ACCT-5012 - CASE STUDY Fine Office Company Fine Office Company makes office furniture for offices. They are in the process of preparing a Master Budget including the Operating budget, Cash Statement, Income Statement and Balance Sheet for 2023. The yearly budget is broken into quarters. The year end is 31st December 2023. Your group has been requested to compile a master budget for the fiscal year 2023. Package is to include the following budgets; 1. Sales budget for each quarter and for the year 2. Production budget for each quarter and for the year 3. Purchasing Budget for each quarter and for the year 4. Direct labour budget for each quarter and for the year 5. Manufacturing overhead budget for each quarter and for the year 6. Selling and Administration budget 7. Work sheets for Collections and Disbursements 8. Budgeted Income Statement 9. CVP Income Statement 10. Budgeted Cash Statement 11. Budgeted Balance Sheet Additional details: Fine Office Company produces two products P100 and P200 Marking Rubric Tab Sales Production Dir. Materials Max. Points Group Points 7 0 10 0 13 0 Dir. Labour 5 0 Manufacturing O 18 0 Cost of Ending Fir 12 0 COGS 14 0 Selling & Admin 17 0 I/S 18 0 CVP I/S 16 0 Cash 32 0 Cash Worksheets 14 0 B/S 24 0 Total 200 0 Sales price per P100 is Sales price per P200 is $170 $310 There are ? of 2022 value Each P100 unit uses 2.5 units from P100 in finished goods inventory at the end of 2022 with a value of $ 300,000. At the end of each quarter, Fine Office Company requires ending inventory to be equal to The required ending inventory for Dec. 31, 2023 are 600 units for P100 and sq. ft. of steel during the manufacturing process. The cost of steel for 2023 is estimated to be $ 3.5 sq. ft. of steel during the manufacturing process. 3,000 sq. ft. 360,000 and ? 400 units for P200 Each P200 unit uses Fine Office Company currently has At the end of each quarter, Fine Office Company wants to have Each product requires Direct Labour costs $ 1.5 machine hours and $20 per direct labour hour. Fine Office Company allocates manufacturing overhead costs based on the estimated machine hours Estimated variable manufacturing overhead cost for 2023 are For each quarter, it is estimated that 50% 40,000 and the fixed manufacturing overhead is of sales will be cash and 50% will be credit sales. $ 100,000 per year of steel in the beginning inventory. 2,000 sq. ft. of ending inventory 2 direct labour hours to produce. units from P200 at the end 15% of the following quarter's budgeted sales in units. 8 per sq. ft.