MANAGERIAL ACCOUNTING - Fourth Edition Solutions Manual

WASATCH MANUFACTURING
Master Budget

Sales Budget
December January February March
Unit sales 8,444 8,900 9,900 9,200
Unit selling price 9 9 9 9
Total Sales Revenue 76,000 80,100 89,100 82,800

Cash Collections Budget

January February March
Cash Collections (25%) 20,025 22,275 20,700
Credit Collections (75%) 57,000 60,075 66,825
Total Cash Collections 77,025 82,350 87,525

Production Budget
January February March
Unit sales* 8,900 9,900 9,200
Desired ending inventory (15%) 1,485 1,380 1,425
Total needed 10,385 11,280 10,625
Beginning inventory 1,335 1,485 1,380
Units to produce 9,050 9,795 9,245

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Direct Materials Budget

January February March
Units to be produced 9,050.0 9,795.0 9,245.0
Quantity of DM needed per unit 2.0 2.0 2.0
Quantity of DM needed for production 18,100.0 19,590.0 18,490.0
Desired ending inventory of DM 1,959.0 1,849.0 1,787.0
Total quanitity of DM needed 20,059.0 21,439.0 20,277.0
Beginning inventory of DM 1,810.0 1,959.0 1,849.0
Quantity of DM to purchase 18,249.0 19,480.0 18,428.0
Cost per pound 1.5 1.5 1.5
Total cost of DM purchases 27,373.5 29,220.0 27,642.0

Cash Payments for Direct Material Purchases Budget

January February March
December purchases(a/p) 41,000
January purchases 8,212 19,161
February purchases 8,766 20,454
March purchases 8,293
Total disbursements 49,212 27,927 28,747

Cash Payments for Direct Labor Budget

January February March
Units produced 9,050 9,795 9,245
Multiply by: Hours per unit 0 0 0
Direct Labor Hours 272 294 277
Multiply by: Direct Labor Rate per Hour 13 13 13
Direct Labor Cost 3,530 3,820 3,606

Cash Payments for Manufacturing Overhead Budget

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MANAGERIAL ACCOUNTING - Fourth Edition Solutions Manual

January February March

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Rent (fixed) 6,500 6,500 6,500

Other Manufacturing Overhead (fixed) 2,100 2,100 2,100
Variable Manufacturing Overhead Costs 12,670 13,713 12,943
Cash Payments for Manufacturing Overhead 21,270 22,313 21,543

Cash Payments for Operating Expenses Budget

January February March
Variable Operating Expenses 10,680 11,880 11,040
Fixed Operating Expenses 1,400 1,400 1,400
Cash Payments for Operating Expenses 12,080 13,280 12,440

Combined Cash Budget

January February March
Cash Balance, Beginning 6,000 4,933 5,143
Plus: Cash Collections 77,025 82,350 87,525
Total Cash Available 83,025 87,283 92,668
Less Cash Payments:
DM Purchases 49,212 27,927 28,747
Direct Labor 3,530 3,820 3,606
Manufacturing Overhead Costs 21,270 22,313 21,543
Operating Expenses 12,080 13,280 12,440
Tax Payment 10,800
Equipment Purchases 15,000 6,000 4,000
Total Cash Payments 101,092 84,141 70,335
Ending Cash before Financing (18,067) 3,143 22,333
Financing:
Borrowings 23,000 2,000
Repayments (9,000)
Interest Payments (135)
Total Financing 23,000 2,000 (9,135)

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Cash Balance, Ending 4,933 5,143 13,198

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MANAGERIAL ACCOUNTING - Fourth Edition Solutions Manual

Budgeted Manufacturing Cost per Unit

Direct Materials Cos per Unit
Direct Labor cost per unit
Variable manufacturing costs per unit
Fixed manufacturing overhead per unit
Cost of manufacturing each unit

Budgeted Income Statement

Sales Revenue 252,000
Less: Cost of Goods Sold 176,400
Gross Profit 428,400
Less: Operating Expenses 37,800
Less: Depreciation Expense 5,200
Operating Income 385,400
Less: Interest Expense (25,000)
Less: Income Tax Expense (135)
Net Income 410,535

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MANAGERIAL ACCOUNTING - Fourth Edition Solutions Manual

April May
9,500 8,600
9 ###
85,500 77,400

Quarter
63,000
183,900
246,900

Quarter
28,000
1,425
29,425
1,335
28,090

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MANAGERIAL ACCOUNTING - Fourth Edition Solutions Manual

Quarter
28,090.0
2.0
56,180.0
1,787.0
57,967.0
1,810.0
56,157.0
1.5
84,235.5

Quarter
41,000
27,374
29,220
8,293
105,886

Quarter
28,090
0
843
13
10,955

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MANAGERIAL ACCOUNTING - Fourth Edition Solutions Manual

Quarter

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MANAGERIAL ACCOUNTING - Fourth Edition Solutions Manual

19,500
6,300
39,326
65,126

Quarter
33,600
4,200
37,800

Quarter
13,198
246,900
260,098

105,886
10,955
65,126
37,800
10,800
25,000
255,567
4,531

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MANAGERIAL ACCOUNTING - Fourth Edition Solutions Manual

4,531

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MANAGERIAL ACCOUNTING - Fourth Edition Solutions Manual

3.0
1.2
1.4
0.7
6.3

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