Excel - Proja Home Insert Page Layout Formulas Data Review View Cut Garamond 12 A- A - Wrap Text Gene Copy Paste B I U A Tuli Merge & Center Format AZ fx B D E F G H 1 J Project - Part 1 Assignment You are the accountant at Wesleyan Technology Company (WTC) in the fall of 2020. Your boss, the controller, has asked you to take another pass at the 3rd Quarter Budget for 2021 as she is not sure the numbers are correct. She sends you the attached Excel file, providing the necessary information to construct the budget from scratch. Your job is to take the information provided on the Info tab in Excel file and put together the Budget for 30, 2021 on the Input tab. You have until May 12 to get this done. 0 Assumptions for Wesleyan Technology Company (WTC) on preparing a budget for 3rd Quarter, 2021 Budgeted Sales (in units) Ily August 40,000 45,000 September 60,000 October 35,000 November 20,000 Per Unit Selling Price - $12.00 Cash Collections WTC sales are all on account with the following pattern of collection is: 65% Collected in the month of the sale 30% Collected in the month following the sale 5% Uncollectible June's sales were $360,000 Production Budget Ending inventory is to be equal to 15% of the following month's budgeted sales. Direct Materials 10 pounds of material is required per unit of product 10% of the following month's production for Materials on hand at month end $0.25 cost per pound of material Cash Disbursement for Materials WTC paid for purchases as follows: 55% is paid in the month the materials are purchased 45% is paid in the following month June 30 Accounts Payable balance of $33,187.50 is to be paid in full in July 0.1 (or 6 minutes) Direct Labor Part of an hour of direct labor to produce one unit of product WTC has a "no layoff" policy so all employees are paid for 40 hours of work each week The hourly rate per hour for regular time employees The minimum number of hours to be paid each month $15 3,000 Manufacturing Overhead Manufacturing overhead is applied to units of product based on direct labor hours The viable overhead rate per direct hour Fixed Manufacturing Overhead per month Non-cash costs included in Fixed Manaufacturing Overhead $25 $75,000 $25,000 2. Selling and Administrative Expenses WTC has both fixed and variable selling and administrative expenses Rate per unit for Variable Selling and Administrative expenses Fixed Selling and Administrative expenses per month Non-cash costs included in Fixed Selling and Administrative expenses $0.25 $75,000 $15,000 Cash Budget Maintain a minimum month end cash balance of $40,000 Maintains a 15% open line of credit for $125,000 Borrowing happens on the first day of the month Repayments are made on the last day of the month Cash dividend paid in August Equipment purchases made in Q3 2021 Equipment purchased with cash in July Equipment purchased with cash in September June 30 ending cash balance was $40,000 $60,000 $55,000 $150,000 Budgeted Financial Staments WTC Balance Sheet as of June 30 showed the following balances: Accounts Receivable $137,627.00 Equipment $195,000.00 Land $50,000.00 Common Stock $300,000.00 Retained Earnings A98,986 36 $240,567,00 CH8 Budget Worksheets Assumptions for Wesleyan Technology Company (WTC) on preparing a budget for 3rd Quarter, 2021 Construct the sales budget Quarter 3, 2021 July August September Total Budgeted unit sales Selling price per unit Total sales Construct Expected Cash Collections Budget Quarter 3, 2021 August September July Total A/R - 30Jun Total Cash Collections Construct Production Budget Quarter 3, 2021 August September July Quarter Budgeted Sales Add: Desired Ending Inventory Total Needs Less: Beginning Inventory Required Production Construct Direct Materials Budget Quarter 3, 2021 August September July Quarter Production Materials per units (lbs.) Production Needs Add: Desired ending inventory Total Needed Less: Beginning Inventory Materials to be purchased Cost per lbs Materials to be purchased - $ CH8 Budget Worksheets Construct Expected Cash Disbursements Budget Quarter 3, 2021 July August September A/P - 30Jun Total Total Cash Disbursements Construct Direct Labor Budget Quarter 3, 2021 August September July Total Units of Production Direct Labor per unit Labor hours required Guaranteed Hours Labor Hours Paid Hourly Rate Total Direct Labor Costs Construct Manufacturing Overhead Budget Quarter 3, 2021 August September July Total Budgeted DLH Variable MOH rate Variable MOH costs Fixed MOH costs Total MOH costs Predetermined Overhead Rate (POHR) Total MOH costs Less: noncash costs Cash disbursements for MOH Construct Ending Finished Goods Inventory Budget Quantity Total Production costs per unit Direct Materials Direct Labor Manufacturing Overhead Quarter 3, 2021 Cost lbs. hrs hrs. Product Cost per Unit Budgeted Finished Goods Inventory Ending inventory in units CH8 Budget Worksheets Unit product cost Ending finished goods inventory Construct Selling and Administrative Expense Budget Quarter 3, 2021 August September July Total Budgeted Sales Variable S & A rate Variable expenses Fixed S & A costs Total S & A costs Less: noncash costs Cash S & A Expenses Construct Cash Budget Quarter 3, 2021 August September July Total Beginning Cash Balance Add: Cash collections Total cash available Less: Cash disbursements Materials Direct labor Manufacturing O/H Selling and Admin Equipment purchase Dividend Total disbursements Excess Deficiency) Financing Borrowing Repayments Interest Total financing Ending Cash Balance CH8 Budget Worksheets Budgeted Income Statement Sales Cost of Goods Sold Gross Margin Selling and Administrative expenses Operating Income Interest expense Net Income Construct Budgeted Income Statement Budgeted Balance Sheet ASSETS: Cash Accounts receivable Raw materials inventory Finished goods inventory Land Equipment Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY: Accounts Payable Notes Payable Common Stock Retained earnings Total Liabilities and Stockholders' Equity