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 Sales Sales Collections Production Direct Materials Purchasing schedule Direct Labor Manufacturing Overhead Selling and Admin Expenses Ending Inventory Cash Budget Income Statement (one for every month) Balance Sheet (one for every month) 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
?	?	?	?	?
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