Word File Edit View Insert Format Tools Table Window Help AutoSave OFF Budget Proj Inst... -- Saved to my Mac Insert Home Draw Comme Design Layout References >> Tell me Share v v Times New 12 Ay A A Aa AO X ADA Styles Dictate Paste Sensitivity Paragraph BIU X H ACC 255 - Managerial Accounting Budget Project Spring 2021- 11:00am Class The Chippewa Chocolates (CC) Company began business on January 15, 2020. After its first year of operation, CC's president, Allen Hale, is now trying to prepare the company's master budget for the first two months (January and February) of 2021. Since you are his good friend and an accounting student, Mr. Hale has asked you to prepare the budget 9 10 11 12 Based on the budgets from 2020, Mr. Hale has gathered the following information: 15 11 Projected Sales for January 2021 $126,800 Average Monthly Sales Increase 4% Average Monthly Salary Expenses $ 34,200 Average Monthly Rent Expenses $ 5,600 Average Monthly Utility Expenses S 6,520 Average Monthly Misc. Expense $ 2.700 Supplies Expense-percent of sales 3% Commission-percent of sales 594 Begin your project by carefully reading all instructions given here and reviewing the balance sheets and budget worksheets contained in the Excel workbook 20 21 22 25 23 20 27 20 27 30 21 12 Fill in the data table in the upper left hand corner of the "Budgets" worksheet (found on the second tab in the Excel workbook) with the values above and other values found in the assumptions given below. Using this information, prepare Chippewa Chocolates master budget for the first two months of 2021. All amounts should be rounded to whole dollars as necessary. Apply the following assumptions: a) Customers typically pay 54% of total sales in cash and put the remaining 46% on account. The company expects to collect 100% of the credit sales in the month following the sale. b) The cost of goods sold is 34% of budgeted sales and the company desires to maintain a minimum ending inventory equal to 30% of the next month's cost of roods sold. All purchases are made on account 34 16 Page 1 of 2 750 words e Focus 1185 25 ard File Edit View Insert Format Tools Table Window Help AutoSave OFFS Budget Pro Inst... - Saved to my Mac Insert Draw Design Layout References >> Tell me Share co Times New... 12 ' ' Aa po BIUX, * DA Paragraph Styles Dictate Sensitiv v o o o o , account. c) The company pays 75% of inventory purchases in the month of purchase and the remaining 25% in the following month. d) Depreciation expense on existing equipment is $2,300 each month. In addition, CC will spend $250,000 on January 1 for additional equipment. The equipment is expected to have a $10,000 salvage value and a ten-year (120-month) useful life. e) Salaries, utilities, and sales commissions are paid the month after they are incurred; all other expenses are paid in the month in which they are incurred. The company borrows and repays funds on its credit line in increments of $1,000 on the last day of each month as necessary to maintain its targeted $43,000 cash balance. It pays interest of 4% per month in cash on the last day of the month on cash borrowed in the prior month. 1 ACC 255 - Managerial Accounting Budget Project Spring 2021 - 11:00am Class foto il in the date tohle the first time an item is used and to V AutoSave OFF Revie Home Insert Draw Formulas Data Page Layout Calibri (Body) 11 ' A A B v Paste I U Av . H8 X fx A B D 1 ACC 255 BUDGET PROJECT - SPRING 2 2 Budget information: 3 Projected sales for January, 2021 4 Average Monthly percantage of sales increase: 5 Average monthly salary expense: 6 Average monthly rent expense: 7 Average monthly utility expense: 8 Average monthly misc. expense: 9 Supplies expense as a percentage of sales: 10 Commission expense as a percentage of sales: 11 Cash sales in month of sale 12 Cost of goods sold-percentage of sales 13 Desired ending inventory-percent of next months COGS 14 Payments of inventory in month of purchase 15 Monthly depreciation for 2020 16 New equipment cost 17 Salvage value 18 Useful Life (months) 19 Minimum required cash balance 20 Monthly interest rate 21 ab Custom ab Wrap Text Merge & Center $ % 9 00 H E F G G 2021 -11:00AM CLASS CHIPPEWA CHOCOLATES Selling and Administrative Expenses Budget For the Two Months Ending February 28, 2021 January February Variable costs: Total variable costs Fixed costs: Total fixed costs: Total S & A Expense H8 Xfx D E March 20 Monthly interest rate 21 22 CHIPPEWA CHOCOLATES 23 Sales Budget 24 For the Three Months Ending March 31, 2021 25 26 January February 27 Cash Sales 28 Credit Sales 29 Total Sales 30 31 32 CHIPPEWA CHOCOLATES 33 Schedule of Cash Receipts 34 For the Two Months Ending February 28, 2021 35 36 January February 37 Cash Sales 38 Collection of Credit Sales (A/R) 39 Total Budgeted Cash Receipts 40 41 42 CHIPPEWA CHOCOLATES 43 Inventory Purchases Budget For the Two Months Ending February 28, 2021 45 46 January February 47 Cost of Goods Sold 48 Add: 49 Inventory Needed 50 Less: 51 Budgeted