Sentral te Copy Format B Morge & Cantor - %) The Master Budget Comprehensive summary problem Birdfeeders Unlimited makes backyard birdfeeders. The company sells the birdfeeders to home improvement stores. $15 Sales price per birdfeeder 1.5 Board feet of wood required for each birdfeeder $4 Cost per board kryot (fictual) 10% Desired ending wood inventory stated as a percentage of next month's production requirements 20% Desired ending finished goods inventory (finished birdfeeders) stated as a percentage of next month's sales $550,000 Total cost of direct materials purchases in December 45% of direct materials purchases are paid in the month of purchase 55% of direct materials purchases are paid in the month after purchase 3 4 Sales data for the company can be found on the "SALESDATA" tab. 6 7 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from 8 the Instruction tab you will be marked wrong. 19 20 Requirements Prepare the sales budget, including a separate section that details the type of sales made (cash versus 21 credit) for the first three months of the year, as well as a summary budget for the quarter. 2 Prepare the production budget for the first three months of the year, as well as a summary budget for 22 the quarter. a. Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be 23 subtracted. SALESDATA . ENTERANSWERS INSTRUCTIONS + Ready 11 12 13 $550,000 Total cost of direct materials purchases in December 45% of direct materials purchases are paid in the month of purchase 55% of direct materials purchases are paid in the month after purchase 14 15 Sales data for the company can be found on the "SALESDATA" tab. 16 17 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from 18 the Instruction tab you will be marked wrong. 19 20 Requirements 1 21 22 23 Prepare the sales budget, including a separate section that details the type of sales made (cash versus credit) for the first three months of the year, as well as a summary budget for the quarter. 2 Prepare the production budget for the first three months of the year, as well as a summary budget for the quarter. a. Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted 3 Prepare the direct materials purchases budget for the first three months of the year, as well as a summary budget for the quarter. Assume the company needs 120,000 board feet of wood for production in April. Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted b. Abbreviation used: DM = Direct materials 4 Prepare the cash collections budget for January, February, and March, as well as a summary for the first quarter 5 Prepare the cash payments budget for direct materials purchases for the months of January, February and March, as well as a summary for the first quarter. 24 a. 25 26 27 28 29 Copy Pasto B I U Format 14 4 x fx The company's collection history indicates that: ANDATA SHEET DO NOT ENTER ANSWERS HERE. 80% of the total sales are credit sales Units October actual sales (prior year) 92,000 November actual sales (prior year) 85,000 5 December actual sales (prior year) 78,000 - January projected sales 80,000 3 February projected sales 90,000 9 March projected sales 95,000 20 April projected sales 105,000 11 Z 20% of the total sales are cash sales 13 14 The company's collection history indicates that: 15 80% of credit sales is collected in the month after the sale 10% is collected two months after the sale 12 6% is collected three months after the sale 18 4% is never collected 19 20 21 22 23 24 25 26 27 18 + BLETON 2. Prepare the production budget for the first three months of the year, as well as a summary budget for the quarter. (Always use cell references and formulas where appropriate to receive full credit. Use cell references from requirement 1 and 3 prlor calculations, if applicable. If you copy/paste from the Instruction tab you will be marked wrong.) 9 20 Birdfeeders Unlimited Production Budget For the Quarter Ended March 31 22 January Month February March 1st Quarter 24 25 Unit sales (birdfeeders) 26 Plus: Desired ending Inventory 27 Total needed 28 Less: Beginning inventory 29 Number of units to produce 30
