Comprehensive Master Budget
Accounting 2302
Jeffrey Vaughn, president of Frame-It Company, was just concluding a budget meeting with his senior staff. It was November of 20×0, and the group was discussing preparation of the firms master budget for 20×1. Ive decided to go ahead and purchase the industrial robot weve been talking about. Well make the acquisition on January 2 of next year, and I expect it will take most of the year to train the personnel and reorganize the production process to take full advantage of the new equipment.
AND SO ON
Prepare Frame-It Companys master budget for 20×1 by completing the following schedules and statements.
1. Sales budget:
2. Cash receipts budget:
3. Production budget:
4. Direct-material budget
5. Cash disbursements budget:
6. Summary cash budget:
7. Prepare a budgeted schedule of cost of good manufactured and sold for the year 20×1. Note: Budgeted and actual MOH will be equal.
8. Prepare Frame-Its budgeted income statement for 20×1. (Ignore income taxes.)
9. Prepare Frame-Its budgeted statement of retained earnings for 20×1.
10. Prepare Frame-Its budgeted balance sheet as of December 31, 20×1.