Revenue Budget Cat-allac Dog-eriffic Total

Budgeted Unit Sales 530 225

Unit Selling Price $ 205.00 $ 310.00
Total Revenues ### $ 69,750.00 $178,400

Production Budget Cat-allac Dog-eriffic

Budgeted unit sales 530 225
Add target ending finished goods inventory 30 10
Total required units 560 235
Deduct beginning finished goods inventory 10 19
Units of finished goods to be produced 550 216 766

Direct Material Usage Plastic Metal Total

Direct materials required:
Cat-allac 2,200 275
Dog-errific 1,296 216
Total Direct materials used in production 3,496 491

Source of Units (under a FIFO cost-flow assumption)

Available from beginning direct materials inventory 290 70
Available from current period purchases 3,206 421

Cost of Direct Materials Used in Production (FIFO)

Beginning direct materials inventory $ 1,102 $ 217
Purchased in current period $ 16,030 $ 1,684
Total Direct Material Cost $ 17,132 $ 1,901 $ 19,033

Direct Material Purchases Plastic Metal Total

To be used in production (direct material usage budget) 3,496 491
Add target ending inventory 410 65
Total requirements 3,906 556
Deduct beginning inventory 290 70
Purchases to be made 3,616 486
Total Cost of Purchased Inventory $ 18,080 $ 1,944 $ 20,024

Direct Labor Cat-allac Dog-eriffic Total

Finished Good Units Produced 550 216
Direct Manufacturing Labor Hours 3 5
Total Hours Required 1,650 1,080
Hourly Wage Rate $ 10.00 $ 10.00
Total Direct Labor Cost $ 16,500 $ 10,800 $ 27,300

Mfg. Overhead Budget Cat-allac Dog-eriffic Total

Activity Driver Usage
Setup hours 33.0 42.0
Machine hours 6,050.0 4,104.0
Inspection hours 11.0 16.8
 Applied OH (usage of driver x activity rate)
Set-up ($105/set-up) $ 3,465 $ 4,410
Processing ($10/MH) $ 60,500 $ 41,040
Inspection ($15/inspection hour) $ 165 $ 252
Total Applied Overhead $ 64,130 $ 45,702 $ 109,832

Inventory Cat-allac Dog-eriffic Total

Ending Finished Goods Unit Cost
Plastic $ 20.00 $ 30.00
Metal $ 2.00 $ 4.00
Labor $ 30.00 $ 50.00
Overhead $ 116.60 $ 211.58
$ 168.60 $ 295.58
Units 30 10
Value of Ending Inventory $ 5,058.00 $ 2,955.83 $ 8,014

Plastic Metal Total

Ending Direct Material Unit Cost $ 5.00 $ 4.00
Units $ 410 $ 65
Value of Raw Material $ 2,050 $ 260 $ 2,310

Cost of Goods Sold Beginning finished goods inventory, April, 1 $5,650

Direct materials used $19,033
Direct manufacturing labor 27,300
Manufacturing overhead 109,832
Cost of goods manufactured 156,165
Cost of goods available for sale 161,815
Deduct: Ending finished goods inventory, April 30 8,014
Cost of goods sold $153,801

Non-Mfg Cost Budget Salaries $16,800

Other fixed costs $16,000
Sales commissions $1,784
Total nonmanufacturing costs $34,584

Income Statement Revenues $178,400

Cost of goods sold $153,801
Gross margin $24,599
Operating (nonmanufacturing) costs $34,584
Operating income/(loss) -$9,985
Cash Budget Cash balance, April 1 $ 5,900
Add receipts:
Cash sales $ 17,840
Credit card sales 157,349 $ 175,189
Total cash available for needs (x) $ 181,089
Deduct cash disbursements:
Direct materials $ 18,012
Direct manufacturing labor $27,300
Manufacturing overhead 84,832
Nonmanufacturing salaries 16,800
Other nonmanufacturing fixed costs 6,000
Sales commissions 1,784
Machinery purchase 13,000
Income taxes 5,000
Total disbursements (y) $ 172,728
Financing:
Repayment of loan $ 2,000
Interest at 12% $ 20
Total effects of financing (z) $ 2,020
Ending cash balance, April 30 (x) ─ (y) ─ (z) $ 6,341