Session 12 Operational Master Budget PDF
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Summary
This document details the operational master budget for the company *Manufacturera América SAC*, for the period of November and December. The budget covers sales, production, purchases, direct labor, manufacturing overhead, ending inventory, cost of goods sold, operating expenses (selling and administrative), and the budgeted income statement. The report includes details on quantities and costs for direct materials, direct labor, and manufacturing overhead.
Full Transcript
# UCV - Exercise of Session 12 ## Session 12: Operational Master Budget The company *Manufacturera América SAC*, presents the following information: - Average Selling Price per Unit: S/. 35.00 - Sales by territory (units): | Territory | November | December | |---|---|---| | 1 | 800 | 1000 | |...
# UCV - Exercise of Session 12 ## Session 12: Operational Master Budget The company *Manufacturera América SAC*, presents the following information: - Average Selling Price per Unit: S/. 35.00 - Sales by territory (units): | Territory | November | December | |---|---|---| | 1 | 800 | 1000 | | 2 | 1000 | 1300 | | 3 | 1200 | 1500 | | **Total** | **3000** | **3800** | - The company wants the following finished goods inventory units to be available on the indicated dates: - November 1: 2000 units - November 30: 3000 units - December 31: 3500 units - The company will maintain an inventory of direct materials as detailed below: - For ending inventory: 30% of the production required in the following month - For beginning inventory: 20% of the production required in the month. - For January 2022: 4000 units are the forecasted required units - For each unit of finished product, one unit of direct material is required. The agreed price for direct material is S/. 12.00 until the end of November; for December, it is set at S/. 12.50 per unit. - Three hours of direct labor are required per unit in November. In December, this decreases by one hour; the hourly rate is S/. 2.50 on November 1; an increase to S/. 3.00 is expected as of December 1. - **Manufacturing Overhead Costs:** | Concept | Fixed | Variable | |---|---|---| | Indirect Materials | 700 | - | | Indirect Labor | 900 | 0.3 | | Supervision | 1000 | - | | Maintenance | 400 | 0.3 | | Heating | 200 | 0.1 | | Electrical Energy | 250 | 0.1 | | Insurance | 500 | - | | Taxes | 900 | 0.2 | |Depreciation | 1000 | - | | Miscellaneous | 1200 | 0.1 | *Variable MOH is calculated based on the number of labor hours. * - The company used the FIFO method. The beginning inventory of direct materials for November 1 was 800 units at S/. 12.00. The beginning inventory of finished goods for November 1 was 2000 units at S/. 12.50. - The company has the following selling expenses. - **Variable**: - Commissions: 2% of gross sales. - Advertising: 1% of gross sales. - Bad Debts: 1% of credit sales. - Credit Sales: S/. 21,000 for November, S/. 26,600 for December. - **Fixed**: - Salaries: S/. 3,000.00 - Depreciation: S/. 800.00 - Miscellaneous: S/. 300.00 - The administrative fixed expenses are: - Office Salaries: S/. 2,000.00 - Taxes - Executive Salaries: S/. 3,000.00 - Miscellaneous - Insurance: S/. 500.00 ## Requested: Prepare the Master Budget (operational) for the last two quarters, including: 1. Sales Budget 2. Production Budget 3. Purchase Budget: Direct Material Purchases and Direct Material Consumption Budget 4. Direct Labor Budget 5. Manufacturing Overhead Budget 6. Ending Inventory Budget 7. Cost of Goods Sold Budget 8. Operational Expenses Budget: Selling Expenses and Administrative Expenses Budgets 9. Budgeted Income Statement
