You have been contracted as a consultant by Kakao Ltd. Kakao produces and sells high quality boxes
Question:
You have been contracted as a consultant by Kakao Ltd. Kakao produces and sells high quality boxes of chocolates. Kakao is managed by its two owners and its fiscal year end is December 31st. It is January 4, 2022, and Kakao just completed its fifth year-end (December 31, 2021). The owners of Kakao are considering using a detailed Master Budget for the 2022 fiscal year to plan and control operations. You have been contracted to complete the following:
I. Master Budget for Kakao for each quarter of 2022 and for the 2022 fiscal year in total using the information in the “Data” section. The Master Budget will detail each quarter’s activity and the activity for the 2022 fiscal year in total. The following component budgets must be included:
i. Beginning Balance Sheet (“Data” Item 13)
ii. Sales Budget
iii. Schedule of Cash Collections
iv. Production Budget
v. Direct Materials Budget
vi. Schedule of Cash Disbursements for Raw Materials
vii. Direct Labor Budget
viii. Manufacturing Overhead Budget
i. Include cash disbursements for total overhead expenses
ix. Selling and Administrative Expense Budget
i. Include cash disbursements for selling and administrative expenses
x. Cash Budget
Following for the 2022 fiscal year in total (these should not be quarterly):
xi. Cost of Goods Manufactured Budget
xii. Cost of Goods Sold Budget
xiii. Budgeted Income Statement (using absorption costing)
xiv. Budgeted Balance Sheet