You will prepare a three month master budget (Jan, Feb & Mar) with the data contained in BIGBUD Fall 2016. This master budget WILL contain the following budgets

Purchasing Schadule

Cash budget

Income Statement

Balance sheet

Selling and Admin Expenses Budget

The data sheet and all the budgets must be interlinked so that when I change one or more data points in the data sheet I will see the appropriate change in the last month of the balance sheet.

BIGBUD

Three-Month Master Budget

Thorny Corp.

Balance Sheet, December 31

Cash

$41,700

Accounts receivable

192,000

Raw materials

102,240

Finished goods

64,400

Land

50,000

Plant and equipment

$500,000

Less: accumulated depreciation

112,000

388,000

Total assets

$838,340

Accounts payable to suppliers

$40,000

Common Stock

$100,000

Retained Earnings

698,340

798,340

Total liabilities and equity

$838,340

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Budgeted Gizmo sales in units

January

7,000

February

8,000

March

10,000

April

8,000

May

7,000

Selling price

$65

Collections from customers

Collected in month of sale

40%

Collected the following month

60%

Desired finished goods inventory

(% of next month's unit sales)

20%

Desired raw material inventory

(% of next month's production needs)

25%

Raw material units needed to produce one Gizmo

What

5

Huh

3

Beginning inventory units & cost

Gizmo

1,400

$46.00

What

18,000

$4.00

Huh

10,800

$2.80

Purchases

Paid in the month of purchase

70%

Paid in the subsequent month

30%

Direct labor time to produce one Gizmo

0.5

hours

Cost of direct labor

$24

per hour

Factory overhead

$12

per direct labor hr.

Selling and administrative expenses

$10,000

fixed

10%

variable

Plant and equipment depreciation

$12,000

per year

Month	Line Item	Amount
January	Sales	$455,000
January	Collections	$374,000
January	Production Needs	7200 units
January	WHAT purchases in units	28,500 units
January	WHAT purchase in $	$114,000
January	HUH purchases in units	17,100 units
January	HUH purchases in $	$47,880
January	Previous month total disbursement for materials (Purchasing Schedule)	$40,000
January	Current month total disbursement for materials (Purchasing Schedule)	$113,316
January	Direct Labor	$86,400
January	Factory Overhead	$42,200
January	Selling and Admin	$55,500
January	Ending Cash (Cash budget and Balance Sheet)	$78,284
January	Cost of Goods sold	$324,240
January	Net Income	$75,260
January	Accounts Receivable Balance Sheet	$273,000
January	Raw Materials Balance Sheet (BPP & Winkle)	$59,640
January	Finished Goods Balance Sheet (GIZMO)	$74,240
January	Accounts Payable Balance Sheet	$48,564
January	Retained Earnings Balance Sheet	$773,600
January	Total Assets = Total Liabilities and Owners Equity Balance Sheet	$922,164
February	Previous month total disbursement for materials	$48,564
February	Current month total disbursement for materials	$172,956
February	Net Income	$86,800
February	Total Assets = Total Liabilities and Owners Equity Balance Sheet	$1,034,524
March	Net Income	$111,000
March	Total Assets = Total Liabilities and Owners Equity Balance Sheet	$1,149,358
1st Quarter	Net Income	$273,060