Just Overhead budget, selling and admin budget, and income statement

PLACE YOUR SPREADSHEET SOLUTION IN THE HorseyCom Excel Project DROPBOX| wwwwwwwwwwwww Information for HorseyCom Budgets. HorseyCom produces horse harnesses. The harnesses sales for the next 5 months are projected to be: January 14,000 February 24,000 March 23,000 April 20,000 May 25,000 The following information pertains to the budget assumptions. a. Finished goods inventory on January 1 is expected to be 4000 units. The desired ending FGI for any month (except for the Dec 31 inventory as noted previously) is expected to be 20% of the following month's sales. b. Data for materials used are: Part A87 3 parts per harness $35.50 per part Part D33 2 parts per harness $15.00 per part Raw materials ending inventory is always budgeted to equal 20% of the following month's production needs. On March 31, the ending inventory of A87 is expected to be 17,000 parts and for D33 is expected to be 13,000 parts. C. Direct labor used per harness: Labor type hours per harness wage rate Leather worker 3 hours per harness $14 per hour. Assembler worker 1.5 hours per harness $18 per hour. d. Overhead each month is estimated at: Overhead estimates Fixed portion (per month) variable cost ($ per DLH (sum of Leather worker plus Assembler)) 1 0.2 1.1 Supplies Electricity Maintenance Supervision Depreciation Insurance Other 12500 14000 45000 4300 86000 1.6 e. Selling and Admin is estimated each to be: Selling and admin per month variable cost ($ per unit sold (cost driver)) Fixed portion (per month) 30000 1.4 Salaries Commissions Depreciation Delivery Other 5000 2.6 13000 0.6 f. Selling price per harness is $330.00. g. Sales are all on account. 30% of sales are collected in the month of sale and 70% in the month following the sale. Accounts receivable on January 1 is $150,000. h. March is a planned purchase of equipment for $250,000. i. Borrowings are at 6% per year interest, and borrowings are assumed to be at the beginning of the month required and at the end of the month of repayment. January 1 beginning cash is $20,000. Interest on borrowings is paid before any principal can be paid. To the extent possible, the company strives to repay any debt at the end of each month if there is cash available. Minimum cash balance at the end of any month is $10,000. Please prepare the following budgets in an Excel spreadsheet for each month of the first quarter and for the quarter in total. The first five (light green highlighted below) budgets are to be on one tab, separate from the original data, and the two remaining budgets (light blue highlighted below) are to be on a third, separate, tab. All budgets should be formulae and cell references: there should be NO Values directly keyed in any of your budgets. All the numbers in the cells should have algebraic formulae (eg use "sum function), or the cells would have a cell reference to the data sheet (eg use "=data!C5 to refer to the January sales volume in the "data tab). Good financial formatting for the budgets should be followed and will be graded. As well, making the budgets easy for the reader to read will also count toward the grade. TO BE SURE: The data sheet is given to you. Please add two tabs. One for the operating budgets below, and one tab for the financial budgets below. One additional tab for the operating budgets: 1. Sales budget 4. Direct labor budget 2. Production budget 5. Overhead budget 3. Direct materials purchases budget 6. Selling and Admin budget A second additional tab for the financial budgets: 7. Cash Budget 8. Income Statement PLACE YOUR SPREADSHEET SOLUTION IN THE HorseyCom Excel Project DROPBOX| wwwwwwwwwwwww Information for HorseyCom Budgets. HorseyCom produces horse harnesses. The harnesses sales for the next 5 months are projected to be: January 14,000 February 24,000 March 23,000 April 20,000 May 25,000 The following information pertains to the budget assumptions. a. Finished goods inventory on January 1 is expected to be 4000 units. The desired ending FGI for any month (except for the Dec 31 inventory as noted previously) is expected to be 20% of the following month's sales. b. Data for materials used are: Part A87 3 parts per harness $35.50 per part Part D33 2 parts per harness $15.00 per part Raw materials ending inventory is always budgeted to equal 20% of the following month's production needs. On March 31, the ending inventory of A87 is expected to be 17,000 parts and for D33 is expected to be 13,000 parts. C. Direct labor used per harness: Labor type hours per harness wage rate Leather worker 3 hours per harness $14 per hour. Assembler worker 1.5 hours per harness $18 per hour. d. Overhead each month is estimated at: Overhead estimates Fixed portion (per month) variable cost ($ per DLH (sum of Leather worker plus Assembler)) 1 0.2 1.1 Supplies Electricity Maintenance Supervision Depreciation Insurance Other 12500 14000 45000 4300 86000 1.6 e. Selling and Admin is estimated each to be: Selling and admin per month variable cost ($ per unit sold (cost driver)) Fixed portion (per month) 30000 1.4 Salaries Commissions Depreciation Delivery Other 5000 2.6 13000 0.6 f. Selling price per harness is $330.00. g. Sales are all on account. 30% of sales are collected in the month of sale and 70% in the month following the sale. Accounts receivable on January 1 is $150,000. h. March is a planned purchase of equipment for $250,000. i. Borrowings are at 6% per year interest, and borrowings are assumed to be at the beginning of the month required and at the end of the month of repayment. January 1 beginning cash is $20,000. Interest on borrowings is paid before any principal can be paid. To the extent possible, the company strives to repay any debt at the end of each month if there is cash available. Minimum cash balance at the end of any month is $10,000. Please prepare the following budgets in an Excel spreadsheet for each month of the first quarter and for the quarter in total. The first five (light green highlighted below) budgets are to be on one tab, separate from the original data, and the two remaining budgets (light blue highlighted below) are to be on a third, separate, tab. All budgets should be formulae and cell references: there should be NO Values directly keyed in any of your budgets. All the numbers in the cells should have algebraic formulae (eg use "sum function), or the cells would have a cell reference to the data sheet (eg use "=data!C5 to refer to the January sales volume in the "data tab). Good financial formatting for the budgets should be followed and will be graded. As well, making the budgets easy for the reader to read will also count toward the grade. TO BE SURE: The data sheet is given to you. Please add two tabs. One for the operating budgets below, and one tab for the financial budgets below. One additional tab for the operating budgets: 1. Sales budget 4. Direct labor budget 2. Production budget 5. Overhead budget 3. Direct materials purchases budget 6. Selling and Admin budget A second additional tab for the financial budgets: 7. Cash Budget 8. Income Statement