WASATCH MANUFACTURING
Master Budget
Sales Budget
December January February March April May
Unit sales 5,067 5,340 5,940 5,520 5,700 5,160
Unit selling price $ 15 $ 15 $ 15 $ 15 $ 15 $ 15
Total sales Revenue $ 76,000 $ 80,100 $ 89,100 $ 82,800 $ 85,500 $ 77,400
Req. 1
Req. 2
Production Budget
January February March Quarter
Unit sales 5,340 5,940 5,520 $16,800
Plus: Desired ending inventory 594 552 570 570
Total needed 5,934 6,492 6,090 17,370
Lesss: Beginning inventory 507 534 594 507
Units to produce 5,427 5,958 5,496 16,863
Req. 3
April May
Unit Sales 5,700 5,160
Plus: Desired End Inventory 516
Total Needed 6,216
Less: Beginning Inventory 570
Units to produce 5,646
DM needed per unit 2
Quantity of DM needed for production 11,292
Req. 4
Req. 5
Req. 6
Req. 7
Req. 8
Req. 9
Req. 10
Damon Manufacturing
Budgeted Income Statement
For the Quarter Ended March 31
Sales $ 252,000
Cost of goods sold -93,912
Gross profit 158,088
Operating expenses 24,360
Depreciation expense 4,400
Operating income 129,328
Less: interest expense -56
Less: provision for income tax 38,782
Net income $90,546