Thunder Creek Company expects sales of 18,000 units in January 2018, 24,000 units in February, 30,000 units in March, 34,000 in April, and 36,000 in May. The sales price is $34 per unit. Prepare a sales budget. Budget #1: Sales Budget Budgeted units to be sold Sales price per unit Total Sales Budget #2: Production Budget Budgeted units to be sold Plus: Desired units in ending inventory Total units needed Less: Units in beginning inventory Budgeted units to be produced Jan 2017 Dec 18,000 34 =C5*C6 Jan Feb 18,000 =D5*D6 24,000 34 Feb 24,000 Mar =E5 E6 |=D17-D18 Q1 Total 30,000=C5+D5+E5 2018 Mar 34 Thunder Creek wants to finish each month with 20% of next month's sales in units. Prepare a production budget. (When entering answers in the production budget, use the sales budget for your cell references. Enter all values as positive--without a minus sign--in row 18.) Hint: Beginning inventory for the period is equal to the ending inventory of the previous period. |=D15*20/100 |=E15*20/100 |=F15*20/100 =C15+C16 =D15+D16 =E15+E16 =D16 |=C15*20/100 =C16 |=C17-C18 =E17-E18 |=F5*F6 2018 34 Q1 Total 30,000 =C15+D15+E15 April 34,000 34 =F17-F18 =G5*G6 April 34,000 =C16+D16+E16=H15*20/100 |=C17+D17+E17| =G15+G16 |=C18+D18+E18-E16 May |=G17-G18 =H5*H6 36,000 34 May 36,000 Thunder Creek Company uses 2 pounds of direct materials for each unit it produces, at a cost of $4.00 per pound. The company begins the year with 9,500 pounds of material in Raw Materials Inventory. Management desires an ending inventory of 25% of next month's materials requirements Prepare a Direct Materials Budget. (When entering answers in the direct materials budget, use the production budget for your cell references. Enter all values as positive--without a minus sign--in row 31. In cell F31 use a cell reference. Do not type in the amount or you will be marked wrong.) Budget #3: Direct Materials Budget Budgeted units to be produced Direct materials (pounds) per unit Direct materials needed for production Plus: Desired direct materials in ending inventory (pounds) Total direct materials needed Less: Direct materials in beginning inventory (pounds) Budgeted purchase of direct materials Direct material cost per pound Budgeted cost of direct materials purchases Jan Budget #4: Direct Labor Budget Budgeted units to be produced Direct labor hours per unit Direct labor hours needed for production Direct labor cost per hour Budgeted direct labor cost Feb Jan Thunder Creek Company's workers require 30 minutes of labor to produce each unit of product. The labor cost is $20 per hour Prepare a Direct Labor Budget. (When entering answers in the direct labor budget, use the direct materials budget for your cell references.) 2018 2018 Mar Feb Q1 Total Mar Q1 Total April Thunder Creek Company prepares its Manufacturing Overhead Budget. For each direct labor hour, the variable overhead costs are: Indirect Materials = $1.00 per DLH; Indirect Labor Cost = $1.30 per DLH; Maintenance = $1.20 per DLH The Fixed Overhead Costs per month are: Salaries of $40,000, Depreciation =$20,000 and Maintenance = $10,000. Prepare a Manufacturing Overhead Budget. (When entering answers in the manufacturing overhead budget, use the direct labor budget for your cell references.) Use 'ROUND' function to round the predetermined overhead allocation rate to two decimal places. Manufacturing overhead is allocated using direct labor hours. Budget #5: Manufacturing Overhead Budget Budgeted units to be produced VOH cost per unit Budgeted VOH Budgeted FOH Depreciation Salaries and maintenance Total budgeted FOH Budgeted manufacturing overhead costs Direct labor hours (DLHr) Predetermined overhead allocation rate per DLHr Jan Feb 2018 Mar Q1 Total Thunder Creek Company uses the first-in, first-out (FIFO) inventory costing method. The Beginning Finished Goods Inventory is $86,400 consisting of 3,600 units. Begin by calculating the projected cost to produce each unit in 2018 based on projected sales. (Hint: In "Cost per unit" table, cell references come from Direct Materials, Direct Labor, and Manufacturing Overhead budgets.) Use '=ROUND' function to round the fixed manufacturing overhead cost per unit to two decimal places. Prepare a Cost of Goods Sold Budget. (Hint: Units per month calculated using cell references to both sales budget and production budget. In cell F78 use a cell reference. Do not type in the amount or you will be marked wrong.) Direct material cost per unit Direct labor cost per unit Manufacturing overhead cost per unit Total projected manufacturing cost per unit Budget #6: Cost of Goods Sold Budget Beginning Finished Goods Inventory, 3,600 units. Units produced and sold in 2018 Cost per unit Units per month Total cost of units produced and sold in 2018 Total budgeted cost of goods sold Cost per unit Jan Feb 2018 Mar Q1 Total Thunder Creek Company's variable supplies expense per month is $3.00 per unit. The fixed selling and administrative expenses per month consist of Salaries: $245,000; Advertising: $30,000; and Depreciation: $28,000 Prepare a Selling and Administrative Expense Budget. (When entering answers in the selling and administrative budget, use the sales budget for your cell references.) 2018 Budget #7: Selling and Administrative Expense Budget Salaries expense Advertising expense Depreciation expense Supplies expense Total budgeted S&A expense Jan Feb Mar Q1 Total