Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Operating Budget Chapter 1O Sky High Parachute Company manufactures and sells parachutes to adventure for the coming year follows:2 000 Enter your name and student

image text in transcribed
Operating Budget Chapter 1O Sky High Parachute Company manufactures and sells parachutes to adventure for the coming year follows:2 000 Enter your name and student ID at the top of the spreadsheet. companies. The company's sales forecast 34,000 Quarter 2 Y,000 52,000 Quarter 3 3,000 Quarter 4 AA,000 Quarter 1 Budgeted sales (units)XX,000 Where XX the last two digits of your student ID, VY digits 4 & S of your student ID, zZ- digits 6 & 7 and AA - digits 3 &4. (Note: ifxx, Y, ZZ or AA is 00, substitute 99). Other budgeted information follows The budgeted sales price for each parachute is $1,000 The company budgets production so that ending finished goods inventory equals 10% of the next quarter's budgeted sales Each parachute requires 20 square yards of a specialty material that costs $15 per square yard The company purchases raw materials so that 10% of each quarter's production needs are left over at the end of the quarter to be used as beginning inventory in the next quarter. At the beginning of the first quarter, 70,000 square yards of material were on hand. . . * .Each parachute requires 15 hours of direct labor at a rate of $12 per hour Manufacturing overhead costs are budgeted at $1 million per quarter plus $50 per unit. Selling and administrative expenses are budgeted at $500, per quarter plus 10% of total sales revenue. . Required Prepare an Excel spreadsheet using formulas to prepare the following budgets. Entering numbers without formulas will result in the loss of points in each cell that is affected. Tie each budget to the of formulas. If one cell changes, other cells should also change. Submit the spreadsheet on Blackboard. Do NOT use separate tabs or separate worksheets (-10 points). Show all your work on ONE page of the spreadsheet. Use the examples in your book or the handouts in class to set up the spreadsheet. Prepare the following operating budgets for quarters 1-3. (You do not have enough information to prepare all of budgets for quarter 4, but you must use all the information you have to start it) 1. Sales budget 2. Production budget 3. Raw materials purchases budget 4. Direct labor budget 5. Manufacturing overhead budget 6. Selling and administrative expense budget You will be graded on: formulas, correct answers, format Sales budget: 15 points Production budget: 20 points Raw materials purchases: 20 points Labor budget: 15 points Manufacturing overhead budget: 15 points Selling and administrative expense budget: 15 points Operating Budget Chapter 1O Sky High Parachute Company manufactures and sells parachutes to adventure for the coming year follows:2 000 Enter your name and student ID at the top of the spreadsheet. companies. The company's sales forecast 34,000 Quarter 2 Y,000 52,000 Quarter 3 3,000 Quarter 4 AA,000 Quarter 1 Budgeted sales (units)XX,000 Where XX the last two digits of your student ID, VY digits 4 & S of your student ID, zZ- digits 6 & 7 and AA - digits 3 &4. (Note: ifxx, Y, ZZ or AA is 00, substitute 99). Other budgeted information follows The budgeted sales price for each parachute is $1,000 The company budgets production so that ending finished goods inventory equals 10% of the next quarter's budgeted sales Each parachute requires 20 square yards of a specialty material that costs $15 per square yard The company purchases raw materials so that 10% of each quarter's production needs are left over at the end of the quarter to be used as beginning inventory in the next quarter. At the beginning of the first quarter, 70,000 square yards of material were on hand. . . * .Each parachute requires 15 hours of direct labor at a rate of $12 per hour Manufacturing overhead costs are budgeted at $1 million per quarter plus $50 per unit. Selling and administrative expenses are budgeted at $500, per quarter plus 10% of total sales revenue. . Required Prepare an Excel spreadsheet using formulas to prepare the following budgets. Entering numbers without formulas will result in the loss of points in each cell that is affected. Tie each budget to the of formulas. If one cell changes, other cells should also change. Submit the spreadsheet on Blackboard. Do NOT use separate tabs or separate worksheets (-10 points). Show all your work on ONE page of the spreadsheet. Use the examples in your book or the handouts in class to set up the spreadsheet. Prepare the following operating budgets for quarters 1-3. (You do not have enough information to prepare all of budgets for quarter 4, but you must use all the information you have to start it) 1. Sales budget 2. Production budget 3. Raw materials purchases budget 4. Direct labor budget 5. Manufacturing overhead budget 6. Selling and administrative expense budget You will be graded on: formulas, correct answers, format Sales budget: 15 points Production budget: 20 points Raw materials purchases: 20 points Labor budget: 15 points Manufacturing overhead budget: 15 points Selling and administrative expense budget: 15 points

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting

Authors: Theodore E. Christensen, David M. Cottrell, Cassy Budd

13th International Edition

1265042616, 9781265042615

More Books

Students also viewed these Accounting questions