Introduction to Managerial Accounting

topic: Preparing A Master Budget

Group members: Maximum 6

Max words: 1,500 words

Objective:

1. To understand the basic role and functions of managerial accounting and costing concepts. (CLO 1)
2. Analyze cost behavior and how it is used in analysis and forecasting. (CLO 2)
3. Understand the concepts and process of budgets, the components of a master budget

and develop budgeted financial statements (CLO 3)

Description:

Select a small local store, in your area who manufactures goods and sell it to customers all through the year. Conduct an interview and identify/analyze their entire manufacturing process. Based on your interview data, you will have to prepare a Master Budget for that shop for the next financial year, i.e., 2022. Prepare a forecasted Income statement and Balance sheet for the year 2022 from your master budget.

To do list:

• Your project should have cover page, title page, table of contents, letter of submission, executive summary (not more than 2 pages), reference, appendix (optional).
• The master budget should include Sales budget (price, quantity and AR), production budget, Direct Material budget (including AP), Direct Labor budget, MOH budget, Selling and Admin budget (including AP, if any) and Cash budget. All the budgets need to be presented in exel file
• Please give proper rationales for all the numbers in your project
• No limitation of page.

You need to submit two files: Excel calculation and report in MS Word/PDF