The facts for this problem are presented on the Facts tab of this workbook. Inst
ID: 2589308 • Letter: T
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:
a. Sales budget:
Jan
Feb
March
units sold
106,000.00
107,000.00
109,000.00
selling price per unit
12.00
12.00
12.00
Budgeted sales
1,272,000.00
1,284,000.00
1,308,000.00
Production budget:
Units sold
106,000.00
107,000.00
109,000.00
Add: ending inventory
10,700.00
10,900.00
11,900.00
Less: beginning inventory
(10,600.00)
(10,700.00)
(10,900.00)
Production budget
106,100.00
107,200.00
110,000.00
c. Direct material budget:
Production budget
106,100.00
107,200.00
110,000.00
Material used
2.00
2.00
2.00
Total material required
212,200.00
214,400.00
220,000.00
Add: ending inventory
107,200.00
110,000.00
120,000.00
Less: beginning inventory
(53,050.00)
(53,600.00)
(55,000.00)
Direct material budget
266,350.00
270,800.00
285,000.00
d. Direct labour budget:
Production budget
106,100.00
107,200.00
110,000.00
Time per unit production
15.00
15.00
15.00
Total time required in minutes
1,591,500.00
1,608,000.00
1,650,000.00
Total time required in hours
26,525.00
26,800.00
27,500.00
Rate per hour
6.00
6.00
6.00
Direct labour budget
159,150.00
160,800.00
165,000.00
e. Manufacturing overhead budget:
Variable overhead rate per hour
1.30
1.30
1.30
Total time required in hours
26,525.00
26,800.00
27,500.00
Variable overhead cost
34,482.50
34,840.00
35,750.00
Fixed overhead cost
63,975.00
63,975.00
63,975.00
Manufacturing overhead budget
98,457.50
98,815.00
99,725.00
f. Selling and administrative budget:
Variable overhead cost
34,482.50
34,840.00
35,750.00
Fixed overhead cost
129,000.00
129,000.00
129,000.00
Manufacturing overhead budget
163,482.50
163,840.00
164,750.00
a. Sales budget:
Jan
Feb
March
units sold
106,000.00
107,000.00
109,000.00
selling price per unit
12.00
12.00
12.00
Budgeted sales
1,272,000.00
1,284,000.00
1,308,000.00
Production budget:
Units sold
106,000.00
107,000.00
109,000.00
Add: ending inventory
10,700.00
10,900.00
11,900.00
Less: beginning inventory
(10,600.00)
(10,700.00)
(10,900.00)
Production budget
106,100.00
107,200.00
110,000.00
c. Direct material budget:
Production budget
106,100.00
107,200.00
110,000.00
Material used
2.00
2.00
2.00
Total material required
212,200.00
214,400.00
220,000.00
Add: ending inventory
107,200.00
110,000.00
120,000.00
Less: beginning inventory
(53,050.00)
(53,600.00)
(55,000.00)
Direct material budget
266,350.00
270,800.00
285,000.00
d. Direct labour budget:
Production budget
106,100.00
107,200.00
110,000.00
Time per unit production
15.00
15.00
15.00
Total time required in minutes
1,591,500.00
1,608,000.00
1,650,000.00
Total time required in hours
26,525.00
26,800.00
27,500.00
Rate per hour
6.00
6.00
6.00
Direct labour budget
159,150.00
160,800.00
165,000.00
e. Manufacturing overhead budget:
Variable overhead rate per hour
1.30
1.30
1.30
Total time required in hours
26,525.00
26,800.00
27,500.00
Variable overhead cost
34,482.50
34,840.00
35,750.00
Fixed overhead cost
63,975.00
63,975.00
63,975.00
Manufacturing overhead budget
98,457.50
98,815.00
99,725.00
f. Selling and administrative budget:
Variable overhead cost
34,482.50
34,840.00
35,750.00
Fixed overhead cost
129,000.00
129,000.00
129,000.00
Manufacturing overhead budget
163,482.50
163,840.00
164,750.00
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