WASATCH MANUFACTURING

Master Budget
For Quarter Ended March 31

Unit Sales
Price per Unit
Sales Revenue

December
$
8,444.44 $
$
9.00 $
$
76,000.00 $

Sales Budget
January
February
8,900.00 $
9,900.00
9.00 $
9.00
80,100.00 $
89,100.00

$
$
$

Cash Collections Budget

January
February
20,025.00 $
22,275.00
57,000.00 $
60,075.00
77,025.00 $
82,350.00

$
$
$
$
$

Production Budget
January
February
8,900.00 $
9,900.00
1,485.00 $
1,380.00
10,385.00 $
11,280.00
1,335.00 $
1,485.00
9,050.00 $
9,795.00

Cash sales (25%)

Credit sales (75%)
Total cash collections

Unit sales
Plus: Desired ending inventory
Total needed
Less: Beginning inventory
Units to produce

Units
to by:
be produced
Multiply
Quantity of DM Needed per $
unit
(lbs.) of DM needed for production
$
Quantity
(lbs.)
$
Plus: Desired ending inventory of DM (lbs$
Total quantity of DM needed (lbs.)
$
Less: Beginning inventory of DM (lbs.) $
Quantity of DM to purchase (lbs.)
$
Multiply by: Cost per pound
$
Total Cost of DM purchases
$

Direct Materials Budget

January
February
9,050.00 $
9,795.00
2.00 $
2.00
18,100.00 $
19,590.00
1,959.00 $
1,849.00
20,059.00 $
21,439.00
(1,810.00) $

(1,959.00)

18,249.00 $
1.50 $
27,373.50 $

19,480.00
1.50
29,220.00

Cash Payments for Direct Material Purchases Budget

January
February

December purchases
January purchases
February purchases
March purchases
Total disbursements

$
$

22,000.00
8,212.05 $
$

19,161.45
8,766.00

30,212.05 $

27,927.45

Cash Payments for Direct Labor Budget

January
February
Units Produced
$
9,050.00 $
9,795.00
Multiply by: Hours per unit
$
0.03 $
0.03
Direct Labor Hours
$
271.50 $
293.85
Multiply by: Direct Labor Rate per Hour $
13.00 $
13.00
Direct labor Costs
$
3,529.50 $
3,820.05

Cash Payments for Manufacturing Overhead Budget

January
February
Rent
$
6,500.00 $
6,500.00
Other
Manufacturing
Overhead
$
2,100.00 $
2,100.00
Variable
Manufacturing
Overhead
$
12,670.00 $
13,713.00
Costs
Cash Payments for Operating
$
21,270.00 $
22,313.00
Expenses
Cash Payments for Operating Expenses Budget
January
February
Variable operating expenses
$
10,680.00 $
11,880.00
Fixed operating expenses
$
1,400.00 $
1,400.00
Cash Payments for Operating Expenses $
12,080.00 $
13,280.00

Cash balance, beginning

Plus: Cash collections
Total Cash Available
Less Cash Payments:
DM purchases
Direct Labor
Manufacturing Overhead costs
Operating expenses
Tax payment

$
$
$
$
$
$
$
$

Combined Cash Budget

January
February
6,000.00 $
4,933.45
77,025.00 $
82,350.00
83,025.00 $
87,283.45
30,212.05
3,529.50
21,270.00
12,080.00
-

$
$
$
$
$

27,927.45
3,820.05
22,313.00
13,280.00
10,800.00

Equipment purchases
Total Cash Payments
Ending Cash before financing
Financing:
Borrowings
Repayments
Interest payments
Total Financing
Cash Balance, ending

$
$
$

15,000.00 $
82,091.55 $
933.45 $

6,000.00
84,140.50
3,142.95

$
4,000.00 $
2,000.00
$
- $
$
- $
$
4,000.00 $
2,000.00
$
4,933.45 $
5,142.95
Budgeted Manufacturing Cost per Unit

Direct materials cost per unit

Direct labor cost per unit
Variable manufacturing overhead costs
Fixed manufacturing overhead per unit
Cost of manufacturing each unit

Budgeted Income Statement

For the Quarter Ended March 31
Sales Revenue
Less: Cost of goods sold
Gross profit
Less: Operating expenses
Less: Depreciation expense
Operating income
Less: Interest expense
Less: Income tax expense at 28%
Net income

NUFACTURING

Budget
nded March 31

Budget
$
$
$

March
9,200.00 $
9.00
82,800.00 $

$
$
$

March
20,700.00 $
66,825.00 $
87,525.00 $

April
9,500.00 $
###
$
85,500.00 $

May
8,600.00
9.00
77,400.00

dget
Quarter
63,000.00
183,900.00
246,900.00

et

Months
$
$
$
$
$

March
9,200.00
1,425.00
10,625.00
1,380.00
9,245.00

$
$
$
$
$

March
9,245.00
2.00
18,490.00
1,873.00
20,363.00

$
$
$
$
$

Quarter
28,000.00
1,425.00
29,425.00
1,335.00
28,090.00

$
$
$
$
$

April
9,500.00 $
1,290.00
10,790.00
1,425.00
9,365.00

$
$
$

April
9,365.00
2.00
18,730.00

dget

$
$
$

Quarter
28,090.00
###
56,180.00
1,873.00
58,053.00

(1,849.00) $

(1,810.00)

$
$
$

18,514.00 $
1.50
27,771.00 $

56,243.00
###
84,364.50

Purchases Budget
March

Quarter

May
8,600.00

$
$
$

$
$
20,454.00 $
8,331.30 $
28,785.30 $

22,000.00
27,373.50
29,220.00
8,331.30
86,924.80

March
9,245.00 $
0.03
277.35 $
13.00
3,605.55 $

Quarter
28,090.00
###
842.70
###
10,955.10

abor Budget
$
$
$
$
$

Overhead Budget
March
$
6,500.00
$
2,100.00
$
12,943.00
$
21,543.00

$
$
$
$

Quarter
19,500.00
6,300.00
39,326.00
65,126.00

xpenses Budget
March
$
11,040.00 $
$
1,400.00 $
$
12,440.00 $

Quarter
33,600.00
4,200.00
37,800.00

dget
$
$
$

March
5,142.95 $
87,525.00 $
92,667.95 $

$
$
$
$
$

28,785.30
3,605.55
21,543.00
12,440.00
-

$
$
$
$
$

Quarter
6,000.00
246,900.00
252,900.00
86,924.80
10,955.10
97,879.90
37,800.00
10,800.00

$
$
$
$

4,000.00 $
70,373.85 $
22,294.10 $
-

25,000.00
236,605.90
16,294.10

6,000.00

$
$
$

(6,000.00) $
(240.00) $
(6,240.00) $

(6,000.00)
(240.00)
(240.00)

$
ost per Unit

16,054.10 $

16,054.10

$
$
$
$
$

3.00
0.39
1.40
0.60
5.39

ent
h 31
$

252,000.00

(150,920.00)

101,080.00

$
$

(37,800.00)
(5,200.00)

58,080.00

$
$

(240.00)
(16,195.20)

41,644.80

Interest: $4,000 x 1.5% x 3 months

Interest: $2,000 x 1.5% x 2 months
Total Interest:

.5% x 3 months
.5% x 2 months

$
$
$

180.00
60.00
240.00