Академический Документы
Профессиональный Документы
Культура Документы
ACCT 2020
Professor Corrine Anderson
Wasatch Manufacturing
Requirements:
1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total. To assist with the
cash collections budget, first prepare a sales budget.
2. Prepare a production budget.
3. Prepare a direct materials budget.
4. Prepare a cash payments budget for the direct material purchases from
Requirement 3.
5. Prepare a cash payments budget for direct labor.
6. Prepare a cash payments budget for manufacturing overhead costs.
7. Prepare a cash payments budget for operating expenses.
8. Prepare a combined cash budget.
9. Calculate the budgeted manufacturing cost per unit (assume that fixed manufacturing overhead is budgeted to be $0.75
per unit for the year.)
10. Prepare a budgeted income statement for the quarter ending March 31.
Multiplication
NOTE: Cells highlighted in blue contain static numbers (inputs). Addition
Subtraction
Sales Budget
December January February March April May Price per unit * Unit Sales = Sales Revenue
Unit Sales 7,000 8,000 9,000 8,600 9,400 6,800 Sales Revenue/Price per Unit = Unit Sales
Price per Unit $ 15 ### $ 15 $ 15 $ 15 ###
Sales Revenue $ 105,000 $ 120,000 $ 135,000 $ 129,000 $ 141,000 $ 102,000
Production Budget
January February March Quarter April May
Unit sales* 8,000 9,000 8,600 25,600 9,400 6,800
Plus: Desired ending inventory 1,800 1,720 1,880 1,880 1,360
Total needed 9,800 10,720 10,480 27,480 10,760
Less: Beginning inventory (1,600) (1,800) (1,720) (1,600) (1,880)
Units to produce 8,200 8,920 8,760 25,880 8,880
Wasatch Manufacturing
Budgeted Income Statement
For the Quarter Ended March 31
Sales Revenue $ 384,000
Less: Cost of Goods Sold $ 192,000
Gross Profit 192,000
Less: Operating expenses (39,880)
Less: Depreciation expense (10,000)
Operating income 142,120
Less: Interest expense (188)
Less: Income tax expense @ 23% (32,644)
Net income $ 109,288