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    Wasatch Manufacturing Master Budget: Managerial Accounting - Fourth Edition Solutions Manual

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    The document presents Wasatch Manufacturing's master budget for the months of December through March. The master budget includes sales budgets, cash collection budgets, production budgets, direct materials budgets, direct labor budgets, manufacturing overhead budgets, operating expense budgets, and cash budgets. It also includes budgeted income statements and manufacturing cost per unit. The budgets project unit sales, revenues, production needs, material and labor costs, cash flows, and profits on a monthly and quarterly basis. The budgets are integrated so that the cash budget accounts for cash inflows from sales and cash outflows for materials, labor, overhead and other expenses.

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    Wasatch Manufacturing Master Budget: Managerial Accounting - Fourth Edition Solutions Manual

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    api-269073570
    119 views12 pages
    The document presents Wasatch Manufacturing's master budget for the months of December through March. The master budget includes sales budgets, cash collection budgets, production budgets, direct materials budgets, direct labor budgets, manufacturing overhead budgets, operating expense budgets, and cash budgets. It also includes budgeted income statements and manufacturing cost per unit. The budgets project unit sales, revenues, production needs, material and labor costs, cash flows, and profits on a monthly and quarterly basis. The budgets are integrated so that the cash budget accounts for cash inflows from sales and cash outflows for materials, labor, overhead and other expenses.

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    The document presents Wasatch Manufacturing's master budget for the months of December through March. The master budget includes sales budgets, cash collection budgets, production budgets, direct materials budgets, direct labor budgets, manufacturing overhead budgets, operating expense budgets, and cash budgets. It also includes budgeted income statements and manufacturing cost per unit. The budgets project unit sales, revenues, production needs, material and labor costs, cash flows, and profits on a monthly and quarterly basis. The budgets are integrated so that the cash budget accounts for cash inflows from sales and cash outflows for materials, labor, overhead and other expenses.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    119 views12 pages

    Wasatch Manufacturing Master Budget: Managerial Accounting - Fourth Edition Solutions Manual

    Uploaded by

    api-269073570
    The document presents Wasatch Manufacturing's master budget for the months of December through March. The master budget includes sales budgets, cash collection budgets, production budgets, direct materials budgets, direct labor budgets, manufacturing overhead budgets, operating expense budgets, and cash budgets. It also includes budgeted income statements and manufacturing cost per unit. The budgets project unit sales, revenues, production needs, material and labor costs, cash flows, and profits on a monthly and quarterly basis. The budgets are integrated so that the cash budget accounts for cash inflows from sales and cash outflows for materials, labor, overhead and other expenses.

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    © All Rights Reserved
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    You are on page 1of 12

    MANAGERIAL ACCOUNTING - Fourth Edition

    Solutions Manual

    WASATCH MANUFACTURING
    Master Budget

    December
    Unit Sales
    Unit Selling Price
    Total Sales Revenue

    $
    $

    8444
    9
    76,000 $

    Sales Budget
    January
    February
    8900
    9900
    ### $
    9 $
    80,100 $
    89,100 $

    Cash Collections (25%)


    Credit Collections (75%)
    Total Cash Collections

    Cash Collections Budget


    January
    $
    20,025 $
    $
    57,000 $
    $
    77,025 $

    Unit Sales
    Desired Ending Inventory
    Total Needed
    Beginning Inventory
    Units to Produce

    Production Budget
    January
    8900
    1485
    10385
    1335
    9050

    Chapter 9: The Master Budget

    March
    9200
    9
    82,800

    February
    22,275 $
    60,075 $
    82,350 $

    March
    20,700
    66,825
    87,525

    February

    March

    9900
    1380
    11280
    1485
    9795

    9200
    1425
    10625
    1380
    9245

    Page 1 of 12

    MANAGERIAL ACCOUNTING - Fourth Edition

    Units to be produced
    Quantity of DM needed per unit
    Quantity of DM needed for Production
    Desired ending inventory of DM
    Total quantity of DM needed
    Beginning inventory of DM
    Quantity of DM to purchase
    Cost per pound
    Total cost of DM purchases

    Solutions Manual
    Direct Materials Budget
    January
    9050
    2
    18100
    1959
    20059
    1810
    18249
    $
    1.50 $
    $
    27,374 $

    February
    9795
    2
    19590
    1849
    21439
    1959
    19480
    1.50 $
    29,220 $

    Cash Payments for Direct Material Purchases Budget


    January
    February
    December purchases (From AP balance sheet)
    $
    22,000
    January purchases
    $
    8,212 $
    19,161
    February Purchases
    $
    8,766 $
    March purchases
    $
    Total Disbursements
    $
    30,212 $
    27,927 $

    Units to be produced (From production budget


    Direct labor hours per unit
    Total hours required
    Direct labor cost per hour
    Total direct labor cost

    Chapter 9: The Master Budget

    Cash Payments for Direct Labor Budget


    January
    February
    9050
    9795
    0.03
    0.03
    271.5
    293.85
    $
    13 $
    13 $
    $
    3,530 $
    3,820 $

    March
    9245
    2
    18490
    1873
    20363
    1849
    18514
    1.50
    27,771

