Master Budget

Question 1

Sales Budget

Answer 1

Budgeted sales (unit)
SP/u
= Total budgeted sales

Question 2

Expected Cash Collections

Answer 2

Determine collection of the sales cash based on collection pattern

Question 3

Production Budget

Answer 3

Budgeted Sales (sales budget)
add: ending inv
less: beginning inv
Required production

ending inv as the desired amount from Qn

Question 4

DM Budget

Answer 4

Production (production budget)
Materials per unit
Add: Ending Inv
Less: Beginning Inv
Materials to be purchased

Ending inv as the desired amount from Qn

Question 5

Expected Cash disbursement for Materials

Answer 5

Based on payment plan

Question 6

DL Budget

Answer 6

Production (production budget)
Direct labour per unit
Labor hours required
Total direct labour cost

Question 7

MOH budget

Answer 7

Budgeted DLH (DL budget “labor hours required”)
VOH rate
VOH cost
FOH cost
Less: non cash cost (e.g depreciation)
Cash disbursements for MOH

Question 8

Ending FG inv budget

Answer 8

Production Cost per units
- DM
- DL
- MOH

Ending Inventory (units)
Production cost
Ending FG inventory

Question 9

S&A Budget

Answer 9

Budgeted Sales
V S&A rate
V S&A
F S&A
Less: non cash
Cash S&A

Question 10

Cash Budget

Answer 10

Beginning Cash balance
Add: Cash Collection
Less: Cash Disbursement
- DM
- DL
- MOH
- S&A
- Dividend
Excess/Deficiency
Financing
- Borrowing
Repayments
Interest
Total Financing
ending cash Balance

Ending Cash Balance based on Qn, Repay only when in sufficient Excess

Question 11

Budgeted Income Statement

Answer 11

Sales
less: COGS
= Gross Margin
Less: S&A
= Operating Income
Less: Interest Expense
= Net Income

Question 12

Budgeted Balance Sheet

Answer 12

Assets
- Cash
- Accounts receivable
- DM Inventory
- FG Inventory
- Land
- Equipment
= Total Assets

Liabilities and Equity
- Accounts payable
- common stock
- Retained Earnings (b.balance + NOI - dividends)
= Total Liabilities and Equity