TUGAS - 1

Strategy & the master budget

MANAGEMENT ACCOUNTANT (05 PACI)

The following is the Financial Statement Budgeted of PT. ABC (Balance Sheet & Income St
PT ABC is a manufacturing company that manufactures and sells finished good (one produ
PT. ABC needs help from an Accountant to be prepare the operational and financial budge
of 2019 use some assumptions of operasional & financial budgeted as belows:

PT. ABC
Budgeted Balance Sheet
As Of December 31, 2009

Assets
Current assets:
Cash
Accounts receivable
Materials inventory
Finished goods inventory
Total current assets:
Property, plant, and equipment:
Land
Building and equipment
Accumulated depreciation
Total property, plant, and equipment
Total assets

Liabilities and Owners’ Equity

Current liabilities:
Accounts payable
Owners’ equity:
Retained earnings
Total owners’ equity:
Total liabilities and owners’ equity:
Control:
 PT. ABC
Budgeted Income Stateme
Year 2009

Sales (Schedule 1)
Less: Cost of goods sold (Schedule 7)
Gross margin
Less: Selling and administrative expenses (Schedule 8)
Operating income
Less: Interest expense (Schedule 10)
Income before income taxes
Less: Income taxes (Schedule 10)

Net income

Assumes:
I. ASSUMES - OPERATING BUDGET:

1 Sales Budget

a Assume that sales volume (unit) for Q1 is 1,000 units and increases about
b Assume that selling price/unit is $16.

2 Production Budget
a Assume that company policy requires 10 percent of the next quarter’s sales in
b Assume that sales for the first quarter of 2010 are estimated at 2,500 units.
c Assume that company policy beginning inventory for the first quarter of the ye
d year was 180. inventory for one quarter is always equal to the ending inventor
The beginning

3 Direct Materials Purchases Budget

a Assume that company policy requires 15 percent of the next units to be produc
b The desired ending inventories of 100 Bag for Q-4 are given simply to complete
c Assume that the factory had 141 Bag on hand on January 1, 2009.
390 ounces of ink on hand on January 1, 2008.
 d For simplicity, suppose that PT. ABC’s Bag require of raw material: Bag costing

4 Direct Labor Budget

a If 1 unit bag requires 2 direct labor hours, then the direct labor time per bag is
b The wage rate is $6 per hour

5 Overhead Budget

a Includes $200 of depreciation in each quarter:

b The variable overhead rate is $3 per direct labor hour:

Total Fixed overhead is budgeted for year 2009:
Total Fixed Overhead per quarter:

6 Ending Finished Goods Inventory Budget

Unit-cost computation:
Direct Cost:
Direct materials
Direct labor
Total Direct Cost:
Indirect Cost - Overhead:
Variable:
Fixed:

Total Indirect Cost - Overhead:

Total unit cost - FG:

Ending Balance - Finished goods (Bag):

Beginning Balance - Finished goods (Bag):
From Schedule - 2 (In

7 Cost of Goods Sold Budget

Direct materials used:

 8 Selling and Administrative Expenses Budget
a Assume that company policy for Variable selling and administrative expenses p
b Assume that depreciation expenses is $150 per Quarter 2009.

Variable selling and administrative expenses:

Planned sales in units (Schedule 1)
Variable selling and administrative expenses per unit
Total variable expenses

Fixed selling and administrative expenses:

Salaries
Utilities
Advertising
Depreciation
Insurance
Total fixed expenses

Total selling and administrative expen

9 Budgeted Income Statement

a Assume that Corporate income taxes: 25% from Income before tax

II. ASSUMES - FINANCIAL BUDGET:

A $1,500 minimum cash balance is required for the end of each quarter. Money can be borr
percent per year. Interest payments are made only for the amount of the principal being
quarter, and all repayment takes place at the end of a quarter.
b
Interest payment is 6/12 x 0.10 x $1,500. Since borrowings occur at the beginn
the quarter, th principal repayment takes place after six months.

B Two-quarter of all sales are for cash, 85 percent of credit sales are collected in the quarte
the following quarter. The sales for the fourth quarter of 2008 were $20,000.
 C Purchases of direct materials are made on account; 80 percent of purchases are paid for
paid for in the following quarter. The purchases for the fourth quarter of 2008 were $4,00

D Budgeted depreciation is $200 per quarter for overhead and $150 per quarter for selli

E The capital budget for 2008 revealed plans to purchase additional screen printing equipm
place in the first quarter. The company plans to finance the acquisition of the equipment
loans as necessary.
F Corporate income taxes: 25% from Income before tax and will be paid at the end

G Beginning cash balance equals $7,503.

H All amounts in the budget are rounded to the nearest dollar.

