $51,450.00
$51,450.00
Fourth-quarter purchases $27,900.00
Total cash disbursements for materials $49,500.00 $72,300.00 $100,050.00 $79,350.00
 $25,800
$47,400
$97,200
$102,900
$27,900
$301,200.00
 Hampton Freeze, Inc.
Direct Labor Budget
For the Year Ended December 31, 2015

Quarter
1 2 3 4
Required production in cases (Schedule 2) 14000 32000 36000 19000
Direct labor-hours per case 0.4 0.4 0.4 0.4
Total direct labor-hours needed 5600 12800 14400 7600
Direct labor cost per hour $15.00 $15.00 $15.00 $15.00
Total direct labor cost $84,000.00 $192,000.00 $216,000.00 $114,000.00
 Year
101000
0.4
40400
$15.00
$606,000.00
 Hampton Freeze, Inc.
Manufacturing Overhead Budget
For the Year Ended December 31, 2015

Quarter
1 2 3 4 Year
Budgeted direct labor-hours (Schedule 4) 5600 12800 14400 7600 40400
Variable manufacturing overhead rate $4 $4 $4 $4 $4
Variable manufacturing overhead $22,400 $51,200 $57,600 $30,400 161600
Fixed manufacturing overhead 60600 60600 60600 60600 242400
Total Manufacturing overhead $83,000 $111,800 $118,200 $91,000 $404,000
Less depreciation $15,000 $15,000 $15,000 $15,000 60000
Cash Disbursements for manufacturing overhead $68,000 $96,800 $103,200 $76,000 $344,000

Total Manufacturing overhead (a) $404,000

Budgeted direct labor-hours (b) 40400
Predetermined overhead rate for the yea (a)/(b) $10
 Hampton Freeze, Inc.
Ending Finished Goods Inventory Budget
(absorption costing basis)
For the Year Ended December 31, 2015

Item Quantity Cost Total

Production per case:
Direct materials 15 pounds $0.20 per pound $3
Direct labor 0.4 hours $15 per hour 6
Manufacturing overhead 0.4 hours $10 per hour 4
Unit product cost 13.00

Budgeted finished goods inventory

Ending finished goods inventory in cases (schedule 2) 3000
Unit product cost (see above) $13
Ending finished goods inventory in dollar $39,000
 Hampton Freeze, Inc.
Selling and Administrative Expense Budget
For the Year Ended December 31, 2015

Quarter
1 2 3
Budgeted units sales (Schedule 1) 10000 30000 40000
Variable selling and administrative expense per case $1.80 $1.80 $1.80
Variable selling and administrative expense $18,000.00 $54,000.00 $72,000.00
Fixed selling and administrative expense:
Advertising 20000 20000 20000
Executive salaries 55000 55000 55000
Insurance 10000 10000 10000
Property taxes 4000 4000 4000
Depreciation 10000 10000 10000
Total fixed selling and administrative expenses 99000 99000 99000
Total selling and administrative expenses $117,000.00 $153,000.00 $171,000.00
Less depreciation 10000 10000 10000
Cash disbursements for selling and administrative expenses $117,000.00 $143,000.00 $161,000.00
r
4 Year
20000 100000
$1.80 $1.80
$36,000.00 $180,000.00

20000 80000
55000 220000
10000 40000
4000 16000
10000 40000
99000 396000
$135,000.00 $576,000.00
10000 40000
$125,000.00 $536,000.00
 Hampton Freeze, Inc.
Cash Budget
For the Year Ended December 31, 2015

Quarter
Schedule 1 2 3
Beginning cash balance $42,500 $36,000 $33,000
Add cash receipts
Collections from customer 1 230000 480000 740000
Total cash disbursements 272500 516000 773900
Less cash disbursements
Direct materials 3 49500 72300 100050
Direct labor 4 84000 192000 216000
Manufacturing overhead 5 68000 96800 103200
Selling and administrative 7 107000 143000 161000
Equipment purchases 50000 40000 20000
Dividends 8000 8000 8000
Total cash disbursements 366500 552100 608250
Excess (deficiency) of cash available over disbursements -94000 -36100 165650
Financing:
Borrowings (at the beginnings of quarters) 130000 70000
Repayment (at the end of the year)
Interest
Total Financing 130000 70000
Ending cash balance 36000 33900 165650
uarter
4 Year
$165,650 $42,500

520000 1970000
685650 2248050

79350 301200
114000 606000
76000 344000
125000 536000
20000 130000
8000 32000
422350 1949200
263300 63300

200000
-200000 -200000
-21900 -21900
-221900 -21900
41400 41400
 Hampton Freeze, Inc.
Budegted Income Statement
For the Year Ended December 31,2015

Schedules
Sales 1 $2,000,000
Cost of Goods Sold 1,6 1,300,000
Gross Margin $700,000
Selling and Administrartive expenses 7 576,000
Net Operating Income $124,000
Interest Expense 8 21,900
Net Income $102,100
 Hampton Freeze, Inc.
Budgeted Balance Sheet
31-Dec-15

Assets
Current Assets:
Cash $41,400 (a)
Accounts Receivable 120,000 (b)
Raw Materials Inventory 4,500 (c )
Finished Goods Inventory 39,000 (d)
Total Current Assets $204,900
Plant and Equipment
Land 80,000 (e)
Buildings and Equipment 830,000 (f)
Accumulated depreciation -392,000 (g)
Plant and Equipment, net 518,000
Total Assets $722,900

Liabilities and Stockholders' Equity

Current liabilities
Accounts Payable $27,900 (h)
Stockholders' equity
Common stock no par $175,000
Retained earnings 520,000
Total stockholders' equity $695,000
Total liabilities and stockholders' equity $722,900