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Solutions Manual
PRESIDIO MANUFACTURING
Master Budget
Sales Budget
January
February
December
Unit Sales
Unit Selling Price $
Total Sales Revenue
5,917
12.00
71,000
8,300
12.00
99,600
9,900
12.00
118,800
March
$
9,600
12.00
115,200
April
May
9,000
12.00
8,600
12.00
108,000
103,200
March
Quarter
34,860
46,150
41,580
64,740
40,320
77,220
116,760
188,110
81,010
106,320
117,540
304,870
Production Budget
January
February
March
Quarter
Unit Sales
Desired Ending Inventory
8,300
990
9,900
960
9,600
900
27,800
900
Total Needed
9,290
10,860
10,500
28,700
Beginning Inventory
Units to Produced
830
990
960
830
8,460
9,870
9,540
27,870
Page 1 of 5
Solutions Manual
March
Quarter
Units to be produced
Quantity of DM needed per unit
Quantity of DM needed for production
Desired ending inventory of DM
8,460
3
25,380
5,922
9,870
3
29,610
5,724
9,540
3
28,620
5,376
27,870
3
83,610
5,376
31,302
35,334
33,996
88,986
Beginning inventory of DM
Quantity of DM to purchase
Cost per pound
5,076
26,226
2
5,922
29,412
2
5,724
28,272
2
5,076
83,910
2
52,452.0
April
Unit Sales
56,544.0
167,820
May
9,000
58,824.0
8,600
860
Total Needed
9,860
Beginning Inventory
900
Units to produce
8,960
26,880
20% of DM
$
$
Total disbursements
43,000
10,490
53,490
$
$
41,962
11,765
53,726
$
$
47,059
11,309
$
$
$
$
58,368
8,460
0.05
9,870
0.05
Quarter
9,540
0.05
43,000
52,452
58,824
11,309
165,585
Quarter
27,870
0.05
Page 2 of 5
Solutions Manual
423
9
494
9
477
9
1,394
9
3,807
4,442
4,293
12,542
Page 3 of 5
Solutions Manual
Quarter
$
$
$
5,500
2,900
9,306
$
$
$
5,500
2,900
10,857
$
$
$
5,500
2,900
10,494
$
$
$
16,500
8,700
30,657
17,706
19,257
18,894
55,857
$
$
$
10,375
1,800
12,175
$
$
$
12,375
1,800
14,175
$
$
$
4,600
81,010
85,610
4,432
106,320
110,752
12,000
1,800
13,800
Quarter
$
$
$
March
$
4,952
117,540
122,492
34,750
5,400
40,150
Quarter
$
4,600
304,870
309,470
53,490
3,807
17,706
12,175
5,000
53,726
4,442
19,257
14,175
12,200
10,000
58,368
4,293
18,894
13,800
16,600
165,585
12,542
55,857
40,150
33,800
10,000
Total disbursements
92,178
113,800
111,955
317,933
(6,568)
(3,048)
11,000
8,000
11,000
$
4,432
8,000
$
4,952
10,537
(8,463)
(6,000)
(490)
(6,490)
19,000
(6,000)
(490)
12,510
4,047
4,047
Page 4 of 5
Solutions Manual
$
$
$
$
$
6.00
0.45
1.10
0.70
8.25
333,600
(229,350)
104,250
40,150
4,600
59,500
(490)
17,703
Net income
41,307
Page 5 of 5