Computer Assignment 1 The Holly Corporation manufactures and sells three products, Cycle-III. Cycle-II and Cycle-I. In June 2021, Holly's Budget Department gathered the following data in order to prepare budgets for 2022: 2022 Projected Sales Product Units Price Cycle-III 43.000 $285 Cycie-II 27,000 $275 Cycle-1 30,000 $170 Expected Target Inventories Product January 1, 2022 December 31, 2022 Cycle-III 16.000 12.000 Cycle-II 22.000 26.000 Cycle-I 14.000 18,000 The following direct materials are expected to be used in the three products: Amount Used Per Unit Direct Material Unit Cycle-III Cycle-II Cycle-I X pound 5 S 0 pound 6 2 3 Projected data for 2022 with respect to direct materials are as follows: Direct Materials Expected Purchase Expected Inventories Target Inventories Price (January 1, 2022) (December 31, 2022) X $14 62.000 16 50.000 lb X $9 88.000 lb 60.000 16 Projected direct manufacturing labor requirements and rates for 2022 are as follows: Product Hours Per Unit Rate Per Hour Cycle-III 4 $9 Cycle-II 3 $12 Cycle-I 2.5 $14 Manufacturing overhead is allocated at the rate of S15 per direct manufacturing labor-hour. Required: Based on the preceding projections and budget requirements for Cycle-III. Cycle-II and Cycle-I. prepare the following budgets for Holly for 2022. Show breakups where appropriate 1. Revenues budget in dollars) 2. Production budget in units) 3. Direct materials purchases budget (in quantities) 4. Direct materials purchases budget (in dollars) 5. Direct manufacturing labor budget (in dollars) 6. Direct manufacturing overhead budget (in dollars) 7. Budgeted finished goods inventory (in dollars) 8. Cost of Goods Sold budget in dollars) Note: This is a computer assignment that can be easily done using standard spreadsheet software such as Excel". Budgets are flexible and fluid and may change as managers have access to additional information. If the above budget was computed manually, and a budgeting change was made in a key number, the entire budget would have to be recomputed. This would be a redundant and time-consuming exercise. Instead, if a spreadsheet template. employing simple formulas, was constructed a budgeting change could be made in a matter of seconds and the answers would be recomputed automatically. This assignment will have two parts, the first comprising of the data-entry section, where you will enter the above data. The second part will be the budgeting template, which will ONLY contain formulas that are linked to the data entry section. I recommend you "test" your template upon completion, i.e. change a key number in the data-entry section and see if the numbers in the template recompute correctly
