WASATCH MANUFACTURING

Master Budget

unit sales
price per unit
sales revenue

Sales Budget
December
January
8444
8900
9
9
76000
80100

February
9900
9
89100

cash sales (25%)

credit sales (75%)
total cash colletcions

Cash Collections Budget

January
20025
66825
86850

February
22275
62100
84375

Production Budget
January
8900
1485
10385
1335
9050

February
9900
1380
11280
1485
9795

Direct Materials Budget

January
units to be produced
9050
Multiply by: Quantity of DM needed per unit (lbs.)
2
18100
Quantity of DM needed for production (lbs.)
1959
Plus: Desired ending inventory of DM (lbs.)
20059
Total quantity of DM needed (lbs.)
1810
Less: Beginning inventory of DM (lbs.)
18249
Quantity of DM to purchase (lbs.)
1.5
Multiply by: Cost per pound
27373.5
total cost of dm purchases

February
9795
2
19590
1849
21439
1959
19480
1.5
29220

unit sales
plus: desired ending inventory
total needed
less: beginning inventory
units to produce

Cash Payments for Direct Material Purchases Budget

January
February
22000
December Purchases (from A/P)
8212
19161
January Purchases
8766
February Purchases
March Purchases
Total Cash Payments

30212

27927

Cash Payments for Direct Labor Budget

January
February
9050
9795
Units Produced
0.03
0.03
Multiply by: Hours per Unit
271.5
293.85
Direct Labor Hours
13
13
Multiply by: Direct Labor Rate per Hour
3529.5
3820.05
Direct Labor Cost

Cash Payments for Manufacturing Overhead Budget

January
February
6500
6500
Rent (fixed)
2100
2100
Other Manufacturing Overhead (fixed)
12670
13713
Variable Manufacturing Overhead Costs
21270
22313
Cash Payments for Manufacturing Overhead

Cash Payments for Operating Expenses Budget

January
February
10680
11880
Variable Operating Expenses
1400
1400
Fixed Operating Expenses
12080
13280
Cash Payments for Operating Expenses

Cash Balance, Beginning

Plus: Cash Collections

Combined Cash Budget

January
6000
86850

February
10758
84375

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:
Borrowings
Repayments
Interest Payments
Total Financing
Cash Balance, Ending

92850

95133

30212
3529.5
21270
12080
15000
82092
10758

27927
3820.05
22313
13280
10800
6000
84141
10993

0
10758

0
10993

Budgeted Manufacturing Cost per Unit

Direct materials cost 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
Less: Cost of Goods Sold
Gross Profit
Less: Operating Expenses
Less: Depreciation Expense
Operating Income
Less: Interest Expense
Less: Income Tax Expense
Net Income

URING

March
9200
9
82800

April
9500
9
85500

March
20700
64125
84825

Quarter
63000
193050
256050

March
9200
1425
10625
1380
9245

Quarter
28000
1425
29425
1335
28090

March
9245
2
18490
1873
20363
1849
18514
1.5
27771

Quarter
28090
2
56180
1873
58053
1810
56243
1.5
84364.5

May
8600
9
77400

s Budget
March

20454
8331
28785

Quarter
22000
27374
29220
8331
86925

March
9245
0.03
277.35
13
3605.55

Quarter
28090
0.03
842.7
13
10955.1

March
6500
2100
12943
21543

Quarter
19500
6300
39326
65126

March
11040
1400
12440

Quarter
33600
4200
37800

March
10993
84825

Quarter
6000
256050

et

d Budget

Budget

95818

262050

28785
3605.55
21543
12440
4000
70374
25444

86925
10955.1
65126
37800
10800
25000
236606
25444

10000
300
10300
15144

10000
300
10300
35744

it
3
0.39
1.4
0.7
5.49

252000
153720
98280
37800
5200
55280
300
15394.4
39585.6