BUDGETS FOR OPTIMA COMPANY

Budgets for Optima Company

Name of writer

Name of Institute

 

Optima Company

 

 

 

Sales Budget

 

 

for the year ended 2008

 

 

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Total

 

$

$

$

$

$

Total Sales(units)

65000

70000

75000

90000

300000

Selling price per unit

400

400

400

400

400

 

 

 

 

 

 

Total Sales (in Dollars)

$ 26,000,000 28,000,000 30,000,000 36,000,000 120,000,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Budgets for Optima Company

Optima Company

Production Budget

for the year ended 2008

 

 

 

 

 

 

 

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Total Production

 

 

 

 

 

 

Opening Stock(units)

-

13000

15000

20000

48000

Production(units)

78000

72000

80000

80000

310000

 

78000

85000

95000

100000

358000

Sales (Units)

65000

70000

75000

90000

300000

Closing Stock (Units)

13000

15000

20000

10000

58000

 

 

 

 

 

 

 

 

 

 

 

 

Total Production (units)

78000

72000

80000

80000

310000

 

 

 

 

 

 

 

 

 

 

 

 

Optima Company

Direct Material Purchase Budget

for the year ended 2008

 

 

 

 

 

 

 

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Total

 

 

 

 

 

 

Opening Stock

(65,700)

(58,500)

(63,000)

(67,500)

(254,700)

Issued to Production

156000

144000

160000

160000

620000

Closing Stock

58500

63000

67500

65700

254700

Purchases

148,800 148,500 164,500 158,200 620,000

Cost per unit of material

80

80

80

80

80

 

 

 

 

 

 

Total Cost of Material

11,904,000 11,880,000 13,160,000 12,656,000 49,600,000 Optima Company

 

 

 

Direct Labor Budget

 

 

for the year ended 2008

 

 

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Total

 

$

$

$

$

$

Production Units

78000

72000

80000

80000

310000

Number of Labor Hours per unit

5

5

5

5

5

Total Labor Hours

390000

360000

400000

400000

1550000

Labor Cost per unit

10

10

10

10

10

 

 

 

 

 

Total Labor Cost $ 3,900,000 $ 3,600,000 $ 4,000,000 $ 4,000,000 $ 15,500,000 Optima Company

 

 

 

Overhead Budget

 

 

for the year ended 2008

 

 

 

 

 

 

 

 

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Total

 

 

 

 

 

 

Fixed Overheads

1,000,000

1,000,000

1,000,000

1,000,000

4,000,000

Variable Overheads:

Labor hours

390000

360000

400000

400000

1550000

Rate per hour

6

6

6

6

6

Total Variable Overheads

2,340,000

2,160,000

2,400,000

2,400,000

9,300,000

 

Total Overheads

3,340,000

3,160,000

3,400,000

3,400,000

13,300,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Optima Company

 

 

 

Selling and Administrative Expense Budget

 

 

for the year ended 2008

 

 

 

 

 

 

 

 

 

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Total

 

 

 

 

 

 

Fixed Expenses

250000

250000

250000

250000

1000000

Variable Expenses:

 

 

 

 

 

Sales

65000

70000

75000

90000

300000

Rate of expense

10

10

10

10

10

 

 

 

 

 

 

Total Variable Expense

650000

700000

750000

900000

3000000

 

 

 

 

 

 

 

 

 

 

 

 

Total Selling and Distribution Expense

900000

950000

1000000

1150000

4000000

 

 

 

 

 

 

 

 

 

 

 

 

 

Optima Company

 

 

 

Ending Finished goods inventory Budget

 

 

for the year ended 2008

 

 

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

 

 

 

 

 

 

 

Closing Stock

13000

15000

20000

10000

 

Direct Material Cost Per Unit

240

240

240

240

 

Direct Labor Cost Per Unit

50

50

50

50

 

Total Manufacturing Overheads

42.9

42.9

42.9

42.9

 

 

 

 

 

 

 

Total Manufacturing Cost per unit

332.9

332.9

332.9

332.9

 

 

 

 

 

 

 

Ending Inventory

4,327,700 4,993,500 6,658,000 3,329,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Overhead Rate =

Fixed Overhead

 

 

Expected Actual Units Produced

 

 

4000000

$ 12.90

 

 

310000

 

Variable Overheads Cost per unit =

labor hours X variable overheads

 

 

$ 30 per unit

 

 

Optima Company

 

 

 

Cost of goods sold Budget

 

 

for the year ended 2008

 

 

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Total

 

 

 

 

 

 

Goods Sold

65000

70000

75000

90000

300000

Cost per unit

332.9

332.9

332.9

332.9

332.9

 

 

 

 

 

 

 

 

 

 

 

 

Total Cost of Goods Sold

$ 21,638,500 $ 23,303,000 $ 24,967,500 $ 29,961,000 $ 99,870,000 Optima Company

Cash Budget

for the year ended 2008

 

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

 

$

$

$

$

Total Receipts

 

 

 

 

 

 

 

Current Quarter Sales

55250

59500

63750

76500

Following Quarter

8250

9750

10500

1120

Total Sales(units)

63500

69250

74250

77620

Selling price per unit

400

400

400

400

 

 

 

 

Total ...