SET UP A NEW COMPANY. ASSUME YOU ARE MANUFACTURING ONLY ONE PRODUCT. FILL THE FOLLOWING TABLES AS YOUR MASTER BUDGET FOR YOUR COMPANY:

	January	February	March	Quarter
Cash sales (%)
Credit sales (%)
Total collections

Production Budget	January	February	March	Quarter
Unit Sales
Plus : Desired Ending Inventory
Total Needed
Less : Beginning Inventory
Units to produce

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 purchases

Cash payments for Direct Material Purchases Budget	January	February	March	Quarter
December purchases (From AP)
January purchases
February purchases
March purchases
Total payments

Cash Payments for Direct Labor Budget	January	February	March	Quarter
Direct labor

Cash Payments for Manufacturing Overhead Costs	January	February	March	Quarter
Rent (fixed)
Other MOH (fixed)
Variable manufacturing overhead costs
Total disbursements

Cash Payments for Operating Expenses	January	February	March	Quarter
Variable operating expenses
Fixed operating expenses
Total disbursements

Combined Cash Budget	January	February	March	Quarter
Cash balance, beginning
Plus: cash collections (req. 1)
Total cash available
Less cash disbursements:
DM purchases (req 4)
Direct labor costs (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

Budgeted Manufacturing Cost per Unit	Cost per unit
Direct materials cost per unit
Direct labor cost per unit
Variable manufacturing overhead costs
Fixed MOH
Cost of manufacturing each unit

Budgeted Income Statement

Sales
Less: Cost of goods sold
Gross profit
Less: Operating expenses
Less: Depreciation expense
Operating income
Less: interest expense
Less: pincome tax expense @ 30%
Net income