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    Master Budget Illustrationv2

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    Rianne Navidad
    Gilbert Company prepared multiple budgets for the 20X2 period including sales, production, materials, labor, manufacturing overhead, cost of goods sold, marketing and administrative costs, cash flows, income statement, and statement of financial position. The budgets estimate Gilbert will generate PHP 5.12 million in sales from 6,400 units priced at PHP 800 each. Cost of goods sold is expected to be PHP 3.2 million with marketing and administrative costs of PHP 1.55 million, resulting in net income of PHP 205,000.

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    Master Budget Illustrationv2

    Uploaded by

    Rianne Navidad
    17 views16 pages
    Gilbert Company prepared multiple budgets for the 20X2 period including sales, production, materials, labor, manufacturing overhead, cost of goods sold, marketing and administrative costs, cash flows, income statement, and statement of financial position. The budgets estimate Gilbert will generate PHP 5.12 million in sales from 6,400 units priced at PHP 800 each. Cost of goods sold is expected to be PHP 3.2 million with marketing and administrative costs of PHP 1.55 million, resulting in net income of PHP 205,000.

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    Gilbert Company prepared multiple budgets for the 20X2 period including sales, production, materials, labor, manufacturing overhead, cost of goods sold, marketing and administrative costs, cash flows, income statement, and statement of financial position. The budgets estimate Gilbert will generate PHP 5.12 million in sales from 6,400 units priced at PHP 800 each. Cost of goods sold is expected to be PHP 3.2 million with marketing and administrative costs of PHP 1.55 million, resulting in net income of PHP 205,000.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    17 views16 pages

    Master Budget Illustrationv2

    Uploaded by

    Rianne Navidad
    Gilbert Company prepared multiple budgets for the 20X2 period including sales, production, materials, labor, manufacturing overhead, cost of goods sold, marketing and administrative costs, cash flows, income statement, and statement of financial position. The budgets estimate Gilbert will generate PHP 5.12 million in sales from 6,400 units priced at PHP 800 each. Cost of goods sold is expected to be PHP 3.2 million with marketing and administrative costs of PHP 1.55 million, resulting in net income of PHP 205,000.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 16

    Gilbert Company

    Sales Budget
    For the period 20X2
    20X2
    Estimated Sales
    in Units 6,400
    Price per unit PHP 800.00
    Budgeted Sales PHP 5,120,000.00
    Gilbert Company
    Production Budget
    For the period 20X2 X + 900 - 1000 = 6400

    20X2
    Units to be sold 6,400
    Add: Desired Ending Invnetory 1,000
    Total 7,400
    Less: Beginning Inventory 900
    Units to be produced 6,500
    1000 = 6400
    Gilbert Company
    Raw Materials
    For the period 20X2
    20X2
    R S
    Units required for production
    R (6500 x 3) 19,500
    S (6500 x 5) 32,500
    Add: Desired Ending Inventory 1,300 4,600
    Total Units Required 20,800 37,100
    Less Beginning Inventory 2,200 4,000
    Units to be purchased 18,600 33,100
    Unit Price PHP 10.00 PHP 30.00
    Total Purchases PHP 186,000 PHP 993,000
    PHP 1,179,000
    Gilbert Company
    Direct Labor
    For the period 20X2

    20X2
    Units required for production 6500
    Multiply by: DL cost per unit PHP 146.00
    Total Labor Cost Required PHP 949,000
    Gilbert Company
    Manufacturing Overhead
    For the period 20X2

    20X2
    Variable MOH 6,500
    Indirect Materials and Supplies (@PHP5.85) PHP 5.85 PHP 38,025
    Materials Handling (@PHP9.07) 9.07 58,955
    Other Indirect Labor (@PHP5.07) 5.07 32,955
    Total PHP 129,935

    Fixed MOH
    Supervisor Labor 175,000
    Maintenance & repairs 85,000
    Plant administration 173,000
    Utilities 87,000
    Deprecitation 280,000
    Insurance 43,000
    Property Taxes 117,000
    Others 41,000
    Total 1,001,000

    Total MOH PHP 1,130,935


    Gilbert Company
    Cost of Sales
    For the period 20X2

    Beginning WIP Inventory


    Manufacturing Cost
    Direct Materials
    Beg. Inventory
    [(2200 R @P10) + (4000 S @P30)]
    Purchases
    Total
    Less: Ending Inventory
    [(1300 R @P10) + (1600 S @P30)]
    Total DM Cost
    Direct Labor (6500 @P146
    Manufacturing OH
    Total Manufacturing Cost
    Less: Ending WIP Inventory
    Cost of Goods Manufactured
    Add: Beginning FG Inventory (900 @P500)
    Total Avaialble for Sale
    Less: Ending FG Inventory (1000 @P500)
    Cost of Sales
    20X2