III. ASSUMES - BUDGETED BALANCE SHEET:

a Ending balance from Schedule 10.
b 15% of fourth-quarter credit sales —see Schedules 1 and 10.
c From Schedule 3
d From Schedule 6.
e From the December 31, 2008, balance sheet.
f December 31, 2008, balance ($36,500) plus new equipment acquisition of $6,00
the 2008 ending balance sheet and Schedule 10).
g From the December 31, 2008, balance sheet, Schedule 5, and Schedule 8.
h Twenty percent of fourth-quarter purchases of 2008 (0.20 x $6,870)—see Sched
i and 10. earnings: December 31, 2008, balance plus net income from Schedule 9
Retained

Questions:
1 Prepare Operating Budget for year 2009?
2 Prepare Budgeted Income Statement for the year ended on 31 Decem
3 Prepare Financial Budget for year 2009?
4 Prepare Budgeted Balance Sheet as of 31 December 2009?

NOTE:- Please done assignments using handwritten on striped folio

- Please answer a minimum of two questions from the four questions a
- Tasks were collected at the fourth meeting.
alance Sheet & Income Statement Budgeted) as of December 31, 2018.
s finished good (one product "tas").
tional and financial budget, and Balance Sheet & Income Statement Budgeted
ted as belows:

PT. ABC
ed Balance Sheet
ecember 31, 2009

31/12/08 31/12/09

$7,503 ?????
$1,500 ?????
$424 ?????
$1,390 ?????
$10,817 $0

$1,100 ?????
$36,500 ?????
-$7,760 ?????
$29,840 $0
$40,657 $0

$1,381 ?????

$39,276 ?????
$39,276 $0
$40,657 $0
$0 $0
 PT. ABC
d Income Statement
Year 2009
Amount
2008 2009
$57,000 ?????
$39,617 ?????
$17,383 $0
$8,650 ?????
$8,733 $0
$60 ?????
$8,673 $0
$2,550 ?????

$6,123 $0

ts and increases about 10% for Q2, 30% for Q3, and 50% for Q4.

e next quarter’s sales in ending inventory.

imated at 2,500 units.
he first quarter of the year was 119 units.
al to the ending inventory of the previous quarter.

e next units to be produced in ending inventory of Bag.

given simply to complete this example.
ary 1, 2009.
aw material: Bag costing $3 each & Direct Materials Bag per unit: 2 each.

rect labor time per bag is 0.5 hour

Per Quarter: Total:

$0 Depreciation - 2009

$3 Variable Overhead Rate

$6,580 Fixed Overhead 2009
$1,645

Cost per unit of Finished Goods - Bag

Direct labor time X Wage Rate per Hours
Direct Material + Direct Labor

(Direct labor time (hr) X Variable Overhead Rate)

*(Total Fixed Overhead/Total Hour Needed)
X Direct Labor Time (hr)
Variable Cost + Fixed Cost
Total Direct Cost + Indidrect Cost - Overhead

Units Unit Cost - FG

$0.00
$0.00
From Schedule - 2 (Inv - Q1 & Q4)

Production Needs Cost per Unit Direct materials used

- $0
 Schedule 3 Schedule 3

Budget
dministrative expenses per sales in unit is $0,05.
ter 2009.

Quarter - 2009
1 2 3
xpenses:

$0 $0 $0

$1,220 $1,220 $1,720

$50 $50 $50
$100 $200 $300
????? ????? ?????
$200 $200 $200
$1,570 $1,670 $2,270

$1,570 $1,670 $2,270

me before tax

h quarter. Money can be borrowed and repaid in multiples of $1,500. Interest is 10

mount of the principal being repaid. All borrowing takes place at the beginning of a
r.
wings occur at the beginning of the quarter and repayments at the end of
ix months.

s are collected in the quarter of sale, and the remaining 15 percent are collected in
8 were $20,000.
nt of purchases are paid for in the quarter of purchase. The remaining 20 percent are
quarter of 2008 were $4,000.

d $150 per quarter for selling and administrative expenses (see Schedules 5 and 8).

ional screen printing equipment. The cash outlay for the equipment, $6,000, will take
cquisition of the equipment with operating cash, supplementing it with short-term

and will be paid at the end of the fourth quarter (Schedule 9).

ment acquisition of $6,000 (see

5, and Schedule 8.
20 x $6,870)—see Schedules 3
t income from Schedule 9

ar ended on 31 December 2009?

mber 2009?

ten on striped folio paper.

m the four questions above.
 Total
$0
$0

Direct materials used

$0
 Year
4

From Schedule - 1
a
$0 $0

$1,220 $5,380
$50 $200
$500 $1,100
????? ????? b
$200 $800
$1,970 $7,480

$1,970 $7,480