You are an employee of Brookies Cookies, a gourmet cookie bakery/manufacturer. It is the height of budget season, and your CFO has just won the lottery and taken off to parts unknown, with no indication of when or if they will return. Since the demand for cookies waits for no one, you are trying to fill their shoes by completing the budget process for the company.

You have found the budgets from several areas of the company to cover the information for the direct labor budget, selling & administrative budget, and manufacturing overhead budget. However, you soon realize that the process is incomplete and it is on your shoulders to calculate the sales budget, the production budget, the direct materials budget, and the cash budget. Once these components are built, you can then input the information to create a budgeted income statement for Brookie's Cookies.

General Directions:

Using the information provided, create the required budgets for the master budget process. Complete the process in order, and keep the existing links to prepopulate certain budget pages. With your created information and that provided, produce a budgeted income statement for Brookies Cookies.

Part 1: Sales Budget

Using the information and assumptions outlined below, complete the sales budget template for Brookie's Cookies. Calculate the sales for each quarter, and include the total for the year. Round to the whole dollar for your revenue figures.

Budget Assumptions: - Sales will increase by 5% each quarter - Sales for the first quarter are estimated to be 5,00,000units. - Cookies are sold at $6.95 per box

Part 2: Production Budget

Following the master budget process, you know that the production budget is the second budget to be build. With your sales budget, you are able to identify your production needs to build this next budget. Round units to the whole number.

Assumptions: Desired ending finished goods inventory is 10% of next quarter's sales; beginning finished goods inventory for Q1 = 10% of the Sales in Units

Part 3: Direct Materials Budget

Following the master budget process, you know that the direct materials budget is the third budget to be build. Use the information from your previous budgets to create the direct materials budget. Round units to the whole number.

Assumptions: - Units to be produced are from your previous tab, the Production Budget - Requires 2 units of material per produced unit - Cost of material per pound = $1 - Desired ending inventory is 20% of the material needs for the next quarter - Beginning inventory for Q1 = 20% of the Q1 materials needed in production

part 4: CASH BUDGET

PART 5: BUDGETED Income statement

\begin{tabular}{llllll} & Q1 & Q2 & Q3 & Q4 & Annual Total \\ \hline SalesinUnitsSalespriceperunitSalesrevenue & & & \\ \cline { 2 - 5 } & & & \end{tabular} Production Budget Direct Materials Budget Units to be produced Materials required per unit Materials needed in production Add desired ending inventory Materials needed in inventory Deduct beginning inventory Direct materials to be purchased Cost of materials per pound Cost of materials to be purchased Direct materials cost per unit ( You are excited to find that several budgets have already been build. You have found the Direct labor budget, the Manufacturing overhead budget, and the selling and administrative budget. With this information, you can now construct your cash budget. These budgets are outlined below. The template to create your cash budget is at the bottom. For your cash budget, assume the following: - 50% of sales are collected in the quarter the sale is made, 30% in the quarter following the sale, and 20% in two quarters followin - Purchases are paid out at a rate of 60% in the quarter made, and remaining in the quarter after they are made Budgeted Income Statement (Simple) First, determine the COGs per unit Direct materials (from direct materials purchase budget) Direct labor (from direct labor budget) Manufacturing overhead (from MOH budget) Total COGS per Unit