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    Master Budget Assignment CH 9

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    api-240741436
    The master budget for Presidio Manufacturing includes budgets for sales, production, materials, labor, overhead, expenses and cash for the months of January, February and March. Key details include: - Budgeted sales are $304,870 for the quarter with highest sales in February at $118,800. - Production is budgeted at 27,870 units for the quarter to meet sales demand. - Materials, labor, overhead and expenses are budgeted based on production levels. - The cash budget shows a starting cash balance of $4,600 and projected cash collections and payments. Borrowing is needed in January and February. - The income statement budgets for gross profit of $104,250

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    © All Rights Reserved
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    Master Budget Assignment CH 9

    Uploaded by

    api-240741436
    308 views4 pages
    The master budget for Presidio Manufacturing includes budgets for sales, production, materials, labor, overhead, expenses and cash for the months of January, February and March. Key details include: - Budgeted sales are $304,870 for the quarter with highest sales in February at $118,800. - Production is budgeted at 27,870 units for the quarter to meet sales demand. - Materials, labor, overhead and expenses are budgeted based on production levels. - The cash budget shows a starting cash balance of $4,600 and projected cash collections and payments. Borrowing is needed in January and February. - The income statement budgets for gross profit of $104,250

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    master budget assignment ch 9

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    The master budget for Presidio Manufacturing includes budgets for sales, production, materials, labor, overhead, expenses and cash for the months of January, February and March. Key details include: - Budgeted sales are $304,870 for the quarter with highest sales in February at $118,800. - Production is budgeted at 27,870 units for the quarter to meet sales demand. - Materials, labor, overhead and expenses are budgeted based on production levels. - The cash budget shows a starting cash balance of $4,600 and projected cash collections and payments. Borrowing is needed in January and February. - The income statement budgets for gross profit of $104,250

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    308 views4 pages

    Master Budget Assignment CH 9

    Uploaded by

    api-240741436
    The master budget for Presidio Manufacturing includes budgets for sales, production, materials, labor, overhead, expenses and cash for the months of January, February and March. Key details include: - Budgeted sales are $304,870 for the quarter with highest sales in February at $118,800. - Production is budgeted at 27,870 units for the quarter to meet sales demand. - Materials, labor, overhead and expenses are budgeted based on production levels. - The cash budget shows a starting cash balance of $4,600 and projected cash collections and payments. Borrowing is needed in January and February. - The income statement budgets for gross profit of $104,250

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 4

    Adolfo Levano

    PRESIDIO MANUFACTURING
    Master Budget

    Budgeted Sales (units)


    Selling price per unit
    Budget sales (dollars)

    Sales Budget
    December
    January
    February
    March
    April
    May
    5917
    8300
    9900
    9600
    9000
    8600
    $
    12 $
    12 $
    12 $
    12 $
    12 $
    12
    $ 71,000 $ 99,600 $ 118,800 $ 115,200 $ 108,000 $ 103,200

    December sales
    January sales
    February sales
    March sales
    Total cash collections

    Sales in units
    Add: ending inventory
    Total units needed
    Less: beginning inventory
    Production in units

    Chapter 9: The Master Budget

    Cash Collections Budget


    January
    February
    $ 46,150
    $ 34,860 $ 64,740
    $ 41,580
    $

    81,010

    $ 106,320

    Production Budget
    January
    February
    8300
    9900
    990
    960
    9290
    10860
    (830)
    (990)
    8460
    9870

    March

    $ 77,220
    $ 40,320
    $ 117,540

    March
    9600
    900
    10500
    (960)
    9540

    Quarter
    $ 46,150
    $ 99,600
    $ 118,800
    $ 40,320
    $ 304,870

    Quarter
    27800
    900
    28700
    (830)
    27870

    Page 1 of 4

    Adolfo Levano
    Direct Materials Budget
    January
    February
    8460
    9870
    3
    3
    25380
    29610
    5922
    5724
    31302
    35334
    (5076)
    (5922)
    26226
    29412

    March
    9540
    3
    28620
    5376
    33996
    (5724)
    28272

    Quarter
    27870
    3
    83610
    5376
    88986
    (5076)
    83910

    Cash Payments for Direct Material Purchases Budget


    January
    February
    March
    Material purchases (lbs)
    26226
    29412
    28272
    * cost per lb.
    $
    2 $
    2 $
    2
    Total cost of purchases
    $ 52,452 $ 58,824 $ 56,544
    December purchases
    $ 43,000
    Janary purchases
    $ 10,490 $ 41,962
    February purchases
    $ 11,765 $ 47,059
    March purchases
    $ 11,309
    Total cash payments for materials
    $ 53,490 $ 53,726 $ 58,368

