Solution: 1
|
Cash Collection Budget |
||||
|
Particulars |
January |
February |
March |
Quarter |
|
Cash Sales |
$ 24,000.00 |
$ 27,600.00 |
$ 29,700.00 |
$ 81,300.00 |
|
Credit Sales |
$ 49,000.00 |
$ 56,000.00 |
$ 64,400.00 |
$ 1,69,400.00 |
|
Total Cash Collections |
$ 73,000.00 |
$ 83,600.00 |
$ 94,100.00 |
$ 2,50,700.00 |
|
Production Budget |
||||
|
Particulars |
January |
February |
March |
Quarter |
|
Unit Sales |
8000 |
9200 |
9900 |
27100 |
|
Add: Desired Ending Inventory |
2300 |
2475 |
2425 |
7200 |
|
Total Needed |
10300 |
11675 |
12325 |
34300 |
|
Less: Beginning Inventory |
2000 |
2300 |
2475 |
6775 |
|
Units to Produce |
8300 |
9375 |
9850 |
27525 |
|
Direct Material Budget |
||||
|
Particulars |
January |
February |
March |
Quarter |
|
Units to be Produced |
8300 |
9375 |
9850 |
27525 |
|
x Pounds of DM needed per Unit |
2 |
2 |
2 |
2 |
|
Quantity(pnds) needed for production |
16600 |
18750 |
19700 |
55050 |
|
Add: Desired ending inventory of needed |
1875 |
1970 |
1880 |
5725 |
|
Total quantity(pounds) needed |
18475 |
20720 |
21580 |
60775 |
|
Less: Beginning inventory of DM |
1660 |
1875 |
1970 |
5505 |
|
Quantity(pounds) to Purchase |
16815 |
18845 |
19610 |
55270 |
|
x Cost per Pound |
$ 2.00 |
$ 2.00 |
$ 2.00 |
$ 2.00 |
|
Total cost of DM Purchase |
$ 33,630.00 |
$ 37,690.00 |
$ 39,220.00 |
$ 1,10,540.00 |
|
Cash Payment for Direct Material Budget |
||||
|
Particulars |
January |
Febuary |
March |
Quarter |
|
December Purchases (from Account Payables) |
$ 42,400.00 |
|
|
$ 42,400.00 |
|
January Purchases |
$ 6,726.00 |
$ 26,904.00 |
|
$ 33,630.00 |
|
February Purchases |
|
$ 7,538.00 |
$ 7,538.00 |
$ 15,076.00 |
|
March Purchases |
|
|
$ 7,844.00 |
$ 7,844.00 |
|
Total Cash Payments for DM Puchases |
$ 49,126.00 |
$ 34,442.00 |
$ 15,382.00 |
$ 98,950.00 |
|
Cash Paymeny for Conversion Cost budget |
|||||
|
Particulars |
January |
Febuary |
March |
Quarter |
Per Unit |
|
Variable Conversion Cost |
$ 9,960.00 |
$ 11,250.00 |
$ 11,820.00 |
$ 33,030.00 |
$ 1.20 |
|
Rent (fixed) |
$ 5,000.00 |
$ 5,000.00 |
$ 5,000.00 |
$ 15,000.00 |
$ 0.54 |
|
Other fixed MOH |
$ 3,000.00 |
$ 3,000.00 |
$ 3,000.00 |
$ 9,000.00 |
$ 0.33 |
|
Total Payment for Conversion Cost |
$ 17,960.00 |
$ 19,250.00 |
$ 19,820.00 |
$ 57,030.00 |
$ 2.07 |
|
Cash Payments for Operating Expences Budget |
||||
|
Particulars |
January |
Febuary |
March |
Quarter |
|
Variable Operating Expenses |
$ 8,000.00 |
$ 9,200.00 |
$ 9,900.00 |
$ 27,100.00 |
|
Fixed Operating Expenses |
$ 1,000.00 |
$ 1,000.00 |
$ 1,000.00 |
$ 3,000.00 |
|
Total Payment for Operating Expenses |
$ 9,000.00 |
$ 10,200.00 |
$ 10,900.00 |
$ 30,100.00 |
|
Combined Cash Budget |
||||
|
Particulars |
January |
Febuary |
March |
Quarter |
|
Cash Balance ( Beginning) |
$ 4,500.00 |
$ 4,000.00 |
$ 4,000.00 |
$ 12,500.00 |
|
Add: Cash Collections |
$ 73,000.00 |
$ 83,600.00 |
$ 94,100.00 |
$ 2,50,700.00 |
|
Total Cash Available |
$ 77,500.00 |
$ 87,600.00 |
$ 98,100.00 |
$ 2,63,200.00 |
|
Less: Cash Payments |
|
|
|
|
|
Direct Material Purchases |
$ 49,126.00 |
$ 34,442.00 |
$ 15,382.00 |
$ 98,950.00 |
|
Conversion Cost |
$ 17,960.00 |
$ 19,250.00 |
$ 19,820.00 |
$ 57,030.00 |
|
Operating Expenses |
$ 9,000.00 |
$ 10,200.00 |
$ 10,900.00 |
$ 30,100.00 |
|
Equipment Expenses |
$ 5,000.00 |
$ 12,000.00 |
$ 16,000.00 |
$ 33,000.00 |
|
Tax Payments |
|
$ 10,000.00 |
|
$ 10,000.00 |
|
Total Cash Payments |
$ 81,086.00 |
$ 85,892.00 |
$ 62,102.00 |
$ 2,29,080.00 |
|
Ending Cash Balance before Financing |
$ (3,586.00) |
$ 1,708.00 |
$ 35,998.00 |
$ 34,120.00 |
|
Financing: |
|
|
|
|
|
Borrowings |
$ 7,586.00 |
$ 5,708.00 |
|
$ 13,294.00 |
|
Repayments |
|
|
$ 13,294.00 |
$ 13,294.00 |
|
Interest Payments |
|
|
$ 341.74 |
$ 341.74 |
|
Ending Cash Balance |
$ 4,000.00 |
$ 4,000.00 |
$ 22,362.26 |
$ 7,190.26 |
|
Budgeted Manufacturing Cost per Unit |
