Individual Excel Assignment:
Assignment Task:
You need to prepare and submit an excel spreadsheet which answers the questions below.
Assessment Description:
Prepare an excel spreadsheet to help satisfy Learning Outcome 2: Formulate budgets and construct a cost-volume-profit analysis using practical scenarios.
Assessment Instructions:
Sweden Ltd manufactures cabinets. You work in the accounting department and have been tasked with preparing the Budget for the next month.
Sweden makes two products:
Premium cabinets - large cabinets with mirrors
De Luxe cabinets - medium sized cabinets with an innovative shelving solution and mirrors Direct manufacturing labour is 3 hours for the Premium cabinet and 5 hours for the De Luxe. The budgeted direct material usage for each product in 2020 is:
|
Square metres
|
Premium
|
De Luxe
|
|
Mirrors
|
2
|
3
|
|
Softwood
|
1
|
5
|
Opening direct materials inventory for January 2020 is:
|
Square meters
|
Premium
|
De Luxe
|
|
Mirrors
|
40
|
15
|
|
Softwood
|
10
|
30
|
Target ending direct materials inventory (January 31) is:
|
Square meters
|
Premium
|
DeLuxe
|
|
Mirrors
|
24
|
20
|
|
Softwood
|
6
|
40
|
Unit cost data is expected to be the same for January as it was in December 2019 for labor and all materials as below:
|
December 2019 (actual)
|
January 2020 (budgeted)
|
|
$
|
$
|
|
Mirrors per square metre
|
160
|
160
|
|
Softwood per square metre
|
125
|
125
|
|
Manufacturing labor cost per hour
|
30
|
30
|
Manufacturing overhead (both variable and fixed) is allocated to each cabinet on the basis of budgeted direct manufacturing labor hours.
The budgeted variable manufacturing overhead rate for January 2020 is $35 per direct manufacturing labor-hour.
The budgeted fixed manufacturing overhead for the month is $42,500. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods on the basis of direct manufacturing labor-hours.
Data relating to finished goods inventory for January 2020 are:
|
Opening Inventory (units)
|
Premium
|
De Luxe
|
|
|
|
20
|
5
|
|
Opening Inventory (dollars)
|
$10,840
|
$4,850
|
|
Target Ending Inventory
|
30
|
15
|
Budgeted sales for January 2020 are 740 units of the premium and 390 units of the De Luxe. The budgeted selling prices per unit in January 2020 are $1,020 for the Premium and $1,600 for the De Luxe.
For the purposes of calculating COGS and Closing Inventory of finished goods, cost per unit for January 2020 is $670 for the Premium cabinet and $1,480 for the De Luxe cabinet.
Assume the following in your answer:
- Work-in-process inventories are negligible and ignored.
- Direct materials inventory and finished goods inventory are costed using the FIFO method.
- Unit costs of direct materials purchased and finished goods are constant in January 2020.
REQUIRED:
Prepare the following budgets for January 2020:
a) Revenues budget
b) Production budget in units
c) Direct materials usage budget and direct materials purchases budget (both budgets in units and $)
d) Direct manufacturing labor budget
e) Manufacturing overhead budget
f) Ending inventories budget (direct materials and finished goods)
g) Cost of goods sold budget
For each budget, prepare by product (Premium and De Luxe) and in total.
Format of the spreadsheet makes it easy to read and distinguishes clearly between the input and output cells
Excel spreadsheets designed in a way that enables different input data to be entered and automatically change the output data.
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Attachment:- Management Accounting.rar