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| Project 4 is due by Tuesday, October 22nd. Send via the assignment area and make sure you save your file with first initial of first name and last name. | |||||||||||||
| You will be graded on the accuracy of your answer and usage of cell referencing in the DATA area. | |||||||||||||
| This project covers material in chapter 9 and I have extensive budget demonstrations in the chapter 9 course documents folder. | |||||||||||||
| I have a template set up on the solution worksheet that you should use to complete the required budgets that are stated on the solution worksheet tab along with a what if question and article questions. | |||||||||||||
| You need to use cell references in the development of your budgets. You must use this worksheet to reference the data that is being inputted onto the budgets on the solution worksheet. | |||||||||||||
| Grading Rubric for Project 4 | |||||||||||||
| Possible points | |||||||||||||
| 1. Prepare a sales budget for November | 0.5 | ||||||||||||
| 2. Prepare a production budget for November. | |||||||||||||
| 3. Prepare a supporting schedule to determine required material for production and a direct materials purchase budget for November | |||||||||||||
| 4. Prepare a direct labor cost budget for November. | |||||||||||||
| 5. Prepare a factory overhead cost budget for November | |||||||||||||
| 6. Prepare a cost of goods sold budget for November. | |||||||||||||
| 7. Prepare a selling and administrative budget for November, set up based on categorization of expenses into selling and administrative costs. | |||||||||||||
| 8. Prepare a budgeted income statement for November. | |||||||||||||
| 9. What if the company decides to start a new advertising campaign | |||||||||||||
| 10. Article answers-.75 each | |||||||||||||
| Total | |||||||||||||
| If you type in any numbers in the solution, I will take off 5 pts., since we use Excel so that we can update budgets or do what if analysis without retyping numbers. | |||||||||||||
| The budget director for | Bird House | ||||||||||||
| Estimated sales for November | |||||||||||||
| 29,000 | units | $33 | per unit | ||||||||||
| Bird Feeder | 2 | 5,000 | $37 | ||||||||||
| Direct materials | |||||||||||||
| Estimated inventories at November 1(beginning) | |||||||||||||
| Wood | 2600 | feet | |||||||||||
| Plastic | 3200 | pounds | |||||||||||
| Estimated inventories at November 30th(ending) | |||||||||||||
| 3500 | |||||||||||||
| 2800 | |||||||||||||
| Direct materials used in production: | |||||||||||||
| In the manufacture of a Bird House: | |||||||||||||
| 0.80 | feet per unit of product | ||||||||||||
| 0.50 | pounds per unit of product | ||||||||||||
| In the manufacture of a Bird Feeder: | |||||||||||||
| 1.20 | |||||||||||||
| 0.75 | |||||||||||||
| Estimated cost of direct materials | |||||||||||||
| $6.00 | per feet | ||||||||||||
| $0.90 | per pound | ||||||||||||
| Work in process-given in total of the 2 products | |||||||||||||
| $ | 2,000 | ||||||||||||
| $ | 3,000 | ||||||||||||
| Finished Goods | |||||||||||||
| 4,000 | $13 | ||||||||||||
| 2,500 | $14 | ||||||||||||
| Direct Labor Requirements: | |||||||||||||
| Fabrication Department | 0.25 | hour | $15 | ||||||||||
| Assembly Department | 0.3 | $12 | |||||||||||
| 0.45 | |||||||||||||
| 0.35 | |||||||||||||
| Estimated Manufacturing Overhead Costs for November | |||||||||||||
| Indirect Factory Wages | $2,000 | ||||||||||||
| Depreciation of Plant and Equipment | 1,000 | ||||||||||||
| Power and Light | |||||||||||||
| Insurance and property tax | |||||||||||||
| Estimated operating expenses for November | |||||||||||||
| Sales salaries expense | |||||||||||||
| Advertising expense | 10,000 | ||||||||||||
| Office salaries expense | |||||||||||||
| Depreciation expense-office equipment | |||||||||||||
| Telephone expense-selling | |||||||||||||
| Telephone expense-administrative | |||||||||||||
| Travel expense-selling | |||||||||||||
| Office supplies expense | |||||||||||||
| Miscellaneous Administrative expense | 6,000 | ||||||||||||
| Estimated other income and expense for November | |||||||||||||
| Interest Revenue | $14,000 | ||||||||||||
| Interest Expense | |||||||||||||
|
Estimated tax rate Required: Prepare the following budgets using cell references and formulas in the shaded cells below. You should not have any numbers typed into the budgets below, since you will be performing what if analysis. I know that my budget format for November is different than the textbook, but conceptually it is the same. 1. Prepare a sales budget for November. 2. Prepare a production budget for November. 3. Prepare a supporting schedule to determine required material for production and a direct materials purchase budget for November. 4. Prepare a direct labor cost budget for November. 5. Prepare a factory overhead cost budget for November. 6. Prepare a cost of goods sold budget for November. 7. Prepare a selling and administrative budget for November, set up based on categorization of expenses into selling and administrative costs.8. Prepare a budgeted income statement for November. 9. What if the company decides to start a new advertising campaign that will increase the total advertising expense to a total of $12,000 and the estimated sales of bird house would increase to 30,000 units and Bird Feeders would increase to 26,000 units. Make these changes on the data sheet and if you have linked your data correctly to these budgets the budgets should update immediately. What budgets changed? What would be the new budgeted income? Would you recommend this advertising campaign? Why? 10. Read the following article: Armato, Neil (October 2013). Forward Roll: How Companies Can Move Beyond Traditional Budgeting.http://www.journalofaccountancy.com/Issues/2013/Oct/20137811.htm Answer the following questions: a. How has a rolling forecast helped the company referenced in the article? b. What are the 3 stages a company needs to convert to a rolling forecast? c. What are the 4 ways to embrace rolling forecasts? d. How many days can a company save in their budgeting process based on research by the American Productivity & Quality Center? |
30% |
