Gilbert Company

Statement of Financial Position

31-Dec-14

Assets Eq
Current Assets Current Liabilities
Cash P 150,000 Account Payable
Account Receivable 220,000 Taxable Payable
Inventories 592,000 Current portion of long-term debt
Other current assets 23,000 Total current liabilities
Total current assets 985,000 Long-term liabilities
Total liabilities
Long-term assets Equity
Property, Plant and equipment P 2,475,000 Share capital
Less: Accumulated Depreciation 850,000 Retained earnings
Net 1,625,000 Total

Total assets 2,610,000 Total Equities

mpany
cial Position
4

Equities

Account Payable P 140,000

Taxable Payable 156,000
Current portion of long-term debt 83,000
Total current liabilities 379,000
Long-term liabilities 576,000
Total liabilities 955,000

Share capital P 350,000

Retained earnings 1,305,000
P 1,655,000

P 2,610,000
 Master Budget
2015

Estimated Sales:
Units 6,400
Price per unit 800
Finished Goods Inventory:
Beginning 900
Ending 1,000
Work in Process Inventory:
NONE
Raw Materials:
Material
R S
Materials required per unit of finished
finished product 3 units 5 units
Beginning Inventory 2,200 4,000
Ending Inventory 1,300 4,600
Unit Cost 10 30
Direct Labor 146

Overhead is estimated as follows:

Variable:
Indirect materials and supplies 5.85
Materials handling 9.07
Other Indirect Labor 5.07
Fixed:
Supervisor Labor 175,000
Maintenance &Repair 85,000
Plant administration 173,000
Utilities 87,000
Depreciation 280,000
Insurance 43,000
Property Taxes 117,000
Other 41,000
 Marketing and Administrative expenses are budgeted as follows:
Variable Marketing Costs:
Sales Commissions 40.625
Other marketing costs 16.25

Fixed Marketing Costs:

Sales Salaries 100,000
Advertising 193,000
Other 78,000

Administrative costs (all fixed):

Administrative Salaries 254,000
Data Processing Services 103,000
Legal and other professional fees 180,000
Depreciation-building, furniture
and equipment 94,000
Taxes-other than income 160,000
Other 26,000

Additional Information:
Sales and Collection 5,185,000
Equipment Sold 300,000
Depreciation 275,000
Equipment Purchased 320,000
Accounts Payable 15,000
Income Tax Rate 0.35
Income Tax Paid 252,000
Dividends 140,000
Interest Rate 0.08
 Sales Budget
For 2015
Schedule 1
Price Total Sales
Units per unit Revenue
Estimated Sales 6,400 800 5,120,000
 Production Budget
For 2015

Units to be sold 6,400

Add: Desired ending inventory 1,000
Total 7,400
Less: Beginning Inventory 900
Units to be produced 6,500
 Raw Materials Purchases
For 2015

Materials
R S
Units required for production
R (6,500*3) 19,500
S(6,500*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 10 30
Total purchases 186,000 993,000
 Direct Labor Budget
For 2015

Number of units to be produced 6,500

Multiply by: Direct labor cost per unit 146
Total budgeted direct labor costs 949,000
 Budgeted Manufacturing Overhead
For 2015

Variable overhead: units needed to produce 6,500

Indirect aterial and supplies( @5.85) 38,025
Materials handling (@9.07) 58,955
Other indirect labor (@5.07) 32,955
Total 129,935
Fixed Manufaturing overhead
Supervisor labor 175,000
Maintenance &repairs 85,000
Plant adminstration 173,000
Utilities 87,000
Depreciation 280,000
Insurance 43,000
Property Taxes 117,000
Others 41,000
Total 1,001,000
Total manufacturing overhead 1,130,935
ing Overhead

Budgeted Cost of Sales

Production Budget Schedule 2

Raw Materials Budget Schedule 3
Direct Labor Budget Schedule 4
Overhead Cost Budget Schedule 5
Budgeted Statement of cost of sales Schedule 6
 Budgeted Statement of Cost of Sales
For 2015

Beginning work in process inventory -

Manufacturing costs
Direct Materials
Beginning inventory 142,000
Purchases ( Schedule 3) 1,179,000
Total 1,321,000

Less: Ending Inventory 151,000

Total direct materials cost 1,170,000
Direct labor 949,000
Manufacturing overhead ( Schedule 5) 1,130,935
Total manufacturing cost 3,249,935
Less: Ending work in process inventory -
Cost of goods manufactured 3,249,935
Add: Beginning finished goods
inventory (900 @500) 450,000
Total available for sale 3,699,935
Less: Ending finished goods
inventory (1,000 @500) 500,000
Cost of sales 3,199,935
 Budgeted Marketing and Administrative Costs
For 2015

Variable marketing costs

Sales commission 260,000
Others 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 prefessional fees 180,000
Depreciation-building, furniture
and equipment 94,000
Taxes-other than income 107,280
Others 26,000
Total 764,280
Total marketing and administrative costs 1,499,280
 Gilbert Manufacturing Company
Cash Budget
For the Budget Year Ending December 31, 2015

Cash balance, January 1, 2014 150,000

Add:Estimated receipts
Colletions from customers 5,185,000
Sale of assets 25,000
Total 5,210,000
Total cash available 5,360,000
Less: Estimated disbursements
Payments for material purchases 1,164,000
Direct labor 949,000
Manufacturing overhead 850,935
Marketing &Administrative expenses 1,458,000
Payments for income tax 252,000
Dividends 140,000
Reduction in long-term debt 83,000
Acquisition of new assets 320,000
Total disbursements 5,216,935
Cash balance, December 31 143,065
 Gilbert Manufacturing Company
Budgeted Income Statement
For the Budget Year Ending December 31, 2015

Sales (Schedule 5) 5,120,000

Less: Cost of Sales ( Schedule 6) 3,199,935
Gross Profit 1,920,065
Less: Marketing & Administrative costs
(Schedule 7) 1,499,280
Net operating profit 420,785
Less: Interest Expense 52,720
Net Income before taxes 368,065
Less: Provision of income taxes (35%) 128,823
Net income after taxes 239,242

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 Gilbert Manufacturing Company
Budgeted Statement of Financial Position
31-Dec-15

Assets
Current Assets
Cash ( Schedule 8) 143,065
Account receivable 155,000
Inventories 651,000
Other current assets 23,000
Total current assets 972,065

Long-term assets
Property, Plant, and Equipment 2,495,000
Less: Accumulated Depreciation 949,000
Net 1,546,000
Total Assets 2,518,065

Equities
Current Liabilities
Accounts Payable 155,000
Taxes Payable 32,823
Current portion of long-term debt -
Total current liabilities 187,823
Long-term liabilities 576,000
Total liabilities 763,823

Equity
Share capital 350,000
Retained earnings 1,404,242
Total Equities 2,518,065