# Accounting Case 4

## Sheet1

Master Budget Data: | ||||

List Your Product Name Here | ||||

ENTER YOUR INDIVIDUAL CASE NUMBER HERE | 6,891 | |||

(THIS IS LOCATED IN YOUR GRADEBOOK) | ||||

First Name | Last Name | |||

Enter Your Name Here | ||||

BASE DATA: | ||||

Foundation Data for Solving questions 1, 2 and 3: | ||||

Budgeted Direct Materials Cost Per UNIT | $ 15.00 | |||

Budgeted Direct Manufacturing Labor Per UNIT | $ 10.00 | |||

Budgeted Manufacturing Overhead Per UNIT | $ 5.00 | |||

IN ADDITION TO ABOVE USE THE FOLLOWING: | ||||

This is Next Year’s Budgeted Data for XYZ | ||||

Budgeted Sales Price Per UNIT | $ 20.00 | |||

Budgeted Sales – UNITS | 18,446 | Units | ||

Target Ending Finished Goods Inventory in UNITS | 5,946 | Units | ||

Target Beginning Finished Goods Inventory in UNITS | 5,296 | Units | ||

Target Ending Direct Materials Inventory in UNITS | 11,946 | Units | ||

Target Beginning Direct Materials Inventory in UNITS | 9,946 | Units | ||

Note: It takes one unit of direct materials to make one production unit. | ||||

WITH THE ABOVE DATA SOLVE THE FOLLOWING QUESTIONS REGARDING YOUR PRODUCT: | ||||

1) How many units should be produced next year? | ||||

Record your answer, using excel formulas, here | ||||

2) What is the dollar amount budgeted for direct material purchased for next year? | ||||

Record your answer, using excel formulas, here | ||||

3) What is the Budgeted Revenues for next year. | ||||

Record your answer, using excel formulas, here | ||||

USE ONLY THE FOLLOWING INFORMATION TO ANSWER THIS QUESTION. DO NOT USE ANY INFORMATION FROM ABOVE. | ||||

Gamble Company has the following sales budget for the last six months: | ||||

January | $ 16,891 | April | $ 14,391 | |

February | $ 18,891 | May | $ 21,891 | |

March | $ 10,891 | June | $ 9,391 | |

Historically, the cash collection of sales has been as follows: | ||||

The % of sales collected in the month of sale is | 50% | |||

The % of sales collected in the month following the sale is | 30% | |||

The % of sales collected in the second month following the sale is | 15% | |||

The % of sales that are uncollectible | 5% | |||

4) What are the budgeted Cash collections for the month of May? | ||||

Record your answer, using excel formulas, here | ||||

Check the order of your formula calculations | ||||

For example, if cell a1 is 15 and cell b1 is 4 and cell c1 is 2. | ||||

You want to add cells a1 and b1 and then divide that sum by cell c1 | ||||

If your excel formula is a1+b1/c1 then your calculation result is 16.333 | ||||

If your excel formula is (a1+b1)/c1 then your calculation result is 9.5 | ||||

The result 9.5 would be the correct answer. | ||||

Case Part 4 Grading: | Possible Points | Earned Points | ||

3 points for each correct answer | 12 | |||

2 points for use of excel formulas to support answers | 8 | |||

Total points for case part 3 | 20 | 0 |

&CACC 311 Interactive Case Part 4 – Master Budget Blank File

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