Student Name: Ehab Wael Abdel Fattah Youssef
ID: 17204085
Course title: Management Accounting
Course code: (EY 311)
Lecture time: Tuesday 6:30-8:30
1
Sales budget:
April May June Total
Budgeted sales 20,000 30,000 50,000 100,000
Sales price/unit ×10 10× 10× 10×
Total Sales price 200,000 300,000 500,000 1,000,000
Cash collections:
April May June Total
A/R 30,000 30,000
April sales
70% × 200,000 140,000 140,000
25% × 200,000 50,000 50,000
May sales
70% × 500,000 350,000 350,000
25% × 500,000 125,000 125,000
June sales
70% × 300,000 210,000 210,000
Total 170,000 400,000 335,000 905,000
Production budget:
April May June July
Budgeted sales 20,000 50,000 30,000 25,000
+ Ending inventory 10,000 6,000 5,000 3,000
-Beginning inventory 4,000 10,000 6,000 5,000
Required production 26,000 46,000 29,000 23,000
Direct materials budget:
April May June Total
Required production 26,000 46,000 29,000 101,000
×Direct materials/unit ×5 5× 5× 5×
Budgeted DM 130,000 230,000 145,000 505,000
+ Ending inventory 23,000 14,500 11,500 11,500
-Beginning inventory 13,000 23,000 14,500 13,000
Required DM 140,000 221,500 142,000 503,500
Cost/pound 0.4 × 0.4 × 0.4 × 0.4 ×
Cost of Required DM 56,000 88,600 56,800 201,400
2
Cash disbursements:
April May June Total
A/P 12,000 12,000
April purchases
50% × 56,000 28,000 28,000
50% × 56,000 28,000 28,000
May purchases
50% × 88,600 44,300 44,300
50% × 88,600 44,300 44,300
June sales
50% × 56,800 28,400 28,400
Total 40,000 72,300 72,700 185,000
Direct labor budget:
April May June Total
Required production 26,000 46,000 29,000 101,000
× DL hours/unit × 0.05 0.05 × 0.05 × 0.05 ×
Total DL hours 1,300 2,300 1,450 5,050
× DL cost/hour × 10 10 × 10 × 10 ×
Total DL cost 13,000 23,000 14,500 50,500
Manufacturing overhead budget:
April May June Total
Budgeted DL hours 1,300 2,300 1,450 5,050
× Variable MOH rate × 20 20 × 20 × 20 ×
Total Variable MOH 26,000 46,000 29,000 101,000
+ Cash Fixed MOH 30,000 30,000 30,000 90.000
Cash disbursement for MOH 56,000 76,000 59,000 191,000
Selling and Administrative Expense Budget:
April May June Total
Budgeted sales 20,000 50,000 30,000 100,000
× Variable selling and × 0.5 0.5 × 0.5 × 0.5 ×
administrative expenses/unit
Total variable selling and 10,000 25,000 15,000 50,000
administrative expenses
+ Cash Fixed selling and 60,000 60,000 60,000 180,000
administrative expenses
Cash disbursement for selling 70,000 85,000 75,000 230,000
and administrative expenses
3
Cash budget:
April May June Total
Beginning cash balance 40,000 57,000 57,000 40,000
+ Cash collections 170,000 400,000 335,000
Cash available 210,000 457,000 392,000 1,059,000
-Cash disbursements
DM 40,000 72,300 72,700
DL 13,000 23,000 14,500
MOH 56,000 76,000 59,000
Selling& Admin. Exp. 70,000 85,000 75,000
Equipment 0 143,700 48,300
Cash dividend 49,000 0 0
Total disbursements 228,000 400,000 269,500 897,500
Excess (deficiency) of cash (18,000) 57,000 122,500 122,500
available over
disbursements
Borrowing 75,000 0 0
Repayment 0 75,000+(75,000×16% 111,000
×3) = 111,000
Ending balance 57,000 57,000 11,500 11,500