|
|
Direct Material C.P.U. |
$ 4.00 |
|
Conversion C.P.U. |
$ 2.07 |
|
Fixed Manufacturing C.P.U. |
$ 0.80 |
|
Budgeted cost of Manufacturing per Unit |
$ 6.87 |
|
Budgeted Income Statement |
|
|
Sales |
$ 2,71,000.00 |
|
Cost of Goods Sold |
$ 1,86,229.43 |
|
Gross Profit |
$ 84,770.57 |
|
Operating Expenses |
$ 30,100.00 |
|
Depreciation |
$ 4,800.00 |
|
Operating Income |
$ 49,870.57 |
|
Less: Interest Expense |
$ 341.74 |
|
Less: Provision for Income Tax |
$ 10,000.00 |
|
Net Income |
$ 89,399.40 |
Working
|
Working |
||||||
|
Cash Collection Budget |
||||||
|
|
January |
February |
March |
April |
May |
Quarter |
|
Cash Sales |
24000 |
27600 |
29700 |
29100 |
25500 |
135900 |
|
Credit Sales |
49000 |
56000 |
64400 |
69300 |
67900 |
306600 |
|
Total Cash Collections |
73000 |
83600 |
94100 |
98400 |
93400 |
442500 |
|
Production Budget |
||||||
|
|
January |
February |
March |
April |
May |
Quarter |
|
Unit Sales |
8000 |
9200 |
9900 |
9700 |
8500 |
45300 |
|
Add: Desired Ending Inventory |
2300 |
2475 |
2425 |
2125 |
|
7200 |
|
Total Needed |
10300 |
11675 |
12325 |
11825 |
8500 |
52500 |
|
Less: Beginning Inventory |
2000 |
2300 |
2475 |
2425 |
2125 |
6775 |
|
Units to Produce |
8300 |
9375 |
9850 |
9400 |
|
45725 |
|
Direct Material Budget |
||||||
|
|
January |
February |
March |
April |
May |
Quarter |
|
Units to be Produced |
8300 |
9375 |
9850 |
9400 |
|
|
|
x Pounds of DM needed per Unit |
2 |
2 |
2 |
2 |
|
|
|
Quantity(pnds) needed for production |
16600 |
18750 |
19700 |
18800 |
|
|
|
Add: Desired ending inventory of needed |
937.5 |
985 |
|
|
|
|
|
Total quantity(pounds) needed |
|
|
|
|
|
|
|
Less: Beginning inventory of DM |
|
|
|
|
|
|
|
Quantity(pounds) to Purchase |
|
|
|
|
|
|
|
x Cost per Pound |
|
|
|
|
|
|
|
Total cost of DM Purchase |
|
|
|
|
|
|
Solution:2
|
Budgeted Income Statement |
||
|
Particulars |
May |
June |
|
Sales |
$ 55,000.00 |
$ 51,500.00 |
|
Cost of Goods Sold |
$ 17,050.00 |
$ 24,700.00 |
|
Gross Profit |
$ 37,950.00 |
$ 26,800.00 |
|
Operating Expenses: |
|
|
|
Salary |
$ 4,000.00 |
$ 4,000.00 |
|
Depreciation |
$ 600.00 |
$ 600.00 |
|
Commission |
$ 5,500.00 |
$ 5,150.00 |
|
Operating Income |
$ 27,850.00 |
$ 17,050.00 |
|
Non Operating Expenses: |
|
|
|
Rent |
$ 3,000.00 |
$ 3,000.00 |
|
Insurance |
$ 200.00 |
$ 200.00 |
|
Profit before tax |
$ 24,650.00 |
$ 13,850.00 |
|
Less: Tax |
$ 5,570.00 |
$ 3,410.00 |
|
Net Profit |
$ 19,080.00 |
$ 10,440.00 |
Working
|
Working |
||||
|
|
April |
May |
June |
July |
|
Opening Inventory |
|
14000 |
24450 |
25500 |
|
Purchases |
|
27500 |
25750 |
|
|
Closing Inventory |
25500 |
24450 |
25500 |
|
|
COGS |
|
17050 |
24700 |
|
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2017). Comprehensive Budget Problem: Master Budget And Supporting Budgets. Retrieved from https://myassignmenthelp.com/free-samples/master-budget-comprehensive-and-supporting-budget.
"Comprehensive Budget Problem: Master Budget And Supporting Budgets." My Assignment Help, 2017, https://myassignmenthelp.com/free-samples/master-budget-comprehensive-and-supporting-budget.
My Assignment Help (2017) Comprehensive Budget Problem: Master Budget And Supporting Budgets [Online]. Available from: https://myassignmenthelp.com/free-samples/master-budget-comprehensive-and-supporting-budget
[Accessed 18 May 2024].
My Assignment Help. 'Comprehensive Budget Problem: Master Budget And Supporting Budgets' (My Assignment Help, 2017) <https://myassignmenthelp.com/free-samples/master-budget-comprehensive-and-supporting-budget> accessed 18 May 2024.
My Assignment Help. Comprehensive Budget Problem: Master Budget And Supporting Budgets [Internet]. My Assignment Help. 2017 [cited 18 May 2024]. Available from: https://myassignmenthelp.com/free-samples/master-budget-comprehensive-and-supporting-budget.
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