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Budgeting Case - Simplicity Studio

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Zatch Ryuzumaki
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7 views2 pages

Budgeting Case - Simplicity Studio

Uploaded by

Zatch Ryuzumaki
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Sales Budget

Q1 (Actual) Q2 Q3 Q4
Sales (in units) 50 60 50 40
Sales price per unit 40,000 40,000 40,000 40,000
Budgeted sales (in rupees) 2,000,000 2,400,000 2,000,000 1,600,000

Production Budget
Q2 Q3 Q4
Budgted unit sales 60 50 40
Plus: Ending FG (Tables) invenory 10 8
Less: Beginning FG (Tables) invenory 12 10
Budgeted Production (number of tables) 58 48

Direct Material Purchase Budget


Q2 Q3 Q4
Budgeted Production (number of tables) 58 48
Wood Requirement per table in sq feet 15 15
Total Wood (in sq feet) Required for production 870 720
Plus: Ending DM invenory 360
Less: Beginning DM inventory 435
Total purchase of woods (in sq feet) 795
Cost of wood per sq feet 1,000
Budgted cost of wood purchase 795,000

Direct Labour Budget


Q2 Q3 Q4
Budgeted Production (number of tables) 58
Direct Labour Requirement in hours 4
Total Direct Labour hours required 232
Per hour Direct Labour Rate 1,000
Budgted Cost of direct labour 232,000
Manufacturing Overhead Budget
Q2 Q3 Q4
Budgeted Fixed Manufacturing Overhead Cost 240,000
Wood required for current quarter production 870
Allocated variable overhead cost per sq feet of wood 100
Budgeted Variable Manufacturing Overhead Cost 87,000
Total Budgeted Manu Overhead cost 327,000

Selling and Administrative Expense Budget


Q2 Q3 Q4
Salaries and Wages 40,000
Marketing expenses 10,000
Budgeted Selling and Administrative Expense 50,000

Cash Receipt Budget (cash inflow)


Q1 (Actual) Q2 Q3 Q4
Budgeted Sales Revenue 2,000,000 2,400,000
Collection from Sales from current Q 1,680,000
Collection from credit sales from previous Q 600,000
Total Cash Collection 2,280,000

Cash Payments (cash outflow)


Q2 Q3 Q4
Budgeted DM Purchase 795,000
Cash Payment for current Q purchase 795,000
Cash Payment DL 232,000
Cash Payment for SG&A 50,000
Manufacturing Overhead 327,000
Less: Depreciation (non-cash item) -120,000
Total Cash Payment 1,284,000

Cash Budget
Q2 Q3 Q4
Beginning Cash Balance 250,000
Plus: Budgeted cash receipts 2,280,000
Less:Budgeted cash payments 1,284,000
Cash Balance before financing 1,246,000
Cash Borrowed (or repaid)
Ending Cash Balance 1,246,000

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