AutoSave On . Budgeting Assignment Instructions - Last Modified: Yesterday at 7:27 AM . Search Laura Maslin LM X File Home Insert Design Layout References Mailings Review View Help Share Comments & Cut Times New Romar ~ 12 ~ A" A Aa Ap EVENT Find AaBbCcI 1 AaBb( AaBbCcI AaBbC AaBBCcl AaBbCc] Lol Paste [ Copy S'c Replace Format Painter BIUab X X A LA 1 LO_List INL Normal 1 Problem... 1 Problem... 1 No Spac.. Dictate Sensitivity Editor Reuse Select v Files Clipboard Font Paragraph Styles Editing Voice Sensitivity Editor Reuse Files | 1 . 2 . 1 . 1 . 1 . ) . 1 . 1 . 1 . 2 . 1 . 3 . 1 . 4 . 1 . 5 . 1 . 6 . 1 . 7 . 1 . 8 . 1 . 9 . 1 . 10 . 1 . 11 . 1 . 12 . 1 . 13 . 1 . 14 . 1 . 15 . 1 . 16 1 . 17 . 1 .18. Swisstech Pty Ltd produces two high tech components for the computers industry, the XT1 and XT2. The components are manufactured in a three-step process and each process is treated as a separate cost centre. In the first process, manufacturing, parts of the components are manufactured. In the second process, assembly, these parts are assembled in each component. In the third process, finishing, the components are tested and packaged. 1. Actual sales (from October to December 2020) and projected sales (from January 2021 onwards) of components in units are the following: Month XT1 XT2 October 5,000 3,000 November 6,000 4,000 December 7,500 5,000 January 8,000 6,000 February 9,000 7.000 March 9,000 7,000 April 8,000 6,000 May 7,500 5.000 June 9,000 7.000 July 9,500 8.000 August 10,000 9,000 2. The current selling price of XT1 is $100 and XT2 is $150. Swisstech is planning to increase the selling price of these components on Ist April to $110 XT1 and $180 XT2. No other changes in the selling prices are planned. 3. All sales are on credit. Pattern of Collection is: 50% are collected in the month following the sale 30% in the second month following the sale and 20% in the third month following Page 2 of 8 2659 words DX English (United States) " Focus + 100% Type here to search O 1 0 0 0 ( 1) @ ENG 8:14 AM 13/05/2021AutoSave On . Budgeting Assignment Instructions - Last Modified: Yesterday at 7:27 AM . Search Laura Maslin LM X File Home Insert Design Layout References Mailings Review View Help Share Comments & Cut Times New Romar ~ 12 ~ A" A Aa Ap Find AaBbCcI 1 AaBb( AaBbCcI AaBbC AaBbCel AaBbCcI Lol Paste [ Copy S'c Replace BIU ab X X A LA 1 LO_List INL 1 Normal 1 Problem... 1 Problem... 1 No Spac.. Dictate Sensitivity Editor Reuse Format Painter Select v Files Clipboard Font Paragraph Styles Editing Voice Sensitivity Editor Reuse Files | 1 . 2 . 1 . 1 . 1 . ) . 1 . 1 . 1 . 2 . 1 . 3 . 1 . 4 . 1 . 5 . 1 . 6 . 1 . 7 . 1 . 8 . 1 . 9 . 1 . 10 . 1 . 11 . 1 . 12 . 1 . 13 . 1 . 14 . 1 . 15 . 1 . 16 1 . 17 . 1 18. 3. All sales are on credit. Pattern of Collection is: 50% are collected in the month following the sale, 30% in the second month following the sale and 20% in the third month following the sale. 4. Materials are purchased on credit. Swisstech pays 60% of purchases in the month of purchase and the remaining 40% in the following month. Data regarding direct materials used in the components are shown in the following schedules (the cost per unit has not changed in the last 12 months): 2 2104AFE Management Accounting T1 2021 Master Budget Case Study Direct material Cost per Units of direct materials per Units of direct materials per unit finished component XT1 finished component XT2 No. 