Gilbert Company

Statement of Financial Position

31-Dec-14

Assets Equities
Current Assets Current Liabilities
Cash P 150,000 Account Payable
Account Receivable 220,000 Taxes 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
ompany
Position Master Budget
2015

Equities Estimated Sales:

Account Payable P 140,000

Taxes Payable 156,000 Finished Goods Inventory:
Current portion of long-term debt 83,000
Total current liabilities 379,000
Long-term liabilities 576,000 Work in Process Inventory:
Total liabilities 955,000
Raw Materials:
Share capital P 350,000
Retained earnings 1,305,000
P 1,655,000

Overhead is estimated as follows:

Variable:

Fixed:
 Master Budget
2015 Marketing and Administrative expens
Variable Marketing Costs:
Estimated Sales:
Units 6,400
Price per unit 800
Finished Goods Inventory: Fixed Marketing Costs:
Beginning 900 500
Ending 1,000
Work in Process Inventory:
NONE
Raw Materials: Administrative costs (all fixed):
Material
R S
Materials required per unit of finished
Finished product 3 5 units
Beginning Inventory 2,200 4,000
Ending Inventory 1,300 4,600
Unit Cost 10 30
Direct Labor 146 per unit produced

Overhead is estimated as follows: Additional Information:

Variable: Sales and Collection
Indirect materials and supplies 5.85 per unit produced Equipment Sold
Materials handling 9.07 per unit Depreciation
Other Indirect Labor 5.07 per unit Equipment Purchased
Fixed: Accounts Payable
Supervisor Labor 175,000 Income Tax Rate
Maintenance &Repair 85,000 Income Tax Paid
Plant administration 173,000 Dividends
Utilities 87,000 Interest Rate
Depreciation 280,000
Insurance 43,000
Property Taxes 117,000
Other 41,000
 Marketing and Administrative expenses are budgeted as follows:
ariable Marketing Costs:
Sales Commissions 40.625 per unit sold
Other marketing costs 16.25 per unit sold

xed Marketing Costs:

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

dministrative 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

dditional Information: SOL:

Sales and Collection 5,185,000 1500000-94000= 1406000
Equipment Sold 300,000 1458000-1406000= 52000
Depreciation 275,000 1406000+52000= 1458000
Equipment Purchased 320,000 SALES OF ASSETS:
Accounts Payable 15,000 300000-275000= 25,000
Income Tax Rate 35% ENDING AP:
Income Tax Paid 252,000 140,000+15000= 155,000
Dividends 140,000 AR ENDING
Interest Rate 0.08 220,000+5,120,000-5185000 155,000
ENDING INV (TOTAL)
151000+500,000 651000
BEG INV
142+450
PPE ENDING
2475000+320000-300000 2495000
ENDING DEP (ADA)
(CHISMIS)275-280 (SCHED 5)+94( (SCHED 7)
ADD 850 000 B 89000
TAXES PAYABLE
156000+128000-252000 32000
RE ENDING
BEG RE 1305+240(NI SCHED 9)-140 CHISMIS
1405000
SCHEDULE 1
Sales Budget
For 2015
Price Total Sales
Units per unit Revenue
Estimated Sales 6,400 800 ₱ 5,120,000.00

SCHEDULE 2
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

SCHEDULE 7
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 108,000
Others 26,000
Total 765,000
Total marketing and administrative costs 1,500,000
SCHEDULE 3 SCHEDULE 5
Raw Materials Purchases Budgete
For 2015

Materials Variable overhead: units ne

R S Indirect aterial and s
Units required for production 3 5 Materials handli
R (6,500*3) 19,500 Other indirect la
S(6,500*5) 32,500 Total
Add: Desired ending inventory 1,300 4,600 Fixed Manufaturing overhea
Total units required 20,800 37,100
Less: Beginning inventory 2,200 4,000
Units to be purchased 18,600 33,100
Unit price x 10 30
Total purchases 186,000 993,000

SCHEDULE 4
Direct Labor Budget
For 2015
Total manufacturing overhe
Number of units to be produced 6,500
Multiply by: Direct labor cost per unit 146 SCHEDULE 6
Total budgeted direct labor costs 949,000

