Beta Limited has asked you, the management accountant, to prepare an annual master budget for the year ending 31 December 2013.
Beta produces a product called Treen, presently sold only in the North Island of New Zealand. The production process involves the input of two components of materials - Wood and Stain.
After comprehensive consultation, you are provided with the following information to prepare the master budget.
| Projected Balance Sheet as at 31 December 2012 |
|
|
|
|
|
|
| Current Assets |
$ |
$ |
$ |
| Cash at Bank |
|
15,000 |
|
| Debtors (net) |
|
10,000 |
|
| Inventory: |
|
|
|
| Material: Wood |
1,350 |
|
|
| Material: Stain |
960 |
|
|
| Finished goods: Treen |
19,425 |
21,735 |
46,735 |
| |
|
|
|
| Non-Current Assets |
|
|
|
| Plant and Machinery |
|
500,000 |
|
| less accumulated depreciation (SL) |
10% |
100,000 |
400,000 |
| Total Assets |
|
|
$446,735 |
| |
|
|
|
| Liabilities |
|
|
|
| Creditors |
|
7,000 |
|
| Short term Loan - repayable on 31 March 2013 |
5,000 |
12,000 |
| |
|
|
|
| Shareholders Equity |
|
|
|
| Paid up Capital |
|
250,000 |
|
| Retained Earnings |
|
184,735 |
434,735 |
| Total Liabilities and Equity |
|
|
$446,735 |
| |
|
|
|
Prepare a Master Budget for Beta Manufacturing Ltd for each quarter (with a yearly total column) for the year ended 31 December 2012.
Your master budget must include the following and there should be a yearly total column for each budget except the Balance Sheet:
Data (Input) Section
Sales Budget and Schedule of Expected Cash Collections
Production Budget
Raw Materials Budget and Schedule of Expected Cash Disbursements for Materials
Direct Labour Budget
Manufacturing Overhead Budget
Selling and Administrative Expenses Budget
Ending Finished Goods Inventory Budget
Cost of Goods Sold Budget
Cash Budget
Budgeted Income Statement (quarterly)
Budgeted Statement of Changes in Equity (quarterly)
Budgeted Balance Sheet (quarterly)
Round all budget calculations to the nearest dollar. The sales and raw materials purchases budgets should be expressed in both units and dollars.
Attachment:- Assignment.rar