Presidio Manufacturing

Master Budget

Sales Budget
Budgeted Sales (units)
Selling price per unit
Budgeted Sales (dollars)

December
January
February
March
5916
8300
9900
9600
$
12 $
12 $
12 $
12 $
$
71,000 $
99,600 $
118,800 $
115,200 $

Cash Collections Budget

Cash Collections (35%)
Credit Collections (65%)
Total Collections

January
February
March
Quarter
$
34,860 $
41,580 $
40,320 $
116,760
$
46,150 $
64,740 $
77,220 $
188,110
$
81,010 $ 106,320 $
117,540 $
304,870

Production Budget
Sales in units
Add: Ending Inventory
Total units needed
Less: Beginning Inventory
Production in units

January
8300
990
9290
(830)
8460

Febraury
9900
960
10860
(990)
9870

March
9600
900
10500
(960)
9540

Quarter
27800
900
28700
(830)
27870

Direct Materials Budget

Units to be produced
Quantity of DM needed/unit
DM needed for production
Add: Ending inventory
Total needed
Less: Beginning Inventory
Quantity of DM to purchase
Cost per pound
Total cost of DM purchases

January
February
March
Quarter
8460
9870
9540
27870
3
3
3
3
25380
29610
28620
83610
5922
5724
5376
5376
31302
35334
33996
88986
(5076)
(5922)
(5724)
(5076)
26226
29412
28272
83910
$
2 $
2 $
2 $
2
$
52,452 $
58,824 $
56,544 $
167,820

April
Unit sales
Desired Ending invetory (10%)
Totai Needed
Beginning Inventory

May
9000
860
9860
900

8600

April
9000
12
108,000

Units to Produce
DM/unit
DM needed for production
20% of DM

8960
3
26880

May
$
$

8600
12
103,200

Cash Payments for Direct Materials Budget

December Purchases
January Purchases
February Purchases
March Purchases
Total Cash Payments for Materials

January
February
March
$
43,000
$
10,490 $
41,962
$
11,765 $
47,059
$
11,309
$
53,490 $
53,726 $
58,368

$
$
$
$
$

Quarter
43,000
52,452
58,824
11,309
165,585

Cash payments for Direct Labor Budget

Production in units
Direct labor hours per unit
Labor hours required
Direct labor cost per unit
Total direct labor cost

January
February
March
Quarter
8460
9870
9540
27870
0.05
0.05
0.05
0.05
423
494
477
1394
$
9 $
9 $
9 $
9
$
3,807 $
4,442 $
4,293 $
12,542

Cash Payment Budget for Manufacturing Overhead Budget

Production in units
Variable MOH
Variable MOH costs
Fixed MOH costs
Total MOH costs
Less:Depreciation
Cash MOH costs

$
$
$
$
$

January
8460
1.10
9,306
8,400
17,706
0
17,706

February
9870
$
1.10
$
10,857
$
8,400
$
19,257
0
$
19,257

$
$
$
$
$

March
9540
1.10
10,494
8,400
18,894
0
18,894

Schedule for expected cash payments-conversion costs

January
February
March
Rent (fixed)
$
5,500 $
5,500 $
5,500
Other MOH (fixed)
$
2,900 $
2,900 $
2,900
Variable conversion costs (DL+MOH)
$
9,306 $
10,857 $
10,494
Total Disbursments
$
17,706 $
19,257 $
18,894

Quarter
27870
1.10
30,657
8,400
39,057
0
39,057

$
$
$
$

Quarter
16,500
8,700
30,657
55,857

$
$
$
$

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

$
$
$
$

Cash Payment Budget for Operating Expenses

Sales in units
Variable selling and admin rate
Variable selling and admin expense
Fixed selling and admin expense
Total selling and admin expense

$
$
$
$

January
8300
1.25
10,375
1,800
12,175

February
9900
$
1.25
$
12,375
$
1,800
$
14,175

$
$
$
$

March
9600
1.25
12,000
1,800
13,800

Less: non-cash expenses

Cash payments for selling and admin

40,150

Combined Cash Budget

January
February
March
Quarter
$
4,600 $
4,239 $ 4,200 $ 4,600
$ 81,010 $
106,320 $ 117,540 $ 304,870
$ 85,610 $
110,559 $ 121,740 $ 309,470

Cash balance, beginning

Add:Cash Collections
Total cash available
Less: Disbursements
Material purchases
Conversion Costs
Operating expenses
Equiptment
Taxes
Total disbursements
Excess( defiency) of cash
Financing:
Borrowing
Repayments
Interest
Total financing
Cash balance, ending
interest=
$7000*1%*3months=210
$
$3000*15*2 months= $
Total interest
$

$
$
$
$
$
$

$
$
$
$
$
88,371 $
(2,761) $

53,726
19,257
14,175
12,200
10,000
109,358
1,200

7,000 $

3,000

7,000 $
4,239 $

$
$
3,000 $
4,200 $

$
$

53,490
17,706
12,175
5,000

210
60
270

*$7000+$3000=$10000
$10000-$1000=$9000

Budgeted Manufacturing Cost per Unit

Direct Materials: 3lbs*$2.00
Conversion costs
Fixed MOH
Cost of manufacturing each unit

$
$
$
$

6.00
1.10
0.70
7.80

Budgeted Income Statement

Sales
Less: Cost of Goods Sold
Gross Profit
Operating Expenses
Depreciation Expenses
Operating Income
Less: Interest Expense
Less: provision for income tax@ 30%
Net Income

$
$
$
$
$
$
$
$
$

333,600
(216,840)
116,760
40,150
(4,600)
72,010
(270)
21,522
50,218

$
$
$
$

58,368
18,894
13,800
16,600

$
$
$
$
$
$ 107,662 $
$ 14,078 $

(9,000)
(270)
(9,270)
4,808

165,585
55,857
40,150
33,800
10,000
305,392
4,078

$ 10,000
$ (9,000)
$
(270)
$
730
$ 4,808