It all begins with a phone call from your mother. She tells you, You uncle Murray...

 

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It all begins with a phone call from your mother. She tells you, "You uncle Murray needs your help." You reply, "Of course he does mom, your brother isn't the freshest egg in the 'fridge." "Don't say that" mom replies. "He knows that you're in college studying business and he needs someone to create a few financial statements for his local banker. I told him that you could help." After the shock wears off of having to actually use something that you had quickly forgotten after last year's final exam you ask, "What financial statements does his banker need?" "So, you'll help? Oh, that's wonderful dear. He said he needed an income statement." "Okay mom, I think I can maybe do that." Mom then tells you, "Murray also needs something called a statement of the cost of goods sold. Do you know what that is? He said something about cost of goods manufactured also. Can you do that too?" That feeling of standing on the razor's edge of confidence and sheer panic overcomes you. Not knowing what else to do you ask your mother if Uncle Murray provided any financial data that you could use to create these financial schedules. "Certainly", says your mom and begins to rattle off the following information that she wrote down on the back of an envelope; "He said that his company only had to pay $500 in interest expense, and that in its raw materials accounting the beginning and ending balances were $53,000 and 22,000 respectively." Murray also told your mother that they purchased $76,000 of additional raw materials during the year, and that his company's work in process had a beginning balance of $18,000 and an ending balance of $9,000. Murray's company incurred $147,000 of administrative expenses and $57,205 in selling costs during the year. The company had direct labor costs of $81,000, and it incurred manufacturing overhead costs of $44,000. There were $2,900 worth of indirect materials used for production this year, and $41,000 worth of manufacturing overhead was applied to work in process. Your mother also tells you that Murray's company began the year with $46,000 worth of goods in its finished goods inventory and that they counted $38,000 of goods at the end of the year. She then tells you, "Murray is doing fantastic dear. He's going to be so rich. He told me that his company has sales of $453,367 last year, but that his tax rate is 21%. Isn't he doing great?" With a bit of hesitancy in your voice you reply, "Maybe so mom. I'll let you know." Requirements: Using the above information, you are to create in Excel the following: A) Schedule of Cost of Goods Manufactured B) Schedule of Cost of Goods Sold C) Traditional Income Statement •The input data must be in its own separate section of your spreadsheet. • Your spreadsheet will have the Schedules of the Cost of Goods Manufacture, Cost of Goods Sold, and the Income Statement. . Your workbook must be dynamic. If even one item from the input data section is changed then the Net Income will change. Make certain the formula in your cell for the adjustment of over/under applied manufacturing overhead is dynamic. The label for this cell should be "Adjustment for (Over) or Under Applied Overhead". • You will also disclose who you worked with, or that you worked alone, on this first sheet. Your name is to be included in the title of your file: "Excel #2, YOUR NAME" Must be submitted through Blackboard & is worth ten possible points. It all begins with a phone call from your mother. She tells you, "You uncle Murray needs your help." You reply, "Of course he does mom, your brother isn't the freshest egg in the 'fridge." "Don't say that" mom replies. "He knows that you're in college studying business and he needs someone to create a few financial statements for his local banker. I told him that you could help." After the shock wears off of having to actually use something that you had quickly forgotten after last year's final exam you ask, "What financial statements does his banker need?" "So, you'll help? Oh, that's wonderful dear. He said he needed an income statement." "Okay mom, I think I can maybe do that." Mom then tells you, "Murray also needs something called a statement of the cost of goods sold. Do you know what that is? He said something about cost of goods manufactured also. Can you do that too?" That feeling of standing on the razor's edge of confidence and sheer panic overcomes you. Not knowing what else to do you ask your mother if Uncle Murray provided any financial data that you could use to create these financial schedules. "Certainly", says your mom and begins to rattle off the following information that she wrote down on the back of an envelope; "He said that his company only had to pay $500 in interest expense, and that in its raw materials accounting the beginning and ending balances were $53,000 and 22,000 respectively." Murray also told your mother that they purchased $76,000 of additional raw materials during the year, and that his company's work in process had a beginning balance of $18,000 and an ending balance of $9,000. Murray's company incurred $147,000 of administrative expenses and $57,205 in selling costs during the year. The company had direct labor costs of $81,000, and it incurred manufacturing overhead costs of $44,000. There were $2,900 worth of indirect materials used for production this year, and $41,000 worth of manufacturing overhead was applied to work in process. Your mother also tells you that Murray's company began the year with $46,000 worth of goods in its finished goods inventory and that they counted $38,000 of goods at the end of the year. She then tells you, "Murray is doing fantastic dear. He's going to be so rich. He told me that his company has sales of $453,367 last year, but that his tax rate is 21%. Isn't he doing great?" With a bit of hesitancy in your voice you reply, "Maybe so mom. I'll let you know." Requirements: Using the above information, you are to create in Excel the following: A) Schedule of Cost of Goods Manufactured B) Schedule of Cost of Goods Sold C) Traditional Income Statement •The input data must be in its own separate section of your spreadsheet. • Your spreadsheet will have the Schedules of the Cost of Goods Manufacture, Cost of Goods Sold, and the Income Statement. . Your workbook must be dynamic. If even one item from the input data section is changed then the Net Income will change. Make certain the formula in your cell for the adjustment of over/under applied manufacturing overhead is dynamic. The label for this cell should be "Adjustment for (Over) or Under Applied Overhead". • You will also disclose who you worked with, or that you worked alone, on this first sheet. Your name is to be included in the title of your file: "Excel #2, YOUR NAME" Must be submitted through Blackboard & is worth ten possible points.