MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

WASATCH MANUFACTURING
Master Budget

Unit sales
Price per unit
Sales Rev

Cash Sales
Credit Sales
Total Cash Collections

Unit Sales
Plus: Desired ending inventory
Total needed
Less; Beginning inventory
Unit to produce

Chapter 9: The Master Budget

December
8444
$9.00
$76,000

Sales Budget
January
February
8900
9900
$9.00
$9.00
$80,100
$89,100

March

April

9200
$9.00
$82,800

9500
$9.00
$85,500

Cash Collections Budget

January
February
$20,025
$22,275
$57,000
$60,075
$77,025
$82,350

March
$20,700
$66,825
$87,525

Quarter
$63,000
$183,900
$246,900

Production Budget
January
February
8,900
9,900
1,485
1,380
10,385
11,280
1,335
1,485
9,050
9,795

March
9,200
1,425
10,625
1,380
9,245

Quarter
28,000
1,425
29,425
1,335
28,090

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MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

Direct Materials Budget

January
February
9050
9795
2
2

Units to be produced
Multiply by: Quantity of DM needed
Q. of DM needed for pdctn (lbs.)
Plus: Desired end Inv. of DM (lbs.)
Total quantity of DM needed (lbs.)
Less: beg. Inv. of DM (lbs.)
Quantity of DM to purchase (lbs.)
Multiply by: Cost per poud
Total cost of DM purchases

18100
1959
20059
1810
18249
1.5
$27,373.50

19590
1849
21439
1959
19480
1.5
$29,220.00

March
9245
2

Quarter
28090
2

18490
1873
20363
1849
18514
1.5
$27,771.00

56180
1873
58053
1810
56243
1.5
$84,364.50

Cash Payments for Direct Material Purchases Budget

January
February
March
December Purchases (from A/P)
$22,000.00
January Purchases
$8,212.05
$19,161.45
February Purchses
$8,766.00
$20,454.00
March Purchases
$8,331.30
Total Cash Payments
$30,212.05
$27,927.45
$28,785.30

Uits produced
Multiply by: Hours per Unit
Direct Labor Hours
Multiply by: Direct L.R. per Hour
Direct Labor Cost

Chapter 9: The Master Budget

Cash Payments for Direct Labor Budget

January
February
9050
9795
0.03
0.03
271.5
293.85
13
13
$3,529.50
$3,820.05

March
9245
0.03
277.35
13
$3,605.55

Quarter

$86,924.80

Quarter
28090
0.03
842.7
13
$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

Rent (fixed)
Other MOH

Solutions Manual

Cash Payments for Manufacturing Overhead Budget

January
February
March
$6,500
$6,500
$6,500
$2,100
$2,100
$2,100

Variable MOH Costs

Cash Payments for MOH

$12,670
$21,270

$13,713
$22,313

Cash Payments for Operating Expenses Budget

January
February
Variable Operating Expences
$10,680
$11,880
Fixed Operatig Expenses
$1,400
$1,400
Cash Payments for Op. Exp.
$12,080
$13,280

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

Combined Cash Budget

January
February
$6,000
$4,933
$77,025
$82,350
$83,025
$87,283
$30,212
$3,530
$21,270
$12,080
$15,000
$82,092
$933

$27,927
$3,820
$22,313
$13,280
$10,800
$6,000
$84,141
$3,143

Quarter
$19,500
$6,300

$12,943
$21,543

$39,326
$65,126

March
$11,040
$1,400
$12,440

Quarter
$33,600
$1,400
$37,800

March
$5,143
$87,525
$92,668

Quarter
$6,000
$246,900
$252,900

$28,785
$3,606
$21,543
$12,440

$86,925
$10,955
$65,126
$37,800
$10,800
$25,000
$236,606
$16,294

$4,000
$70,374
$22,294

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MANAGERIAL ACCOUNTING - Fourth Edition

Borrowings
Repayments
Interest Payments
Total Financing
Cash Balance, Ending

Chapter 9: The Master Budget

Solutions Manual
$4,000

$4,000
$4,933

$2,000

$2,000
$5,143

$6,000
$240

$6,000
$6,000
$240

$16,054

$16,054

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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 Expenses
Less: Depreciation Expense
Operating Income
Less: Interest Expense
Less: Income Tax Expense
Net Income

Chapter 9: The Master Budget

$252,000
$150,920
$101,080
$37,800
$5,200
$58,080
$240
$16,195
$41,645

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MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

May
8600
$9.00
$77,400

Chapter 9: The Master Budget

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MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

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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MANAGERIAL ACCOUNTING - Fourth Edition

Chapter 9: The Master Budget

Solutions Manual

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