I need to do excel spreadsheet assignment

Could you help me about this assignment? I do not know how to do it exactly.

I also provide excel sample file through attached file.

Thank you.

The BookCases Company manufactures hand-crafted natural wood book cases. Currently the company makes only one size of book case, which is 5 feet tall and has 5 shelves. The final product consists of a routed, sanded, assembled, and stained poplar wood book case. Direct materials include poplar shelving wood and red oak plywood backing board. Other materials, such as wood screws, sand paper, stain, wood glue, and packaging, are treated as indirect materials. BookCases is preparing budgets for the fourth quarter ending December 31, 2015.

For each requirement below prepare budgets by month for October, November, and December, and a total budget for the quarter. The previous year?s sales (2014/15) for the corresponding period were:

October November December January February

2,000 2,800 4,000 4,400 3,600

book cases book cases book cases book cases book cases

The company expects the above volume of book case sales to increase by 15% for the period October 2015 ? February 2016. The budgeted selling price for 2015 is $280.00 per book case. The company expects 40% of its sales to be cash (COD) sales. The remaining 60% of sales will be made on credit. Prepare a Sales Budget for BookCases.

The company desires to have finished goods inventory on hand at the end of each month equal to 15 percent of the following month's budgeted unit sales. On September 30, 2015, there were 345 book cases on hand. (Note, an estimate of sales in January is required in order to complete the production budget for December). Prepare a Production budget.

The book cases require two direct materials: poplar shelving wood and red oak plywood backing board. Twenty (20) feet of 12x1 poplar shelving wood are required for each bookcase produced. Management desires to have materials on hand at the end of each month equal to 20 percent of the following month's bookcase production needs. The beginning inventory of poplar wood, October 2015, was 9,752 feet of wood. Poplar wood is expected to cost $2.00 per foot.

Red oak plywood backing board is purchased by the sheet and 4 backing boards can be cut from each sheet. Management desires to have plywood on hand at the end of each month equal to 10 percent of the following month's production needs. The beginning inventory of plywood, October 2015, was 60 sheets. Red oak plywood is expected to cost $24 per sheet. (Note, budgeted production in January is required in order to complete the direct materials budget for December. Also, use the ROUND function to round up to the nearest whole number the number of sheets of plywood to purchase). Prepare a Direct Materials budget. Also because two direct materials are required for production - poplar wood and red oak plywood - you will need a separate schedule for each direct material.

Each book case requires 6 hours of direct labor. BookCases uses a series of table saws, table routers and sanders set up for specialized operations to achieve production efficiencies. Direct labor costs the company $18 per hour. Prepare a Direct Labor budget.

BookCases budgets indirect materials (e.g., wood screws, sandpaper, stain, packaging) at $16.50 per book case. BookCases treats indirect labor and utilities as mixed costs. The variable components are $5.40 per book case for indirect labor and $2.20 per book case for utilities. The following fixed costs per month are budgeted for indirect labor, $60,000, utilities, $4,000, and other, $61,800. Prepare a Manufacturing Overhead budget.

Variable selling and administrative expenses are $32.50 per book case sold. Fixed selling and administrative expenses are $100,000 per month. These costs are not itemized, i.e., the budget has only two line items ? variable operating expenses and fixed operating expenses. Prepare an Operating Expenses budget.

• Prepare a Budgeted Manufacturing Cost per unit budget. Refer to exhibit 9-11 for guidance. To calculate FMOH/unit calculate total FMOH for the year and divide this by budgeted production for the year. The total production volume for the year is budgeted at 48,000 book cases.

• Prepare a Budgeted Income Statement for the quarter for BookCases. Assume interest expense of $0, and income tax expense of 35% of income before taxes.

Directions:

Refer to Chapter 9 (The Master Budget) for guidance in setting up your budgets and schedules. Adapt your schedules for the specific details outlined in the requirements above. Prepare your budgets using Excel. Use formulas and cell references so that any change you make in one budget is carried through to all the budgets. There should be no hard keyed numbers in your formulas. For example, if you change the ?sales volume increase? from 15% to 12% you should see effects of that change throughout the other budgets. Likewise, if the budgeted selling price per book case changes from $280 to $285 your spreadsheet model should be able to quickly and easily accommodate this change, i.e., change the input cell for budgeted selling price and see the effect on income.

The spreadsheet will be graded on presentation, correctness, and quality of your spreadsheet model (i.e., does it update correctly for changes in input variables). See the grading rubric on Canvas. You should approach this assignment as if you are the Management Accountant at the BookCases Company and you are going to present these budgets in a meeting to the CEO, CFO, and other management personnel.

Some general principles to follow in constructing your Excel spreadsheet model:

Prepare an input area in which you enter all input variables ? e.g., selling price, budgeted volume increase, feet per book case, ending inventory percentage, etc.Each schedule should refer to the input area to source data (see sample spreadsheet file). If possible, keep all constant values together in one area of the worksheet. An important principle of good spreadsheet design is to keep just one copy of each constant value. That is, enter a constant value in only one location in the worksheet. Then if you use the value in another cell, use a cell reference that refers to the constant value's unique location. There should be no hard-keyed numbers in your formulas ? e.g., the formula to determine current period sales in units should reference last year?s sales volume and a cell with the volume percentage increase.

Label and format appropriately ? e.g., use $ to format dollar amounts, format cells for decimal places, etc.

BookCases Company 2015/16 Budget Assumptions Prepared by: Student Name Sales Budget Assumptions Unit Sales Price $ Percentage of Cash Sale Percentage of Credit sale Expected sales increase 2014/15 Sales October November December January February Quarter Production Budget Assumptions Direct Materials Budget Assumptions Direct Labor Budget Assumptions Manufacturing Overhead Budget Assumptions Operating Expense Budget Assumptions Budgeted Manufacturing Cost Per Unit Budget Assumptions Budgetd Income Statement Assumptions 65.00 50% 50% 5% 10,000 10,000 15,000 17,000 20,000 bookcases bookcases bookcases bookcases bookcases BookCases Company 2015/16 Budgets Prepared by: Student Name October Cash Sale Credit Sale Total December January February Quarter October Sales Budget Unit Sales Unit Price Sales Revenue November November December January February Quarter $ $ 10,500 65.00 $ 682,500.00 $ 10,500 15,750 17,850 21,000 36,750 65.00 $ 65.00 $ 65.00 $ 65.00 $ 65.00 682,500.00 $ 1,023,750.00 $ 1,160,250.00 $ 1,365,000.00 $ 2,388,750.00 50% $ 50% $ 341,250.00 $ 341,250.00 682,500.00 $ 341,250.00 $ 511,875.00 $ 580,125.00 $ 682,500.00 $ 1,194,375.00 341,250.00 511,875.00 580,125.00 682,500.00 1,194,375.00 682,500.00 $ 1,023,750.00 $ 1,160,250.00 $ 1,365,000.00 $ 2,388,750.00 October November December January February Quarter October November December January February Quarter October November December January February Quarter October November December January February Quarter October November December January February Quarter October November December January February Quarter Production Budget Direct Material Budget Direct Labor Budget MOH Budget Operating Expense Budget Budget Manufacturing Cost per Unit Budget Income Statement