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ACC 3210 Master Budget Project

Donaldson Manufacturing
Sales
Projected:
Actual: December January February March April May
Selling Price = $12 per unit $ 72,000.00 $ 99,600.00 $ 110,400.00 $ 112,800.00 $ 116,400.00 $ 106,800.00

Donaldson Manufacturing
Cash Collection Budget
Jan Feb Mar Total
Cash Sales: 20% of current- pt b $ 19,920.00 $ 22,080.00 $ 22,560.00 $ 64,560.00
Credit Sales: 80% of previous month- pt b $ 57,600.00 $ 79,680.00 $ 88,320.00 $ 225,600.00
Total Cash Collections $ 77,520.00 $ 101,760.00 $ 110,880.00 $ 290,160.00

Donaldson Manufacturing
Production Budget
Dec Jan Feb Mar Quarter April
Unit Sales: Sales in dollars/Selling price per unit 6,000.00 8,300.00 9,200.00 9,400.00 26,900.00 9,700.00
Plus: Desired ending inventory: Next Month sales *.25- pt c 2,075.00 2,300.00 2,350.00 2,425.00 2,425.00 2,225.00
Total needed 10,600.00 11,550.00 11,825.00 29,325.00 11,925.00
Less: Beginning inventory: Ending Inv of Previous Month 2,075.00 2,300.00 2,350.00 2,075.00 2,425.00
Units to produce 8,525.00 9,250.00 9,475.00 27,250.00 9,500.00

Donaldson Manufacturing
Direct Materials Budget
Jan Feb Mar Quarter April
Units to be produced 8,525.00 9,250.00 9,475.00 27,250.00 9,500.00
x Pounds of DM needed per unit (3 Pounds of DM- pt d) 3 3 3 3 3
Quantity (pounds) needed for production (Multiply above) 25,575.00 27,750.00 28,425.00 81,750.00 28,500.00
Plus: Desired ending inventory of DM (Next Month quanityt needed *.30- pt d) 8,325.00 8,527.50 8,550.00 8,550.00
Total quantity (pounds) needed (Sum above) 33,900.00 36,277.50 36,975.00 90,300.00
Less: Beginning inventory of DM (Current Month quantity needed*.30- pt d) 7,672.50 8,325.00 8,527.50 7,672.50
Quantity (pounds) to purchase (Subtract above) 26,227.50 27,952.50 28,447.50 82,627.50
x Cost per pound ($2 per pound- pt d) $ 2.00 $ 2.00 $ 2.00 $ 2.00
Total cost of DM purchases (Multiply above) $ 52,455.00 $ 55,905.00 $ 56,895.00 $ 165,255.00
Donaldson Manufacturing
Cash Payments for Direct Material Purchases Budget
Jan Feb Mar Quarter
December Purchases (from Accounts Payable) Given $ 42,400.00 $ 42,400.00
January Purchases: 1st (Total cost of DM Jan *.20- pt d) 2nd (Total cost of DM Jan * .80) $ 10,491.00 $ 41,964.00 $ 52,455.00
February Purchases: 1st (Total cost of DM Feb *.20- pt d) 2nd (Total cost of DM Feb * .80) $ 11,181.00 $ 44,724.00 $ 55,905.00
March Purchases: 1st (Total cost of DM March *.20- pt d) $ 11,379.00 $ 11,379.00
Total cash payments for DM purchases (Add above) $ 52,891.00 $ 53,145.00 $ 56,103.00 $ 162,139.00

Donaldson Manufacturing
Cash Payments for Conversion Costs Budget
Jan Feb Mar Quarter
Variable conversion costs (Units to be produced * 1.20- pt e) $ 10,230.00 $ 11,100.00 $ 11,370.00 $ 32,700.00
Rent (fixed) Given- pt e $ 4,000.00 $ 4,000.00 $ 4,000.00 $ 12,000.00
Other fixed MOH Given- pt e $ 2,900.00 $ 2,900.00 $ 2,900.00 $ 8,700.00
Total payments for conversion costs (Add above) $ 17,130.00 $ 18,000.00 $ 18,270.00 $ 53,400.00

Donaldson Manufacturing
Cash Payments for Operating Expenses Budget
Jan Feb Mar Quarter
Variable operating expenses (Units sold * $1.10- pt g) $ 9,130.00 $ 10,120.00 $ 10,340.00 $ 29,590.00
Fixed operating expenses (Given pt-g) $ 1,400.00 $ 1,400.00 $ 1,400.00 $ 4,200.00
Total payments for operating expenses (Add Above) $ 10,530.00 $ 11,520.00 $ 11,740.00 $ 33,790.00
Donaldson Manufacturing
Combined Cash Budget
Jan Feb Mar Quarter
Cash balance, beginning (Jan Given in Data Table) $ 4,520.00 $ 5,289.00 $ 5,384.00 $ 15,193.00
Add cash collections $ 77,520.00 $ 101,760.00 $ 110,880.00 $ 290,160.00
Total cash available (Add Above) $ 82,040.00 $ 107,049.00 $ 116,264.00 $ 305,353.00
Less cash payments:
Direct materials purchases $ 52,891.00 $ 53,145.00 $ 56,103.00 $ 162,139.00
Conversion costs $ 17,130.00 $ 18,000.00 $ 18,270.00 $ 53,400.00
Operating expenses $ 10,530.00 $ 11,520.00 $ 11,740.00 $ 33,790.00
Equipment purchases (Given- pt f) $ 6,200.00 $ 12,000.00 $ 16,800.00 $ 35,000.00
Tax payment (Given- pt j) $ 11,000.00 $ 11,000.00
Total cash payments (Add Above) $ 86,751.00 $ 105,665.00 $ 102,913.00 $ 295,329.00
Ending cash balance before financing (Cash Available-Cash Payments) $ (4,711.00) $ 1,384.00 $ 13,351.00 $ 10,024.00
Financing: (We want it above 4800- pt i)
Borrowing (Increments of 1000s, 10000 gets us above 4800) $ 10,000.00 $ 4,000.00 $ 14,000.00
Repayments (Increments of 1000s, 4000 gets us above 4800) $ (7,000.00) $ (7,000.00)
Interest payments (Already above 4800 so we can pay back loans- 2% interest- pt i) $ (760.00) $ (760.00)
Total financing (Add Above Financing) $ 10,000.00 $ 4,000.00 $ (7,760.00) $ 6,240.00
Cash balance, ending (Cash balance before financing + Total financing) $ 5,289.00 $ 5,384.00 $ 5,591.00 $ 5,591.00

Donaldson Manufacturing
Budgeted Manufacturing Cost per Unit
Direct materials cost per unit (3 pounds * $2 per pound- pt d) $ 6.00
Conversion costs per unit ($1.20 per unit- pt e) $ 1.20
Fixed manufacturing overhead per unit (Given- Req #8) $ 0.90
Budgeted cost of manufacturing each unit (Add Above) $ 8.10

Donaldson Manufacturing
Budgeted Income Statement
For the Quarter Ending March 31
Sales (Jan+Feb+March- pt a) $ 322,800.00
Cost of goods sold (Budgeted cost of manufacturing each unit * number of units sold) $ 217,890.00
Gross profit (Subtract Above) $ 104,910.00
Operating expenses $ 33,790.00
Depreciation expense (Given- pt h) $ 5,100.00
Operating income (Subtract Above) $ 66,020.00
Less interest expense $ (760.00)
Less provision for income taxes ((Operating income - interest expense) * .3- pt j) $ 19,578.00
Net income (Subtract Above) $ 45,682.00

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