JADEN BRYNER CH 9

WASATCH MANUFACTURING
Sales Budget
Unit Sales
Price per Unit
Sales Revenue

December
8,444
9
76,000

January
8,900
9
80,100

February
9,900
9
89,100

March
9,200
9
82,800

March
20,700
62,100
82,800

Quarter
63,000
189,000
252,000

February
9,900
1,380
11,280
1,485
9,795

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

April
9,500
9
85,500

Cash Collections Budget

Cash Sales (25%)
Credit Sales (75%)
Total Cash Collections

January
20,025
60,075
80,100

February
22,275
66,825
89,100

Production Budget
Unit Sales
Plus: Desired Ending Inventory
Total Needed
Less: Beginning Inventory
Units to Produce

January
8,900
1,485
10,385
1,335
9,050

Quarter
28,000
1,425
29,425
1,335
28,090

Direct Materials Budget

Units to be Produced
Multiply by: Quantity of DM Needed per Unit (lbs.)
Quanitity of DM Needed for Production (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

January
9,050
2
18,100
1,959
20,059
1,810
18,249
1.50
27,374

February
9,795
2
19,590
1,849
21,439
1,959
19,480
1.50
29,220

Cash Payments for Direct Material Purchases Budget

January
8,212
22,000
30,212

30% of Current Month DM Purchases

70% of Previous Month DM Purchases
Total Cash Payments DM Purchases

February
8,766
19,161
27,927

March
7,488
20,454
27,942

Cash Payments for Direct Labor Budget

January
9,050
0.03
271.5
13
3,530

Units Produced
Multiply by: Hours per Unit
Direct Labor Hours
Multiply by: Direct Labor Rate per Hour
Direct Labor Cost

February
9,795
0.03
293.85
13
3,820

March
9,245
0.03
277.35
13
3,606

Cash Payments for Manufacturing Overhead Budget

Rent Fixed
Other Manufacturing Overhead (Fixed)
Variable Manufacturing Overhead Costs
Cash Payments for Manufacturing Overhead

January
6,500
2,100
12,670
21,270

February
6,500
2,100
13,713
22,313

March
6,500
2,100
12,943
21,543

Cash Payments for Operating Expenses Budget

January
10,680
1,400
12,080

Variable Operating Expenses

Fixed Operating Expenses
Cash Payments for Operating Expenses

February
11,880
1,400
13,280

March
11,040
1,400
12,440

Combined Cash Budget

Cash Balance, Beginning
Plus: Cash Collections
Total Cash Available
Less Cash Payments:
DM Purchases
Direct Labor
Manufacturing Overhead Costs

January
6,000
80,100
86,100

February
8,008
89,100
97,108

March
14,968
82,800
97,768

Quarter
6,000
252,000
258,000

30,212
3,530
21,270

27,927
3,820
22,313

27,942
3,606
21,543

86,082
10,955
65,126

Operating Expenses
Tax Payment
Equipment Purchases
Total Cash Payments
Ending Cash Before Financing
Financing:
Borrowing
Repayments
Interest Payments
Cash Balance, Ending

12,080
0
15,000
82,092
4,008

13,280
10,800
6,000
84,141
12,968

12,440
0
4,000
69,531
28,237

37,800
10,800
25,000
235,763
22,237

4,000
0
0
8,008

2,000
0
0
14,968

0
-6,000
-240
21,997

6,000
-6,000
-240
21,997

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

3.00
0.39
1.40
0.60
5.39

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
Net Income

252,000
150,920
101,080
37,800
5,200
58,080
240
16,195
41,645

(2 lbs. x 1.50)
(.03 hours x 13)

NG
May
8,600
9
77,400

March
9,245
2
18,490
0
18,490
1,849
16,641
1.50
24,962

Quarter
28,000
9
252,000

April
9500
1290
10790
1425
9365

May
8600

Quarter
28,090
2
56,180
0
56,180
1,810
54,370
1.50
81,555

April
9365
2
18730

dget
Quarter
24,467
61,615
86,082

Quarter
28,090
0.03
842.7
13
10,955

dget
Quarter
19,500
6,300
39,326
65,126

et
Quarter
33,600
4,200
37,800

2 lbs. x 1.50)
03 hours x 13)