Purchases 52 53 Balancse Sheets A Budgets + E G H J CHIPPEWA CHOCOLATES Schedule of Cash Payments for S&A Expenses For the Two Months Ending February 28, 2021 January February Variable costs: Total variable costs Fixed costs: Total fixed costs Cash paid for S&A Expenses CHIPPEWA CHOCOLATES Budgeted Income Statement For the Two Months Ending February 28, 2021 January February Sales Revenue Less: Gross Profit Less: S&A Expenses Income before interest Interest expense Net Income ARRIAN 11 y Calibri (Body) ' ' Paste BIU V V a. Av 4 H8 X B D E A 27 COST OTGOODS S010 Less Ince Inte Net Beg Add cas Less 48 Add: 49 Inventory Needed 50 Less: 51 Budgeted Purchases 52 53 54 CHIPPEWA CHOCOLATES 55 Schedule of Cash Payments 56 For the Two Months Ending February 28, 2021 57 58 January February 59 December Purchases 60 61 62 Cash paid for inventory 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 EC ir Tote Surp Re End 81 82 Balancse Sheets Budgets + E H G F LESS: S&A Expenses Income before interest Interest expense Net Income CHIPPEWA CHOCOLATES Cash Budget For the Two months Ending February 28, 2021 January February Beginning Cash Balance Add: Cash Available Less: Cash Paid for: Equipment purchase Interest Total Cash Paid Surplus/(Shortage) Borrowing Repayment Ending Cash Balance AutoSave OFF - Saved to my Macy Q ome Insert Draw Design Share Comments Budget Proj Inst... Layout References Tell me ' ' AO E X Paragraph Styles A-ONA- Times New... 12 V X It Paste Dictate Sensitivity B TUV ab X 1 ACC 255 - Managerial Accounting Budget Project Spring 2021 - 11:00am Class The six master budget documents should refer to the values in the data table the first time an item is used and to other budgets thereafter. Please make sure that all original underlines and borders are kept in place. Do not add/delete rows or columns. In addition, any blanks in the budget description columns must be filled in. For example, in the Inventory Purchases Budget, under "Cost of Goods Sold", it says "Add: You need to say what you're adding there. Under no circumstances should your budgets or February Balance Sheet contain just numbers, only formulas, in the format view. NOTE: The cells in the December Balance Sheet and the Borrow/Repayment cells in the Cash Budget are protected and therefore, cannot be changed. You are, however, able to reference these cells in your formulas. Use the templates in the Excel workbook to prepare all Budgets and the February Balance Sheet as outlined in the spreadsheet. Word File Edit View Insert Format Tools Table Window Help AutoSave OFF Budget Proj Inst... -- Saved to my Mac Insert Home Draw Comme Design Layout References >> Tell me Share v v Times New 12 Ay A A Aa AO X ADA Styles Dictate Paste Sensitivity Paragraph BIU X H ACC 255 - Managerial Accounting Budget Project Spring 2021- 11:00am Class The Chippewa Chocolates (CC) Company began business on January 15, 2020. After its first year of operation, CC's president, Allen Hale, is now trying to prepare the company's master budget for the first two months (January and February) of 2021. Since you are his good friend and an accounting student, Mr. Hale has asked you to prepare the budget 9 10 11 12 Based on the budgets from 2020, Mr. Hale has gathered the following information: 15 11 Projected Sales for January 2021 $126,800 Average Monthly Sales Increase 4% Average Monthly Salary Expenses $ 34,200 Average Monthly Rent Expenses $ 5,600 Average Monthly Utility Expenses S 6,520 Average Monthly Misc. Expense $ 2.700 Supplies Expense-percent of sales 3% Commission-percent of sales 594 Begin your project by carefully reading all instructions given here and reviewing the balance sheets and budget worksheets contained in the Excel workbook 20 21 22 25 23 20 27 20 27 30 21 12 Fill in the data table in the upper left hand corner of the "Budgets" worksheet (found on the second tab in the Excel workbook) with the values above and other values found in the assumptions given below. Using this information, prepare Chippewa Chocolates master budget for the first two months of 2021. All amounts should be rounded to whole dollars as necessary. Apply the following assumptions: a) Customers typically pay 54% of total sales in cash and put the remaining 46% on account. The company expects to collect 100% of the credit sales in the month following the sale. b) The cost of goods sold is 34% of budgeted sales and the company desires to maintain a minimum ending inventory equal to 30% of the next month's cost of roods sold. All purchases are made on account 34 16 Page 1 of 2 750 words e Focus 1185 25 ard File Edit View Insert Format Tools Table Window Help AutoSave OFFS Budget Pro Inst... - Saved to my Mac Insert Draw Design Layout References >> Tell me Share co Times New... 12 ' ' Aa po BIUX, * DA Paragraph Styles Dictate Sensitiv v o o o o , account. c) The company pays 75% of inventory purchases in the month of purchase and the remaining 25% in the following month. d) Depreciation expense on existing equipment is $2,300 each month. In addition, CC will spend $250,000 on January 1 for additional equipment. The equipment is expected to have a $10,000 salvage value and a ten-year (120-month) useful life. e) Salaries, utilities, and sales commissions are paid the month after they are incurred; all other expenses are paid in the month in which they are incurred. The company borrows and repays funds on its credit line in increments of $1,000 on the last day of each month as necessary to maintain its targeted $43,000 cash balance. It pays interest of 4% per month in cash on the last day of the month on cash borrowed in the prior month. 