MASTER BUDGET The company Alpha & Omega Manufacturing shares the following infor

Question

MASTER BUDGET

The company Alpha & Omega Manufacturing shares the following information:

Cash ("Cash") as of 31 December 20X5 ......... $ 75,000
Unit sales for 20X5 per quarter were as follows:

They estimate that by 20x6 sales will be down 10%.

3. All sales are on credit. These 60% are charged the same quarter of generation and 40% in the following quarter. (Note: The sales in the fourth quarter of 20X5 were $ 900,000, 40% of these sales will be collected in the first quarter of 20X6.)

4. The selling price of manufactured product is $ 22.

5. The desired ending inventory for each quarter must be equal to 15% of sales in the next quarter.

6. The management ensures that the initial inventory of direct material of each quarter is 8% of the cost needed for production.

7. The initial inventory of production is 3,000 units. The final inventory in the fourth quarter of 20X6 is projected 6,791unidades.

8. The hours of direct labor are 0.60 per unit, paying $ 8.00 an hour to line employees. The total average hours worked is 480 per quarter.

9. Spending in variable and fixed manufacturing overhead is broken down as follows:

Variable cost per unit:

10.The administrative budget and sales by quarter is presented below:

11. During the first quarter of 20X6 equipment was purchased for $ 30,000.

12. During 20X6 expected to be paid $ 5,000 in dividends in each quarter.

13. The following accounts are projected for 20X6:

Requested:

Take a MASTER BUDGET showing the four quarters to Alpha & Omega Manufacturing for 20X6. This should include:

1-Sales and Cash Receipts Budget ***calculations please include *** ****

2-Production Budget ***calculations please include *** ****

3-Direct Material Purchase Budget ***calculations please include *** ***

4-Direct Labor Budget *** calculations please include *** ****

5-Manufacturing Overhead Budget *** calculations please include *** ****

6-Cash Budget **** calculations please include *** ****

Thank

7-Budgeted Income Statement ***** calculations please include *** ****

8-Budgeted Balance Sheet***** calculations please include *** ****

Explanation / Answer

Answer

Answer

* Previous Quarter Sales was 900000, 40% to be collected in first quarter.

Answer

Answer

Answer

Sales Budget Particulars Quarter 1 Quarter 2 Quarter 3 Quarter 4 Sales (Units) 2015 35000 37500 42200 50300 Sales (Units) 2016 (0.9*Sales units 2015) 31500 33750 37980 45270 Price per Unit 22 22 22 22 Total Sales Value 693000 742500 835560 995940

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