WASATCH MANUFACTURING

Master Budget

Unit Sales
Multiply by: Sales price per case
Total Sales Revenue

Cash Sales (25%)

Credit Sales (75%)
Total Cash Collections

Units Sales
Desired Ending Inventory
Total Needed
Beginning Inventory
Units to Produce

Chapter 9: The Master Budget

Sales Budget
December
January
February
March
April
May
8444
8900
9900
9200
9500
8600
$
9 $
9 $
9 $
9 $
9 $
9
$ 76,000 $ 80,100 $ 89,100 $ 82,800 $ 85,500 $ 77,400

Cash Collections Budget

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

Production Budget
January
February
8900
9900
$
1,485
1380
10385
11280
1335 $
1,485
9050
9795

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

March
9200
1425
10625
1380
9245

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

Quarter
28000
1425
29425
1335
28090

Page 1 of 4

Direct Materials Budget

January
February
March
Quarter
Units to be produced
9050
9795
9245
28090
Quantity of DM needed per unit
2
2
2
2
Quantity of DM needed for production
18100
19590
18490
56180
Desired ending inventory of DM
1959
1849
1873
1873
Total Quantity of DM needed
20059
21439
20363
58053
Beginning inventory of DM
1810
1959
1849
1810
Quantity of DM to purchase
18249
19480
18514
56243
Cost per unit
$
1.50 $
1.50 $
1.50 $
1.50
Total cost of dm purchases
27374
29220
27771
84365

Cash Payments for Direct Material Purchases Budget

January
February
March
December purchases
22,000
January purchases
8212
19161
February purchases
8766
20454
March purchases
8331
Total disbursments
30212
27927
28785

Cash Payments for Direct Labor Budget

January
February

March

Quarter
22,000
27374
29220
8331
86925

Quarter

Total cost of direct labor

Chapter 9: The Master Budget

Page 2 of 4

Cash Payments for Manufacturing Overhead Budget

January
February
March
Rent (fixed)
6500
6500
6500
Other MOH (fixed)
2100
2100
2100
Variable CC costs (DL+MOH)
12670
13713
12943
Total disbursments
21270
22313
21543

Quarter
19500
6300
39326
65126

Cash Payments for Operating Expenses Budget

January
February
Variable operating expenses
10680
11880
Fixed operating expenses
1400
1400
Cash payments for Operating Expenses
12080
13280

Quarter
33600
4200
37800

Cash Balance, Beginning

Add cash collection (req 1)
Total cash available
Less cash disbursments
For materials (req 4)
For conversion costs (req 5)
For operating expenses (req 6)
For equipment
For taxes
Total disbursments
Excess (deficiency) of cash
Financing:
Borrowings
Repayments
Interest
Total financing
Cash Balance, ending

Chapter 9: The Master Budget

March
11040
1400
12440

Combined Cash Budget

January
February
March
Quarter
6000
7302
8039
6000
$ 77,025 $ 82,350 $ 87,525 $ 246,900
83025
89652
95564
252900
27374
21270
12080
15000

27771
21543
12440
4000

75724
7302

29220
22313
13280
6000
10800
81613
8039

65754
29810

84365
65126
37800
25000
10800
223091
29810

0
7302

0
8039

0
29810

0
29810

Page 3 of 4

Budgeted Manufacturing Cost per Unit

Direct materials: 2 lbs. x $1.50
Conversion costs: $1.40
Fixed MOH: .60
Cost of manufacturing each unit

Budgeted Income Statement

Sales
Cost of goods sold
gross profit
Operating expenses
Depreciation expense
Operating income
Less: interest expense
Less: Provisions for income 28%
Net income

Chapter 9: The Master Budget

3
1.4
0.6
5

$ 252,000
140000
$ 112,000
37800
5200
$ 69,000
0
$ 19,320
$ 49,680

Page 4 of 4