The following budgeted information is available regarding Pants Inc. for January: Sales of $250,000. All collections occur the month after sale. Production of 10,000 units at a cost of $20 per unit. Direct material purchases of 5,000 units at a cost of $10 per unit. All 5,000 units will be used in production. All payments occur the month after purchase. 2,000 hours of direct labor at $25 per hour. Ending finished goods inventories of $40,000. Manufacturing overhead of $100,000, including depreciation of $80,000. SG&A of $50,000, including depreciation of $10,000. No capital expenditures or dividends. Minimum cash balance of $100,000. 1) Provide the budgeted income statement AND balance sheet for January. Please don't provide answer in image format thank you
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
The following budgeted information is available regarding Pants Inc. for January:
Sales of $250,000. All collections occur the month after sale.
Production of 10,000 units at a cost of $20 per unit.
Direct material purchases of 5,000 units at a cost of $10 per unit. All 5,000 units will be used in production. All payments occur the month after purchase.
2,000 hours of direct labor at $25 per hour.
Ending finished goods inventories of $40,000.
Manufacturing overhead of $100,000, including depreciation of $80,000.
SG&A of $50,000, including depreciation of $10,000. No capital expenditures or dividends.
Minimum cash balance of $100,000.
1) Provide the
Please don't provide answer in image format thank you
Step by step
Solved in 4 steps