    142,000
    1,179,000
    1,321,000

    151,000
    1,170,000
    949,000
    1,130,935
    3,249,935
    -
    3,249,935
    450,000
    3,699,935
    500,000
    PHP 3,199,935
    Gilbert Company
    Budgeted Marketing and Administrative Costs
    For the period 20X2

    20X2

    Variable Marketing Costs


    Sales Commission (6400 @ P40.625) 260,000
    Others (6400 @ P16.25) 104,000
    Total 364,000
    Fixed Marketing Costs
    Sales Salaries 100,000
    Advertising 193,000
    Others 78,000
    Total 371,000
    Total Marketing Costs 735,000
    Administrative Costs (all fixed)
    Administrative salaries 254,000
    Data processing services 103,000
    Legal and other professional fees 180,000
    Depreciation - Building, furniture & equipment 94,000
    Taxes - other than income 160,000
    Others (6400 @ P16.25) 26,000
    Total 817,000
    Total Marketing and adminstrative costs 1,552,000

    1,458,000
    Gilbert Company
    Cash Budget
    For the period 20X2

    Cash Balance, January 1, 20X2 150,000.00 from BS


    Add: Estimated Receipts
    Collections from Customers 5,185,000.00 Given
    Sales of assets 25,000.00
    Total Receipts 5,210,000.00
    Total Cash Available 5,360,000.00
    Less: Estimated Disbursements
    Payments for material purchases 1,164,000.00
    Direct Labor 949,000.00
    Manufacturing Overhead 851,000.00
    Marketing & Administrative expenses 1,458,000.00
    Interest Expense 52,720.00
    Payment for Income tax
    Dividends
    Reduction in long-term debt
    Acquisition of new assets
    Total Disbursements
    Cash Balance, December 31 20X2
    Gilbert Company
    Budgeted Income Statement
    For the period 20X2

    Sales (Schedule)
    Less: Cost of Sales (Schedule)
    Gross Profit
    Less: Marketing & Administrative Costs (Schedule)
    Net Operating Profit
    Less: Interest Expense
    Net Income before Tax
    Less: Provision for Income Taxes
    Net Income after Tax
    5,120,000.00
    3,199,935.00
    1,920,065.00
    1,552,000.00
    368,065.00
    52,720.00
    315,345.00
    110,370.75
    204,974.25
    Gilbert Company
    Budgeted Statement of Financial Position
    As of December 31, 20X2

    Assets
    Beginning
    Current Assets
    Cash (Schedule) 150,000.00
    Accounts Receivable 220,000.00
    Inventories 592,000.00
    Other current assets 23,000.00
    Total Current Assets 985,000.00
    Long Term Assets
    Property, plant and equipment 2,475,000.00
    Less: Accumulated depreciation (850,000.00)
    Net 1,625,000.00
    Total Assets 2,610,000.00

    Liabilities & Equities

    Current Liabilities
    Accounts Payable 140,000.00
    Taxes Payable 156,000.00
    Interest Payable -
    Current Portion 83,000.00
    Total Current liabilities 379,000.00
    Long-term liabilities 576,000.00
    Total Liabilities 955,000.00

    Equity
    Share Capital 350,000.00
    Retained Earnings 1,305,000.00
    Total Equities 1,655,000.00

    Total Liabilities & Equities 2,610,000.00


    DR CR

    5,210,000.00 (5,269,655.00) 90,345.00


    (65,000.00) 155,000.00
    651,000.00 (592,000.00) 651,000.00
    23,000.00
    919,345.00
    -
    320,000.00 (300,000.00) 2,495,000.00
    275,000.00 (374,000.00) (949,000.00)
    1,546,000.00
    2,465,345.00
    -
    -
    -
    -
    (1,164,000.00) 1,179,000.00 155,000.00
    (252,000.00) 110,370.75 14,370.75
    -
    (83,000.00) -
    169,370.75
    576,000.00
    745,370.75
    -
    -
    350,000.00
    (5,055,025.75) 5,120,000.00 1,369,974.25
    1,719,974.25
    -
    2,465,345.00

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