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    The Wasatch Manufacturing master budget summarizes budgets for sales, production, direct materials, direct labor, manufacturing overhead, operating expenses, and cash for the first quarter. Key highlights include: - Total quarterly sales revenue is budgeted at $252,000 - Production of 28,000 units is budgeted to meet sales - Total quarterly cash collections are budgeted at $246,900 - Various cash payment budgets are provided to arrive at a projected ending cash balance of $13,960.50 for March - Budgeted cost per unit is $7.11 and budgeted net income for the quarter is $2,884

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    The Wasatch Manufacturing master budget summarizes budgets for sales, production, direct materials, direct labor, manufacturing overhead, operating expenses, and cash for the first quarter. Key highlights include: - Total quarterly sales revenue is budgeted at $252,000 - Production of 28,000 units is budgeted to meet sales - Total quarterly cash collections are budgeted at $246,900 - Various cash payment budgets are provided to arrive at a projected ending cash balance of $13,960.50 for March - Budgeted cost per unit is $7.11 and budgeted net income for the quarter is $2,884

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    13 views4 pages

    Acct 2020 Emily Rufener

    Uploaded by

    api-284746082
    The Wasatch Manufacturing master budget summarizes budgets for sales, production, direct materials, direct labor, manufacturing overhead, operating expenses, and cash for the first quarter. Key highlights include: - Total quarterly sales revenue is budgeted at $252,000 - Production of 28,000 units is budgeted to meet sales - Total quarterly cash collections are budgeted at $246,900 - Various cash payment budgets are provided to arrive at a projected ending cash balance of $13,960.50 for March - Budgeted cost per unit is $7.11 and budgeted net income for the quarter is $2,884

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    © All Rights Reserved
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    of 4

    WASATCH MANUFACTURING

    Master Budget
    Sales Budget
    January
    February
    8900
    9900
    9
    9
    80100
    89100

    March
    9200
    9
    82800

    April
    9500
    9
    85500

    Cash Collections Budget


    January
    February
    25%
    20025
    22275
    75%
    57000
    60075
    77025
    82350

    March
    20700
    66825
    87525

    Quarter
    63000
    183900
    246900

    Production Budget
    January
    February
    Unit Sales
    8900
    9900
    Plus:Desired ending inventory15%
    1485
    1380
    Total Needed
    10385
    11280
    Less: Beginning inventory
    1335
    1485
    Units to Produce
    9050
    9795

    March
    9200
    1425
    10625
    1380
    9245

    Quarter
    28000
    4290
    32290
    4200
    28090

    Unit Sales
    Price Per Unit
    Sales Revenue

    Cash Sales
    Credit Sales
    Total Cash Collections

    December
    8444
    9
    76000

    May
    8600
    9
    77400

    Direct Materials Budget


    January
    February
    8900
    9900
    2
    2

    Units to be Produced
    Mulitiply by: quantity of DM
    needed per unit
    Quantity of DM needed for production
    Plus: Desired ending inventory10%
    Total Quantity of DM needed
    Less: Beginning inventory of DM
    Quantity of DM to purchase
    Multiply by: Cost per pound
    Total cost of DM purchases

    17800
    990
    18790
    1780
    17010
    1.5
    25515

    19800
    920
    20720
    1980
    18740
    1.5
    28110

    March
    9200
    2
    18400
    950
    19350
    1840
    17510
    1.5
    26265

    Cash Payments for Direct Material Purchases Budget


    January
    February
    March
    December Purchases (from AP)
    30%
    22000
    January Purchases
    70%
    7654.5
    17860.5
    February Purchases
    8433
    19677
    March Purchases
    7879.5
    Total Payments
    29654.5
    26293.5
    27556.5

    Units Produced
    Hours per unit
    Direct labor hours
    Direct Labor rate
    Direct Labor

    Cash Payments for Direct Labor Budget


    January
    February
    March
    8900
    9900
    9200
    0.03
    0.03
    0.03
    267
    297
    276
    13
    13
    13
    3471
    3861
    3588

    Quarter
    28000

    2860
    58860
    5600
    53260
    1.5
    79890

    Quarter

    83504.5

    Quarter
    28000
    840
    10920

    Cash Payments for Manufacturing Overhead Budget


    January
    February
    March
    Rent (fixed)
    6500
    6500
    6500
    Other MOH (fixed)
    2100
    2100
    2100
    Variable Manufacturing overhead
    12460
    13860
    12880
    costs
    Total disbursements
    21060
    22460
    21480

    Cash Payments for Operating Expenses Budget


    January
    February
    March
    Variable operating expenses 1.4
    12460
    13860
    12880
    Fixed operating expenses
    1400
    1400
    1400
    Total payments for operating expenses 13860
    15260
    14280

    Combined Cash Budget


    January
    February
    6000
    4979.5
    77025
    82350
    83025
    87329.5

    Cash balance, beginning


    Plus: Cash collections
    Total Cash Available
    Less cash payments:
    DM Purchases
    Direct labor
    MOH costs
    Operating expenses
    Tax payment
    Equipment purchases
    Total cash payments
    Ending cash before financing
    Financing:
    Borrowings
    Repayments
    Interest Payments
    1.50%
    Total financing
    Cash balance, Ending

    29654.5
    3471
    21060
    13860
    15000
    83045.5
    -20.5

    26293.5
    3861
    22460
    15260
    10800
    6000
    84674.5
    2655

    5000

    2000

    5000
    4979.5

    2000
    4655

    March
    4655
    87525
    92180
    27556.5
    3588
    21480
    14280
    4000
    70904.5
    21275.5

    -7000
    -315
    -7315
    13960.5

    Quarter
    19500
    6300
    39200
    65000

    Quarter
    39200
    4200
    43400

    Quarter
    15634.5
    246900
    262534.5
    0
    83504.5
    10920
    65000
    43400
    10800
    25000
    238624.5
    23910
    0
    7000
    -7000
    -315
    -315
    13960.5

    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
    Less: Cost of goods sold
    Gross profit
    Less: Operating expenses
    Less: Depreciation expense
    Operating income
    Less: Interest expense
    Less: Income tax expense @28%
    Net income

    3
    2.56
    1.4
    0.15
    7.11

    252,000
    199,080
    52,920
    43,400
    5,200
    4,320
    315
    1,121.40
    2,884

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