a.

Allison Manufacturing
sales budget
For the First Quarter Ended March 31
quarter
January February March
Units 40,000 50,000 60,000
Selling price 205 205 205
Sales 8,200,000 10,250,000 12,300,000

b.
Allison Manufacturing
production budget
For the First Quarter Ended March 31
quarter
January February March
Sales (schedule 1) 40,000 50,000 60,000
Desired Ending inventory 40,000 48,000 48,000
Total Needs 80,000 98,000 108,000
Less: Beginning Inventory (32,000) (40,000) (48,000)
Units to be produced 48,000 58,000 60,000

c.
Allison Manufacturing
direct material purchase budget
For the First Quarter Ended March 31
quarter
January February
Metal Components Metal
units to be produced (schedule 2) 48,000 48,000 58,000
direct materials per unit 10 6 10
production needs 480,000 288,000 580,000
desired ending inventory 290,000 174,000 300,000
total needs 770,000 462,000 880,000
less: beginning inventory 240,000 144,000 290,000
 direct materials to be purchased 530,000 318,000 590,000
cost per unit 8 5 8
total cost 4,240,000 1,590,000 4,720,000

d.
Allison Manufacturing
direct labor budget
For the First Quarter Ended March 31
quarter
January February March
units to be produced (schedule 2) 48,000 58,000 60,000
direct labor time per unit(hours) 3 3 3
total hours needed 144,000 174,000 180,000
cost per direct labor hour 14.25 14.25 14.25
budgeted direct labor cost 2,052,000 2,479,500 2,565,000

e.
Allison Manufacturing
overhead budget
For the First Quarter Ended March 31
quarter
January February March
budgeted direct labor hours (schedule 4) 144,000 174,000 180,000
variable overhead rate 2.40 2.40 2.40
budgeted variable overhead 345,600 417,600 432,000
budgeted fixed overhead 338,000 338,000 338,000
total overhead 683,600 755,600 770,000

f.
Allison Manufacturing
selling and administrative expenses budget
For the First Quarter Ended March 31
quarter
 January February March
planned sales (schedule 1) 40,000 50,000 60,000
variable S&A expense per unit 3.6 3.6 3.6
total cvariable expenses 144,000 180,000 216,000
fixed S&A expense:
salaries 50,000 50,000 50,000
depreciation 40,000 40,000 40,000
pothers 20,000 20,000 20,000
total fixed expenses 110,000 110,000 110,000
total S&A expenses 254,000 290,000 326,000

g.
Allison Manufacturing
ending finished goods inventory budget
For the First Quarter Ended March 31
unit cost computation:
direct materials:
metals (10lbs * 8) 80
components (6 * 5) 30 110
direct labot (3 * 14.25) 42.75
overhead:
variable (3 * 2.40) 7.20
fixed (3 * (1,014,000/498,000)) 6.108 13.31
total unit cost 166.06

finished goods inventory 7,970,880

h.
Allison Manufacturing
cost of goods sold budget
For the First Quarter Ended March 31
direct material (schedule 3)
metals (1,660,000 * 8) 13,280,000
componenta (996,000 * 5) 4,980,000 18,260,000
direct labor (schedule 4) 7,096,500
 overhead (schedule 5)
variable 1,195,200
fixed 1,014,000 2,209,200
budgeted manufacturing cost 27,565,700
add: beg. finished goods (32,000 * 166.06) 5,313,920
goods available for sale 32,879,620
less: ending finished goods 7,970,880
cost of goods sold 24,908,740

i.
Allison Manufacturing
budgeted income statement
For the First Quarter Ended March 31
sales (schedule 1) 30,750,000
less: cost of goods sold (schedule 8) 24,908,740
gross margin 5,841,260
less: S&A expense (schedule 6) 870,000
net income before tax 4,971,260

Allison Manufacturing
cash budget
For the First Quarter Ended March 31
quarter
January February March
beginning balance 400,000 50,000 495,004
cash receipts (schedule 1) 8,200,000 10,250,000 12,300,000
cash available 8,600,000 10,300,000 12,795,004
less: cash disbursement:
purchases (schedule 3) 5,830,000 6,490,000 6,688,000
direct labor (schedule 4) 2,052,000 2,479,500 2,565,000
overhead (schedule 5) 483,600 555,600 570,000
selling & administrative exp (schedule 214,000 250,000 286,000
total disbursement 8,579,600 9,775,100 10,109,000
tetative ending balance 20,400 524,900 2,686,004
financing:
borrowing 29,600 - -
repayments - (29,600) -
interest paid - (296) -
total financing 29,600 (29,896) -
ending cash balance 50,000 495,004 2,686,004
 Total
150,000
205
30,750,000

Total april
150,000 60,000
136,000 49,600
286,000 109,600
(120,000) (48,000)
166,000 61,600

nufacturing
purchase budget
er Ended March 31
quarter
February March Total
Components Metal Components Metal Components
58,000 60,000 60,000 166,000 166,000
6 10 6 10 6
348,000 600,000 360,000 1,660,000 996,000
180,000 308,000 184,800 308,000 184,800
528,000 908,000 544,800 1,968,000 1,180,800
174,000 300,000 180,000 240,000 144,000
 354,000 608,000 364,800 1,728,000 1,036,800
5 8 5 8 5
1,770,000 4,864,000 1,824,000 13,824,000 5,184,000

Total
166,000
3
498,000
14.25
7,096,500

Total
498,000
2.40
1,195,200
1,014,000
2,209,200
Total
150,000
3.6
540,000

150,000
120,000
60,000
330,000
870,000
 Total
400,000
30,750,000
31,150,000

19,008,000
7,096,500
1,609,200
750,000
28,463,700
2,686,300

29,600
(29,600)
(296)
(296)
2,686,004