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Master Budget - Assignment Que... Gizmos & Gadgets, a manufacturing business that sells gadgets, wants a master budget prepared, beginning January 1 , 2 0
Master Budget Assignment Que...
Gizmos & Gadgets, a manufacturing business that sells gadgets, wants a master budget prepared, beginning January
The managers of the different departments have provided the following information: The Sales Manager has projected the following sales:
o Quarter units
o Quarter units
o Quarter units
o Quarter units
o Projected selling price is $ unit.
The Manufacturing Manager has estimated the cost per unit will be:
o $ for direct material
o $ for direct labour
$ for manufacturing overhead
The Production Manager gave the following information:
Ending Inventory is to be of next month's production need rounded to the nearest
Next year's Quarter needs: units
Beginning Inventory for the Quarter is units.
The Accounting Department Manager has provided the following information:
Selling Expenses:
o Variable: Commission of Sales
o Fixed: split evenly over the quarters
Rent $ per year
Advertising $ per year
Telephone $ per year
Depreciation Expense Office $ per year
Other Expenses $ per year
Administrative Expenses:
o Variable: Bad Debts Expense estimated at of Sales
o Fixed: split evenly over the quarters
Salaries $ per year
Insurance $ per year
Telephone $ per year
Supplies $ per year
Other Expenses $ per year
Cash Receivable:
@ Quarter Sales of previous year was $
of sales is collected in the quarter in which they were made
o of sales collected in the following quarter in which they were made
o of sales is uncollectible
Accounts Payable:
o One half of a month's purchases are paid for in the quarter of purchase; the other half is paid for in the following quarter.
o The accounts payable balance on December of the previous quarter is $
Federal Income Tax is estimated at average.
Depreciation of Manufacturing Overhead is $ divided evenly over the quarters.
Gizmos & Gadgets has a $ cash balance for the beginning of the quarter
Gizmos & Gadgets borrowed $ in the Quarter and paid it back in the
Quarter with an interest of $
Dividends of $ are to be paid in the fourth quarter.
From the beginning Balance Sheet:
Land $
o Building $
o Depreciation Building$
o Retained Earnings $
o Capital Stock $
For the Master Budget, you are expected to prepare the following:
Sales Budget plus a Schedule of Expected Cash Receivable
Selling & Administrative Expense Budget
Administrative Expense Budget
Production Budget
Direct Materials Budget plus a Schedule of Expected Cash Disbursements
Direct Labour Budget
Finished Goods Inventory Budget
Manufacturing Overhead Budget
Cash Budget
Budgeted Income Statement
Budgeted Balance Sheet
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