Part $1$ relates to Module $22$ make sure you take time to Review $22-4,$ which also has a video in MBC that walks you through the review. I have budget support material in the Module $22$ folder in the course. Computer Accessories assembles a computer networking device from kits of imported components. You have been asked to develop a quarterly and annual operating budget and a pro$-$forma income statements for the year ending December $31,20$XX$.$ You have obtained the following information: I have a template set up on the Part$1$BudgetSolution worksheet that you should use to complete the required budgets. You need to use cell references in the development of your budgets. You must use this worksheet to reference the data that is being inputted onto the budgets on the budget worksheet. If you type in any numbers in the solution, I will take off $\mathrm{.}5$ pts for each cell that has a number typed in the cell. You should use this worksheet as your data field and only use cell references and formulas in your budgets. Your grade will be based on accuracy of your solution and correct usage of excel. The budget worksheet has formatted budgets for you to complete. The beauty behind excel is that managers can perform what$-$if analysis just by changing the data, so you do not need to retype the budgets if you have used cell references and formulas throughout. Beginning$-$of$-$year balances Cash $$10,000$ Accounts receivables $($previous fourth quarter's sales$)$ $$61,200$ Raw materials $653$ Kits Finished Goods $510$ Units Accounts payable$($purchases made in previous fourth quarter$)$ $$33,255$ Desired end$-$of$-$year inventory balances Raw materials $500$ kits Finished goods $270$ units Desired end$-$of$-$quarter balances Raw materials as a portions of the following quarter's production $18\%$ Finished goods as a portion of the following quarter's sales $14\%$ Manufacturing costs other than raw materials are paid in quarter incurred unless it is an noncash expense Variable Standard cost per unit Unit of input Unit price per input Total cost per unit Raw materials $1$ kit $$44$ $$44\mathrm{.}00$ Direct labor hours at rate $0\mathrm{.}6$ hour $$18$ $$10\mathrm{.}80$ Variable overhead$/$labor hour $0\mathrm{.}6$ hour $$4$ $$2\mathrm{.}40$ Total Variable Standard cost per unit $$57\mathrm{.}20$ Fixed overhead cost per quarter used cash $$18,000$ Manufacturing Depreciation per quarter $$2,000$ Selling and administrative costs are paid in quarter incurred unless it is an noncash expense Variable cost per unit $$2$ Fixed selling and administrative cost per quarter used cash $$23,100$ Selling and administrative depreciation per quarter $$2,200$ Portion of sales collected Collected in the quarter of sale $67\%$ Subsequent quarter $32\%$ Bad debts $1\%$ Portion of purchases paid Paid in the quarter of purchases $66\%$ Subsequent quarter $34\%$ Unit selling price $$120$ Sales forecast Quarter First Second Third Fourth Unit sales $3,0002,5002,7003,200$ Required: Prepare and answer the following. Make sure you use cell referencing Hint: Please note that the annual total, does not necessarily mean that you should add across, for example, review exhibit $22\mathrm{.}13$ since desired ending inventory is the inventory at the end of the period and beginning inventory is the beginning inventory at the beginning of the period. $1.$ A sales budget for each quarter and the year. $2.$ A production budget for finished goods of units each quarter and the year. $3.$ A purchases budget for raw material of kits each quarter and the year. $4.$ A manufacturing cost budget for each quarter and the year. $5.$ A selling and administrative expense budget for each quarter and the year. $6.$ A cash budget for each quarter and the year. $7.$ A pro$-$forma contribution income statement for each quarter and the year. Hint: You will need to compute Variable Cost of Goods Sold for each quarter, which is unit sold times total Variable Standard cost per unit. $8.$ Using your information from #$7,$ compute the annual contribution margin, the breakeven in dollars for the year, and the margin of safety in dollars for the year. Make sure you are using cell references. Comment on your results. $9.$ What if the company is able to lower the fixed Manufacturing overhead costs that uses cash per quarter from $$18,000$ to $$14,000.$ Which budgets will change and what will be the new annual income? You should only have to change the fixed manufacturing overhead costs that uses cash on this worksheet and all the appropriate budgets will change on the solution worksheet if you have set up your cell references correctly. Please make sure you return the Fixed manufacturing overhead costs that uses cash back to the original number before you submit your solution.Part $1$ relates to Module $22$ make sure you take time to Review $22-4,$ which also has a video in MBC that walks you through the review.

I have budget support material in the Module $22$ folder in the course.

Computer Accessories assembles a computer networking device from kits of imported components.

You have been asked to develop a quarterly a