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    Wasatch Manufacturing

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    api-301899907
    The document presents Wasatch Manufacturing's master budget for 3 months which includes sales, production, direct materials, direct labor, manufacturing overhead, and cash budgets. Key figures include projected monthly sales revenues ranging from $76,000 to $89,100. The production budget shows the units needed to produce ranging from 9,050 to 9,795 per month. The combined cash budget projects a negative cash balance at the end of January and February, requiring financing of $28,000 and $30,000 respectively. The quarterly budgeted income statement projects total quarterly sales of $246,900 and net income of $146,257.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Wasatch Manufacturing

    Uploaded by

    api-301899907
    79 views12 pages
    The document presents Wasatch Manufacturing's master budget for 3 months which includes sales, production, direct materials, direct labor, manufacturing overhead, and cash budgets. Key figures include projected monthly sales revenues ranging from $76,000 to $89,100. The production budget shows the units needed to produce ranging from 9,050 to 9,795 per month. The combined cash budget projects a negative cash balance at the end of January and February, requiring financing of $28,000 and $30,000 respectively. The quarterly budgeted income statement projects total quarterly sales of $246,900 and net income of $146,257.

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    The document presents Wasatch Manufacturing's master budget for 3 months which includes sales, production, direct materials, direct labor, manufacturing overhead, and cash budgets. Key figures include projected monthly sales revenues ranging from $76,000 to $89,100. The production budget shows the units needed to produce ranging from 9,050 to 9,795 per month. The combined cash budget projects a negative cash balance at the end of January and February, requiring financing of $28,000 and $30,000 respectively. The quarterly budgeted income statement projects total quarterly sales of $246,900 and net income of $146,257.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    79 views12 pages

    Wasatch Manufacturing

    Uploaded by

    api-301899907
    The document presents Wasatch Manufacturing's master budget for 3 months which includes sales, production, direct materials, direct labor, manufacturing overhead, and cash budgets. Key figures include projected monthly sales revenues ranging from $76,000 to $89,100. The production budget shows the units needed to produce ranging from 9,050 to 9,795 per month. The combined cash budget projects a negative cash balance at the end of January and February, requiring financing of $28,000 and $30,000 respectively. The quarterly budgeted income statement projects total quarterly sales of $246,900 and net income of $146,257.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 12

    MANAGERIAL ACCOUNTING - Fourth Edition

    Solutions Manual

    WASATCH MANUFACTURING
    Master Budget

    December
    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

    8444
    9.00
    76,000.00 $

    Sales Budget
    January
    February
    8900
    9900
    ### $
    9.00 $
    80,100.00 $
    89,100.00 $

    Cash Collections Budget


    January
    February
    $
    20,025.00 $
    22,275.00 $
    $
    57,000.00 $
    60,075.00 $
    $
    77,025.00 $
    82,350.00 $

    Production Budget
    January
    8900
    1485
    10385
    1335
    9050

    February
    9900
    1380
    11280
    1485
    9795

    March
    9200
    9.00
    82,800.00

    March
    20,700.00
    66,825.00
    87,525.00

    March
    9200
    1425
    10625
    1380
    9245

    Page 1 of 12

    MANAGERIAL ACCOUNTING - Fourth Edition

    Solutions Manual
    Direct Materials Budget
    January
    February
    9050
    9795

    Units to be produced
    Multiplied by: Quantity of DM needed per unit (lbs)
    Quantity of DM needed for production (lbs.)
    Plus: Desired ending inventory of DM (lbs.)
    Total quantity of DM needed (lbs.)
    Less: Beginning inventory of DM (lbs.)
    Quantity of DM to purchase (lbs.)
    Multiply by: Cost per pound
    Total cost of DM purchases

    December Purchases (from A/P)


    January Purchases
    February Purchases
    March Purchases
    Total Cash Payments

    9245

    2
    19590
    1849
    21439
    1959
    19480
    1.50 $
    29,220.00 $

    Cash Payments for Direct Material Purchases Budget


    January
    February
    $
    22,000.00 $
    $
    8,212.05 $
    19,161.45
    $
    - $
    8,766.00
    $
    - $
    $
    30,212.05 $
    27,927.45

    Units Produced
    Multiplied by: Hours per Unit
    Direct Labor Hours
    Multiplied by: Direct Labor Rate per Hour
    Direct Labor Cost

    Chapter 9: The Master Budget

    $
    $

    2
    18100
    1959
    20059
    1810
    18249
    1.50 $
    27,373.50 $

    March

    2
    18490
    1873
    20363
    1849
    18514
    1.50
    27,771.00

    March
    $
    $
    $
    $
    $

    Cash Payments for Direct Labor Budget


    January
    February
    9050
    9795
    0.03
    0.03
    271.5
    293.85
    $
    13.00 $
    13.00 $
    $
    3,529.50 $
    3,820.05 $

