Bleezer's Budgeting Assignment 2022: Use the details below to complete the Bleezer Budget spreadsheet. Upload your...
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Bleezer's Budgeting Assignment 2022: Use the details below to complete the Bleezer Budget spreadsheet. Upload your spreadsheet to Moodle by the due date above. Note: There will not be spreadsheet content/questions on any exam, but the accounting content of this assignment is a very useful study aid for budgeting topics on Exam 2. Details: Your friend, Bleezer, loves ice cream and wants to start their own business: Bleezer's Ice Cream Store. Using the information below, help Bleezer by creating pro forma financial statements and all the supporting budget schedules necessary to generate such a master budget. a. Bleezer's Ice Cream will start business on April 1. Each unit of ice cream will be sold for $2.50 and Bleezer expects to sell 1,000 units, 2,000 units, and 15,000 units in April, May, and June, respectively. Bleezer's Ice Cream only accepts cash at the time of purchase. b. To make sure Bleezer's doesn't experience a stockout, the company will produce an additional 10% beyond expected sales volume each month. Tip: production units-(1.10* sales units) c. There are 2 raw materials at Bleezer's and all purchases are paid for immediately with cash: 1. Milk: each finished good requires 0.02 gallons of milk. Milk costs $3 per gallon. 2. Sugar: each finished good requires 0.008 pounds of sugar. Sugar costs $0.50 per pound. d. It takes an ice cream production specialist 6 minutes to make one unit of Bleczer's Ice Cream - that's 10% of an hour! Currently, Bleezer's pays their employees $15 per hour. Employees are paid in cash at the end of every day. Tip: DL costs for one unit =(.1 hr* 1 unit) * $15 per hr e. Bleezer thinks the number of labor hours drive the amount of electricity (overhead) used each period. Bleezer estimates the total electricity bill for April, May, and June combined will be $158. f. Bleezer plans to be paid $2,000 in cash each month for CEO compensation. Additionally, Bleezer's will spend $0.25 per projected sales unit on advertising, paying in cash each month. g. For the sake of keeping this problem massively simple, let's assume: Your friend, Bleezer, is a wizard from another dimension and has the magical power to perfectly predict overhead!!! This means... 1. Applied OH = Actual OH (which doesn't happen in real life!) 2. There is no adjustment to COGS for under-/over-applied OH 3. And we're paying cash at the end of each month for exactly the amount that was predicted for the electricity bill (OH). B Sales Budget Sales Forcast: Units $ 2.50 Dollars Sales Price Gal./unit Price/Gal. lbs./unit Price/lbs. Production Budget 10% RM - Milk 0.02 Gallons Dollars $ 3.00 Units (FG) RM-Sugar 0.008 Pounds (lbs.) $ 0.50 Dollars E F Bleezer's Ice Cream May *** Manufacturing Amount *** 2,200 April 1,000 2,000 $ 2,500 $ 5,000 65 1,100 8.80 $ 4.40 22 44 66 $ 132 $ $ 17.60 8.80 S June 15,000 $37,500 16,500 330 990 132.00 66.00 H Q2 Total $ 18,000 $ 45,000 19,800 396 $ 1,188 158 79 882ARRARE DE Hours Dhr/unit 0.1 Date/hr 5 15.00 Dollars Pred. Rate: $0.0 OH Step 2 OH- Electricity (applied) Actual Hrs Driver: D Hours Applied 55 PerUnit: Bleozer's Ice Cream April May RM-Milk KM-Sugar COGS Budget (Calculation) D OH 110 220 1,650 $1,650 $ 1,300 $ 34,750 5 Unit 110 220 95 18 5 0.02 $ 0.00 $ 01 5 G Total COGS per 1 unit FG Total Finished Goods sold in 02 June 5/Unit COGS 1.00 $ 0.50 $ 15.00 $ $ PerUnit: 1,650 112 0.06 0.004 1.50 1.56 H Q2 Total 1,980 $ 29,700 5 M COGS for 1 unit From the sales forecast N 1. Predetermined OH rate See below: 2. OH-Pred, rate Actual driver 1,980 158 Actual OH-Applied OH-Total Estimated OH Driver Data to calculate predetermined Oft rate: Total Estimated OH Dollar $ 158 Given 1,900 DL Hours Inventory Rollforward: FG Uits BB 0 # Produced -Sold 0 Units Units Units B Ad $ per unit D SG&A Budget CEO Compensation Advertising F Bleezer's Ice Cream May Total COGS per 1 unit FG: Total Finished Goods Sold in Q2: Total COGS for Q2 Total SG&A Cash Budget E Beginning Balance Cash Receipts Cash Disbursements Ending Balance April $ June 1.56 H Q2 Total COGS for 1 unit From the sales forecast $ $ $ Financial Statements Sales COGS GM SG&A Net Income F Bleezer's Ice Cream May Income Statement for the quarter ending 6/30 Q2 DI $ $ es E April Statement of RE for the quarter ending 6/30 Period ending 6/30: Q2 BB 10 NI EB es G June Sales VC CM FC Net Income H $ es $ $ Q2 Total Q2 E E 2 3 69 70 71 72 73 74 75 76 77 76 2833332 79 80 134 85 Balance Sheet ast of 6/30 Assets Cash Bleezer's Ice Cream April May Inventory Total Assets Liabilities & Equity RE Total Liab, & Equity 6/30 G June Q2 Total Inventory Rollforward-Dollars: 88 Mfg. Costs: DM-Milk DM-Sugar $ $ $ $ S $ DL OH-App Less: COGS EB Inventory 