    Quarter
    83910
    $
    2
    $ 167,820
    $ 43,000
    $ 52,452
    $ 58,824
    $ 11,309
    $ 165,585

    Production in units
    * materials per unit (lbs)
    Production needs (lbs)
    Add: ending inventory (lbs)
    Total needs (lbs)
    Less: beginning inventory (lbs)
    Materials to be purchased (lbs)

    Cash Payments for Direct Labor Budget


    January
    February
    March
    Quarter
    Production in units
    8460
    9870
    9540
    27870
    * direct labor hours per unit
    0.05
    0.05
    0.05
    0.05
    Labor hours required
    423
    494
    477
    1394
    * direct labor cost per hour
    $
    9 $
    9 $
    9 $
    9
    Total direct labor cost
    $
    3,807 $
    4,442 $
    4,293 $ 12,542

    Chapter 9: The Master Budget

    Page 2 of 4

    Adolfo Levano
    Cash Payments for Manufacturing Overhead Budget
    January
    February
    March
    Production in units
    8460
    9870
    9540
    * variable mfg overhead rate
    $
    1.10 $
    1.10 $
    1.10
    Variable mfg overhead costs
    $
    9,306 $ 10,857 $ 10,494
    Add: fixed mfg overhead costs
    $
    8,400 $
    8,400 $
    8,400
    Total mfg overhead costs
    $ 17,706 $ 19,257 $ 18,894
    Less: depreciation
    $
    $
    $
    Cash mfg overhead costs
    $ 17,706 $ 19,257 $ 18,894

    Quarter
    27870
    $
    1.10
    $ 30,657
    $ 25,200
    $ 55,857
    $
    $ 55,857

    Cash Payments for Operating Expenses Budget


    January
    February
    March
    Sales in units
    8300
    9900
    9600
    * variable selling and admin rate
    $
    1.25 $
    1.25 $
    1.25
    Variable selling and admin expense
    $ 10,375 $ 12,375 $ 12,000
    Fixed selling & admin expenses
    $
    1,800 $
    1,800 $
    1,800
    Total selling & admin expense
    $ 12,175 $ 14,175 $ 13,800

    Quarter
    27800
    $
    1.25
    $ 34,750
    $
    5,400
    $ 40,150

    Cash balance, beginning


    Add: cash collections
    Total cash available
    Less: disbursements:
    Material purchases
    Direct labor
    Mfg. overhead
    Selling & admin
    Equipment purchases
    Tax payment
    Total disbursements
    Excess (deficiency) of cash
    Financing:
    Add:
    Borrowing
    Less:
    Debt Repayments
    Less:
    Interest payments
    Cash Balance. ending

    Chapter 9: The Master Budget

    Combined Cash Budget


    January
    February
    $
    4,600 $
    4,432
    $ 81,010 $ 106,320
    $ 85,610 $ 110,752

    March
    $
    4,952
    $ 117,540
    $ 122,492

    Quarter
    $
    4,600
    $ 304,870
    $ 309,470

    $
    $
    $
    $
    $
    $
    $
    $

    53,490
    3,807
    17,706
    12,175
    5,000
    92,178
    (6,568)

    $ 53,726
    $
    4,442
    $ 19,257
    $ 14,175
    $ 12,200
    $ 10,000
    $ 113,800
    $
    (3,048)

    $ 58,368
    $
    4,293
    $ 18,894
    $ 13,800
    $ 16,600
    $
    $ 111,955
    $ 10,537

    $ 165,585
    $ 12,542
    $ 55,857
    $ 40,150
    $ 33,800
    $ 10,000
    $ 317,933
    $
    (8,463)

    $
    $
    $
    $

    11,000
    4,432

    $
    $
    $
    $

    $
    $
    $
    $

    $
    $
    $
    $

    8,000
    4,952

    6,000
    490
    4,047

    19,000
    6,000
    490
    4,047

    Page 3 of 4

    Adolfo Levano

    Budgeted Manufacturing Cost per Unit


    Direct materials cost per unit
    Direct labor cost per unit
    Variable manufacturing cost per unit
    Fixed manufacturing cost per unit
    Budgeted cost of manufacturing one unit
    * Units sold
    Cost of goods sold

    $
    $
    $
    $
    $

    6.00
    0.45
    1.10
    0.70
    8.25
    27800
    $ 229,350

    Budgeted Income Statement


    Sales Revenue
    Less: cost of goods sold
    Gross Profit
    Less: operating expenses
    Less: depreciation expenses
    Operating income
    Less: interest expense
    Less: income tax expense
    Net income

    Chapter 9: The Master Budget

    $ 333,600
    $ 229,350
    $ 104,250
    $ 40,150
    $
    (4,600)
    $ 59,500
    $
    490
    $ 17,703
    $ 41,307

    Page 4 of 4

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