    20,454.00
    8,331.30
    28,785.30

    March
    9245
    0.03
    277.35
    13.00
    3,605.55

    Page 2 of 12

    MANAGERIAL ACCOUNTING - Fourth Edition

    Chapter 9: The Master Budget

    Solutions Manual

    Page 3 of 12

    MANAGERIAL ACCOUNTING - Fourth Edition

    Solutions Manual

    Cash Payments for Manufacturing Overhead Budget


    January
    February
    Rent (fixed)
    $
    6,500.00 $
    6,500.00
    Other Manufacturing Overhead (fixed)
    $
    2,100.00 $
    2,100.00
    Variable Manufactuing Overhead Costs
    $
    12,670.00 $
    13,713.00
    Cash Payments for Manufacturing Overhead
    $
    21,270.00 $
    22,313.00

    Variable Operating Expenses


    Fixed Operating Expenses
    Depreciation Expense
    Cash Payments for Operating Expenses

    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
    Chapter 9: The Master Budget

    $
    $
    $
    $

    March
    6,500.00
    2,100.00
    12,943.00
    21,543.00

    $
    $
    $
    $

    March
    11,040.00
    1,400.00
    1,733.33
    14,173.33

    Combined Cash Budget


    January
    February
    $
    6,000.00 $
    4,755.12 $
    $
    55,000.00 $
    57,000.00 $
    $
    61,000.00 $
    61,755.12 $

    March
    5,011.28
    60,075.00
    65,086.28

    Cash Payments for Operating Expenses Budget


    January
    February
    $
    10,680.00 $
    11,880.00
    $
    1,400.00 $
    1,400.00
    $
    1,733.33 $
    1,733.33
    $
    13,813.33 $
    15,013.33

    $
    $
    $
    $
    $
    $
    $
    $

    30,212.05
    3,529.50
    21,270.00
    13,813.33
    15,000.00
    83,824.88
    (22,824.88)

    $
    $
    $
    $
    $
    $
    $
    $

    27,927.45
    3,820.05
    22,313.00
    15,013.33
    10,800.00
    6,000.00
    85,873.83
    (24,118.72)

    $
    $
    $
    $
    $
    $
    $
    $

    28,785.30
    3,605.55
    21,543.00
    14,173.33
    4,000.00
    72,107.18
    (7,020.90)
    Page 4 of 12

    MANAGERIAL ACCOUNTING - Fourth Edition

    Solutions Manual

    Financing:
    Borrowings
    Repayments
    Interest Payments
    Total Financing
    Cash Balance, Ending

    Chapter 9: The Master Budget

    $
    $
    $
    $
    $

    28,000.00
    420.00
    28,420.00
    4,755.12

    $
    $
    $
    $
    $

    30,000.00
    870.00
    30,870.00
    5,011.28

    $
    $
    $
    $
    $

    13,000.00
    1,065.00
    14,065.00
    4,914.10

    Page 5 of 12

    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

    $
    $
    $
    $
    $
    $
    $
    $
    $

    252,000.00
    49,588.00
    202,412.00
    37,800.00
    5,200.00
    159,412.00
    2,355.00
    10,800.00
    146,257.00

    Page 6 of 12

    MANAGERIAL ACCOUNTING - Fourth Edition

    April
    $
    $

    $
    $
    $

    9500
    9.00
    85,500.00 $

    Solutions Manual

    May
    8600
    ###
    77,400.00

    Quarter
    63,000.00
    183,900.00
    246,900.00

    Quarter
    april
    28000
    1425
    29425
    1335
    28090

    Chapter 9: The Master Budget

    9500
    1290
    10790
    1425
    9365

    Page 7 of 12

    MANAGERIAL ACCOUNTING - Fourth Edition

    Solutions Manual

    Quarter
    28090

    $
    $

    2
    56180
    1873
    58053
    1810
    56243
    1.50
    84,364.50

    $
    $
    $
    $
    $

    Quarter
    22,000.00
    27,373.50
    29,220.00
    8,331.30
    86,924.80

    $
    $

    Quarter
    28090
    0.03
    842.7
    13.00
    10,955.10

    Chapter 9: The Master Budget

    Page 8 of 12

    MANAGERIAL ACCOUNTING - Fourth Edition

    Chapter 9: The Master Budget

    Solutions Manual

    Page 9 of 12

    MANAGERIAL ACCOUNTING - Fourth Edition

    $
    $
    $
    $

    Quarter
    19,500.00
    6,300.00
    39,326.00
    65,126.00

    $
    $
    $
    $

    Quarter
    33,600.00
    4,200.00
    5,200.00
    43,000.00

    $
    $
    $

    Quarter
    15,766.40
    172,075.00
    187,841.40

    $
    $
    $
    $
    $
    $
    $
    $

    86,924.80
    10,955.10
    65,126.00
    43,000.00
    10,800.00
    25,000.00
    241,805.90
    (53,964.50)

    Chapter 9: The Master Budget

    Solutions Manual

    Page 10 of 12

    MANAGERIAL ACCOUNTING - Fourth Edition

    $
    $
    $
    $
    $

    Solutions Manual

    71,000.00
    2,355.00
    73,355.00
    4,914.10

    Chapter 9: The Master Budget

    Page 11 of 12

    MANAGERIAL ACCOUNTING - Fourth Edition

    $
    $
    $
    $
    $

    Solutions Manual

    3.00
    0.39
    1.40
    0.60
    5.39

    Chapter 9: The Master Budget

    Page 12 of 12

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