Hello, I was just wanting some assistance, I have already put values into the first excel workbook based on the information provided, however I would just like some insight as to 1. Whether my values are correct and 2. What to put into the second workbook (The Master Budget)? Any help would be appreciated

Rice Products Pty. Ltd. is a local firm that produces two moulded plastic products: kickboards and pool buoys. The products are manufactured in a two step process and each process is treated as a separate cost centre. In the first process, the mixing department, a special resin is combined with a hardener. Moulding occurs in the second process where the output from the mixing department is poured into special shaped moulds. Due to the nature of the chemical compounds contained in the resin and hardener. the manufacturing process occurs very rapidly. Production is therefore scheduled so that no work-in-process inventory is held at the end of each day. The following information has been extracted from the accounting records of Rice Products or obtained through discussions with the senior management team: 1. Balance Sheet (Statement of Financial Position) as at 30 June 2020: Cash $ 9,000 Trade Creditors $ 8,520 Accounts Receivable 85,210 Shareholders' Equity 150,000 Raw Materials Inventory 8,408 Retained Earnings 80,548 Finished Goods Inventory 11,450 (Kickboard $8,496; Pool buoy $2,954) Plant and Equipment (Net) 125,000 TOTAL ASSETS S 239,068 TOTAL LIABILITY 8: EQUITY S 239,068 2. The following schedule details the recent actual monthly unit sales achieved for each product to 30 June 2020. Additionally, the sales manager has projected sales volume forecasts for each product to November 2020: _liii---m m mm- 3. Kickboards sell for $28 each and pool buoys for $24 each. Due to the tight cost control practices Rice Products has been able to maintain selling prices for the last 6 months and, in the absence of policy changes, do not foresee any change in the selling prices in the next 6 month period. 4. All sales are on credit: 15% are collected in the month of sale. 45% in the month following sale and the remaining 40% is collected in the second month following sale. 5. Details of the standard costs to manufacture one unit of each product are provided below: FACTORS OF PRODUCTION KICKBOARDS POOL BUOYS Materials: Resin 2 litres @$0.45/litre 3 litres @$0.45/litre Hardener 5 litres @$0.70/litre 2 litres @$0.70/litre Labour Mixing Department 18 minutes @$20/hour 12 minutes @$20/hour Moulding Department 12 minutes @$30/hour 12 minutes @$30/hour Factory Overhead: Mixing Department $7.00/direct labour hour $7.00/direct labour hour Moulding Department $11.00/direct labour hour $1 1.00/direct labour hour 6. Depreciation on factory equipment is computed to be $1.00 per labour hour for each department and is included in the factory overhead rates shown above. 7. Materials are purchased on credit. Rice pays 60% of accounts in the month of purchase and the remaining 40% in the following month. Labour costs and all overhead costs (except depreciation) are paid as they are incurred. Monthly differences between applied and actual overhead costs are expected to be negligible. 8. Rice has an inventory policy in place where purchases of raw materials are scheduled to be 60% of the next month's anticipated production needs. Additionally, production is scheduled so that the number of finished units on hand at the end of each month is sufficient to support 30% of the following month's forecast sales. 9. The number of inventory items held as at 30 June 2020 was as follows: MATERIAL/PRODUCT LITRE/UNIT Resin 5040 litres Hardener 8772 litres Kickboards 720 units Pool Buoys 330 units 10. Fixed selling and administration expenses are $25,000 per month (including $1,000 of depreciation on office equipment). Sales commissions are paid at 7% of total sales dollars. Selling and administration expenses are paid in the month incurred. 