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 Ihave budget support material in the Module 22 folder in course resources 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, 2019. You have obtained the following information l have a template set up on the Part1BudgetSolution 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 10 pts., since we use Excel so that we can update budgets or do what if analysis without retyping numbers. 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 Accounts receivablas (previous quarters sales Raw materials Finished Goods Accounts payable 40,000 S61,200 653 Kits 510 Units S33,255 Desired end-of-year inventory balances Raw materials Finished goods 500 kits 270 units Desired end-of-quarter balances Raw materials as a portions of the following quarter's production Finished goods as a portion of the following quarter's sales 20% 15% Manufacturing costs other than raw materials are paid in month incurred unless it is an noncash expense Unit price Total cost per input per unit Unit of Variable Standard cost per uni Raw materials Direct labor hours at rate Variable overheadMabor hour Total Variable Standard cost per unit ikit 0.8 hour 0.8 hour $25 $50 $8 78 $10 Fixed overhead cost per quarter used cash $50,000 Manufacturing Depreciation per quarter $10,000 Seling and adminis trative costs are paid in month incurred unless it is an noncash expense Variable cost per unit Fixed seling and administrative cost per quarter used cash Selling and administrative depreciation per quarter S6 S25,000 $5,000 Additional information: All cash payments except purchases are made quarterly as incurred. Portion of sales collected Colected in the quarter of sale Subsequent quarter Bad debts 70% 28% 2% Portion of purchases paid Paid in the quarter of purchases Subsequent quarter 65% 35% Unit seling price $120 Sales forecast First Second Third Fourth Unit sales 3,400 2,5003,000 4,100 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 22.13 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. 7. A pro-forma contrbution 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 Breakeven in dollars for the year. Comment on your results. Make sure you are using cell references Hint: Compute the annual contribution margin ratio