101 $2.40 6 4 No. 102 $3.60 2 5 Page 2 of 8 2659 words DX English (United States) " Focus + 100% Type here to search O L W 1 0 0 0 1) @ ENG 8:14 AM 13/05/2021AutoSave On . Budgeting Assignment Instructions - Last Modified: Yesterday at 7:27 AM . Search Laura Maslin LM X File Home Insert Design Layout References Mailings Review View Help Share Comments & Cut Times New Romar ~ 12 ~ A" A Aa Ap Find AaBbCcI 1 AaBb( AaBbCcI AaBbC AaBbCel AaBbCc] Lol Paste [ Copy S'c Replace BIUab X X A LA 1 LO_List INL Normal 1 Problem... 1 Problem... 1 No Spac.. Dictate Sensitivity Editor Reuse Format Painter Select v Files Clipboard Font Paragraph Styles Editing Voice Sensitivity Editor Reuse Files | 1 . 2 . 1 . 1 . 1 . ) . 1 . 1 . 1 . 2 . 1 . 3 . 1 . 4 . 1 . 5 . 1 . 6 . 1 . 7 . 1 . 8 . 1 . 9 . 1 . 10 . 1 . 11 . 1 . 12 . 1 . 13 . 1 . 14. 1 . 15 . 1 . 16 1 . 17. 1 . 18. 5. The desired monthly ending inventory for all direct materials is an amount sufficient to produce 60% of the next month's production needs. The inventory levels at 31 December are: Direct material No. 101: 48,000 units Direct material No. 102: 30,960 units 6. The ending balance of work in process each moth is 0. Each month all the units started in work in process are completed and transferred to finished goods inventory. 7. The desired monthly ending finished goods inventory (inventory of completed components) XTI and XT2 is 80% of the next month's estimated sales. There are 6,400 units of XT1 and 4,800 units of XT2 in inventory on December 31, 2020. Assume the cost per unit of the inventory of XT1 and XT2 at 31 December 2020 is the same unit manufacturing cost for the period January - June 2021. 8. Labour costs are paid as they are incurred. Data regarding direct labour for each component in each department (process) are as follows (the cost per DLH has not changed in the last 12 months): Process Cost per Direct labour hours per Direct labour hours per DLH finished component XT1 finished component XT2 Manufacturing $40 0.400 0.600 Assembly $32 1.000 1.200 Finishing $36 0.125 0.200 Page 3 of 8 2659 words DX English (United States) " Focus + 100% Type here to search O L ^ 0 0 0 1) @ ENG 8:14 AM 13/05/2021AutoSave On . Budgeting Assignment (Final)(1) (1) - Saved Search Laura Maslin LM X File Home Insert Page Layout Formulas Data Review View Help Share Comments & Cut _ AutoSum Calibri v 12 ~ A" A ay Wrap Text Custom AY O Paste [ Copy Fill BIUVV DAY E Merge & Center $ ~ % " Conditional Format as Cell Insert Delete Format Sort & Find & Analyze Sensitivity Format Painter Formatting > Table Styles v Clear Filter ~ Select Data Clipboard Font Alignment Number Styles Cells Editing Analysis Sensitivity D18 X V 7000 A B D E G H K 5 XT2 (6000 x 150 ) = 90 (7000 x 150 ) = 1, (7000 x 150 ) = 1, (6000 x 180 ) = 1, (5000 x 180 ) = 90 (7000 x 180 ) = 1,260,000 6 Total 8 9 b. production budget (units) Jan Feb Mar Apr May Jun Total Jul Aug 10 XT 11 Budgeted sales (units) 12 Plus El 13 Units required 14 Less Ol 15 Total production budget XT1 16 Total production XT1 roundown 17 XT2 18 Budgeted sales (units) 19 Plus E 20 Units required 21 Less Ol 22 Total production budget XT2 23 Total production XT2 roundown 24 Total production (XT1 + XT2) 25 26 27 c. DM purchases budget (units and $ Jan Feb Mar Apr May Jun Total Jul 28 Production XT1 29 Production XT2 30 DM No. 101 Data Section Master Budget + Ready + 100% Search O X W 1 0 0 0 (1) @ ENG 8:21 AM 13/05/2021