AutoSave 0 B ACCT5012 Project Student W22-Group 11 (1) Search (Alt+a) vaishnav thiruvarath File Home Insert Page Layout Formulas Data Review View Help Comments Share 2 - X Calibri Autosum 11 ~ A A A == = = = 2 Wrap Text General IIX AY Paste Fill PA IDA Conditional Format as Cell Formatting Table Styles CA A B Merge Center Insert Delete Format LES % M Analyze Data V Sort Find Filter - Select Clear Undo Cupboard Font Alignment Number Styles Editing Analysis H D P R S S U 32 V21 fx E 6 K M N 1 ACCT-5012 - CASE STUDY Group members 2 3 Fine Office Company Marking Rubric Don't use marking cells 4 Tab Max. Points Group Points 5 Fine Office Company makes office fumiture for offices. They are in the process of preparing Sales D 6 a Master Budget including the Operating budget. Cash Statement, Income Statement Production 10 0 and Balance Sheet for 2021. The yearly budget is broken into quarters. The year end is Dir. Materials 13 0 831. December 2021. Your group has been requested to compile a master budget for the Dir. Labour 5 0 9 fiscal year 2021. Manufacturing OH 18 10 Package is to include the following budgets, Cast of Ending Finished in 12 D 11 1. Seles budget for each quarter and for the year COGS 14 0 12 2. Production budget for each cuarter and for the year Selling & Admin 17 0 13 9. Purchasing Budget for cach quarter and for the year US 18 0 14 4. Direct labour budget for each quarter and for the year CVP I/S 16 0 15 S. Manufacturing overhead budget for each cuarter and for the year Cach 16 6. Selling and Administration budget Cash Worksheets 14 17. Worksheets for Collections and Disbursements B/S 24 0 18 8. Budgcted Income Statement Total 200 0 19 9. CVP Income Statement 2010. Budgeted Cash Statement 21 11. Budgeted Balance Sheet 22 Additional details: 23. Finc Office Company produces two products P100 and P200 24. Sales price per P100 is $1,440 25 Sales price per P200 is $1,632 26. There are 800 units from P100 in finished goods inventory at the end of 2020 with a value of 3,60,000 and 500 units from 1200 at the end 21 of 2020 value 3,00,000. At the end of each quarter, Fine Olice Company requires ending inventory to be equal to 14% of the following quarter's budgeted sales in units. 28 The required ending inventory for Dec. 31, 2021 arc 600 units for P100 and L 400 units for P200 29 Esch P100 unit uses 120 sq. ft. of steel during the manufacturing process. The cost of steel for 2021 is estimated to be $ 8 persoft 30 Fach Pod unit es 152 sq. ft. of steel during the manufacturing process. 31. Tine Office Company currently has 30,000 ft . of steel in the beginning inventory. At Group Info Instructions Sales Budget Production Budget Direct materials Budget Direct Labour budget ... M + Select destination and press ENTER or chocse Paste 87% 99- HE A ENG IN 10:21 10-04-2022 21 AutoSave O R ACCT5012 Project Student W22-Group 11 (1) Search (Alt+0) vaishnav thiruvarath File Home Insert Page Layout Formulas Data Review View Help Comments Share 2 X Calibri 11 ~ A A == = = =P 2 Wrap Text General Autosum II ILL PA LA Conditional Format as Cell Formatting Table Styles Fill Paste BI U 1 A Merge Center Insert Delete Format ES % ) V AY Sort Find Filter - Select Editing Analyze Data Clear Unde Cupboard Font 5 Alignment Number Styles Cels Analysis V21 fr M N O P Q R R S S T U V B 0 D E F G H 31. Fine Office Company currently has 30,000 s. It of steel in the beginning inventory. At 32 the end of each quarter, Fine Office Company wants to have 96.000.c.ft. of ending 33 Inventory 34. Fach product requires 10 machine hours and 5 direct labour hrs