REQUIRED: a. Using EXCEL, prepare the following schedules or statements for 2023: iii. Direct materials purchases budget iv. Direct labour budget v. Factory overhead budget (Hint: separate variable and fixed) vi. Cost of good sold and ending inventory budget vii. Selling and administrative expense budget (Hint: Separate selling and administrative expense) viii. Budgeted income statement.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Razr-Tech Manufacturing Ltd produces specialised computer parts for computer manufacturers around the world. Apart from the central processing unit (CPU), graphics processing unit (GPU), motherboard and Random Access Memory (RAM), Razr also produces small microprocessors. Two of its microprocessors are the Snapdragon and Exynos. The Snapdragon is sold at $300 per unit while the Exynos is sold at $440 per unit. In 2023, demand for the Snapdragon is expected to be 24,000 units while demand for Exynos is expected to be 6,000 units. Estimated beginning inventory in 2023 for Snapdragon and Exynos are expected to be 600 and 300 units respectively, while the company desires to have ending inventory of 500 and 200 units respectively for Snapdragon and Exynos. Additional information for the production of Snapdragon and Exynos follows: Finished Components Snapdragon Exynos Requirements for each finished product: xe37 10 grams 8 grams APQ8064 0 4 grams mm855 Plus 4 grams 2 grams Direct labour 2 hours 3 hours Direct Materials Information xe37 APQ8064 mm855+ Cost per gram $2.00 $2.50 $1.50 Estimated beginning inventory in grams 6,000 1,500 2,000 Desired ending inventory in grams 5,000 1,000 2,500 Razr-Tech expects the average wage rate to be $36 per hour in 2023. Razr-Tech uses direct-labour hours to apply
REQUIRED: a. Using EXCEL, prepare the following schedules or statements for 2023:
iii. Direct materials purchases budget
iv. Direct labour budget v. Factory overhead budget (Hint: separate variable and fixed)
vi. Cost of good sold and ending inventory budget
vii. Selling and administrative expense budget (Hint: Separate selling and administrative expense)
viii.
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