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Accounting 116 Winter 2007 Static Budget Assignment Please prepare budgets for the quarter which consists of October, November and December. Please use the Budget Template that can be found at the last tab of this spreadsheet August September October November December January February 11720 units 11640 units 11700 units 11740 units 11680 units 11780 units 11800 units Selling price is 70 per unit Company collects All sales are on account. 85% during the month of sale 10% the following month the 2nd month following the sale Data concerning goods inventory: Finished Goods Ending inventory on hand at the end of September was: 30% of next month's budgeted unit sales PLUS 400 units Management believes for future months 30% of next month's budgeted unit sales need to be on hand at the end of each month Data concerning Raw Materials: 4 lbs of material are required per unit of product 20% of the next month's needs of matcrials need to be on hand at the end of each month % $2.00 is the cost per lb of raw materials Data concerning Direct Labor: Each unit requires 1.5 hours of direct labor Each DLH costs company $20 Management fully adjusts the workforce to the workload each month. Data concerning Manufacturing OH and S&A Expenses: VMOH is $4 per DLH FMOH is $12.000 a month, including , $7,000 depreciation Variable selling and admin: Fixed selling and admin: S2 $8,000 per unit sold a month, including , $6.000 depreciation Name: SALES BUDGET October November December Quarter 35,120 Budgeted sales (units) 11,700 11,740 11,680 70 Selling price per unit $ 70 $ 701 $ 70 Total sales $819.000 S821.800 S817.600 $2.458,400 SCHEDULE OF EXPECTED CASH COLLECTIONS October November December Quarter Total: A/R Ending balance 12/31: 3 Point Bonus PRODUCTION BUDGET October November December January Required production DIRECT MATERIALS BUDGET October November December Quarter Cost of raw materials to be purchased DIRECT LABOR BUDGET October November December Quarter Total direct labor cost MANUFACTURING OVERHEAD BUDGET October November December Quarter Cash disbursements for manufacturing overhead SELLING AND ADMINISTRATIVE BUDGET October November December Quarter selling and administrative expenses

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