to produce 35 Direct Labour costs 5 34 per direct labour hour 36. Fine Office Company allocates manufacturing overtread costs based on the estimated machine 37 hours. Estimated manufacturing overhead cost for 2021 are $ 15,12,000 and are all variable, 38 . For each quarter, it is estimated that DA of sales will be cash and 40 % 60 39 will be credit sales. Of the credit sales, 80% pay in the quarter of the sale and 20% pay in the 40 following quarter. Credit sales from 04 2020 were $13,00,000 41. Direct labour costs and manufacturing overhead costs are paid for in cash in the quarter they 42 occurred. 43. Assume operating expenses occur evenly throughout the year and are all paid in cash. 44. For each quarter, 70 % of material purchases are paid for in cash in the cuarter of 45 the purchase and 30% are paid in the following quarter. Purchases of materials from 46 Q4 2020 were $15,00,000 47 48 Fine Office Company 49 50 Additional details continued 51 . Fine Office Company will pay $60,000 in dividends in 04 52. Currently, the cash balance in the bank is $15,000. Fine Office Company wants to maintain a 53 minimum cash balance of $10,000 in the bank for cach quarter. 54. Budgated sales volumes are: 55 PICH 1 10320 2 110001 3 101H00 11520 56 P200 12382 02 13248 03 12960 13824 57. Selling and Administration expenses for the budgeted year are as follows; 58 Variable Cost: 59 Delivery costs are based on $ 0.3 per sales unit. 50 Commissions are based on 0.1% of sales value 61 52 Fixed Costs: Group Info Instructions Sales Budget Production Budget Direct materials Budget Ready Circular References:.04 Accessbility Investigate Direct Labour budget... + F 87% 99- HE e A ENG IN 10:22 10-04-2022 21 AutoSave O R ACCT5012 Project Student W22-Group 11 (1) O Search (Alt+a) vaishnav thiruvarath File Home Insert Page Layout Formulas Data Review View Help Comments Share 2 - ~ A A A == = = = X D 2 Wrap Text General Autosum II ILL Calibri 11 BIU UB Fill Paste PA LA Conditional Format as Cell Formatting Table Styles A Merge Center Insert Delete Format V AY Sort Find Filter - Select Editing Analyze Data Clear Undo Cipboard Font 5 Alignment Number Styles Cels Analysis K L M N O P Q R R S S T U V V21 fx B. C D F F 6 H 1 j 58 Variable Cost: 59 Delivery costs are based on $ 0.3 per sales unit. 60 Commissions are based on 0.1 % af cales value 61 62 Fixed Costs: $ 53 Accounting & professional services 3600 64 Administrative & Sales Salaries 140000 65 Advertising 20000 66 Computer costs 9000 67 Depreciation 70000 58 Office Supplies 5000 69 Printing 3000 70 Insurance 4000 71 Property taxes 2000 72 Rent 40000 73 Utilities 3400 74 Total Fixed Costs 300000 75 6. Fine Office Company will purchase a new machine on 1/1/2021 worth $700000 and will make two equal ? payments. The first payment will be in Q2 and the second in 04. Assume the machine was 78 purchased at the beginning of the year. 79. Taxation is 30% on taxable income and paid at the end of Q4 each year. 90 Balance sheet information as at 31st December 2020 is as follows: 81 PPE $1,00,000 Accumulated Depreciation $1,00,000 82 Common Stock $5,80,000! Retained Earnings $1,45,000 B3 For Cost of goods sold (COGSI: 34 Add total cost of production + Beginning Finished goods - Ending Finished goods Inventory. 95. Interest of 9000 on loans is paid in total at the end of the year and is a fixed cost 26 87 BE 09 Group Info Instructions Sales Budget Production Budget Direct materials Budget Ready circular References:.34 Access bilty Investigate Direct Labour budget... F 87% 99+ HE L -- H e A ENG IN 10 10:22 10-04-2022 21