A B C D E F

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2 BIGBUD
3 Three-Month Master Budget
4
5 Thorny Corp.
6 Balance Sheet, December 31
7
8 Cash $41,700
9 Accounts receivable 192,000 60% of Decembers Sales
10 Raw materials 102,240
11 Finished goods 64,400
12 Land 50,000
13 Plant and equipment $500,000
14 Less: accumulated depreciation 112,000 388,000
15 Total assets $838,340
16
17 Accounts payable to suppliers $40,000
18 Common Stock $100,000
19 Retained Earnings 698,340 798,340
20 Total liabilities and equity $838,340
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22
23 Budgeted Gizmo sales in units
24 January 7,000
25 February 8,000
26 March 10,000
27 April 8,000
28 May 7,000
29 Selling price $65
30 Collections from customers
31 Collected in month of sale 40%
32 Collected the following month 60%
33 Desired finished goods inventory
34 (% of next month's unit sales) 20%
 A B C D E F
35 Desired raw material inventory
36 (% of next month's production needs) 25%
37 Raw material units needed to produce one Gizmo
38 What 5
39 Huh 3
40 Beginning inventory units & cost
41 Gizmo 1,400 $46.00 one product
42 What 18,000 $4.00 direct materials
43 Huh 10,800 $2.80 direct materials
44 Purchases
45 Paid in the month of purchase 70%
46 Paid in the subsequent month 30%
47
48 Direct labor time to produce one Gizmo 0.5 hours
49 Cost of direct labor $24 per hour
50 Factory overhead $12 per direct labor hr.
51
52 Selling and administrative expenses $10,000 fixed
53 10% variable
54 Plant and equipment depreciation $12,000 per year
55
 G H I J K L M N
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Sales Budget
January February March Total
Budgeted Sales in units 7,000 8,000 10,000 25,000
Price per unit $65 $65 $65 $65
Total Budgeted Sales in dollars $455,000 $520,000 $650,000 $1,625,000
Must have total
Cash Collections Budget
January February March Total
Accounts Recievable 192,000 192,000
January Sales $182,000 $273,000 $455,000
February Sales $208,000 $312,000 $520,000
March Sales $260,000 $260,000
Total Sales 374,000 $481,000 $572,000 1,427,000
Production Budget
January February
Budgeted Sales in Units 7,000 8,000
Add Desired ending inventory (Finished Goods) 1600 2000
Total Needs 8,600 10,000
Less beginning Inventory 1,400 1600
Required Production 7,200 8,400
 April
March Total 8,000
10,000 25,000 1400
1,600 1,600 20% of next months Sales March given 9,400
11,600 26,600 1,600
2000 1,400 January given 7,800
9,600 25,200
Do not add across every row
WHAT January February March
Required Production 7,200 8,400 9,600
lbs. of Raw Materials 5 5 5
Required Raw Materials 36000 42000 48000
Desired Ending Inventory 1050000% 12000 9750
total materials required 4650000% 54000 57750
Beg. Inventory (18,000) -1050000% -12000
Required raw materials for purchase 2850000% 4350000% 45750
cost per lbs. $4.00 $4.00 $4.00
Cost of materials purchased $114,000.00 $174,000.00 $183,000.00

HUH January February March

Required Production 7,200 8,400 9,600
lbs. of Raw Materials 3 3 3
Required Raw Materials 21600 25200 28800
Desired Ending Inventory 6300 7200 5850
total materials required 27900 32400 34650
Beg. Inventory (10,800) -6300 -7200
Required raw materials for purchase 17,100 26100 27450
cost per lbs. $2.80 $2.80 $2.80
Cost of materials purchased $47,880.00 $73,080.00 $76,860.00
Total
25,200
5
126000
3225000%
15825000%
(18,000)
11775000%
$4.00
$471,000.00

Total
25,200
3
75600
5850
94950
(10,800)
70,650
$2.80
$197,820.00
Purchasing Schedule
January February
Total Cost Combined $161,880.00 $247,080.00
Accounts Payable- Beginning Balance $40,000
January Purchases $113,316.00 $48,564.00
February Purchases $172,956.00
March Purchases
Total Cash Disbursement $153,316.00 $221,520.00
March Total
$259,860.00 $668,820.00

