Master Budget Project Cam’s Computers manufactures laptop


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can someone help me do this master budgeting assignment Cam’s_Master_BudgetSP2016-5.docx Master Budget Project Cam’s Computers manufactures laptop computer stands which can be personalized after mass-production. The company is completing its fifth year of operations and is preparing its master budget for the coming year (2016) based upon the following information: a. Fourth-quarter sales for 2015 are 55,000 units. Third quarter sales were 50,000 units. b. Unit sales by quarter are projected as follows: First quarter 2016 Second quarter 2016 Third quarter 2016 Fourth quarter 2016 First quarter 2017 Second quarter 2017 c. d. e. f. g. h. i. j. k. l. m. n. 65,000 70,000 75,000 90,000 80,000 70,000 Each unit sells for $125. Cam’s Computers estimates that 50% of sales will be collected in the quarter of sale. The company also estimates that 30% will be collected in the quarter following the sale and that 20% of each quarter’s sale will be collected in the second quarter following the sale. Cam’s tries to maintain at least 20% of next quarter sales forecast in inventory. Each computer unit uses three hours of direct labor, three pieces of wood, and two cement moldings. Laborers are paid $10 per hour, one piece of wood costs $8, and cement moldings are $1.25 each. At the end of each quarter, Cam’s plans to have 20 percent of the wood needs and 30 percent of the molding needs for the next quarter’s projected production needs. Cam’s buys wood and cement moldings on account. Half of the purchases are paid for in the quarter of acquisition, and the remaining half are paid for in the following quarter. Wages and salaries are paid on the 30th of each month. Fixed overhead totals $1,000,000 each quarter. Of this total, $200,000 represents depreciation. All other fixed expenses are paid for in cash in the quarter incurred. Variable overhead is budgeted at $2 per direct labor hour. All variable overhead expenses are paid for in the quarter incurred. Fixed selling and administrative expenses total $250,000 per quarter, including $50,000 depreciation. Variable selling and administrative expenses are budgeted at $5 per unit sold. All selling and administrative expenses are paid for in the quarter incurred. Cam will pay quarterly dividends of $300,000. At the end of the third quarter, a $250,000 long-term debt payment will be made. At the end of the fourth quarter, $2 million of equipment will be purchased. Cam’s beginning cash balance is $300,000. Required: Prepare a master budget for Cam’s Computers for each quarter of 2016 and for the year in total. The following component budgets must be included: a. b. c. d. e. f. g. h. i. Sales budget Production budget Wood direct material budget Cement moldings direct material budget Direct labor budget Overhead budget Selling and administrative expenses budget Cash receipts budget Summary cash budget The master budget must be completed in Excel (or a comparable spreadsheet program), and formulas must be used. Read more

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