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MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

WASATCH MANUFACTURING
Master Budget

Unit Sales
Price per Unit
Sales Revenue

Cash Sales
Credit sales
Total cash collection

Unit sales
Plus: Desired ending inventory
Total needed
Less: Beginning inventory
Units to produce

Chapter 9: The Master Budget

Sales Budget
January
February
8900
9900
9
9
80100
89100

March
9200
9
82800

Cash Collections Budget


January
February
20025
22275
57000
60075
77025
82350

March
20700
66825
87525

Quarter
63000
183900
246900

Production Budget
January
February
8900
9900
1485
1380
10385
11280
1335
1485
9050
9795

March
9200
1425
10625
1380
9245

Quarter
28000
1425
32290
4200
28090

December
8444
9
76000

April
9500
9
85500

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MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

Direct Materials Budget


January
February
Units to be produced
9050
9795
2
2
Multiply by: Quantity of DM needed Per Units
(lbs)
Quantity of DM needed for production (lbs).
18100
19590
Plus: Desired ending inv. Of DM (lbs)
1959
1849
Total quantity of DM needed (lbs.)
20059
21439
Less: Beginning inventory of DM (lbs.)
1810
1959
Quantity of DM to purchase (lbs.)
18249
19480
Multiply by: Cost per pound
2
2
Total cost of DM purchases
27374
29220

March
9245
2

Quarter
28090
2

18490
1873
20363
1849
18514
2
27771

56180
1873
58053

Cash Payments for Direct Material Purchases Budget


January
February
March
December Purchases (from A/P)
22000
January Purchases
8212
19161
February Purchases
8766
20454
March Purchases
8331
Total Cash Payments
30212
27927
28785

Cash Payments for Direct Labor Budget


January
February
9050
9795
272
294

Units Produced
Multiply by: Hours Per Unit
Direct Labor Hours
Multiply by: Direct Labor Rate Per Hr
Direct Labor Cost

Chapter 9: The Master Budget

13
3530

13
3820

March
9245
277
13
3606

58053
84365

Quarter

86925

Quarter

10955

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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

Cash Payments for Manufacturing Overhead Budget


January
February
March
Rent (fixed)
6500
6500
6500
Other Manufacturing Overhead (fixed)
2100
2100
2100
12670
13713
12943
Variable Manufacturing Overhead Costs
21270
22313
21543
Cash Payments for MOH
21270
22313
21543

Cash Payments for Operating Expenses Budget


January
February
March
Variable Operating Expenses
10680
11880
11040
Fixed Operating Expenses
1400
1400
1400
Cash Payments for Operating Expenses
12080
13280
12440

Cash Balance, Beginning


Plus: Cash Collections
Total Cash Available
Less Cash Payments:
DM Purchases
Direct Labor
MOH Cost
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

$
$
$
$
$
$
$

March
5,143 $
87,525 $
92,668 $
28,785
3,606
21,543
12,440

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

Quarter

65126

Quarter

37800

Quarter
6,000
246,900
252,900
86,925
10,955
65,126
37,800
10,800
25,000
236,606
16,294

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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 $

2,000

4,000 $
4,933 $

$
$
2,000 $
5,143 $

(6,000)
(240)
(6,240)
16,054

$
$
$
$
$

6,000
(6,000)
(240)
(240)
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 overhead per unit
Cost of manufacturing each unit

3
0.39
1.4
5.39

Budgeted Income Statement


Sales Revenue
Less: COGS
Gross Profit
Less: Operating Expenses
Less: Depreciation Expense
Operating Income
Less: Interest Expense
Less: Income tax Expense
Net Income

Chapter 9: The Master Budget

$
$
$

252000
-150920
101080
37800
5200
58080
240
16,195.20
41,645

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MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

May
8600
9
77400

April
9500
1290
10790
1425
9365

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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MANAGERIAL ACCOUNTING - Fourth Edition

Chapter 9: The Master Budget

Solutions Manual

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