MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

WASATCH MANUFACTURING
Master Budget

December
Unit Sales
Price per Unit
Unit Sales Revenue

Cash Sales (25%)

Credit Sales (75%, following month)
Total Cash Collections

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

Chapter 9: The Master Budget

8444
9
76,000

Sales Budget
January
February
8900
9900
9
9
80,100
89,100

Cash Collections Budget

January
20025
57000
77025

Production Budget
January
8900
1485
10385
1267
9118

February
22275
60075
82350

February
9900
1380
11280
1485
9795

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MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

Units to be produced
Multiply by: Quantity of DM needed per unit (Ibs.)
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 Purchases

Direct Materials Budget

January
8900
2
17800
990
18790
2533.3333333333
16256.6666666667
$1.50
$24,385.00

Chapter 9: The Master Budget

9900
2
19800
920
20720
2970
17750
$1.50
$26,625.00

Cash Payments for Direct Material Purchases Budget

January
February
$
15,864.33
$7,315.50
$17,069.50
$7,987.50

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

February

23,179.83 $

25,057.00

Cash Payments for Direct Labor Budget

January
February
8900
9900
0.03
0.03
267
297
13
13
3471
3861

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MANAGERIAL ACCOUNTING - Fourth Edition

Chapter 9: The Master Budget

Solutions Manual

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MANAGERIAL ACCOUNTING - Fourth Edition

Rent (fixed)
Other Manufacturing Overhead (fixed)
Variable Manufacturing Overhead Costs
Cash Payments for Manufacturing Overhead

Variable Operating Expenses

Fixed Operating Expenses
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
Financing:
Chapter 9: The Master Budget

Solutions Manual
Cash Payments for Manufacturing Overhead Budget
January
February
6500
6500
2100
2100
12460
13860
21060
22460

Cash Payments for Operating Expenses Budget

January
February
10680
11880
1400
1400
12080
13280

Combined Cash Budget

January
$
6,000.00 $
$
77,025.00 $
$
83,025.00 $
$
$
$
$
$
$
$
$

23,179.83
3,471.00
21,060.00
12,080.00
22,428.00
15,000.00
97,218.83
(14,193.83)

$
$
$
$
$
$
$
$

February
4,806.17
82,350.00
87,156.17
26,625.00
3,861.00
22,460.00
13,280.00
10,800.00
6,000.00
83,026.00
4,130.17

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MANAGERIAL ACCOUNTING - Fourth Edition

Borrowings
Repayments
Interest Payments
Cash Balance, Ending

Chapter 9: The Master Budget

Solutions Manual

19000 $

1,000.00

$
4,806.17 $

285.00
4,845.17

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MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

Budgeted Manufacturing Cost per Unit

Budgeted Income Statement

Chapter 9: The Master Budget

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MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

RING

March

April

May

9200
9
82,800

March

9500
9
85,500

8600
9
77,400

Quarter
20700
66825

63000
183900

87525

246900

March

Quarter
9200
1425
10625
1380
9245

Chapter 9: The Master Budget

28000
4290
32290
4132
28158

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MANAGERIAL ACCOUNTING - Fourth Edition

March

Solutions Manual

Quarter

9200
2
18400
950
19350
2760
16590
$1.50
$24,885.00

28000
2
56000
2860
58860
8263.3333333333
50596.6666666667
$1.50
$75,895.00

udget
March
$
$18,637.50
$7,465.50
$

Quarter
15,864.33
$24,385.00
26625
7465.5

26,103.00 $

March

74,339.83

Quarter
9200
0.03
276
13
3588

Chapter 9: The Master Budget

28000
0.03
840
13
10920

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MANAGERIAL ACCOUNTING - Fourth Edition

Chapter 9: The Master Budget

Solutions Manual

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MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

udget
March

Quarter
6500
2100
12880
21480

19500
6300
39200
65000

get
March

Quarter
11040
1400
12440

$
$
$

$
$
$
$
$
$
$

33600
4200
37800

March
4,845.17 $
87,525.00 $
92,370.17 $
$24,885.00
3,588.00
21,480.00
12,440.00
23,184.00
4,000.00
89,577.00
2,793.17

$
$
$
$
$
$
$
$

Quarter
15,651.34
246,900.00
262,551.34
74,689.83
10,920.00
65,000.00
37,800.00
56,412.00
25,000.00
269,821.83
(7,270.49)

Chapter 9: The Master Budget

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MANAGERIAL ACCOUNTING - Fourth Edition

$

2,000.00

$
$

300.00
4,493.17 $

Chapter 9: The Master Budget

Solutions Manual

22000
585
14,144.51

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MANAGERIAL ACCOUNTING - Fourth Edition

Chapter 9: The Master Budget

Solutions Manual

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