Topic: Master budget

Given the following Schedule:

Company XXX Schedule 1: Revenue Budget
Period	Units	Selling Price	Total Revenues
Quarterly 1	15,000	5.00	$ 75,000.00
Quarterly 2	20,000	5.00	$ 100,000.00
Quarterly 3	27,000	5.00	$ 135,000.00
Quarterly 4	23,000	5.00	$ 115,000.00

Schedule 2: Production Budget
	Quarterly 1	Quarterly 2	Quarterly 3	Quarterly 4
Budgeted unit sales	15,000	20,000	27,000	23,000
Add target ending inventory	750	1000	1350	1150
Total required units	15750	21000	28350	24150
Deduct beginning finished goods inventory	180	750	1000	1350
Units of finished goods to be produced	15,570	20250	27350	22800

Schedule 3: Each cake consumes 10 ounces of materials at a cost of 0.05 hours. Plan the purchases to be equal to 3% of the material to be used. Materials in 2x23 are 117,000.

Schedule 3: Direct Material
	Quarterly 1	Quarterly 2	Quarterly 3	Quarterly 4
Units to be produced	15,570	20,250	27,350	22,800
Raw Material Per unit	10	10	10	10
Total	155,700	202,500	273,500	228,000
Add: Desired ending inventory	6,075	8,205	6,840	3,510
Total Material Required	161,775	210,705	280,340	231,510
Less: Beginning Inventory	4,671	6,075	8,205	6,840
Direct material purchases	157,104	204,630	272,135	224,670
Cost per once	0.05	0.05	0.05	0.05
Total cost of purchases	7,855.20	10,231.50	13,606.75	11,233.50

Schedule 4: Information: In production each employee takes 0.10 of an hour (6 minutes). The average rate expected to be paid to employees is 10.00 per hour.

Schedule 4: Direct Labor Budget
	Quarterly 1	Quarterly 2	Quarterly 3	Quarterly 4
Output Units Produces	14,850	20,250	27,350	228,000
Direct Manufacturing Labor-Hours per unit	0.10	0.10	0.10	0.10
Total Hours	1485	2,025	2,735	22,800
Hourly Wage Rate	10.00	10.00	10.00	10.00
Total	14,850	20,250	27,350	228,000

Schedule 5: Manufacturing Overhead Cost
Variable cost
Other	8,000
Indirect Materials	4,000
Maintenance	2,400
Miscellaneous	1,600	16,000
Fixed Cost
Depreciation	10,000
Property Tax	2,500
Insurance	9,000
Supervisors Salary	12,500
Indirect Wages	45,000
Miscellaneous	21,000	100,000
`		116,000

Rate= hour of direct labor

Rate fixed cost= 1.86

Rate variable cost= 11.63

Budget Cost per unit= 2.85

Prepare the cost of good sold for the year 2x22 by quarter and in dollars. Assume that everything that was produced was sold.

Prepare the income statement with operating expenses of 122,000.