REQUIREMENTS

Prepare a Master budget.

• Sales Budget (including schedule of cash collections)
• Production Budget
• Direct Materials budget (including schedule of cash payments)
• Direct Labor Budget
• MOH Budget
• Selling & Administrative Budget
• Ending Finished Goods Budget
• Cash Budget
• Budgeted Income Statement
• Budgeted Balance Sheet

Master Budget Mynor Company Balance Sheet As of December 31, 2019 Assets Liabilities & Owners' Equity Current Assets Current Liabilities Cash $ 31,400 A/P $ 77,900 A/R 65,000 Raw Materials 19,500 Owners' Equity Finished Goods__128.820 Common Stock $125,000 Total Current Assets $244,720 Retained Earnings 520,000 Long Term Assets PP&E $922,180 Total Owners'Equity 645.000 Accum Deprec (444,000) Net PPE 478.180 Total Assets $722,900 Total Liabs & Owners Equity $722,900 ======= 1. Sales projections for the 2020 are: 1st Quarter 70.000 units Each unit sells for $17 and is sold on account. 2nd Quarter__ 60.000 units Cash collections are 80% in the month of sale 3rd Quartet_ 90,000 units and 20% in the following month. 4th Quarter 120,000 units == = = = = = 2. Production: The company desires a finished goods inventory at the end of each quarter equal to 20% of the budgeted sales for the next quarter. 1st quarter beginning finished goods inventory is 10,000 units and 4th quarter ending finished goods inventory is 25,000 units. Materials o Each unit requires 3 pounds of raw materials that cost $2.00 per pound. o The company desires an ending materials inventory equal to 10% of the following quarter's production needs. (Beginning raw materials inventory equals 30,000 pounds and ending raw materials inventory equals 45,000 pounds). o Raw materials are purchased on account. The company pays 50% of the A/P in the period the materials are purchased and 50% in the following period. Labor o Each unit of product requires 30 minutes (.5 hours) to produce and workers are paid $10 per hour. MOH O Variable MOH is $4 per direct labor hour and fixed MOH is $70,000 per quarter. o Depreciation makes up $30,000 of each quarter's fixed overhead. 3. Selling & Administrative Variable S&A is $2.00 per unit and fixed S&A is $20,000 per quarter. Depreciation included in Fixed S& A = $8,000