Problem 09-39

Student Name:
Class:

EDGEWORTH BOX CORPORATION

Master Budget
1. Sales Budget:
Box C
Sales (in units)
Sales price per unit
Sales revenue

Box P
*
*
*

*
*
*

2. Production Budget (in units):

Box C
Sales
Add: Desired ending inventory
Total units needed
Deduct: Beginning inventory
Production requirements

Box P
*
*
*
*
*

*
*
*
*
*

3. Raw material budget:

PAPERBOARD
Box C
Production requirements (number of boxes)
Raw material required per box (pounds)
Raw material required for production (pounds)
Add: Desired ending raw-material inventory
Total raw-material needs
Deduct: Beginning raw-material inventory
Raw material to be purchased
Price (per pound)
Cost of purchases (paperboard)

Box P
*
*
*

*
*
*

CORRUGATING MEDIUM
Box C
Production requirements (number of boxes)
Raw material required per box (pounds)
Raw material required for production (pounds)
Add: Desired ending raw-material inventory
Total raw-material needs
Deduct: Beginning raw-material inventory
Raw material to be purchased
Price (per pound)
Cost of purchases (corrugating medium)

Box P
*
*
*

*
*
*

Total cost of raw-material purchases

4. Direct labor budget:

Box C
Production requirements (number of boxes)
Direct labor required per box (hours)
Direct labor required for production (hours)
Direct-labor rate
Total direct-labor cost

Box P
*
*
*

5. Manufacturing overhead budget:

Indirect material
Indirect labor
Utilities
Property taxes
Insurance
Depreciation
Total overhead

*
*
*
*
*
*
*

6. Selling and administrative expense budget:

Salaries and fringe benefits of sales personnel
Advertising
Management salaries and fringe benefits
Clerical wages and fringe benefits
Miscellaneous administrative expenses
Total selling and administrative expenses

*
*
*
*
*
*

7. Budgeted income statement:

Sales revenue
Less: Cost of goods sold:*
Box C
Box P
Gross margin
Selling and administrative expenses
Income before taxes
Income tax expense
Net income
*Calculation of cost of goods sold:
(a) Predetermined overhead rate
Budgeted manufacturing overhead rate
Volume of direct-labor hours
Rate per hour

*
*
*

*
*
*

*
*
*

*
*
*
*
*
*

(b) Calculation of manufacturing cost per unit:

Box C
Direct material
Paperboard
Corrugating medium
Direct labor
Applied manufacturing overhead
Manufacturing cost per unit

Box P
*
*
*
*
*

*
*
*
*
*

Total

Total

*
*
*
*
*
*
*

Total

*
*
*
*
*
*
*

Total

*
*
*