A

BIGBUD
Three-Month Master Budget

2
3
4

Thorny Corp.
Balance Sheet, December 31

5
6
7
8
9
10
11
12
13
14
15

Cash
Accounts receivable
Raw materials
Finished goods
Land
Plant and equipment
Less: accumulated depreciation
Total assets

$41,700
192,000
102,240
64,400
50,000
$500,000
112,000

388,000
$838,340

16

Accounts payable to suppliers

18 Common Stock
19 Retained Earnings
20
Total liabilities and equity

$40,000

17

$100,000
698,340

21
22
23
24
25
26
27
28
29
30
31
32

Budgeted Gizmo sales in units

January
February
March
April
May
Selling price
Collections from customers
Collected in month of sale
Collected the following month

7,000
8,000
10,000
8,000
7,000
$60
40%
60%

798,340
$838,340

A
33
34
35
36
37
38
39
40
41
42
43
44
45
46

Desired finished goods inventory

(% of next month's unit sales)
Desired raw material inventory
(% of next month's production needs)
Raw material units needed to produce one Gizmo
What
Huh
Beginning inventory units & cost
Gizmo
What
Huh
Purchases
Paid in the month of purchase
Paid in the subsequent month

20%
25%
5
3
1,400
18,000
10,800

$46.00
$4.00
$2.80

70%
30%

47

Direct labor time to produce one Gizmo

49 Cost of direct labor
50 Factory overhead
48

0.5 hours
$24 per hour
$12 per direct labor hr.

51
52

Selling and administrative expenses

53
54
55

Plant and equipment depreciation

$10,000 fixed
10% variable
$12,000 per year

Budgeted Sales
Sales Price Per Unit
Project Sales

Thorny Corporation
Sales Budget
For the Year Ending March 31
January
February
March
7,000
8,000
10,000
60
60
60
420000
480000
600000

25,000
60
60
1500000

Thorny Corporation
Sales Collections
For they Year ending March 31

Accounts Recievable
January Sales
February Sales
March Sales
Total Sales

January
February
March
Total
192,000
192,000
168000
252000
420000
192000
288000
480000
240000
240000
360,000
444000
528000
1,332,000

Thorny Corporation
Production Budget
For The Year Ending March 31
January
February
March
Budget Sales in Units
7,000
8,000
10,000
ADD: Desired Ending Invento
1600
2000
1,600
Total Needs
8,600
10,000
11,600
Less: Beginning Inventory
1,400
1600
2000
Required Production
7,200
8,400
9,600

April

Total
8,000
1400
9,400
1,600
7,800

25,000
1,600
26,600
1,400
25,200

Thorny Corporation
Direct Materials Budget
For the Year Ending March 31

Units to Be Produced
Direct Materials Per Unit
Total Pounds Needed for Production
ADD: Desired Ending Direct Materials
Total Materials Required
LESS: Beginning Direct Materials
Direct material Purchased
Cost Per Pound
Total Cost of Direct Materials

WHAT
January
February
7,200
8,400
5
5
36000
42000
10500
12000
46500
54000
18,000
10500
28,500
43500
4
4
114000
174000

Units to be produced
Direct materials per unit
Total Pounds Needed for Production
ADD: Desired Ending Direct materials
Total Materials Required
LESS: Beginning Direct Materials
Direct Material Purchased
Cost Per Pound
Total Cost of Direct Materials

HUH
January
February
7,200
8,400
3
3
21600
25200
6300
7200
27900
32400
10,800
6300
17,100
26100
2.8
2.8
47880
73080

Total Direct Materials

Accounts Payable
Cash Disbursments Raw Materials
Total Cash Disbursments Raw Materials
Beginning
January
February
March

161880
40000
113316
153316
40000
113316

247080
48564
172956
221520

48564
172956

Total

153316

221520

g March 31

March

Total

9,600
5
48000
9750
57750
12000
45750
4
183000

March

25,200 APRIL
5
39000
126000
9750
135750
18,000
117,750
4
471000

Total
9,600
3
28800
5850
34650
7200
27450
2.8
76860

25,200 April
3
75600
5850
81450
10,800
70,650
2.8
197820

259860
74124
181902
181902

668820
162688
468174
630862

74124
181902

40000
161880
247080
181902

23400

256026

630862

Thorny Corporation
Direct Labor Budget
For The Year Ending March 31
January
February
March
Total
Required Production
7,200
8,400
9,600
25,200
Direct Labor Hours per Unit
0.5
0.5
0.5
0.5
Total Direct Labor Hours N
3600
4200
4800
12600
Direct Labor Hours Rate
24
24
24
24
Direct Labor Hours Cost
86400
100800
115200
302400

Thorny Corporation
Manufacturing Overhead Budget
For the Year Ending March 31

Units
Variable Costs
Required Direct labor hours
Variable Overhead Rate
Total Variable Factory Overhead
Total manufacturing Overhead
Depreciation
Cash Disbursments of Manufacturing Overhead

January
February
7,200
8,400
3600
12
43200

4200
12
50400

43200
1000
42200

50400
1000
49400

March

Total
9,600

25,200

4800
12
57600

12600
12
151200

57600
1000
56600

151200
3000
148200

Jan
Budgeted Sales in Units
Variable Sellig and administrative expens
Total Variable Expenses
Total Fixed Expenses
Total Selling and Admin Expenses

Feb
7,000
10%
42000
10000
52000

Unit Cost
Quantity
Cost/Rate
Total Cost
Raw Materials
What
5
4
20
Huh
3
2.8
8.4
Direct Labor
0.5
24
12
Moh
0.5
12
6
Total Unit Cos
9
46.4

Mar
8,000
10%
48000
10000
58000

10,000
10%
60000
10000
70000

Total
25,000
10%
150000
30000
180000

Cash
Cash
Cash
Cash

Beginning Balance
Collections
Available
Less Disbursements
Direct Labor
Manufacturing Overhead
Selling and Administrative
Previous Months Purchases
Current Months Purchases
Total Disbursements
Excess of Cash
Borrowing
Payments
Interests
Cash Balance

Cash Budget
Year end March 31
Jan
Feb
March
41700
67,784
82,064
360,000
444000
528000
401,700
511,784
610,064
86400
42200
52000
40000
113316
333916
67,784

100800
49400
58,000
48564
172956
429,720
82,064

115200
56600
70000
74124
181902
497826
112,238

67,784

82,064

112,238

Total

302400
148200
180000
162688
468174
1261462
497826

112,238

Thorny
Income Statement
31-Jan
Sales
COGS
Selling and Admin Expense
Income

420000
71,000
52000
297,000

Sales
COGS
Selling and admin expense
Income

600000
0
58000
Err:523
542000

Sales
COGS
Selling and Admin Expenses
Income

1500000

1500000

thorn company
balance sheet

cash
accts recevable
raw materials
finalized goods
land
plant / equip
less - acc. Dep
total assets
accounts payable to sup
common stock
retained earnings
total liabilities and equity

cash
accts receivable
raw materials
finalized goods
land
plant and equip
acc dep
total assets
accts payable to sup
common stock
retained earnings
total liabilities and equity

cash
accts rec
raw materials
finalized goods
land

67,784
252
59,640
74,240
50,000
500000
113,000

387,000
638,916
48564

100000
100,000
148,564

48002.8
50,000
500000
114000

100000
792,000

386000
484,003
74124
100,000
174,124

112,238
900000

50,000

plant / equip
less. Acccum dep
total assets
accounts payable
common stock
retained earnings
total liabilities

500000
115000

385000
1,447,238

100000
1036858