Scribd
Upload
82 views8 pages

p9-60 Psimasingh

The document presents Presidio Manufacturing's master budget for the first quarter. It includes budgets for sales, cash collections, production, direct materials, direct labor, manufacturing overhead, operating expenses, and cash. It also shows the budgeted manufacturing cost per unit and income statement. The master budget integrates all financial and operational aspects of the business to provide an overall plan for the quarter.

Uploaded by

api-241811190
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
82 views8 pages

p9-60 Psimasingh

The document presents Presidio Manufacturing's master budget for the first quarter. It includes budgets for sales, cash collections, production, direct materials, direct labor, manufacturing overhead, operating expenses, and cash. It also shows the budgeted manufacturing cost per unit and income statement. The master budget integrates all financial and operational aspects of the business to provide an overall plan for the quarter.

Uploaded by

api-241811190
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 8

MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

PRESIDIO MANUFACTURING
Master Budget

Unit sales
Unit selling price
Total sales Revenue

Cash sales
Credit sales
Total cash collections

Unit sales*
Plus: desired ending inventory
Total needed
Less: Beginning inventory
Number of units to produce

Chapter 9: The Master Budget

Sales Budget
January
February
8,300 $
9,900
12 $
12
99,600 $
118,800

$
$
$

9,600
12
115,200

$
$
$

April
9,000
12
108,000

Cash Collections Budget


January
February
$
34,860 $
41,580
$
46,150 $
64,740
$
81,010 $
106,320

$
$
$

March
40,320
77,220
117,540

$
$
$

Quarter
116,760
188,110
304,870

December
$
5,917
$
12
$
71,000

$
$
$

Production Budget
January
8,300
990
9,290
830
8,460

February
9,900
960
10,860
990
9,870

March

March
9,600
900
10,500
960
9,540

Quarter
27,800
900
28,700
830
27,870

Page 1 of 8

MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

Units to be produced (from Production Budget)


Multiply by: Quantity (pounds) of DM needed per unit
Quantity (pounds) needed for production
Plus: Desired ending inventory of DM
Total quantity (pounds) needed
Less: Beginning inventory of DM
Quantity (pounds) to purchase
Multiply by: Cost per pound
Total cost of DM purchases

Direct Materials Budget


January
8,460

February
9,870

3
25,380
5,922
31,302
5,076
26,226
2.00
52,452

3
29,610
5,724
35,334
5,922
29,412
2.00
58,824

$
$

$
$

March

$
$

Cash Payments for Direct Material Purchases Budget


January
February
December purchases (From Accounts Payble )
$
43,000
January purchases
$
10,490 $
41,962
February purchases
$
11,765
March purchases
Total disbursements
$
53,490 $
53,726

$
$
$

Cash Payments for Direct Labor Budget


January
February
$
3,807 $
4,442

Total cost of direct labor

Chapter 9: The Master Budget

9,540

Quarter
27,870

3
28,620
5,376
33,996
5,724
28,272
2.00
56,544

$
$

3
83,610
5,376
88,986
5,076
83,910
2.00
167,820

$
$
$
$
$

Quarter
43,000
52,452
58,824
11,309
165,585

Quarter
12,542

March

47,059
11,309
58,368

March
4,293

Page 2 of 8

MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

Cash Payments for Manufacturing Overhead Budget


January
February
Variable manufacturing overhead costs
$
9,306 $
10,857
Rent (fixed)
$
5,500 $
5,500
Other fixed MOH
$
2,900 $
2,900
Cash Payments for Manufacturing Overhead Budget
$
17,706 $
19,257

Variable operating expenses


Fixed operating expenses
Cash payments for operating expenses

Beginning cash balance


Plus: Cash collections
Total cash available
Less cash payments:
Direct material purchases
Direct labor
Manufacturing overhead costs
Operating expenses
Tax payment
Equipment purchases
Total cash payments
Ending cash balance before financing
Financing:
Plus: New borrowings
Less: Debt repayments
Less: Interest payments
Total financing
Ending cash balance

Chapter 9: The Master Budget

Cash Payments for Operating Expenses Budget


January
February
$
10,375 $
12,375
$
1,800 $
1,800
$
12,175 $
14,175

Combined Cash Budget


January
$
4,600
$
81,010
$
85,610

$
$
$

February
4,432
106,320
110,752

$
$
$
$
$
$
$
$

53,490
3,807
17,706
12,175
5,000
92,178
(6,568)

$
$
$
$
$
$
$
$

53,726
4,442
19,257
14,175
10,000
12,200
113,800
(3,049)

11,000

8,000

$
$

11,000
4,432

$
$

8,000
4,951

$
$

March
10,494
5,500

$
$

Quarter
30,657
16,500

$
$

2,900
18,894

$
$

8,700
55,857

$
$
$

March
12,000
1,800
13,800

$
$
$

Quarter
34,750
5,400
40,150

Quarter
4,600
304,870
309,470

March
$
$
$

4,951
117,540
122,491

$
$
$

$
$
$
$
$
$
$
$

58,368
4,293
18,894
13,800
16,600
111,955
10,536

$
$
$
$
$
$
$
$

165,585
12,542
55,857
40,150
10,000
33,800
317,934
(8,464)

$
$
$
$
$

19,000
(6,000)
(170)
12,830
4,366

$
$
$
$
$

(6,000)
(170)
(6,170)
4,366

Page 3 of 8

MANAGERIAL ACCOUNTING - Fourth Edition

Solutions Manual

Budgeted Manufacturing Cost per Unit


Direct materials cost per unit
(3 lbs. of DM needed per unit x $2 cost per lbs)
Direct labor cost per unit
(0.05 direct labor hours per unit x direct labor 9 rate per hour)
Variable manufacturing overhead costs per unit
Fixed manufacturing overhead costs per unit
Budgeted cost of Manufacturing one Unit

$
$
$
$
$

6.00
0.45
1.10
0.70
8.25

Budgeted Income Statement


Sales revenue
Less: Cost of goods sold*
Gross profit
Less: Operating expenses
Less: Depreciation expense
Operating income
Less: Interest expense
Less: income tax expense
Net income

Chapter 9: The Master Budget

$
$
$
$
$
$
$
$
$

333,600
(229,350)
104,250
(40,150)
(4,600)
59,500
(170)
(17,680)
41,650

Page 4 of 8

MANAGERIAL ACCOUNTING - Fourth Edition

$
$
$

Solutions Manual

May
8,600
12
103,200

Chapter 9: The Master Budget

Page 5 of 8

MANAGERIAL ACCOUNTING - Fourth Edition

Chapter 9: The Master Budget

Solutions Manual

Page 6 of 8

MANAGERIAL ACCOUNTING - Fourth Edition

Chapter 9: The Master Budget

Solutions Manual

Page 7 of 8

MANAGERIAL ACCOUNTING - Fourth Edition

Chapter 9: The Master Budget

Solutions Manual

Page 8 of 8

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy