ACCOUNTING

Accounting



Sunny Shades

Part A - Budgeting

Sunny Shades

Sales Budget

For the Year Ending Sept, 2012

 

Quarter

Apr

May

Jun

Sales Units (Steel)

2,500.00 2,000.00 2,000.00

× Price per Unit( £ )

250.00 230.00 230.00

Total Sales Of Log

625,000.00 460,000.00 460,000.00

 

 

 

 

Sales Units (Al)

3,000.00 2,400.00 2,400.00

× Price per Unit( £ )

370.00 350.00 350.00

Total Sales Of Branch

1,110,000.00 840,000.00 840,000.00

 

 

 

 

Total Credit Sales

1735000

1300000

1300000

Sunny Shades

Production Budgets (in units)

For the Year Ending Sept, 2012

 

Quarter

Apr

May

Jun

Budgeted Sales Units (S)

2,500.00 2,000.00 2,000.00 + Planning Ending Units 2,900.00 2,400.00 2,400.00

- Beginning Units - - -

Planned Production in Units (S)

 

4,400.00 4,400.00

 

 

 

 

Budgeted Sales Units (A)

3,000.00 2,400.00 2,400.00 + Planning Ending Units 2,880.00 2,880.00 2,880.00

- Beginning Units

- - -

Planned Production in Units (A)

 

5,280.00 5,280.00

Sunny Shades

Raw materials purchases budgets (units)

For the Year Ending Sept, 2012

 

Quarter

April

May

June

Production 4,400.00

4400

0

+ Planning Ending Units (B)

2,900.00 2,400.00 2,400.00 + Planning Ending Units (A)

2,880.00 2,880.00 2,880.00

- Beginning Units (A)

1375

1375

1375

- Beginning Units (B)

4325

4325

4325

Planned Production in Units (LOG)

4480

3980

-420

 

2354000

2354000

2354000

Production

5280

5280

0

+ Planning Ending Units (B)

3750

3750

3750

+ Planning Ending Units (A)

1500

1500

1500

- Beginning Units (A)

1375

1375

1375

- Beginning Units (B)

4325

4325

4325

Planned Production in Units (Branch)

4830

4830

-450

579600

579600

Sunny Shades

Labour budget (units)

For the Year Ending Sept, 2012

 

Quarter

April

May

June

Planned Production in Units

4400

4400

0

× Direct Labor Hours per Unit (skilled)

20.9

20.9

20.9

× Direct Labor Hours per Unit (skilled)

10.4

10.4

10.4

Budgeted Direct Labor Hours

137720

137720

0

 

 

 

 

Planned Production in Units

5280

5280

0

× Direct Labor Hours per Unit (skilled)

25.08

25.08

25.08

× Direct Labor Hours per Unit (skilled)

15.6

15.6

15.6

Budgeted Direct Labor Hours

214790.4

214790.4

0

Direct-cost inputs

 

 

 

Direct-cost inputs

Steel gazebo

Aluminum gazebo

For frames

12 meters of steel

14 meters of aluminum

Fabric (polyester) for sails

4 meters

5 meters

LED lights

0

4 lights

Direct manufacturing labor

6 hours

8 hours

Monthly sales and estimated selling prices

Months

Steel Gazebos

Aluminum Gazebos

 

Projected sales

Selling price (S/P)

Projected sales

Selling price (S/P)

January to April

2 500 per month

$250 each

3 000 per month

$370 each

May to August

2 000 per month

$230 each

2400 per month

$350 each

September to December

2 400 per month

$260 each

2600 per month

$380 each

Actual inventory-finished goods

Inventory at 31/12/2011

Steel Gazebos

Aluminum Gazebos

Units

2 300

2 700

Total cost

$276,000

$621 000

Actual inventory- raw material

Inventory at 31/12/2011

Steel (for frame)

Aluminum (for frame)

Fabric

LED lights

Units

24 000 meters

33 600 meters

20 000 meters

9 600

Total cost

$38 400

$67 200

$160 000

$38 400

The cash budget is a report which shows cash inflows and outflows which are plan by the company and used to calculate its cash requirements in the short term, and particular attention is given towards the planning in view of surpluses and shortages of cash. A company that expects cash surplus can plan investments in the short term, while a company missing cash waiting must have the funding in the short term. The necessary information for the process of short-term financial planning is the forecast of sales. This forecast is predicts sales of the company for a specified period, which provide the department of managing their finance. Based on this forecast, the finance manager calculates the monthly cash flows resulting from projected sales and the disposition of funds related to production, the inventory and sales (Ballot M., 1986).

The forecasts of sales should be based on an analysis of the data that is internally or externally available or a combination of both.

External Predictions: Based on the relationship between sales of the company and certain indicators important as external economic ...