| 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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