MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

WASATCH MANUFACTURING
Master Budget

Unit Sales
Price Per Unit
Sales Revenue

Sales Budget
December
January
February
7000
8000
9000
$
15 $
15 $
15 $
$
105,000 $
120,000 $
135,000 $

Cash Sales (30%)

Credit Sales (70%)
Total Cash Collections

Unit Sales
Plus: Desired Ending Inventory
Total Needed
Less: Beginning Inventory
Units to Produce

Chapter 9: The Master Budget

March
8600
15 $
129,000 $

April
9400
15
141,000

Cash Collections Budget

January
February
36000
40500
73500
84000
109500
124500

March
38700
94500
133200

Quarter
115200
252000
367200

Production Budget
January
February
8000
9000
1800
1720
9800
10720
1600
1800
8200
8920

March
8600
1880
10480
1720
8760

Quarter
25600
1880
27480
1600
25880

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MANAGERIAL ACCOUNTING - Fourth Edition

Units To Be Produced

Solutions Manual

Direct Materials Budget

January
February
8200
8920

March
8760

Quarter
25880

32800
5352
38152
4920
33232
1
33232

35680
5256
40936
5352
35584
1
35584

35040
5328
40368
5256
35112
1
35112

103520
5328
108848
4920
103928
1
103928

Cash Payments for Direct Material Purchases Budget

January
February
March
December Purchases (from A/P)
37000
Janurary Purchases
8308
24924
February Purchases
8896
26688
March Purchases
8778

Quarter
37000
33232
35584
8778

Multiply by: Quantity of DM needed per

unit (lbs.)

Quantity of DM Needed For Production

Plus: Desired Ending Inventory
Total Quantity of DM needed (lbs.)
Less: Beginning Inventory of DM (lbs.)
Quantity of DM To Purchase (lbs.)
Multiply by: Cost Per Pound
Total Cost of DM Purchases

April
Unit Sales
Plus: Desired Ending Inventory
Total Needed
Less: Beginning Inventory
Units to Produce
DM Needed per Unit
Quantity of DM Needed for Production

Chapter 9: The Master Budget

May
9400
1360
10760
1880
8880
4
35520

6800

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MANAGERIAL ACCOUNTING - Fourth Edition

Total Cash Payments

Solutions Manual
33820

35466

114594

Cash Payments for Direct Labor Budget

January
February
Units Produced
8200
8920
Multiply by: Hours per Unit
0.1
0.1
Direct Labor Hours
820
892
Multiply by: Direct Labor Rate per Hour
15
15
Direct Labor Cost
12300
13380

March
8760
0.1
876
15
13140

Quarter
25880
0.1
2588
15
38820

Chapter 9: The Master Budget

45308

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MANAGERIAL ACCOUNTING - Fourth Edition

Rent (Fixed)
Other MOH (Fixed)
Variable MOH Costs
Cash Paymets for MOH

Solutions Manual

Cash Payments for Manufacturing Overhead Budget

January
February
March
10000
10000
10000
6000
6000
6000
10250
11150
10950
26250
27150
26950

Cash Payments for Operating Expenses Budget

January
February
Variable Operating Expenses
10400
11700
Fixed Operating Expenses
2200
2200
Cash Payments for Operating Exp.
12600
13900

Cash Balance, Beginning

Plus: Cash Collections
Total Cash Available
Less: Cash Payments
DM Purchases
Direct Labor
MOH Costs
Operating Expenses
Tax Payments
Equipment Purchases
Total Cash Payments
Chapter 9: The Master Budget

Combined Cash Budget

January
February
$
17,000 $
15,042 $
$
109,500 $
124,500 $
$
126,500 $
139,542 $
$
$
$
$
$
$

45,308
12,300
26,250
12,600

$
$
$
$
$
20,000 $
116,458 $

33,820
13,380
27,150
13,900
28,000
8,000
124,250

$
$
$
$
$
$

Quarter
30000
18000
32350
80350

March
11180
2200
13380

Quarter
33280
6600
39880

March
15,292 $
133,200 $
148,492 $

Quarter
17,000
367,200
384,200

35,466
13,140
26,950
13,380

$
$
$
$
$
25,000 $
113,936 $

114,594
38,820
80,350
39,880
28,000
53,000
354,644
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MANAGERIAL ACCOUNTING - Fourth Edition

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

Chapter 9: The Master Budget

Solutions Manual
$
$

$
$

10,042 $

15,292 $

34,556 $

29,556

-$
-$
- -$
15,292 $

$
-$
-$
-$
$

5,000
5,000
188
188
29,368

5,000

5,000 $
15,042 $

5,000
188
5,188
29,368

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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 MOH per Unit
Cost of Manufacturing Each Unit

4
1.5
1.25
6.75

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 (23%)
Net Income

Chapter 9: The Master Budget

$
-$
$
-$
-$
$
-$
-$
$

384,000
172,800
211,200
39,880
10,000
161,320
188
37,146.84
123,985

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MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

May
$
$

6800
15
102,000

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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