IS 3315 term project tmatthews PMB


Insert formulas where appropriate in the Dec 31 Balance sheet.

Construct worksheets for: January, February and March
Sales Budget
Production Budget
Raw Materials Purchases
Cash Budget
Projected unit cost to produce one Gizmo (Exclusive of Depreciation)
Budgeted Income Statement
Budgeted Retained Earnings Statement
Budgeted Balance Sheet

Use one column for each month and one for the quarter total.
Assume FIFO for valuing inventories.
Round budget calcuations (excepting unit costs) to the nearest dollar (no decimal places).
Sales and raw materials purchases budgets should include both units and dollars.

Place an appropriate title on each worksheet
Skip one row below the title and place the name of the company. "Thorny Corp." should be changed to "YourLastName Corp." in all worksheets.

Worksheets should be organized and should have a consistent format.
Worksheets should be formatted to print neatly and preferably on one page. If it is necessary to print on more than one page, make sure to use "PRINT TITLES" where appropriate and set page breaks appropriately. You may need to set some worksheets to "landscape" orientation.

Three-Month Master Budget

Thorny Corp.
Balance Sheet, December 31

Cash 41,700
Accounts Receivable 192,000
Raw materials 102,240
Finished Goods 64,400
Land 50,000
Plant and Equipment 500,000
Less: accumulated depreciation 112,000 388,000
Total assets $838,340

Accounts Payable to suppliers 40,000
Common Stock 100,000
Retained Earnings 698,340 798,340
Total liabilities and equity $838,340

Budgeted Gizmo sales in units
January 7,000
February 8,000
March 10,000
April 8,000
May 7,000
Selling price $60
Collections from customers
Collected in month of sale 40%
Collected the following month 60%
Desired finished goods inventory
(% of next month's units sales) 20%
Desired raw material inventory
(% of next month's production needs) 25%
Raw material units needed to produce one Gizmo
What 5
Huh 3
Beginning inventory units & cost
Gizmo 1,400 $46.00
What 18,000 $4.00
Huh 10,800 $2.80
Paid in the month of purchase 70%
Paid in the subsequent month 30%

Direct labor time to produce one Gizmo 0.5 hours
Cost of direct labor $24 per hour
Factory overhead (exclusive of depreciation) $12 per direct labor hour

Selling and administrative expenses $10,000 fixed
10% variable
Plant and equipment depreciation $12,000 per year
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