Royal Company Master Budget | 2021 |
April | | units |
May | | units |
June | | units |
July | | units |
August | | units |
SALES BUDGET |
| April | May | June | Quarter | July | August |
Budgeted sales (units) |
Selling price per unit |
Total sales |
SCHEDULE OF EXPECTED CASH COLLECTIONS |
| April | May | June | Quarter |
Accounts receivable beginning balance |
April sales |
April |
May |
May sales |
May |
June |
June sales |
June |
Total cash collections |
PRODUCTION BUDGET |
| April | May | June | Quarter | July | August |
Budgeted sales |
Add desired ending inventory |
Total needs |
Less beginning inventory |
Required production |
DIRECT MATERIALS BUDGET |
| April | May | June | Quarter | July | August |
Required production in units |
Raw materials per unit (pounds) |
Production needs (pounds) |
Add desired ending inventory (pounds) |
Total needs (pounds) |
Less beginning inventory (pounds) |
Raw materials to be purchased (pounds) |
Cost of raw materials to be purchased at $0.40 per pound |
SCHEDULE OF EXPECTED CASH DISBURSEMENTS FOR MATERIAL |
| April | May | June | Quarter |
Accounts payable beginning balance |
April purchases: |
April |
May |
May purchases: |
May |
June |
June purchases: |
June |
Total cash disbursements for materials |
DIRECT LABOR BUDGET |
| April | May | June | Quarter |
Required production |
Direct labor-hours per unit |
Total direct labor–hours needed |
Direct labor cost per hour |
Total direct labor cost |
|
MANUFACTURING OVERHEAD BUDGET |
| April | May | June | Quarter |
Budgeted direct labor-hours |
Variable manufacturing overhead rate |
Variable manufacturing overhead |
Fixed manufacturing overhead |
Total manufacturing overhead |
Less depreciation |
Cash disbursements for manufacturing overhead |
ENDING FINISHED GOODS INVENTORY BUDGET |
Computation of absorption unit product cost: |
| Quantity | | Cost | | Total |
Direct materials | | pounds | | per pound |
Direct labor | | hours | | per hour |
Manufacturing overhead | | hours | | per hour* |
Unit product cost |
|
Predetermined Overhead Rate = | Total manufacturing overhead = |
| Total direct labor hours |
|
Budgeted ending finished goods inventory: |
Ending finished goods inventory in units |
Unit product cost |
Ending finished goods inventory in dollars |
SELLING AND ADMINISTRATIVE EXPENSE BUDGET |
| April | May | June | Quarter |
Budgeted sales in units |
Variable selling and administrative expense per unit |
Variable selling and administrative expense |
Fixed selling and administrative expense |
Total selling and administrative expense |
Less depreciation |
Cash disbursements for selling and administrative expenses |
|
CASH BUDGET |
| Royal Company |
| Cash Budget |
| For the Quarter Ending June 30 |
|
| April | May | June | Quarter |
Cash balance, beginning |
Add receipts: |
Cash collections |
Total cash available |
|
Less disbursements: |
Direct materials |
Direct labor |
Manufacturing overhead |
Selling & administrative |
Equipment purchases |
Dividends |
Total disbursements |
|
Excess (deficiency) of cash available over disbursements |
|
Financing: |
Borrowings |
Repayments |
Interest* |
Total financing |
|
Cash balance, ending |
|
Interest |
|
|
BUDGETED INCOME STATEMENT |
|
Royal Company |
Budgeted Income Statement |
For the Quarter Ending June 30 |
|
Net sales | | | Computation of net sales |
Cost of goods sold | | | Sales |
Gross margin | | | Less uncollectible amounts |
Selling & administrative expenses | | | Net sales |
Net operating income |
Interest expense |
Net income | | | Computation of cost of goods sold |
| | | Budgeted sales (units) |
| | | Unit product cost |
| | | Cost of goods sold |
|
|
BEGINNING BALANCE SHEET | (Based on information given, beginning balances and calculations) |
|
Royal Company |
Balance Sheet |
31-Mar |
|
Current assets: |
Cash |
Accounts receivable |
Raw materials inventory |
Finished goods inventory |
Plant and equipment: |
Land |
Buildings and equipment |
Accumulated depreciation |
Total assets |
|
Liabilities: |
Accounts payable |
Stockholders’ equity: |
Common stock |
Retained earnings |
Total liabilities and stockholders’ equity |
|
Royal Company |
Budgeted Balance Sheet |
30-Jun |
|
Current assets: |
Cash |
Accounts receivable |
Raw materials inventory |
Finished goods inventory |
Plant and equipment: |
Land |
Buildings and equipment |
Accumulated depreciation |
Total assets |
|
Liabilities: |
Accounts payable |
Stockholders’ equity: |
Common stock |
Retained earnings |
Total liabilities and stockholders’ equity |
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