This case is intended to help students in a graduate cost or managerial accounting course gain an in-depth knowledge of budgeting by developing and using a multi-product, multi-period master budget. The case consists of two segments that can be used in conjunction or separately. The first segment allows students to create a master budget. The second segment allows students to use their budgets to make recommendations for improving company performance. Only a portion of the first segment will be required in this course. The use of multiple products and introduction of incentives to improve company performance add a degree of complexity above that found in most budgeting problems. Working on this type of case provides you with a greater understanding of both the flexibility of a master budget and of the information such a budget can provide to decision-makers. In addition, the case illustrates the incentives for budget padding, providing an opportunity to conduct a discussion of ethical budgeting and potential consequences in a rich context.

This assignment is to be submitted using an Excel XLS or XLSX workbook. Each budget schedule is to be contained on a separate spreadsheet tab. You are to utilize the power of Excel for totaling and referencing amounts contained in other spreadsheets. Create a ?Basic? spreadsheet for your assumptions and raw data which will be used in the other budget spreadsheets. Use Excel referencing to look at these raw data figures.

Buns Bakery Basic Information For Year Ended December 31, Year 2 Case Data = Signifies original case assumptions. Sales Information: Estimated % drop: Sales: Estimated Growth: Muffins Cookies Bread Estimated Additional Holiday Increase: Sales Numbers Transposed for Copying Last Year Q4 Muffins Current Year 2015 Q2 Q1 Q1 Q2 Q3 Q4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2015 Q2 Q1 0 0 0 0 0 0 0 Sales Price/Item: 0 2015 Q2 0 0 Current Year 10% Collection Schedule Transposed for Copying 100% 90% Q1 Q2 Q3 0% 10.0% 0.0% 0.0% 0% 0% Manufacturing Information: Ending Inventory Goal: Raw Materials Goal: Q1 $0 $0 $0 Q2 0 0 0 Q1 0 Q2 0 0 2016 Prior Year Received $0 $0 Q4 Q3 Collections from Last Year's Sales: Sold 0 2016 Q3 Collection Information: Quarter Q3 Q4 0 Q1 Bread Q1 Credit Policy: Cash Sales Credit Sales Collection in Current Quarter Collection in Following Quarter Collection in 3rd Quarter Q4 Cookies Next Year Q1 Q2 2016 Q3 Payments in Current Year Q2 Q3 $0 $0 $0 Q4 $0 $0 $0 $0 $0 $0 Q4 0 Q1 0 Q2 0 0 Table 1 - Sales Budget Quarter Q1 Q2 Q3 Total 2015 Q4 2016 Q1 Q2 Muffins Budgeted Sales Selling price per dozen Total Sales Revenue from Muffins 0 $0.00 $0 0 $0.00 $0 0 $0.00 $0 0 $0.00 $0 0 $0.00 $0 0 $0.00 $0 0 $0.00 $0 Cookies Budgeted Sales Selling price per dozen Total Sales Revenue for Cookies 0 $0.00 $0 0 $0.00 $0 0 $0.00 $0 0 $0.00 $0 0 $0.00 $0 0 $0.00 $0 0 $0.00 $0 Bread Budgeted Sales Selling price per loaf Total Sales Revenue for Bread 0 $0.00 $0 0 $0.00 $0 0 $0.00 $0 0 $0.00 $0 0 $0.00 $0 0 $0.00 $0 0 $0.00 $0 $0 $0 $0 $0 $0 $0 $0 Total Sales Revenue Table 2 - Schedule of Cash Collections Quarter Q1 Collections from last year Q1 Q2 Q3 Q4 Total Cash Collections Q2 $0 $0 $0 $0 $0 $0 Total Q3 $0 $0 $0 $0 $0 $0 Q4 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Table 3 - Production Budget Quarter Q1 Q2 Q3 Total 2015 Q4 2016 Q1 Q2 Muffins Budgeted Sales Desired Ending Inventory Total Units Needed Less: Beginning Inventory Required Muffin Production 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Cookies Budgeted Sales Desired Ending Inventory Total Units Needed Less: Beginning Inventory Required Cookie Production 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Bread Budgeted Sales Desired Ending Inventory Total Units Needed Less: Beginning Inventory Required Bread Production 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0