1 ACC 255 - Managerial Accounting Budget Project Spring 2021 - 11:00am Class foto il in the date tohle the first time an item is used and to V AutoSave OFF Revie Home Insert Draw Formulas Data Page Layout Calibri (Body) 11 ' A A B v Paste I U Av . H8 X fx A B D 1 ACC 255 BUDGET PROJECT - SPRING 2 2 Budget information: 3 Projected sales for January, 2021 4 Average Monthly percantage of sales increase: 5 Average monthly salary expense: 6 Average monthly rent expense: 7 Average monthly utility expense: 8 Average monthly misc. expense: 9 Supplies expense as a percentage of sales: 10 Commission expense as a percentage of sales: 11 Cash sales in month of sale 12 Cost of goods sold-percentage of sales 13 Desired ending inventory-percent of next months COGS 14 Payments of inventory in month of purchase 15 Monthly depreciation for 2020 16 New equipment cost 17 Salvage value 18 Useful Life (months) 19 Minimum required cash balance 20 Monthly interest rate 21 ab Custom ab Wrap Text Merge & Center $ % 9 00 H E F G G 2021 -11:00AM CLASS CHIPPEWA CHOCOLATES Selling and Administrative Expenses Budget For the Two Months Ending February 28, 2021 January February Variable costs: Total variable costs Fixed costs: Total fixed costs: Total S & A Expense H8 Xfx D E March 20 Monthly interest rate 21 22 CHIPPEWA CHOCOLATES 23 Sales Budget 24 For the Three Months Ending March 31, 2021 25 26 January February 27 Cash Sales 28 Credit Sales 29 Total Sales 30 31 32 CHIPPEWA CHOCOLATES 33 Schedule of Cash Receipts 34 For the Two Months Ending February 28, 2021 35 36 January February 37 Cash Sales 38 Collection of Credit Sales (A/R) 39 Total Budgeted Cash Receipts 40 41 42 CHIPPEWA CHOCOLATES 43 Inventory Purchases Budget For the Two Months Ending February 28, 2021 45 46 January February 47 Cost of Goods Sold 48 Add: 49 Inventory Needed 50 Less: 51 Budgeted Purchases 52 53 Balancse Sheets A Budgets + E G H J CHIPPEWA CHOCOLATES Schedule of Cash Payments for S&A Expenses For the Two Months Ending February 28, 2021 January February Variable costs: Total variable costs Fixed costs: Total fixed costs Cash paid for S&A Expenses CHIPPEWA CHOCOLATES Budgeted Income Statement For the Two Months Ending February 28, 2021 January February Sales Revenue Less: Gross Profit Less: S&A Expenses Income before interest Interest expense Net Income ARRIAN 11 y Calibri (Body) ' ' Paste BIU V V a. Av 4 H8 X B D E A 27 COST OTGOODS S010 Less Ince Inte Net Beg Add cas Less 48 Add: 49 Inventory Needed 50 Less: 51 Budgeted Purchases 52 53 54 CHIPPEWA CHOCOLATES 55 Schedule of Cash Payments 56 For the Two Months Ending February 28, 2021 57 58 January February 59 December Purchases 60 61 62 Cash paid for inventory 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 EC ir Tote Surp Re End 81 82 Balancse Sheets Budgets + E H G F LESS: S&A Expenses Income before interest Interest expense Net Income CHIPPEWA CHOCOLATES Cash Budget For the Two months Ending February 28, 2021 January February Beginning Cash Balance Add: Cash Available Less: Cash Paid for: Equipment purchase Interest Total Cash Paid Surplus/(Shortage) Borrowing Repayment Ending Cash Balance AutoSave OFF - Saved to my Macy Q ome Insert Draw Design Share Comments Budget Proj Inst... Layout References Tell me ' ' AO E X Paragraph Styles A-ONA- Times New... 12 V X It Paste Dictate Sensitivity B TUV ab X 1 ACC 255 - Managerial Accounting Budget Project Spring 2021 - 11:00am Class The six master budget documents should refer to the values in the data table the first time an item is used and to other budgets thereafter. Please make sure that all original underlines and borders are kept in place. Do not add/delete rows or columns. In addition, any blanks in the budget description columns must be filled in. For example, in the Inventory Purchases Budget, under "Cost of Goods Sold", it says "Add: You need to say what you're adding there. Under no circumstances should your budgets or February Balance Sheet contain just numbers, only formulas, in the format view. NOTE: The cells in the December Balance Sheet and the Borrow/Repayment cells in the Cash Budget are protected and therefore, cannot be changed. You are, however, able to reference these cells in your formulas. Use the templates in the Excel workbook to prepare all Budgets and the February Balance Sheet as outlined in the spreadsheet