WASATCH MANUFACTURING

Master Budget
By: Kelsey Ewell

Unit sales
Sales Price per unit
Total sales revenue

March
9200
$9.00
$82,800.00

9500
$9.00
$85,500.00

Cash Collections Budget

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

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

Quarter
$63,000.00
$183,900.00
$246,900.00

Production Budget
January
February
8,900
9,900
1,485
1,380
10,385
11,280
1,267
1,485
9,118
9,795

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

Quarter
28,000
4,290
32,290
4,132
28,158

December
8444
$9.00
$76,000.00

Cash sales in current month (25%)

75% Credit sales
Total cash collections

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

Sales Budget
January
February
8900
9900
$9.00
$9.00
$80,100.00
$89,100.00

April

May
8600
$9.00
$77,400.00

Page 1 of 12

Direct Materials Budget

January
February
Units to be produced
9,118
9,795
Multiply by: Quantity of DM needed per unit
(lbs.)
2
2

March
9,245

Quarter
28,158

Quantity of DM needed for production (lbs.)

18,237

19,590

18,490

56,317

Plus: Desired ending inverntory of DM (lbs.)

Total quantity of DM needed (lbs.)

1,959
20,196

1,849
21,439

1,900
20,390

5,708
62,025

1,689
18,507
$1.50
$27,760.17

1,959
19,480
$1.50
$29,220.00

1,849
18,541
$1.50
$27,811.50

5,497
56,528
$1.50
$84,791.67

Cash Payments for Direct Material Purchases Budget

January
February
March
December Purchases (from A/P)
$22,000.00
January Purchases
$8,328.05
$19,432.12
February Purchases
$8,766.00
$20,454.00
March Purchases
$8,343.45
Total Cash Payments
$30,328.05
$28,198.12
$28,797.45

Quarter
$22,000.00
$27,760.17
$29,220.00
$8,343.45
$87,323.62

Less: Beginning inventory of DM (lbs.)

Quantity of DM to purchase (lbs.)
Multiply by: Cost per pound
Total cost of DM purchases

Units Produced
Multiply by: Hours per Unit
Direct Labor Hours

Cash Payments for Direct Labor Budget

January
February
9,118
9,795
0.03
0.03
274
294

Multiply by: Direct Labor Rate per Hour

$13.00

$13.00

March
9,245
0.03
277

Quarter
28,158
0.03
845

$13.00

$13.00
Page 2 of 12

Direct Labor Cost

$3,556.15

$3,820.05

$3,605.55

$10,981.75

Page 3 of 12

Rent (fixed)

Cash Payments for Manufacturing Overhead Budget

January
February
March
$6,500.00
$6,500.00
$6,500.00

Other Manufacturing Overhead (fixed)

Quarter
$19,500.00

$2,100.00

$2,100.00

$2,100.00

$6,300.00

Variable Manufacturing Overhead Costs

$12,765.67

$13,713.00

$12,943.00

$39,421.67

Cash Payments for Manufacturing Overhead

$21,365.67

$22,313.00

$21,543.00

$65,221.67

Cash Payments for Operating Expenses Budget

January
February
March
Variable Operating Expenses
$10,942.00
$11,754.00
$11,094.00
Fixed Operating Expenses
$1,400.00
$1,400.00
$1,400.00

Quarter
$33,790.00
$4,200.00

Cash Payments for Operating Expenses

Cash Balance, Beginning

Plus: Cash Collections
Total Cash Available
Less Cash Payments:
DM Purchases
Direct Labor
Manufacturing Overhead costs
Operating Expenses
Tax Payment
Equipment Purchases
Total Cash Payments
Ending Cash before Financing

$12,342.00

$13,154.00

$12,494.00

$37,990.00

Combined Cash Budget

January
February
$6,000.00
$4,433.13
$77,025.00
$82,350.00
$83,025.00
$86,783.13

March
$4,497.97
$87,525.00
$92,022.97

Quarter
$14,931.10
$246,900.00
$261,831.10

$28,797.45
$3,605.55
$21,543.00
$12,494.00
$0.00
$4,000.00
$70,440.00
$21,582.97

$87,323.62
$10,981.75
$65,221.67
$37,990.00
$10,800.00
$25,000.00
$237,317.03
$24,514.07

$30,328.05
$3,556.15
$21,365.67
$12,342.00
$0.00
$15,000.00
$82,591.87
$433.13

$28,198.12
$3,820.05
$22,313.00
$13,154.00
$10,800.00
$6,000.00
$84,285.17
$2,497.97

Page 4 of 12

Financing:
Borrowings
Repayments
Interest Payments
Cash Balance, Ending

$4,000.00
$0.00
$0.00
$4,433.13

$2,000.00
$0.00
$0.00
$4,497.97

$0.00
$6,000.00
$180.00
$15,402.97

$6,000.00
$6,000.00
$180.00
$24,334.07

Page 5 of 12

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

$3.00
$0.39
$1.40
$0.60
$5.39

For the Quarter

Ended March 31

Sales Revenue
Less: Cost of Goods Sold
Gross Profit
Less: Operating Expenses
Less: Depreciation Expenses
Operating Income
Less: Interest Expense
Less: Income Tax Expense
Net Income

$82,800.00
$49,588.00
$33,212.00
$12,494.00
$5,200.00
$15,518.00
$180.00
$4,165.04
$11,172.96

Page 6 of 12

Page 7 of 12

Page 8 of 12

Page 9 of 12

Page 10 of 12

Page 11 of 12

Page 12 of 12