MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

WASATCH MANUFACTURING
Master Budget

Sales Budget
December
Unit Sales
Price Per Unit
Sales Revenue

$
$

8444
9.00
76,000.00 $

January
8900
###
80,100.00

Cash Collections Budget

Cash Sales in current month (from sales budget) (25%)
Collection on credit sales:
75% from last month
Total Cash collections

January
20,025.00

$
$

57,000.00
77,025.00

Production Budget
Unit Sales
Plus: Disired ending inventroy
Total needed
less: Beginning inventory
Units to produce

Chapter 9: The Master Budget

January
8900
1485
10385
1335
9050

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MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual
Direct Materials Budget

Units to be produced
Lbs. Per Unit
Multiply by :Quantity of DM
Plus: Desired ending inventory of DM (lbs.) (10% of next month production needed)
Total Quantity of DM needed (lbs.)
Less: Beginning inventory of DM (lbs.)
Quanitity of DM to purchase (lbs.)
Multiply by: Cost per pound

January
9050
2
18100
1959
20059.00
1810.00
18249.00
$
1.50

Total Cost of DM Purchases

30% of Current Month DM Purchases

70% of Previous Month DM Purchases
Total Cash Payments DM Purchases

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

27,373.50

Cash Payments for Direct Material Purchases Budget

January
$
8,212.05
$
22,000.00
$

30,212.05

Cash Payments for Direct Labor Budget

January
9050
0.03
271.5
$
13.00
$
3,529.50

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Chapter 9: The Master Budget

Solutions Manual

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MANAGERIAL ACCOUNTING - Fourth Edition

Variable Manufacturing Overhead Costs

Rent (fixed)

Solutions Manual
Cash Payments for Manufacturing Overhead Budget
January
$
12,670.00
$
6,500.00

Other Manufacturing Overhead (fixed)

2,100.00

Cash Payments for Manufacturing Overhead

21,270.00

Variable Operating Expenses

Fixed Operating Expenses
Cash Payments for Operating Expenses

Cash Payments for Operating Expenses Budget

January
$
10,680.00
$
1,400.00
$
12,080.00

Combined Cash Budget

January
$
6,000.00
$
77,025.00
$
83,025.00

Cash Balance, beginning

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

$
$
$
$

$
$

30,212.05
3,529.50
21,270.00
12,080.00
0
15000
82,091.55
933.45

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MANAGERIAL ACCOUNTING - Fourth Edition

Borrowings
Repayments
Interest Payments
Cash Balance, ending

Chapter 9: The Master Budget

Solutions Manual
$

4,000.00
0
0

4,933.45

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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

Budgeted Income Statement

Sales Revenue
Less: Cost of goods sold
Gross Profit
Less: Operating expenses
Less: Depreciation expense
Operating income
Less: interest expense
Less: income tax expense
Net Income

Chapter 9: The Master Budget

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MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

URING

February
9900
$
9.00 $
$
89,100.00 $

March

February
$
22,275.00 $

March
20,700.00 $

Quarter
63,000.00

66,825.00 $
87,525.00 $

183,900.00
246,900.00

$
$

60,075.00 $
82,350.00 $

February
9900
1380
11280
1485
9795

9200
9.00
82,800.00 $

March
9200
1425
10625
1380
9245

Chapter 9: The Master Budget

April
9500
### $
85,500.00 $

Quarter
28000
1425
29425
1335
28090

May
8600
9.00
77,400.00

Dec 31 ending inventory

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MANAGERIAL ACCOUNTING - Fourth Edition

February
9795
2
19590
1849
21439.00
1959.00
19480.00
$
1.50 $

March
9245
2
18490
1873
20363.00
1849.00
18514.00
1.50

Solutions Manual

Quarter
28090 April Production Budget
2
9500
56180
1290
1873
1425
58053.00
9365
1810.00
56243.00
###

29,220.00 $

27,771.00 $

84,364.50

$
$

February
8,766.00 $
19,161.45 $

March
8,331.30 $
20,454.00 $

Quarter
25,309.35
61,615.45

27,927.45 $

28,785.30 $

86,924.80

Budget

February
9795
0.03
293.85
$
13.00 $
$
3,820.05 $

March
9245
0.03
277.35
13.00
3,605.55 $

Chapter 9: The Master Budget

Quarter
28090
0.03
842.7
###
10,955.10

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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

udget
February
$
13,713.00 $
$
6,500.00 $

March
12,943.00 $
6,500.00 $

Quarter
39,326.00
19,500.00

2,100.00 $

2,100.00 $

6,300.00

22,313.00 $

21,543.00 $

65,126.00

February
$
11,880.00 $
$
1,400.00 $
$
13,280.00 $

March
11,040.00 $
1,400.00 $
12,440.00 $

Quarter
33,600.00
4,200.00
37,800.00

February
$
4,933.45 $
$
82,350.00 $
$
87,283.45 $

March
5,142.95 $
87,525.00 $
92,667.95 $

Quarter
6,000.00
246,900.00
252,900.00

get

$
$
$
$

$
$

27,927.45
3,820.05
22,313.00
13,280.00
10800
6000
84,140.50
3,142.95

$
$
$
$

$
$

28,785.30
3,605.55
21,543.00
12,440.00
0
4000
70,373.85
22,294.10

Chapter 9: The Master Budget

$
$
$
$

$
$

86,924.80
10,955.10
65,126.00
37,800.00
10800
25000
236,605.90
16,294.10

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MANAGERIAL ACCOUNTING - Fourth Edition

2000 $
0 $
0 $

- $
6,000.00 $
240.00 $

6,000.00
6,000.00
240.00

5,142.95 $

16,054.10 $

16,054.10

Chapter 9: The Master Budget

Solutions Manual

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MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

$
$
$
$

3.00
0.39
1.40
0.60

5.39

nt
$
$
$
$
$
$
$
$
$

252,000.00
150,920.00
101,080.00
37,800.00
5,200.00
58,080.00
240.00
16,195.20
41,644.80

Chapter 9: The Master Budget

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