Excel - Proja Home Insert Page Layout Formulas Data Review View Cut Garamond 12 A- A - Wrap Text Gene Copy Paste B I U A Tuli Merge & Center Format AZ fx B D E F G H 1 J Project - Part 1 Assignment You are the accountant at Wesleyan Technology Company (WTC) in the fall of 2020. Your boss, the controller, has asked you to take another pass at the 3rd Quarter Budget for 2021 as she is not sure the numbers are correct. She sends you the attached Excel file, providing the necessary information to construct the budget from scratch. Your job is to take the information provided on the Info tab in Excel file and put together the Budget for 30, 2021 on the Input tab. You have until May 12 to get this done. 0 Assumptions for Wesleyan Technology Company (WTC) on preparing a budget for 3rd Quarter, 2021 Budgeted Sales (in units) Ily August 40,000 45,000 September 60,000 October 35,000 November 20,000 Per Unit Selling Price - $12.00 Cash Collections WTC sales are all on account with the following pattern of collection is: 65% Collected in the month of the sale 30% Collected in the month following the sale 5% Uncollectible June's sales were $360,000 Production Budget Ending inventory is to be equal to 15% of the following month's budgeted sales. Direct Materials 10 pounds of material is required per unit of product 10% of the following month's production for Materials on hand at month end $0.25 cost per pound of material Cash Disbursement for Materials WTC paid for purchases as follows: 55% is paid in the month the materials are purchased 45% is paid in the following month June 30 Accounts Payable balance of $33,187.50 is to be paid in full in July 0.1 (or 6 minutes) Direct Labor Part of an hour of direct labor to produce one unit of product WTC has a "no layoff" policy so all employees are paid for 40 hours of work each week The hourly rate per hour for regular time employees The minimum number of hours to be paid each month $15 3,000 Manufacturing Overhead Manufacturing overhead is applied to units of product based on direct labor hours The viable overhead rate per direct hour Fixed Manufacturing Overhead per month Non-cash costs included in Fixed Manaufacturing Overhead $25 $75,000 $25,000 2. Selling and Administrative Expenses WTC has both fixed and variable selling and administrative expenses Rate per unit for Variable Selling and Administrative expenses Fixed Selling and Administrative expenses per month Non-cash costs included in Fixed Selling and Administrative expenses $0.25 $75,000 $15,000 Cash Budget Maintain a minimum month end cash balance of $40,000 Maintains a 15% open line of credit for $125,000 Borrowing happens on the first day of the month Repayments are made on the last day of the month Cash dividend paid in August Equipment purchases made in Q3 2021 Equipment purchased with cash in July Equipment purchased with cash in September June 30 ending cash balance was $40,000 $60,000 $55,000 $150,000 Budgeted Financial Staments WTC Balance Sheet as of June 30 showed the following balances: Accounts Receivable $137,627.00 Equipment $195,000.00 Land $50,000.00 Common Stock $300,000.00 Retained Earnings A98,986 36 $240,567,00 CH8 Budget Worksheets Assumptions for Wesleyan Technology Company (WTC) on preparing a budget for 3rd Quarter, 2021 Construct the sales budget Quarter 3, 2021 July August September Total Budgeted unit sales Selling price per unit Total sales Construct Expected Cash Collections Budget Quarter 3, 2021 August September July Total A/R - 30Jun Total Cash Collections Construct Production Budget Quarter 3, 2021 August September July Quarter Budgeted Sales Add: Desired Ending Inventory Total Needs Less: Beginning Inventory Required Production Construct Direct Materials Budget Quarter 3, 2021 August September July Quarter Production Materials per units (lbs.) Production Needs Add: Desired ending inventory Total Needed Less: Beginning Inventory Materials to be purchased Cost per lbs Materials to be purchased - $ CH8 Budget Worksheets Construct Expected Cash Disbursements Budget Quarter 3, 2021 July August September A/P - 30Jun Total Total Cash Disbursements Construct Direct Labor Budget Quarter 3, 2021 August September July Total Units of Production Direct Labor per unit Labor hours required Guaranteed Hours Labor Hours Paid Hourly Rate Total Direct Labor Costs Construct Manufacturing Overhead Budget Quarter 3, 2021 August September July Total Budgeted DLH Variable MOH rate Variable MOH costs Fixed MOH costs Total MOH costs Predetermined Overhead Rate (POHR) Total MOH costs Less: noncash costs Cash disbursements for MOH Construct Ending Finished Goods Inventory Budget Quantity Total Production costs per unit Direct Materials Direct Labor Manufacturing Overhead Quarter 3, 2021 Cost lbs. hrs hrs. Product Cost per Unit Budgeted Finished Goods Inventory Ending inventory in units CH8 Budget Worksheets Unit product cost Ending finished goods inventory Construct Selling and Administrative Expense Budget Quarter 3, 2021 August September July Total Budgeted Sales Variable S & A rate Variable expenses Fixed S & A costs Total S & A costs Less: noncash costs Cash S & A Expenses Construct Cash Budget Quarter 3, 2021 August September July Total Beginning Cash Balance Add: Cash collections Total cash available Less: Cash disbursements Materials Direct labor Manufacturing O/H Selling and Admin Equipment purchase Dividend Total disbursements Excess Deficiency) Financing Borrowing Repayments Interest Total financing Ending Cash Balance CH8 Budget Worksheets Budgeted Income Statement Sales Cost of Goods Sold Gross Margin Selling and Administrative expenses Operating Income Interest expense Net Income Construct Budgeted Income Statement Budgeted Balance Sheet ASSETS: Cash Accounts receivable Raw materials inventory Finished goods inventory Land Equipment Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY: Accounts Payable Notes Payable Common Stock Retained earnings Total Liabilities and Stockholders' Equity