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Budget Project Group Data

Forecasted sales:

October 21,250 units; November 43,000 units; December 34,000; January 22,500 units; February 20,000 units

Selling price = $21 per unit

Raw materials per unit = 1.25 bundles

Raw materials cost per bundle = $2.10

Desired ending finished goods inventory is 5% of next months budgeted sales units

Desired ending raw materials inventory is 10% of next months required production units

Direct labor hours per unit = .75 hours; hourly wage rate = $14

Manufacturing overhead:

Indirect materials = $.25 per unit; Indirect labor = $.85 per unit + $8,000 per month; plant utilities = $.80 per unit + $1,500 per month; Depreciation on plant assets = $15,000 per month; Rent for plant = $6,200 per month

Selling and Admin Expenses:

October = $95,000; November = $72,000; December = $86,000

Included in Selling & Admin expenses are Depreciation of $16,000 and Bad Debts of $2,500

Capital Expenditures

November = $15,000; December = $62,000

September information: Direct materials purchases = $107,500; Sales Revenue = $466,250

Cash requirements:

October Beginning cash balance = $102,000

Required minimum cash balance = $100,000

Interest rate on line of credit = 6%

Cash payments information:

% of direct materials purchases paid in month of purchase = 20%; % of direct materials purchases paid in month following purchase = 80%

Cash collections information

Note: All sales are on account

% of sales collected in month of sale = 60%; % of sales collected in month following sale = 40%

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