4/20/2016

ACCT 2020
Jon Nom

Master Budget
Sales Budget
December
Unit Sales
Price per unit
Saleas Revenue

January

8,444
9
76,000

February

8,900
###
80,100

March

9,900
9
89,100

9,200
9
82,800

Cash Collections Budget

January
Cash Sales (25%)
Credit Sales (75%)
Total Cash Collections

February
20,025
57,000
77,025

March

22,275
60,075
82,350

Quarter
20,700
66,825
87,525

63,000
183,900
246,900

Production Budget
January
Unit Sales
Plus: Desired Ending Inventory
Total Needed
Less: Beginning Inventory
Units to Produce

8,900
1,485
10,385
1,335
9,050

February

March

9,900
1,380
11,280
1,485
9,795

9,200
1,425
10,625
1,380
9,245

Direct Materials Budget

January
Units to be Produced
Multiply by: Quantity of DM Needed per Unit (lbs.)
Quantity ofDM Needed for Production (lbs.)
Plus: Desired Ending Inventory of DM (lbs.)
Total Quantity of DM Needed (lbs.)
Less: Beginning Inventory of DM (lbs.)
Quantity of DM to Production (lbs.)
Multiply by: Cost per Pound
Total Cost of DM Purchases

9,050
2
18,100
1,959
20,059
1,810
18,249
1.50
27,374

February
9,795
2
19,590
1,849
21,439
1,959
19,480
1.50
29,220

Cash Payments for Direct Material Purchases Budget

January
30% of current Month DM Purchases
70% of Orevious Month DM Pruchases
Total Cash Payments DM Purchases

8,212
22000
30,212

February
8,766
19,161.45
27,927

March
8,331.30
20,454.00
28,785

Cash Payments for Direct Labor Budget

January
Unit Produced
Multiply by: Hour per unit
Direct Labor Hours
Multiply by: Direct Labor Rate per Hour
Direct Labor Cost

9,050
0.03
271.5
13
3,530

February

March

9,795
0.03
293.85
13
3,820

9,245
0.03
277.35
13
3,606

Cash Payments for Manufacturing Overhead Budget

January
February
Rent (Fixed)
Other Manufacturing Overhead (Fixed)
Variable Manufacturing Overhead Costs
Cash Payments for Manufacturing Overhead

6,500
2,100
12,670
21,270

6,500
2,100
13,713
22,313

Cash Payments for Operating expenses Budget

January
Vsriable operating Expenses
Fixed Operating Expenses
Cash Payments for Operating Expenses

10,680
1400
12,080

February

March

11,880
1400
13,280

11,040
1400
12,440

Combined Cash Budget

January
Cash balance, Beginning
Plus: Cash Collections
Total Cash Available

6000
77,025
83,025

February
4,933
82,350
87,283

March
5,143
87,525
92,668

Less Cash payments:

DM Purchases
Direct Labor
Manufacturing Overhead Costs
Operating Expenses
Tax Payment
Equipment Pirchases
Total Cash Payments
Enging Cash Before Financing
Financing:
Borrowing
Repayments
Interest Payments
Cash Balance, Enging

30,212
3,530
21,270
12,080
0
15000
82,092
933

27,927
3,820
22,313
13,280
10800
6000
84,141
3,143

28,785
3,606
21,543
12,440
0
4000
70,374
22,294

4000
0
0
4,933

2000
0
0
5,143

0
-6000
-240
16,054

Budgeted Manufacturing Cost per Unit

Direct Materials Cost per unit (2lbs. x 1.50)
Direct labor Cost per Unit ( .03 hoursx 13)
Variable Manufacturing Cost per Unit
Fixed Manufacturing Overhead per Unit
Cost of Manufacturing Each Unit

3
0.39
1.4
0.6
5.39

Budgeted Income Statement

For the Quarter Ended March 31
Sales Revenue
Less: Cost Of Goods Slod
Gross Profit
Less: Operating Expenses
Less: Depreciation Expense
Operating Income
Less: Interest Expense
Less: Income Tax Expense
Net Income

252000
150,920
101,080
37,800
5200
58,080
240
16195.2
41,645

April

May
9,500
9
85,500

Quarter
8,600
9
77,400

Quarter

April

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

March

9,500
1290
10,790
1,425
9,365

Quarter
9,245
2
18,490
1,873
20,363
1,849
18,514
1.50
27,771

28,000
9
252,000

28,090
2
56,180
1,873
58,053
1,810
56,243
1.50
84,365

May
8,600

April
9,365
2
18,730

Budget
Quarter
25,309.35
61,615.45
86,925

Quarter
28,090
0.03
842.7
13
10,955

d Budget
March

Quarter
6,500
2,100
12,943
21,543

dget
quarter
33,600
4,200
37,800

Quarter
6000
246,900
252,900

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

86,925
10,955
65,126
37,800
10800
25000
236,606
16,294
6000
-6000
-240
16,054