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 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: I 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. lf you type in any numbers in the solution, l 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 work sheet 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 S40,000 $61,200 Accounts receivables (previous quarter's sales) Raw materials Finished Goods Accounts payable 653 Kits 510 Units 33,255 Desired end-of-year inventory balances Raw materials 500 kits 270 units Finished goods 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 15% Manufacturing costs other than raw materials are paid in month incurred unless it is an noncash expense Unit of input Unit price Total cost per input per unit Variable Standard cost per unit Raw materials Direct labor hours at rate Variable overheadlabor hour Total Variable Standard cost per unit ikit 0.8 hour 0.8 hour $25 S50 S8 78 $10 Fixed overhead cost per quarter used cash 50,000 Manufacturing Depreciation per quarter 10,000 Selling and administrative costs are paid in month incurred unless it is an noncash expense Variable cost per unit Fixed selling 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 Collected in the quarter of sale Subsequent quarter Bad debts 70% 28% 2% Portion of purchases paid Pald in the quarter of purchases Subsequent quarter 65% 35% Unit selling price $120 Sales forecast First Second Third Fourth Unit sales 3,400 2,500 3,0004,100 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 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