Beginning work in process in

Manufacturing costs
Direct materials
Beginning invent
[(2,200 R@10)+(
Purchases ( Sche
Total
Less: Ending inve
[(1,300 R @10)+
Total direct mat
Direct labor ( 6,500 @14
Manufacturing overhead
Total manufacturing cost
Less: Ending work in process
Cost of goods manufactured
Add: Beginning finished goo
inventory (90
Total available for sale
Less: Ending finished goods
 inventory (1,0
Cost of sales
SCHEDULE 5 SCHEDULE 8
Budgeted Manufacturing Overhead Gilbert Manufacturing Comp
For 2015 Cash Budget
For the Budget Year Ending Decemb
Variable overhead: units needed to produce 6,500
Indirect aterial and supplies( @5.85) 38,025 Cash balance, January 1, 2014
Materials handling (@9.07) 58,955 Add:Estimated receipts
Other indirect labor (@5.07) 32,955 Colletions from customers
Total 129,935 Sale of assets
Fixed Manufaturing overhead Total
Supervisor labor 175,000 Total cash available
Maintenance &repairs 85,000 Less: Estimated disbursements
Plant adminstration 173,000 Payments for material purchases
Utilities 87,000 Direct labor
Depreciation 280,000 Manufacturing overhead
Insurance 43,000 Marketing &Administrative expenses
Property Taxes 117,000 Payments for income tax
Others 41,000 Dividends
Total 1,001,000 Reduction in long-term debt
Total manufacturing overhead 1,130,935 Acquisition of new assets
Total disbursements
SCHEDULE 6 Cash balance, December 31
Budgeted Statement of Cost of Sales
For 2015 SCHEDULE 9
Gilbert Manufacturing Comp
Budgeted Income Stateme
Beginning work in process inventory - For the Budget Year Ending Decemb
Manufacturing costs
Direct materials Sales (Schedule 1)
Beginning inventory Less: Cost of Sales ( Schedule 6)
[(2,200 R@10)+(4,000 S@30)] 142,000 Gross Profit
Purchases ( Schedule 3) 1,179,000 Less: Marketing & Administrative costs
Total 1,321,000 (Schedule 7)
Less: Ending inventory Net operating profit
[(1,300 R @10)+ (1,600 S @ 30)] 151,000 Less: Interest Expense
Total direct materials cost 1,170,000 Net Income before taxes
Direct labor ( 6,500 @146) 949,000 Less: Provision of income taxes (35%)
Manufacturing overhead ( Schedule 5) 1,130,935 Net income after taxes
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
 SCHEDULE 10
lbert Manufacturing Company Gilbert Manufacturing Company
Cash Budget Budgeted Statement of Financial Position
udget Year Ending December 31, 2015 31-Dec-15

ry 1, 2014 150,000 Assets

pts Current Assets
from customers 5,185,000 Cash ( Schedule 8)
sets 25,000 Account receivable
5,210,000 Inventories
5,360,000 Other current assets
ursements Total current assets
material purchases 1,164,000
949,000 Long-term assets
g overhead 850,935 Property, Plant, and Equipment
dministrative expenses 1,458,720 Less: Accumulated Depreciation
income tax 252,000 Net
140,000 Total Assets
ong-term debt 83,000
new assets 320,000 Equities
ments 5,217,655 Current Liabilities
mber 31 142,345 Accounts Payable
Taxes Payable
Current portion of long-term debt
lbert Manufacturing Company Total current liabilities
Budgeted Income Statement Long-term liabilities
udget Year Ending December 31, 2015 Total liabilities

5,120,000.00 Equity
Schedule 6) 3,199,935.00 Share capital
1,920,065.00 Retained earnings
dministrative costs Total Equities
7) 1,500,000.00
420,065.00
e 52,720.00
axes 367,345.00
ome taxes (35%) 128,570.75
xes 238,774.25
Company
ancial Position

142,345
155,000
651,000
23,000
971,345

2,495,000
949,000
1,546,000
2,517,345

155,000
32,571
-
187,571
576,000
763,571

350,000
1,403,774
2,517,345