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Guidance Corp is preparing its Master Budget for 2 0 XX . You need to prepare Guidance s Direct Materials Budget and Schedule of Cash
Guidance Corp is preparing its Master Budget for XX You need to prepare Guidances Direct
Materials Budget and Schedule of Cash Disbursements for Materials Purchases on the excel template
provided and create a function that allows management to enter a month and get amount of materials
purchased and cash spent for that month.
The given information is already input into the spreadsheet.
REQUIRED
PREPARE A DIRECT MATERIALS BUDGET POINTS
Prepare the Direct Materials Budget for the first three months of Guidances fiscal year
January February, and March along with the full quarter.
Relevant information
Required Production
o January units
o February units
o March units
o April units
Pounds of materials needed per unit pounds
Beginning raw materials inventory on January XX pounds.
Percentage of the following months production used to determine desired ending
inventory
Raw materials cost per pound $ per pound
PREPARE A SCHEDULE OF CASH PAYMENTS FOR RAW MATERIALS POINTS
Prepare the Schedule of Cash Payments for the first three months of Guidances fiscal year
January February, and March and for the quarter, using the template in the Excel spreadsheet.
HINT: cost of raw materials that Guidance is paying for comes from the last line of your direct
materials budget.
Guidances payment schedule:
o of purchases are paid for in the month of purchase
o are paid for in the month after purchase
o are paid for in the second month after purchase
Beginning accounts payable $ Assume of the accounts payable will be paid
in January and in February.
Check Figures
Because this problem has several areas that frequently pose problems for students, check figures are
provided to give you feedback as to whether your budgetschedule has errors.
January February March Quarter
Cost of raw materials to be purchased $ $ $ $
Total Cash Disbursements for Materials $ $ $ $
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