Cost Accounting Final Project JAMZ Company is a family-owned business that produces premium organic apple jam, which it sells to grocery stores nationwide for $11.00 per jar. The JAMZ Company budget committee is in the process of preparing budgets for the first quarter of the coming year, 2022, and has gathered the following information: Sales and Production: JAMZ Company Sales Forecast Estimated Sales by Month *November * December January February March April |May June * Actual results from prior year Units 109575 113250 113925 103425 115200 112125 116475 118125 Price per Unit Total Sales Revenue $11.00 $1,205,325.00 $11.00 $1,245,750.00 $11.00 $1,253,175.00 $11.00 $1,137,675.00 $11.00 $1,267,200.00 $11.00 $1,233,375.00 $11.00 $1,281,225.00 $11.00 $1,299,375.00 The desired ending inventory is 20 percent of the next month's unit sales. All sales are on account. Collections are expected to be 50 percent in the month of the sale, 35 percent in the first month following the sale, and 15 percent in the second month following the sale. Direct materials: JAMZ Company's apple jam contains two main ingredients, apples and sugar. For every 24- ounce jar of apple jam, 2 pounds of organic apples at a cost of $3.00 per pound and 0.20 pounds of organic sugar at a cost of $5.00 per pound, will be used. The desired ending inventory for apples and sugar is 30 percent of the next month's material needs. (Since direct materials are purchased by the pound, round up as necessary. For instance, if ending inventory for January ends up being 6,346.80 pounds, round up to 6,347 pounds. Also, rounded answers should be entered manually to not interfere with any other calculations.) Sixty percent of direct materials purchases are paid in the month of the purchase, and the remaining 40 percent are paid in the month following the purchase. Direct materials purchases for December totaled $790,417 ($677,502 for apples and $112,915 for sugar). Direct labor: To produce one jar of premium organic apple jam, 12 minutes of direct labor are consumed at an hourly rate of $9.00 (minutes should be converted to a fraction of an hour). Manufacturing Overhead: JAMZ Company expects variable manufacturing overhead to fluctuate with the number of units to be produced. Variable manufacturing overhead per unit and fixed manufacturing overhead are as follows: Supplies $0.15 per unit Utilities $400 per month plus 0.01 per unit Facility rent $3,000 per month Maintenance $0.10 per unit Inspection $0.05 per unit Supervisory salaries $240,000 per year Depreciation $8,750 per month Selling, General, and Administrative: Expected costs for variable selling, general, and administrative include sales commissions, which are 5% of gross sales, and freight-out, which is $0.10 per unit. Fixed selling and administrative costs are as follows: Payroll Advertising Insurance Office rent $120,000 per year $5,000 per month $3,000 biannually $1,000 per month Instructions For the first quarter of 2022, prepare the following items by month and cumulative quarter total. Save your spreadsheet as "Cost Accounting, Final Project - "Last Name, First Name"". a. Prepare a production budget. b. Prepare a direct materials budget (separate budgets for apples and sugar). C. Prepare a direct labor budget. d. Prepare a schedule of budgeted manufacturing overhead. e. Prepare a budgeted statement of cost of goods sold. (When calculating the manufacturing cost per unit, the manufacturing overhead component will have many decimals, which you should not round. It's ok to show your numbers with two decimals, but use the original number when calculating the beginning and ending finished goods inventory. For example, if manufacturing overhead is $0.600346.... per unit, you should show it as $0.60 by collapsing your decimals, but leave the formula in the cell as is for further calculations). f. Prepare a schedule of budgeted selling, general, and administrative costs. g. Prepare a schedule of cash collections. Indicate the A/R balances on January 1, 2022 and March 31, 2022. h. Prepare a schedule of cash disbursements. For cash disbursements for material purchases, indicate the A/P balances on January 1, 2022 and March 31, 2022. i. Prepare a schedule of cash budgeted. Assume a cash balance of $75,000 on December 31, 2021. Assume no interest will be earned or paid on surpluses or deficits of cash. Variance analysis: Using the information provided on the first worksheet of the Excel spreadsheet titled Fall 2021 Project - Variance Analysis, prepare a profit variance analysis using the variable costing income statement format. For this analysis, SG&A expenses are ignored. Based on the standards used during the budgeting process and the following information, compute the total, price, and quantity variances for material and labor (separate computations should be made for apples and sugar). The remaining worksheets in the Excel spreadsheet should be used to show these variances. During the first quarter of 2022, JAMZ Company produced and sold 333,750 jars of premium organic apple jam. The quantities of materials purchased during the quarter were also used. The actual quantities and costs incurred during production were as follows: Direct materials: Apples Sugar Direct labor: 890,000 lbs @ $2.75 per Ib 44,500 lbs @ $5.25 per lb 53,400 hrs @ $12.00 per hr