Tasks:

1.Please provide a brief introduction for the company.The introduction should include:

-Name of company

-Location of company

-Name of owner

-Nature of the business.

-Type of product

-Fiscal period

2.For the company that you have selected - Prepare 12-month Master Budget. Your submission must show each month's activities - example January, February, March etc.

3.Here are some considerations to include:

-You must forecast your sales, purchases, direct labour and manufacturing overhead for each month and any other information as required.

-All sales are on accounts

-Expected collections are to be 50% in the month of the sale, 30 % in the first month following the sale, and 20% in the second month following the sale.

-Production the company will end each month with sufficient inventory to cover 20% of the following month's sales. The newyear started with 600 units in stock and plan to finish each year with 825 units in stock.

-It pays 60% of direct materials purchase in cash in the month of purchase and the balance is due in the month following the purchase.It pays all other items above in the month incurred, except for selling and administrative expenses that include $1,000 of amortization per month.

-Cost of Goods Sold: 60% of the sale and desired ending inventory 20% of next month's sale

-Payment Pattern: 40% of purchases paid in the month of the purchase and 60% paid in the next month.

-Cash in Bank - January 2020 is $20,000.

-The company expected to purchase equipment in March 2020 for $10,000.

-Dividend paid per quarter $2,000.

-Selling and administration expense per month $ 40,000.

-Equipment balance as at December 31, 2029 is $60,000.Accumulated depreciation - straight line; 5 years

-Common stock is $ 6,000

4.The company has access to a line of credit with the bank with the following terms - interest rate is 1% per month on the first day of the month, interest payable is calculated at 1% of the previous month's outstanding balance.Borrowings in a given month are taken out at the beginning of the month.

5.The company wishes to maintain a minimum balance of $10,000 at all times.

6.Ensure that your total boxes correctly total up the rows in your columns.

7.Submission - in an Excel Spreadsheet

a.Brief introduction for the company - Spreadsheet 1 (5 Marks)

b.Master Budget in an excel spreadsheet - Spreadsheet 2. (80 marks)

SCORING RUBRIC - Master Budget (30%]

ITEM

REQUIREMENTS

MARK

Company Introduction

-Name and location of company is included.

-Name of owner and nature of the business is included.

-Type of product are included

-Fiscal period is included

/5

Master Budget

-Heading is complete with Company Name, Name of report and date centered at the top three lines

-All components of Master Budget - Sales budget; Production budget; Labour budget; Materials Budget; Selling and Administration budget; Factory Overhead Budget; Ending finished goods; Budgeted Financial Statements - are included

-All considerations as per the guidelines are included

-All monthly columns are included and totaled correctly

-Correct report prepared

-Minimum balance is maintained

/ 80

Format

-Assignment submitted in Excel Format

-All reports included in ONE Excel workbook

-All required reports included

-Consistent format through workbook

/5

TOTAL

/90