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Budgeted sales	Expected
April (units)	2,500
May (units)	6,000
June (units)	3,000
July (units)	2,500
August (units)	2,000
Selling Price/unit	$120.00
Cash collection pattern
Month of sale	40%
Following month	55%
Uncollectible	5%
Cash payments for materials
Month of purchase	40%
Following month	60%
Production requirements
Raw material per unit (lb)	5
Raw mat. cost per lb	$7.00
Direct labor hours per unit	0.5
Direct labor rate per hour	$40.00
Variable MOHD per DL hour	$10
Fixed MOHD per month	$57,950
Depreciation in Fixed MOHD	$20,000
Selling & administrative costs
Variable S&A cost per unit sold	$1.25
Fixed S&A cost per month	$63,000
Depreciation in Fixed S&A cost	$10,000
Other cash outflows
Cash dividends paid each month	$15,000
Equipment purchases May	$47,820
Equipment purchases June	$154,600
Desired ending inventory
Finished Goods	20%
Raw Materials	40%
Cash ($)	$30,000
Beginning account balances - March 31
Cash ($)	$37,745
Accounts Receivable ($)	$132,000
Finished Goods inventory	$30,750
FG inventory (units)	410
Raw Materials inventory	$32,200
Raw Materials (lb)	4,600
Accounts Payable ($)	$55,000
Land	$520,000
Buildings and equipment	$1,800,000
Accumulated Depreciation	($750,000)
Common stock	$500,000
Retained earnings	$1,247,695

Manufacturing Overhead Budget (USD) Budgeted DL hours Variable MOHD rate Total Variable MOHD Fixed MOHD Expense Total MOHD Expense Less: Depreciation Cash disbursements for MOHD April 1,295 $10 12,950 S 57,950 $ 70,900 $ 20,000S 50,900 $ May 3,350 $10 3,350 S 57,950 $ 61,300 S 20,000S 41,300 S June 1,200 $10 12,000$ 57,950 S$ 69,950 $ (20,000) $ 49,950$ Quarter 5,845 $10 58,450 57,950 116,400 20,000) 96,400 M-OHD rate /DLH Little Annin Flagmakers Unit Product Cost (USD) Absorption cost per unit Direct Materials Direct Labor Manufacturing Overhead Unit Product Cost Quantity Cost Cost/unit Little Annin Flagmakers Cost of Goods Sold Budget (USD) Units Total Cost Cost of Goods Sold (FIFO) Beg. FG inventory Add: Cost of Goods Mfg'd Good Available for Sale Less: Ending FG invento Cost of Good Sold Cost/unit Manufacturing Overhead Budget (USD) Budgeted DL hours Variable MOHD rate Total Variable MOHD Fixed MOHD Expense Total MOHD Expense Less: Depreciation Cash disbursements for MOHD April 1,295 $10 12,950 S 57,950 $ 70,900 $ 20,000S 50,900 $ May 3,350 $10 3,350 S 57,950 $ 61,300 S 20,000S 41,300 S June 1,200 $10 12,000$ 57,950 S$ 69,950 $ (20,000) $ 49,950$ Quarter 5,845 $10 58,450 57,950 116,400 20,000) 96,400 M-OHD rate /DLH Little Annin Flagmakers Unit Product Cost (USD) Absorption cost per unit Direct Materials Direct Labor Manufacturing Overhead Unit Product Cost Quantity Cost Cost/unit Little Annin Flagmakers Cost of Goods Sold Budget (USD) Units Total Cost Cost of Goods Sold (FIFO) Beg. FG inventory Add: Cost of Goods Mfg'd Good Available for Sale Less: Ending FG invento Cost of Good Sold Cost/unit

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