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

Sales Budget
December
January
February
8444
8900
9900
9
### $
9 $
76,000 $
80,100 $
89,100 $

Cash Collections Budget

January
February
$
19,000 $
20,025 $
$
57,000 $
60,075 $
$
76,000 $
77,025 $

Production Budget
January
8900
1485
10385
1444
8941

February
9900
1380
11280
1485
9795

March

April

9200
9 $
82,800 $

9500
9
85,500

March
22,275 $
66,825 $
82,350 $

Quarter
61,300
183,900
235,375

March

Quarter
28000
4290
32290
4309
27981

9200
1425
10625
1380
9245

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Solutions Manual
Direct Materials Budget
January
8941

Units to be produced
Multiply by: Quantity of DM needed per unit (lbs)
Quantity of DM needed for production (lbs)
Plus: Desired ending inventory of DM (lbs)
Total quantity of DM needed (lbs)
Less: Beginning inventory of DM (lbs)
Quantity of DM to purchase
Multiply by: cost per pound
Total cost of DM purchases

$
$

February
9795
2

17881
2970
20851
2889
17962
1.50 $
26,943 $

March
9245
2

19590
2760
22350
2970
19380
1.50 $
29,070 $

Quarter
27981
2

18490
2850
21340
2760
18580
1.50 $
27,870 $

55961
8580
64541
8619
55922
1.50
83,883

Cash Payments for Direct Material Purchases Budget

December Purchases (from A/P)
January Purchases
February Purchases
March Purchases
Total Cash Payments

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

Chapter 9: The Master Budget

January
February
March
Quarter
$
22,000
$
22,000
$
8,083 $
18,860
$
26,943
$
8,721.0 $
20,349.0 $
29,070
$
8,361.0 $
8,361
$
30,083 $
27,581 $
28,710 $
86,374

Cash Payments for Direct Labor Budget

January
February
8941
9795
0.03
0.03
268
294
$
13 $
13 $
$
3,487 $
3,820 $

March
9245
0.03
277
13 $
3,606 $

Quarter
27981
0.03
839
13
10,912

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Chapter 9: The Master Budget

Solutions Manual

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Solutions Manual

Cash Payments for Manufacturing Overhead Budget

January
February
Rent (fixed)
$
6,500 $
6,500 $
Other Manufacturing Overhead (fixed)
$
2,100 $
2,100 $

March
6,500 $
2,100 $

Quarter
19,500
6,300

13,713 $
22,313 $

12,943 $
21,543 $

39,173
64,973

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 Operating Expenses
$
12,080 $
13,280 $

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

Quarter
33,600
4,200
37,800

Combined Cash Budget

January
February
$
6,000 $
15,873 $
$
76,000 $
77,025 $
$
82,000 $
92,898 $

March
6,615 $
82,350 $
88,965 $

Quarter
28,488
235,375
263,863

Variable Manufacturing Overhead Costs

Cash Payments for Manufacturing Overhead

Cash Balance Beginning

Plus: Cash Collections
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

$
$

$
$
$
$
$
$
$
$

12,517 $
21,117 $

26,943
3,487
21,117
12,080
1,500
65,127
16,873

$
$
$
$
$
$
$
$

29,070
3,820
22,313
13,280
10,800
6,000
85,283
7,615

$
$
$
$
$
$
$
$

27,870
3,606
21,543
12,440
10,800
4,000
80,259
8,706

$
$
$
$
$
$
$
$

83,883
10,912
64,973
37,800
21,600
11,500
230,669
33,195

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MANAGERIAL ACCOUNTING - Fourth Edition

Borrowings:
Repayments:
Interest Payments:
Total Financing
Cash Balance Ending

Chapter 9: The Master Budget

Solutions Manual
$
$
$
$
$

(1,000)
(1,000)
15,873

$
$
$
$
$

(1,000)
(1,000)
6,615

$
$
$
$
$

(1,000)
(2,015)
(3,015)
5,691

$
$
$
$
$

(3,000)
(2,015)
(5,015)
28,180

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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 costs per unit
Fixed manufacturing overhead per unit
Cost of manufacturing each unit

$
$
$
$
$

3.00
0.39
3.39
0.60
3.99

Budgeted Income Statement

Sales Revenue
Less: Cost of Goods Sold
Gross Profit
Less: Operating Expenses
Less: Depreciation Expense
Operating Income
Less: Interest Exepnse
Less: Income Tax Expense
Net Income

Chapter 9: The Master Budget

$
$
$
$
$
$
$
$
$

328,000
111,662
216,338
37,800
5,200
173,338
2,015
46,520
124,804

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Solutions Manual

May
$
$

8600
9
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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