1,188 79 29,700 158 31,125 M Bleezer's Budgeting Assignment 2022: Use the details below to complete the Bleezer Budget spreadsheet. Upload your spreadsheet to Moodle by the due date above. Note: There will not be spreadsheet content/questions on any exam, but the accounting content of this assignment is a very useful study aid for budgeting topics on Exam 2. Details: Your friend, Bleezer, loves ice cream and wants to start their own business: Bleezer's Ice Cream Store. Using the information below, help Bleezer by creating pro forma financial statements and all the supporting budget schedules necessary to generate such a master budget. a. Bleezer's Ice Cream will start business on April 1. Each unit of ice cream will be sold for $2.50 and Bleezer expects to sell 1,000 units, 2,000 units, and 15,000 units in April, May, and June, respectively. Bleezer's Ice Cream only accepts cash at the time of purchase. b. To make sure Bleezer's doesn't experience a stockout, the company will produce an additional 10% beyond expected sales volume each month. Tip: production units-(1.10* sales units) c. There are 2 raw materials at Bleezer's and all purchases are paid for immediately with cash: 1. Milk: each finished good requires 0.02 gallons of milk. Milk costs $3 per gallon. 2. Sugar: each finished good requires 0.008 pounds of sugar. Sugar costs $0.50 per pound. d. It takes an ice cream production specialist 6 minutes to make one unit of Bleczer's Ice Cream - that's 10% of an hour! Currently, Bleezer's pays their employees $15 per hour. Employees are paid in cash at the end of every day. Tip: DL costs for one unit =(.1 hr* 1 unit) * $15 per hr e. Bleezer thinks the number of labor hours drive the amount of electricity (overhead) used each period. Bleezer estimates the total electricity bill for April, May, and June combined will be $158. f. Bleezer plans to be paid $2,000 in cash each month for CEO compensation. Additionally, Bleezer's will spend $0.25 per projected sales unit on advertising, paying in cash each month. g. For the sake of keeping this problem massively simple, let's assume: Your friend, Bleezer, is a wizard from another dimension and has the magical power to perfectly predict overhead!!! This means... 1. Applied OH = Actual OH (which doesn't happen in real life!) 2. There is no adjustment to COGS for under-/over-applied OH 3. And we're paying cash at the end of each month for exactly the amount that was predicted for the electricity bill (OH). B Sales Budget Sales Forcast: Units $ 2.50 Dollars Sales Price Gal./unit Price/Gal. lbs./unit Price/lbs. Production Budget 10% RM - Milk 0.02 Gallons Dollars $ 3.00 Units (FG) RM-Sugar 0.008 Pounds (lbs.) $ 0.50 Dollars E F Bleezer's Ice Cream May *** Manufacturing Amount *** 2,200 April 1,000 2,000 $ 2,500 $ 5,000 65 1,100 8.80 $ 4.40 22 44 66 $ 132 $ $ 17.60 8.80 S June 15,000 $37,500 16,500 330 990 132.00 66.00 H Q2 Total $ 18,000 $ 45,000 19,800 396 $ 1,188 158 79 882ARRARE DE Hours Dhr/unit 0.1 Date/hr 5 15.00 Dollars Pred. Rate: $0.0 OH Step 2 OH- Electricity (applied) Actual Hrs Driver: D Hours Applied 55 PerUnit: Bleozer's Ice Cream April May RM-Milk KM-Sugar COGS Budget (Calculation) D OH 110 220 1,650 $1,650 $ 1,300 $ 34,750 5 Unit 110 220 95 18 5 0.02 $ 0.00 $ 01 5 G Total COGS per 1 unit FG Total Finished Goods sold in 02 June 5/Unit COGS 1.00 $ 0.50 $ 15.00 $ $ PerUnit: 1,650 112 0.06 0.004 1.50 1.56 H Q2 Total 1,980 $ 29,700 5 M COGS for 1 unit From the sales forecast N 1. Predetermined OH rate See below: 2. OH-Pred, rate Actual driver 1,980 158 Actual OH-Applied OH-Total Estimated OH Driver Data to calculate predetermined Oft rate: Total Estimated OH Dollar $ 158 Given 1,900 DL Hours Inventory Rollforward: FG Uits BB 0 # Produced -Sold 0 Units Units Units B Ad $ per unit D SG&A Budget CEO Compensation Advertising F Bleezer's Ice Cream May Total COGS per 1 unit FG: Total Finished Goods Sold in Q2: Total COGS for Q2 Total SG&A Cash Budget E Beginning Balance Cash Receipts Cash Disbursements Ending Balance April $ June 1.56 H Q2 Total COGS for 1 unit From the sales forecast $ $ $ Financial Statements Sales COGS GM SG&A Net Income F Bleezer's Ice Cream May Income Statement for the quarter ending 6/30 Q2 DI $ $ es E April Statement of RE for the quarter ending 6/30 Period ending 6/30: Q2 BB 10 NI EB es G June Sales VC CM FC Net Income H $ es $ $ Q2 Total Q2 E E 2 3 69 70 71 72 73 74 75 76 77 76 2833332 79 80 134 85 Balance Sheet ast of 6/30 Assets Cash Bleezer's Ice Cream April May Inventory Total Assets Liabilities & Equity RE Total Liab, & Equity 6/30 G June Q2 Total Inventory Rollforward-Dollars: 88 Mfg. Costs: DM-Milk DM-Sugar $ $ $ $ S $ DL OH-App Less: COGS EB Inventory 1,188 79 29,700 158 31,125 M
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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