    March

    20,454
    8,331
    28,785

    March
    9245
    0.03
    277.35
    13
    3,606

    Page 2 of 12

    MANAGERIAL ACCOUNTING - Fourth Edition

    Chapter 9: The Master Budget

    Solutions Manual

    Page 3 of 12

    MANAGERIAL ACCOUNTING - Fourth Edition

    Rent (Fixed)
    Other MOH (Fixed)

    Solutions Manual

    Cash Payments for Manufacturing Overhead Budget


    January
    February
    $
    6,500 $
    6,500 $
    $
    2,100 $
    2,100 $

    March
    6,500
    2,100

    Variable conversion costs

    12,670 $

    13,713 $

    12,943

    Total Disbursements

    21,270 $

    22,313 $

    21,543

    Variable operating expense


    Fixed operating expens
    Total Disbursements

    Cash Balance Beginning


    Cash collections
    Total Cash Available
    Less Cash Disbursements:
    For Materials
    For Direct Labor
    For MOH
    For Operating Expenses
    For Equipment
    For Taxes
    Total Disbursments
    Excess (Deficiency) of cash
    Financing:
    Chapter 9: The Master Budget

    Cash Payments for Operating Expenses Budget


    January
    February
    $
    10,680 $
    11,880 $
    $
    1,400 $
    1,400 $
    $

    12,080 $

    13,280 $

    Combined Cash Budget


    January
    $
    6,000 $
    $
    77,025 $
    $
    83,025 $

    February
    4,933 $
    82,350 $
    87,283 $

    $
    $
    $
    $
    $
    $
    $

    30,212
    3,530
    21,270
    12,080
    15,000

    $
    $
    $
    $
    $
    $
    82,092 $
    933 $

    27,927
    3,820
    22,313
    13,280
    6,000
    10,800
    84,141
    3,143

    March
    11,040
    1,400
    12,440

    March
    5,143
    87,525
    92,668

    $
    $
    $
    $
    $

    28,785
    3,606
    21,543
    12,440
    4,000

    $
    $

    70,374
    22,294

    Page 4 of 12

    MANAGERIAL ACCOUNTING - Fourth Edition


    Borrowing
    Repayment
    Interest
    Total Financing
    Ending Cash Balance

    Chapter 9: The Master Budget

    Solutions Manual
    $

    4,000 $

    $
    $

    4,000 $
    4,933 $

    2,000 $
    $
    $
    2,000 $
    5,143 $

    (17,000)
    (240)
    (17,240)
    5,054

    Page 5 of 12

    MANAGERIAL ACCOUNTING - Fourth Edition

    Solutions Manual

    Budgeted Manufacturing Cost per Unit


    Direct Materials (2 lbs each X $1.50 per lb)
    Conversion Costs ($1.40 Each)
    Fixed MOH .
    Cost to manufacture each unit

    Budgeted Income Statement


    Sales
    Cost of goods sold ($5.00 X units Sold)
    Gross Profit
    Operating Expenses
    Depreciation Expenses
    Operating Income
    Less: Interest Expense
    Less: Provision for Gross Tax @ 28%
    Nert Income

    Chapter 9: The Master Budget

    $
    $
    $
    $
    $
    $
    $
    $
    $

    252,000
    (140,000)
    112,000
    37,800
    5,200
    69,000
    (240)
    19,253
    49,507

    Page 6 of 12

    MANAGERIAL ACCOUNTING - Fourth Edition

    April
    $
    $

    $
    $
    $

    Solutions Manual

    May
    9500
    9
    85,500 $

    8600
    ###
    77,400

    Quarter
    63,000
    183,900
    246,900

    Quarter
    28000
    1425
    29425
    1335
    28090

    Chapter 9: The Master Budget

    Page 7 of 12

    MANAGERIAL ACCOUNTING - Fourth Edition

    Solutions Manual

    Quarter

    $
    $

    28090
    2
    56180
    1873
    58053
    1810
    56243
    1.50
    84,365

    $
    $
    $
    $
    $

    Quarter
    22,000
    27,374
    29,220
    8,331
    86,925

    Quarter

    $
    $

    28090
    0.03
    842.7
    13
    10,955

    Chapter 9: The Master Budget

    Page 8 of 12

    MANAGERIAL ACCOUNTING - Fourth Edition

    Chapter 9: The Master Budget

    Solutions Manual

    Page 9 of 12

    MANAGERIAL ACCOUNTING - Fourth Edition

    $
    $
    $
    $

    Quarter
    19,500
    6,300
    39,326

    65,126

    $
    $

    Quarter
    33,600
    4,200

    37,800

    Solutions Manual

    Quarter
    $
    $
    $

    6,000
    246,900
    252,900

    $
    $
    $
    $
    $
    $
    $
    $

    86,925
    10,955
    65,126
    37,800
    25,000
    10,800
    236,606
    16,294

    Chapter 9: The Master Budget

    Page 10 of 12

    MANAGERIAL ACCOUNTING - Fourth Edition


    $
    $
    $
    $
    $

    Solutions Manual

    6,000
    (17,000)
    (240)
    (11,240)
    5,054

    Chapter 9: The Master Budget

    Page 11 of 12

    MANAGERIAL ACCOUNTING - Fourth Edition

    $
    $
    $
    $

    Solutions Manual

    3.00
    1.40
    0.60
    5.00

    Chapter 9: The Master Budget

    Page 12 of 12

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