Data Set Wasatch Manufacturing is preparing its master budget for the rst quarter of the upcoming year. The following data pertain to Wasatch Manufacturing's operations: Relevant Account Balances as of December 31 (prior year): 0 Cash $17,000 0 Accounts Receivable, net - $73,500 . Accounts Payable - $37,000 Sales & Collections Production & Materials Conversion Costs Operating Exp Cash Data Income Stmt Actual sales in December were $105,000. Selling price per unit is projected to remain stable at $15 per unit throughout the budget period. Sales for the rst ve months of the upcoming year are budgeted to be as follows: Month January February March April May Total Sales $120,000 $135,000 $129,000 $141,000 $102,000 Sales are 30% cash and 70% credit. All credit sales are collected in the month following the sale. Data Set Wasatch Manufacturing is preparing its master budget for the rst quarter of the upcoming year. The following data pertain to Wasatch Manufacturing's operations: Relevant Account Balances as of December 31 (prior year): 0 Cash - $17,000 0 Accounts Receivable, net - $73,500 0 Accounts Payable - $37,000 Sales & Collections Production & Materials Conversion Costs Operating Exp Cash Data Income Stmt Wasatch Manufacturing has a policy that states that each month's ending inventory of nished goods should be 20% of the following month's sales (in units). Of each month's direct materials purchases, 25% are paid for in the month of purchase, while the remainder is paid for in the month following purchase. Four pounds of direct materials is needed per unit at $1.00 per pound. Ending inventory of direct materials should be 15% of next month's production needs. Data Set Wasatch Manufacturing is preparing its master budget for the rst quarter of the upcoming year. The following data pertain to Wasatch Manufacturing's operations: Relevant Account Balances as of December 31 (prior year): 0 Cash - $17,000 0 Accounts Receivable, net - $73,500 . Accounts Payable - $37,000 Sales & Collections Production & Materials Conversion Costs Operating Exp Cash Data Income Stmt Most of the labor at the manufacturing facility is indirect, but there is some direct labor incurred. Each unit requires 0.10 direct labor hours. The direct labor wage rate is $15 per hour. All direct labor is paid for in the month in which the work is performed. Monthly manufacturing overhead costs are $10,000 for factory rent, $6,000 for other fixed manufacturing expenses, and $1.25 per unit for variable manufacturing overhead. No depreciation is included in these gures. All expenses are paid for in the month in which they are incurred. Data Set Wasatch Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Wasatch Manufacturing's operations: Relevant Account Balances as of December 31 (prior year): . Cash - $17,000 . Accounts Receivable, net - $73,500 . Accounts Payable - $37,000 Sales & Collections Production & Materials Conversion Costs Operating Exp Cash Data Income Stmt Operating expenses are budgeted to be $1.30 per unit sold plus fixed operating expenses of $2,200 per month. All operating expenses are paid in the month in which they are incurred.Data Set Wasatch Manufacturing is preparing its master budget for the rst quarter of the upcoming year. The following data pertain to Wasatch Manufacturing's operations: Relevant Account Balances as of December 31 (prior year): - Cash - $17,000 0 Accounts Receivable, net - $73,500 0 Accounts Payable - $37,000 Sales & Collections Production & Materials Conversion Costs Qperatingp Cash Data Income Stmt Computer equipment for the administrative ofces will be purchased in the upcoming quarter. In January, Wasatch Manufacturing will purchase equipment for $20,000 (cash), while February's cash expenditures will be $8,000, and March's cash expenditure will be $25,000. Wasatch Manufacturing has a policy that the ending cash balance in each month must be at least $15,000. It has a line of credit with a local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $100,000. The interest rate on these loans is 1.25% per month simple interest (not compounded). The company would pay down on the line of credit balance in increments of $1,000 if it has excess funds at the end of the quarter. The company would also pay the accumulated interest at the end of the quarter on the funds borrowed during the quarter. Data Set Wasatch Manufacturing is preparing its master budget for the rst quarter of the upcoming year. The following data pertain to Wasatch Manufacturing's operations: Relevant Account Balances as of December 31 (prior year): 0 Cash - $17,000 0 Accounts Receivable, net $73,500 0 Accounts Payable - $37,000 Sales & Collections Production & Materials Conversion Costs Operating Exp Cash Data Income Stmt Depreciation on the building and equipment for the general and administrative ofces is budgeted to be $10,000 for the entire quarter, which includes depreciation on new acquisitions. For purposes of the Budget Manufacturing Cost Per Unit calculation Fixed MOH is $.75. The company's income tax rate is projected to be 23% of operating income less interest expense. The company pays $28,000 cash at the end of February in estimated taxes. B C D E F G H WASATCH MAN U FACTU RING Master Budget NOTE: Cells highlighted in blue contain static numbers (inputs) and not formulas. Sales Budget Total sales Revenue Req. 1 Credit sales Req. 3 Direct Materials Budget January February March Quarter Units to be produced Multiply by: Quantity of DM needed per unit Quantity of DM needed for production Plus: Desired ending inventory of DM Total quantity of DM needed Less: Beginning inventory of DM Quantity of DM to purchase Multiply by: Cost per pound Total cost of DM purchase April May Unit Sales Plus: Desired End Inventory Total Needed Less: Beginning Inventory Units to produce DM needed per unit Quantity of DM needed for production Reg. 4 Cash Payments for Direct Material Purchases Budget January February March Quarter December purchases (From AP) January purchases February purchases March purchases Total disbursements Req. 5Req. 5 Cash Payments for Direct Labor Costs January Quarter Units Produced Multiply by: Hours per unit Direct Labor Hours Multiply by: Direct Labor rate per hour Direct Labor Cost Req. 6 Cash Payments for Manufacturing Overhead Budget January February March Quarter Rent (fixed) Other MOH (fixed) Variable manufacturing overhead Total disbursements Reg. 7 Cash Payments for Operating Expenses Budget January February March Quarter Variable operating expenses Fixed operating expenses Total disbursements Req. 8Req. 8 Combined Cash Budget January February March Quarter Cash balance, beginning Plus: cash collections (req. 1) Total cash available Less cash payments: DM purchases (req. 4) Direct labor (req. 5) MOH costs (req 6) Operating expenses (req 7) Tax payment Equipment purchases Total cash payments Ending cash before financing Financing: Borrowings Repayments Interest Total financing Cash balance, ending Req. 9 Budgeted Manufacturing Cost per Unit Direct materials cost per unit Direct labor cost per unit Variable MOH cost per unit (given data) Fixed MOH per unit (given data) Cost of manufacturing each unitReg. 10 Wasatch Manufacturing Budgeted Income Statement For the Quarter Ended March 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense (given data) Operating income Less: interest expense Less: provision for income tax Net income