11. Rice's management has a policy of maintaining a cash balance of $9,000 at the end of each month. This amount represents a buffer that is maintained as a margin of safety against unforeseen events which might cause significant departures from budget estimates. If this requirement cannot be met,Rice has a standby credit arrangement in place with its bank to borrow the exact amount needed to achieve the desired cash balance. If Rice has a cash balance greater than $9.000 at the end of any month and an outstanding loan balance then the cash in excess of $9,000 is repaid to the bank. 12. The interest rate applicable to the bank loan is 12% per annum to be paid on a monthly basis on the outstanding principal at the end of the previous month. 13. Rice uses the FIFO (rst in rst out) method to value ending inventory. PART A (65 Marks) You have been appointed to the position of senior management accountant at Rice Products. It is your responsibility to prepare a master budget for the next quarter (July. August and September 2020). The master budget documents are to consist of the following reports (the budgets should show the figures for each month and a total for the quarter where appropriate and round calculations to the nearest dollar): Sales Revenue Budget Production Budget (Units) Direct Material Purchase Budget (Unites and $) Direct Labour Budget (Hours and 5) Factory Overhead Budget Selling. Admin and Finance Budget Cash Budget Income Statement (Statement of Financial Performance) Balance Sheet (Statement of Financial Position) The budget documents are to be prepared using Excel spreadsheet and the template should consists of three sections: an index section to identify yourself and spreadsheet layout. a data section that contains relevant case study information which will be used to construct the budgets. and a budget reports section. Appendix 1 and Appendix 2 have been attached to provide a suggested format for the design of the data section and the budget reports section. It is important to note that the figures in the report section should be derived from FORMULA ONLY that relates to information in the data section. That is the budget documents should be constructed in such a manner that will enable sensitivity ("WHAT IF") analyses to be performed. Hint: Check that your budget reports match the key checking figures provided in Appendix 2 and the balance sheet balances. Manufacturing Costs Materials: Cost $ Kickboard $ Pool Bouys $ Resin Hardener Labour: Mixing Moulding Factory O/H Depn Mixing Moulding Cost Per Unit 20.70 16.35 Inventory Policy (% of next month) Finished Goods Raw Materials Selling & Administration Fixed (per month) Promotion Depreciation (per month) Sales Commission Collection Policy Month of Sale July Aug Month after Sale Second month after Sale Discount Payment Month of Purchase Month after Purchase Finance Margin of Safety Interest on loan (per month) Options Yes/No a Discount b Change Price no c Suppliers no d MOS no e Sales no Promotion no g Layout noMASTER BUDGET - RICE PTY LTD Schedule 1 Sales Budget July Aug Sept Total Kickboards Pool Bouys Total Sales Revenue Budget Schedule 2 Production Budget (Units) July Aug Sept Total Kickboards Budget Sales Target Ending Inventory Units Required Beginning Inventory Total Production Budget Pool Bouys Budget Sales Target Ending Inventory Units Required ginning Inver Total Production Budget 3,340 Schedule 3 Direct Materials Purchases Budget July Aug Sept Total Resin (Litres) Budget Use in Production Target Ending Inventory Units Required Beginning Inventory Total Litres Purchased Resin Purchase Costs Hardener (Litres) Budget Use in Production Target Ending Inventory Units Required ginning Inventory Total Litres Purchased Hardener Purchase Costs Total DM Purchases Budget $ 42,826Schedule 4 Direct Labour Budget July Aug Sept Total Mixing Department Direct Labour Hours Direct Labour Costs Moulding Department Direct Labour Hours Direct Labour Costs Total Direct Labour Budget Schedule 5 Factory Overhead Budget July Aug Sept Total Mixing Department Moulding Department Total Factory Overhead Budget Schedule 6 Selling, Admin & Finance Budget July Aug Sept Total Fixed Commission Discount Interest Total Budget $ 95, 102 Schedule 7 Cash Budget July Aug Sept Total Beginning Balance Collections: Current month's sales Previous month's sales Second previous month's sales Total Collections Cash available for needs Payments: Current month's purchases Month followin Direct Materials Direct Labour Factory Overhead Selling & Admin Interest Total Payments Cash Excess Loan draw down 4,387 Amount available for Loan repayment Loan repayment Balance Loan Balance 3,486