MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

PRESIDIO MANUFACTURING
Master Budget

Budgeted Sales(units)
Selling Price P.U.

Budget Sales $

December Sales
January Sales
February Sales
March Sales
Total cash Collections

Sales in Units
Plus ending inventory
Total Units Needed
Less Beginning Inventory
Produciton units

Chapter 9: The Master Budget

Sales Budget
December
January
5917
8300
12
12
71000
99600

Cash Collections Budget

January
46150
34860

February
9900
12
118800

March
9600
12
115200

February

March

64740
41580

81010

106320

77220
40320
117540

Production Budget
January
8300
990
9290
830
8460

February
9900
960
10860
990
9870

March
9600
900
10500
960
9540

April
9000
12
108000

May
8600
12
103200

Quarter

304870

Quarter
27800
900
28700
830
27870

9000
860
9860
900
8960

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MANAGERIAL ACCOUNTING - Fourth Edition

Direct Materials Budget
January
8460
3
25380
5922
31302
5076
26226

February
9870
3
29610
5724
35334
5922
29412

March
9540
3
28620
5376
33996
5724
28272

Quarter
27870
3
83610
5376
88986
5076
83910

Cash Payments for Direct Material Purchases Budget

January
February
26226
29412
2
2
52452
58824

March
28272
2
56544

Quarter
83910
2
167820

Produciton in units
Materials per unit (lbs)
Production Needs lbs)
Add ending inventory (lbs)
Total Needs (lbs)
Less beginning inventroy (lbs)
Material to be purchased (lbs)

Material purchases (lbs)

Cost per (lb)
Total Cost pf purchases

Solutions Manual

December purchases
January Purchases
February Purchases
March Purchases
Total cash payments for materials

Produciton in Units
Direct labor hours per unit
Labor hours required
Direct labor cost per hour
Total direct labor cost

Chapter 9: The Master Budget

43000
10490.4

41961.6
11764.8

acc pay
45235.2

53726.4

47059.2
11308.8
58368

165584.8

Cash Payments for Direct Labor Budget

January
February
8460
9870
0.05
0.05
423
493.5
9
9
3807
4442

March
9540
0.05
477
9
4293

Quarter
27870
0.05
1393.5
9
12541.5

53490.4

8960
3
26880

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MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

Cash Payments for Manufacturing Overhead Budget

January
February
Produciton in units
8460
9870
Variable mfg overhead rate
1.1
1.1
Variable mfg overhead costs
9306
10857
Fixed mfg overhead costs
8400
8400
Cash payments mfg overhead costs
17706
19257

March
9540
1.1
10494
8400
18894

Quarter
27870
1.1
30657
8400
39057

Cash Payments for Operating Expenses Budget

January
February
Sales in units
8300
9900
Variable selling rate
1.25
1.25
Variable operating expense
10375
12375
Fixed Operating expense
1800
1800
Cash Payments for Operating expenses
12175
14175

March
9600
1.25
12000
1800
13800

Quarter
27800
1.25
34750
1800
36550

February
4431.6
106320
110751.6

March
4951.2
117540
122491.2

Quarter
4600
304870
318852.8

58368
4293
18894
13800

5000
92178.4
-6568.4

53726.4
4442
19257
14175
10000
12200
113800.4
-3048.8

16600
111955
10536.2

165584.8
12542
55857
42950
10000
33800
320733.8
-1881

11000

8000

11000
4431.6

8000
4951.2

0
6000
490
6490
4046.2

19000
6000
490
12510
4046.2

Cash balance, beginning

Add cash collections from sales
Total cash available
less Disbursements:
Material purchases #4
Direct Labor #5
Mfg overhead #6
Selling and Admin # 7
Taxes Paid
Equipment purchases
Total Disbursements
Ending Cash Balance
Financing:
Borrowing
repayments
Interest Payments
Total financing
Cash balance, ending

Chapter 9: The Master Budget

Combined Cash Budget

January
4600
81010
85610
53490.4
3807
17706
12175

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MANAGERIAL ACCOUNTING - Fourth Edition

Chapter 9: The Master Budget

Solutions Manual

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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
Mfg Overhead cost per unit
Budgeted Manufacturing Cost per Unit

6
0.45
1.8
8.25

Budgeted Income Statement

Sales revenue
Less COGS
Gross Profit
Less Operating Exp
Less Depriciation Exp
Operating income
Less Interest Exp
Less Income tax Exp
Net Income

Chapter 9: The Master Budget

304870
229350
75520
36550
4600
34370
490
10164
23716

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