WASATCH MANUFACTURING

Master Budget

Unit Sales
Price per Unit
Sales Revenue

Cash Sales (25%)

Credit Sales (75% from previous month)
Total Cash Collections

Unit Sales
(Plus) Desired Ending Inventory
Total Units Needed
(Less) Beginning Inventory
Units to Produce

Chapter 9: The Master Budget

December
8444
9
$
76,000 $

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

Cash Collections Budget

January
February
$
20,025.00 $
22,275.00 $
$
57,000.00 $
60,075.00 $
$

77,025.00 $

Production Budget
January
8900
1485
10385
890
9495

82,350.00 $

February
9900
1380
11280
1485
9795

March
9200
9
82,800

March
20,700.00
66,825.00
87,525.00

March
9200
1425
10625
1380
9245

Page 1 of 10

Units to be Produced
(Multiply by) Materials per Unit in Pounds
Production Needs in Pounds
(Plus) Desired Ending Inventory in Pounds
Total Material Needs in Pounds
(Less) Beginning Inventory in Pounds
Materials to be Purchased in Pounds
Cost per Pound
Total Cost of Direct Material Purchases

December Purchases (From A/P)

January Purchases
February Purchases
March Purchases
Total Cash Payments for Materials

Units Produced
(Multiply by) Direct Labor Hours per Unit
Labor Hours Required
(Multiply by) Direct Labor Cost per Hour
Direct Labor Cost

Chapter 9: The Master Budget

Direct Materials Budget

January
9495
2
18990
1959
20949
1899
19050
$
1.50 $
$
28,575.00 $

February
9795
2
19590
1849
21439
1959
19480
1.50 $
29,220.00 $

Cash Payments for Direct Material Purchases Budget

January
February
$
22,000.00
$
8,572.50 $
20,002.50
$
8,766.00 $
$
$
30,572.50 $
28,768.50 $

Cash Payments for Direct Labor Budget

January
February
8900
9900
0.03
0.03
267
297
$
13.00 $
13.00 $
$
3,471.00 $
3,861.00 $

March
9245
2
18490
1873
20363
1849
18514
1.50
27,771.00

March

20,454.00
8,331.30
28,785.30

March
9200
0.03
276
13.00
3,588.00

Page 2 of 10

Cash Payments for Manufacturing Overhead Budget

January
February
Production in Units
8900
9900
Variable Manufacturing Overhead Rate
$
1.40 $
1.40
Variable Manufacturing Overhead Costs
$
12,460.00 $
13,860.00
Fixed Manufacturing Overhead Costs
$
2,100.00 $
2,100.00
Manufacturing Overhead Costs (Factory Rent)
$
6,500.00 $
6,500.00
Cash Payments for Manufacturing Overhead
$
21,060.00 $
22,460.00

Sales in Units
Variable Operating Expenses Rate per Unit
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
Chapter 9: The Master Budget

Cash Payments for Operating Expenses Budget

January
February
8900
9900
$
1.20 $
1.20
$
10,680.00 $
11,880.00
$
1,400.00 $
1,400.00
$
12,080.00 $
13,280.00

March
$
$
$
$
$

9200
1.40
12,880.00
2,100.00
6,500.00
21,480.00

March
$
$
$
$

9200
1.20
11,040.00
1,400.00
12,440.00

Combined Cash Budget

January
February
$
6,000.00 $
4,841.50 $
$
77,025.00 $
82,350.00 $
$
83,025.00 $
87,191.50 $

March
4,022.00
87,525.00
91,547.00

$
$
$
$
$
$
$

30,572.50
3,471.00
21,060.00
12,080.00

$
$
$
$
$
15,000.00 $
82,183.50 $
841.50 $

28,768.50
3,861.00
22,460.00
13,280.00
10,800.00
6,000.00
85,169.50
2,022.00

$
$
$
$

28,785.30
3,588.00
21,480.00
12,440.00

$
$
$

4,000.00
70,293.30
21,253.70
Page 3 of 10

Financing:
Borrowings
Repayments
Interest Payments
Total Financing
Cash Balance, Ending

Chapter 9: The Master Budget

4,000.00 $

$
$

4,000.00 $
4,841.50 $

2,000.00 $
$
$
2,000.00 $
4,022.00 $

(3,000.00)
(11.25)
(3,011.25)
18,242.45

Page 4 of 10

Budgeted Manufacturing Cost per Unit

Direct Materials Cost per Unit (2 pounds per unit X $1.50 per pound)
Direct Labor Cost per Unit (0.03 labor hours per unit X $13 per hour)
Variable Manufacturing Costs per Unit (total MOH costs / total production units)
Fixed Manufacturing Overhead per Unit (given $0.60)
Cost of Manufacturing Each Unit

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
Net Income

Chapter 9: The Master Budget

$
$
$
$
$
$
$
$

252,000.00
(176,720.00)
75,280.00
(37,800.00)
(5,200.00)
32,280.00
(11.25)
(9,035.25)

23,233.50

Page 5 of 10

Lansia Wann
April 27, 2015
April

$
$
$

May
9500
9
85,500 $

8600
9
77,400

Quarter
April
63,000.00
183,900.00
246,900.00

Quarter

April
28000
1425
29425
890
28535

Chapter 9: The Master Budget

9500
1290
10790
1425
9365

Page 6 of 10

Quarter

$
$

28535
2
57070
1873
58943
1899
57044
1.50
85,566.00

$
$
$
$
$

Quarter
22,000.00
28,575.00
29,220.00
8,331.30
88,126.30

April
9365
2
18730

Quarter

$
$

28000
0.03
840
13.00
10,920.00

Chapter 9: The Master Budget

Page 7 of 10

Quarter
$
$
$
$
$

28000
1.40
39,200.00
6,300.00
19,500.00
65,000.00

Quarter
$
$
$
$

28000
1.20
33,600.00
4,200.00
37,800.00

$
$
$

Quarter
6,000.00
246,900.00
252,900.00

$
$
$
$
$
$
$
$

88,126.30
10,920.00
65,000.00
37,800.00
10,800.00
25,000.00
237,646.30
15,253.70

Chapter 9: The Master Budget

Page 8 of 10

$
$
$
$
$

6,000.00
(3,000.00)
(11.25)
2,988.75
18,242.45

Chapter 9: The Master Budget

Page 9 of 10

$
$
$
$

3.00
0.39
2.32
0.60

6.31

Chapter 9: The Master Budget

Page 10 of 10