The facts for this problem are presented on the Facts tab of this workbook. Inst

Question

The facts for this problem are presented on the Facts tab of this workbook. Instructions - Your solutions should be clearly labeled on the Solutions tab of this workbook. For the first quarter of 2017, do the following. (a) Prepare a sales budget. This is similar to llustration 21-3 on page 1088 of your textbook. (b) Prepare a production budget. This is similar to llustration 21-5 on page 1089 of your textbook. (c) Prepare a direct materials budget. (Round to nearest dollar) This is similar to lllustration 21-7 on page 1091 of your textbook. (d) Prepare a direct labor budget. (For calculations, round to the nearest hour.) This is similar to lustration 21-9 on page 1094 of your textbook. (e) Prepare a manufacturing overhead budget. (Round intermediate amounts to the nearest dollar.) This is similar to lustration 21-10 on page 1094 of your textbook. (f) Prepare a selling and administrative budget. This is similar to Illustration 21-11 on page 1095 of your textbook. e) Prepare a budgeted income statement. (Round intermediate calculations to the nearest dollar.) This is similar to lustration 21-13 on page 1096 of your textbook. (h) Prepare a cash budget. This is similar to Illustration 21-17on page 1100 of your textbook. (You will need to prepare schedules for expected collections from customers and expected payments to vendors first. See Illustrations 21-15 and 21-16 on page 1099 of your textbook for guidance.) Rules: Use Excel's functionality to your benefit. Points are lost for lack of formula. Use proper formats for schedules, following the referenced textbook examples. *Use dollar-signs and underscores where appropriate. Double-check your work! Verify your formula and logic! Grading Guidelines: Effective Use of Excel Facts, Logic Completeness Spelling, Punctuation, Value Format 40% 20% 30% 10%

Explanation / Answer

Solution:

Budget - 1st Quarter Particulars January Feburary March Total a. Sales Budget: Budgeted Sales unit 101000 102000 104000 307000 Selling Price $11 $11 $11 $11 Budgeted Sales Value $1,111,000 $1,122,000 $1,144,000 $3,377,000 b. Production Budget: Budgeted Sales Unit 101000 102000 104000 307000 Budgeted ending inventory (10% of next month sale) 10200 10400 11300 31900 Budgeted Opening inventory (10% of monthly Sale) 10100 10200 10400 30700 Budgeted Production Units (Sales + Closing Stock - Opening Stock) 101100 102200 104900 308200 c. Direct Material Purchase Budget: Budgted Production Units 101100 102200 104900 308200 Raw material (Metal) requirement per unit 2 2 2 2 Direct Material requirement (Metal) 202200 204400 209800 616400 Budgeted ending inventory (5% of next month production material requirement) 10220 10490 11410 32120 Budgeted Opening inventory (5% of month production material requirement) 10110 10220 10490 30820 Raw Material Purchase units (Production + Closing Stock - Opening Stock) 202310 204670 210720 617700 Plastic housing unit cost $1 $1 $1 $1 Purcahase cost of Direct Material $202,310 $204,670 $210,720 $617,700 d. Direct Labor Budget Budgted Production Units 101100 102200 104900 308200 time required per unit (In Hrs) 0.25 0.25 0.25 0.25 Total Time required (In Hours) 25275 25550 26225 77050 Labor rate (Per hour) $6 $6 $6 $6 Direct Labor Cost $151,650 $153,300 $157,350 $462,300

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