$161,880.00
$74,124.00 $247,080.00
$181,902.00 $181,902.00
$256,026.00 $630,862.00
Direct Labor Budget
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 needed 3600 4200 4800 12600
Direct Labor hour rate $24 $24 $24 $24
Direct Labor hour cost $86,400 $100,800 $115,200 $302,400
Manufacturing Overhead Budget
January February March
Required Direct labour hours 3600 4200 4800
Variable overhead rate $12 $12 $12
Variable Manufacturing overhead $43,200 $50,400 $57,600
Total Manufacturing overhead $43,200 $50,400 $57,600
Less Depreciation (NON Cash) 1000 1000 1000
Cash Disbursements of Manufacturing Overhead $42,200 $49,400 $56,600
Total
12600
$12
$151,200
$151,200
1000
$148,200
Selling and Administrative Expense Budget
January February March
Budgeted Sales in Units $455,000 $520,000 $650,000
Variable Selling and Admin expense rate 10% 10% 10%
Total Variable Expense $45,500 $52,000 $65,000
Total Fixed Expenses $10,000 $10,000 $10,000
Total Selling and Admin Expenses $55,500 $62,000 $75,000
Less Depreciation
Cash Disbursement $55,500 $62,000 $75,000
Total
$1,625,000
10%
$162,500
$10,000
$192,500

$192,500
Ending Inventory Budget

Item Quantity Cost Total

Direct Materials WHAT 5 $4.00 $20.00
Direct Materials HUH 3 $2.80 $8.40
Direct Labor 0.5 $24 $12
Manufacturing Overhead 0.5 $12 $6
$46.40
January February March
Ending Finished Goods Inventory Units 1,600 2000 1,600
Budgeted cost per unit $46.40 $46.40 $46.40
Ending Finished Goods Inventory dollars $74,240.00 $92,800.00 $74,240.00
Cash Budget
January February March
Cash, Beginning balance $41,700 $78,284.00 $125,564.00
Cash Collections 374,000 $481,000 $572,000
Cash Available $415,700 $559,284.00 $697,564.00
Less Cash Disbursement
Direct Materials $153,316.00 $221,520.00 $256,026.00
Direct Labor $86,400 $100,800 $115,200
Manufacturing Overhead $42,200 $49,400 $56,600
Selling & Administrative $55,500 $62,000 $75,000
Total Disbursements $337,416.00 $433,720.00 $502,826.00
Excess (Deficiency) of Cash $78,284.00 $125,564.00 $194,738.00

Financing
January February March
Cash Excess (Deficiency) $78,284.00 $125,564.00 $194,738.00
Borrowings
Payments
Interest
Cash Balance, Ending
Total
$245,548.00
$1,427,000
$1,672,548.00

$630,862.00
$302,400
$148,200
$192,500
$1,273,962
$398,586

Total
$398,586.00
 Januarary February March
Cash $78,284.00 $125,564.00 $194,738.00
Accounts receivable $273,000 $312,000 $390,000
Raw materials What $42,000.00 $48,000.00 $39,000.00
Raw materials HUH $17,640.00 $20,160.00 $16,380.00
Finished goods $74,240.00 $92,800.00 $74,240.00
Land 50,000 50,000 50,000
Plant and equipment $500,000 $500,000 $500,000
Less: accumulated depreciation 113,000 114,000 115,000
Total assets $922,164 $1,034,524 $1,149,358

Accounts payable to suppliers $48,564.00 $74,124.00 $77,958.00

Common Stock $100,000 $100,000 $100,000
Retained Earnings $773,600 $860,400 $971,400
Total liabilities and equity $922,164.00 $1,034,524.00 $1,149,358.00
ending cash on cash budget
cash that will be collected next month on the cash collection budget
Desired ending inventrory on DM budget
Desired ending inventory on production budget

No change
No change
1000 per month.. So for jan. it is 1130000 (1120000+1) for fev it is 1140000(130000+1

retained earnings
beginning retained earnings
Plus net income
minus dividends (which we dont have in Bigbud)
ending retained earnings
1140000(130000+1
Income Statement
January February
Sales or Revenue (last line of sales budget) $455,000 $520,000
COGS $324,240.00 $371,200.00
Selling and Admin expense $55,500 $62,000
Net Income $75,260 $86,800
March Total
$650,000 $1,625,000
$464,000.00 $1,159,440.00
$75,000 $192,500
$111,000 $273,060