MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

WASATCH MANUFACTURING
Master Budget

Unit Sales
Price Per Unit
Sales Revenue

December
7000
15
105000

Cash Sales (30%)

Credit Sales (70%)
Total Cash Collections

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

Chapter 9: The Master Budget

Sales Budget
January
February
8000
9000
15
15
120000
135000

Cash Collections Budget

January
February
36000
40500
73500
84000
109500
124500

Production Budget
January
February
8000
9000
1800
1720
9800
10720
1600
1800
8200
8920

March

April

8600
15
129000

9400
15
141000

March
38700
94500
133200

Quarter
115200
252000
367200

March

Quarter
25600
1880
27480
1600
25880

8600
1880
10480
1720
8760

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Solutions Manual

Direct Materials Budget

January
February
8200
8920

8760

Quarter
25880

4
35040
5722
40762
5256
35506
1
35506

4
103520
1873
105393
4920
100473
1
100473

Cash Payments for Direct Material Purchases Budget

January
February
March
20000
8212
23262
8766
24909
8331
28212
32028
33240

Quarter
22000
31474
33675
8331
95480

Units to be produced
Multiply by: Quantity of DM needed per unit
(lbs.)
Quantity of DM needed for production
Plus: Desired ending inventory of DM (15%)
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

Dec. Purchases
Jan. Purchases
Feb. Purchases
March Purchases
Total Payments

4
32800
5352
38152
4920
33232
1
33232

4
35680
5256
40936
5352
35584
1
35584

Cash Payments for Direct Labor Budget

January
February
Units Produced
8200
8920
Multiply by: Hours per unit
0.1
0.1
Direct Labor Hours
820
892
Multiply by: Direct Labor Rate per Hour
15
15
Direct Labor Cost
12300
13380

Chapter 9: The Master Budget

March

March
8760
0.1
876
15
13140

Quarter
28090
0.1
2809
15
42135

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Chapter 9: The Master Budget

Solutions Manual

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MANAGERIAL ACCOUNTING - Fourth Edition

Rent (fixed)
Other MOH (fixed)

Solutions Manual

Cash Payments for Manufacturing Overhead Budget

January
February
March
10000
10000
10000
6000
6000
6000

Var. MOH Costs

Total Cash payments for MOH

10250
26250

11150
27150

Cash Payments for Operating Expenses Budget

January
February
Var. Operating Expenses
10660
11596
Fixed Operating Expenses
2000
2000
Cash Payments for Operating Exp.
12660
13596

Cash Balance =, beginning

Plus: Cash Collections
Total Cash Available
Less Cash Payments:
DM Purchases
Direct Labor
MOH Costs
Operating expenses
Tax payment
Equipment purchases
Total Cash Payments
Ending Cash before financing
Financing:
Chapter 9: The Master Budget

Combined Cash Budget

January
February
6000
4933
77025
82350
83025
87283
30212
3530
21270
12080
15000
82092
933

27927
3820
22313
13280
10800
6000
84140
3143

Quarter
30000
18000

10950
26950

32350
80350

March
11388
2000
13388

Quarter
33644
6000
39644

March

Quarter
6000
246900
252900

5143
87525
92668
28785
3606
21543
12440
4000
70374
22294

86925
10955
65126
37800
10800
25000
236606
16294

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MANAGERIAL ACCOUNTING - Fourth Edition

Borrowings
Repayments
Interest payments
Cash Balance, ending

Chapter 9: The Master Budget

Solutions Manual
4000

4933

2000

5143

6000
240
16054

6000
6000
240
16054

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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
Var. manufacturing costs per unit
Fixed manufacturing overhead per unit
Cost of manufacturing each unit

4
0.45
1.25
1.3
7

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 @ 23%
Net Income

Chapter 9: The Master Budget

252000
176185.965997
75814.0340031
37800
5200
32814.0340031
240
32574.0340031
7492
25082

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Solutions Manual

May
6800
15
102000

December
7000
1600
8600
1400
7200

Chapter 9: The Master Budget

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Solutions Manual

7200
4
28800
5722
34522
4320
30202
1
30203

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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