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
76000

Sales Budget
January
February
8900
9900
9
9
80100
89100

Cash Collections Budget

January
February
20025
22275
57000
60075
77025
82350

Production Budget
January
February
8900
9900
1485
1380
10385
11280
1335
1485
9050
9795

March

April

9200
9
82800

9500
9
85500

March
20700
66825
87525

Quarter
63000
183900
246900

March

Quarter
28000
1425
29425
1335
28090

9200
1425
10625
1380
9245

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MANAGERIAL ACCOUNTING - Fourth Edition

Direct Materials Budget
January
February
Units to by:
be produced
9050
9795
Multiply
Quantity of DM Needed per unit
(lbs)
2
2
Quantity of DM needed for Production (lbs)
18100
19590
Pluss: Desired ending inventory of DM (lbs)
1959
1849
Total quantity of DM needed (lbs)
20059
21439
Less: Beginning inventory of DM (lbs)
1810
1959
Quantity of DM needed to purchase (lbs)
18249
19480
Multiply by: Cost per pound
1.5
1.5
Total cost of DM purchases
27373.5
29220

Solutions Manual

9245
2
18490
1873
20363
1849
18514
1.5
27771

Quarter
28090
2
56180
1873
58053
1810
56243
1.5
84364.5

Cash Payments for Direct Material Purchases Budget

January
February
March
December Purchase (from A/P)
22000
January Purchases
8212
19161
February Purchases
8766
20454
March Purchases
8331
Total cash payments
30212
27927
28785

Quarter
22000
27374
29220
8331
86925

Cash Payments for Direct Labor Budget

January
February
Units Produced
9050
9795
Multiply by: Hours per Unit
0.03
0.03
Direct Labor Hours
271.5
293.85
Multiply by: Direct Labor Rate per Hour
13
13
Direct Labor Cost
3530
3820

Quarter
28090
0.03
842.7
13
10955

Chapter 9: The Master Budget

March

March
9245
0.03
277.35
13
3606

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MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

Cash Payments for Manufacturing Overhead Budget

January
February
March
Rent (fixed)
6500
6500
6500
Other Manufacturing Overhead Costs
2100
2100
2100
12670
13713
12943
Variable Manufacturing Overhead Cost
Cash Payments for Manufacturing Overhead
21270
22313
21543

Cash Payments for Operating Expenses Budget

January
February
Variable Operating Expenses
10680
11880
Fixed Operating Espenses
1400
1400
Cash Payments for Operating Expenses
12080
13280

Cash Balance, Beginning

Plus: Cash Collections
Total Cash Available
Less Cash Payments
DM Purchases
Direct Labor
Manufacturing Overhead Cost
Operating Expenses
Tax Payment
Equipment Purchases
Total Cash Payments
Ending Cash before Financing
Financing:
Chapter 9: The Master Budget

Combined Cash Budget

January
February
6000
4933
77025
82350
83025
87283
30212
3530
21270
12080
15000
82092
933

27927
3820
22313
13280
10800
6000
84141
3143

Quarter
19500
6300
39326
65126

March
11040
1400
12440

Quarter
33600
4200
37800

March

Quarter
6000
246900
252900

5143
87525
92668
28785
3606
21543
12440
4000
70374
22294

86925
10955
65126
37800
10800
25000
236606
16294

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MANAGERIAL ACCOUNTING - Fourth Edition

Borrowings
Repayments
Interest Payments
Total Financing
Cash Balance, Ending

Chapter 9: The Master Budget

Solutions Manual
4000

4000
4933

2000

2000
5143

6000
240
-6240
16054

6000
6000
240
-240
16054

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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
0.39
1.4
0.6
5.39

Budgeted Income Statement

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

Chapter 9: The Master Budget

252000
150920
101080
37800
5200
58080
240
16195
41645

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MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

May
8600
9
77400

April
21375
62100
83475

april
9500
1290
10790
1425
9365

Chapter 9: The Master Budget

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MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

april
9365
2
18730

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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