Question
MBA 7030 Managerial Accounting Computer Assignment 1 The Manthei Corporation manufactures and sells three products, Superior, Excellent, and Good. In August 2021, Mantheis Budget Department
MBA 7030 Managerial Accounting
Computer Assignment 1
The Manthei Corporation manufactures and sells three products, Superior, Excellent, and Good. In August 2021, Mantheis Budget Department gathered the following data in order to prepare budgets for 2021:
2021 Projected Sales
Product | Units | Price |
Superior | 52,000 | $330 |
Excellent | 25,000 | $250 |
Good | 28,000 | $190 |
Expected Target Inventories
Product | January 1, 2021 | December 31, 2021 |
Superior | 18,000 | 17,000 |
Excellent | 20,000 | 26,000 |
Good | 18,000 | 23,000 |
The following direct materials are expected to be used in the three products:
Amount Used Per Unit | ||||
Direct Material | Unit | Superior | Excellent | Good |
M1 | pound | 8 | 4 | 0 |
M2 | pound | 4 | 4 | 3 |
Projected data for 2021 with respect to direct materials are as follows:
Direct Materials | Expected Purchase Price | Expected Inventories (January 1, 2021) | Target Inventories (December 31, 2021) | |
M1 | $16 | 60,000 lb | 55,000 lb | |
M2 | $9 | 87,000 lb | 62,000 lb | |
Projected direct manufacturing labor requirements and rates for 2021 are as follows:
Product | Hours Per Unit | Rate Per Hour |
Superior | 4 | $15 |
Excellent | 3 | $14 |
Good | 3 | $11 |
Manufacturing overhead is allocated at the rate of $13 per direct manufacturing labor-hour.
Required: Based on the preceding projections and budget requirements for Superior, Excellent, and Good, prepare the following budgets for Thomas for 2021. Show breakups where appropriate. Combine results for all three products to get the total for the company, when appropriate.
- Revenues budget (in dollars)
- Production budget (in units)
- Direct materials purchases budget (in quantities)
- Direct materials purchases budget (in dollars)
- Direct manufacturing labor budget (in dollars)
- Direct manufacturing overhead budget (in dollars)
- For each product, calculate the standard/budgeted cost per unit for: DM, DL, MOH, and the Total Cost.
- Budgeted finished goods inventory (in dollars). Do this by using the Total Budgeted Cost Per Unit.
- Cost of Goods Sold budget (in dollars). Use the Total Budgeted Cost Per Unit to calculate this budget.
Note:
Budgets are flexible and fluid and may change as managers have access to additional information. If the above budget is computed manually, and a budgeting change is made to a key number, the entire budget would have to be recomputed. This would be a redundant and time-consuming exercise. Instead, if a spreadsheet template that employs simple formulas is constructed, a budgeting change can be made in a matter of seconds and the answers will be recomputed automatically.
This computer assignment must be completed utilizing two sheets within an Excel file. The first sheet should contain the data-entry section where you will enter the above data. The second sheet should be the budgeting template, which will ONLY contain formulas that are linked to the data-entry section from the first sheet. I recommend you test your template upon completion, i.e. change a key number in the data-entry section and see if the numbers in the template recompute correctly.
Please answer items 1-4
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started