MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

WASATCH MANUFACTURING
Master Budget

Unit Sales
Price Per Unit
Sales Revenue

Cash Sales
Credit Sales
Total Cash Collections

Unit Sales
Plus: Desired ending inventory
Total Needed
Less: Beginning inventory
Units to produce

Chapter 9: The Master Budget

December
8444
$9.00
$76,000

Sales Budget
January
February
8900
9900
$9.00
$9.00
$80,100
$89,100

March

April

9200
$9.00
$82,800

9500
$9.00
$85,500

Cash Collections Budget

January
February
$20,025
$22,275
$57,000
$60,075
$77,025
$82,350

March
$20,700
$66,825
$87,525

Quarter
$63,000
$183,900
$246,900

Production Budget
January
February
8,900
9,900
1,485
1,380
10,385
11,280
1,335
1,485
9,050
9,795

March
9,200
1,425
10,625
1,380
9,245

Quarter
28,000
1,425
29,425
1,335
28,090

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MANAGERIAL ACCOUNTING - Fourth Edition

Direct Materials Budget
January
February
Untits to be produce
9,050
9,795
2
2
Multiply by: Quantity of DM needed Per unit
(lbs.)
Qty. of DM needed for prod. (lbs.)
18,100
19,590
Plus: Desired Ending Inv. of DM
1,959
1,849
Total Quantity of DM needed (lbs.)
20,059
21,439
Less:Beg. Inv. Of DM (lbs)
1,810
1,959
Qty. of DM to purchase (lbs)
18,249
19,480
Multiply by: Cost per pound
$1.50
$1.50
Total cost of DM purchases
$27,373.50
$29,220.00

Solutions Manual

March
9,245
2

Quarter
28,090
2

18,490
1,873
20,363
1,849
18,514
$1.50
$27,771.00

56,180
1,873
58,053
1,810
56,243
$1.50
$84,364.50

Cash Payments for Direct Material Purchases Budget

January
February
March
December purchases (from A/P)
$22,000.00
January Purchases
$8,212.05
$19,161.45
Feburary Purchases
$8,766.00
$20,454.00
March Purchases
$8,331.30
Total Cash Payments
$30,212.05
$27,927.45
$28,785.30

Units Produced
Multiply by: Hours per Unit
Direct Labor Hours
Multiply by: DL Rate per hour
Direct Labor Cost

Chapter 9: The Master Budget

Cash Payments for Direct Labor Budget

January
February
9,050
9,795
0.03
0.03
271.5
293.85
$13
$13
$3,530
$3,820

March
9,245
0.03
277.35
$13
$3,606

Quarter

$86,924.80

Quarter
28,090
0.03
842.7
$13
$10,955

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MANAGERIAL ACCOUNTING - Fourth Edition

Chapter 9: The Master Budget

Solutions Manual

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MANAGERIAL ACCOUNTING - Fourth Edition

Rent (Fixed)
Other MOH (Fixed)

Solutions Manual

Cash Payments for Manufacturing Overhead Budget

January
February
March
$6,500
$6,500
$6,500
$2,100
$2,100
$2,100

Variable MOH Costs

Cash payment for MOH

$12,670
$21,270

$13,713
$22,313

Cash Payments for Operating Expenses Budget

January
February
Variable Operating Expenses
$10,680
$11,880
Fixed Operating Expenses
$1,400
$1,400
Cash Payments For Op. Expense
$12,080
$13,280

Cash Balance
Plus: Cash Collection
Total Cash Available
Less Cash Payments:
DM Purchases
Direct Labor
MOH Costs
Operating Expenses
Tax Payment
Equipment Purchases
Total Cash Payments
Ending Cash before Financing
Financing:
Chapter 9: The Master Budget

Combined Cash Budget

January
February
$6,000
$4,933
$77,025
$82,350
$83,025
$87,283
$30,212
$3,530
$21,270
$12,080
$15,000
$82,092
$933

$27,927
$3,820
$22,313
$13,280
$10,800
$6,000
$84,141
$3,143

Quarter
$19,500
$6,300

$12,943
$21,543

$39,326
$65,126

March
$11,040
$1,400
$12,440

Quarter
$33,600
$1,400
$37,800

March
$5,143
$87,525
$92,668

Quarter
$6,000
$246,900
$252,900

$28,785
$3,606
$21,543
$12,440

$86,925
$10,955
$65,126
$37,800
$10,800
$25,000
$236,606
$16,294

$4,000
$70,374
$22,294

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MANAGERIAL ACCOUNTING - Fourth Edition

Borrowings
Repayments
Interest Payments
Total Financing
Cash Balance, Ending

Chapter 9: The Master Budget

Solutions Manual
$4,000

$4,000
$4,933

$2,000

$2,000
$5,143

$6,000
$240

$6,000
$6,000
$240

$16,054

$16,054

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MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

Budgeted Manufacturing Cost per Unit

Direct Materials Cost Per Unit
Direct Labor Cost Per Unit
Variable Manufacturing Overhead Per Unit
Fixed Manufacturing Overhead Per Unit
Cost Of Manufacturing Each Unit

3
0.39
1.4
0.6
5.39

Budgeted Income Statement

Sales Revenue
Less: Cost Of Goods Sold
Gross Profit
Less: Operating Expense
Less: Depriciation Expense
Operating Income
Less: Interest Expense
Less: Income Tax Expense
Net Income

Chapter 9: The Master Budget

$252,000
$150,920
$101,080
$37,800
$5,200
$58,080
$240
$16,195
$41,645

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MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

May
8600
$9.00
$77,400

Chapter 9: The Master Budget

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MANAGERIAL ACCOUNTING - Fourth Edition

Chapter 9: The Master Budget

Solutions Manual

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MANAGERIAL ACCOUNTING - Fourth Edition

Chapter 9: The Master Budget

Solutions Manual

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MANAGERIAL ACCOUNTING - Fourth Edition

Chapter 9: The Master Budget

Solutions Manual

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MANAGERIAL ACCOUNTING - Fourth Edition

Chapter 9: The Master Budget

Solutions Manual

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MANAGERIAL ACCOUNTING - Fourth Edition

Chapter 9: The Master Budget

Solutions Manual

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