Subject Code: ACCM4100
Subject Name: Management Accounting
Assessment Title: Individual Excel Assignment
Assessment Type: Assignment
Weighting: 20 %
Total Marks: 20
Your Task
You need to prepare and submit an excel spreadsheet which answers the questions below.
Assessment Description
Prepare an excel spreadsheet to help satisfy Learning Outcome 2: Formulate budgets and construct a cost-votume-proftt analysis using practical scenarios.
Assessment Instructions
Messi Ltd manufactures wardrobes. You work in the accounting department and have been tasked with preparing the Budget for the next month.
Messi makes two products:
Premium wardrobes - large wardrobes with mirrors
De Luxe wardrobes - medium sized wardrobes with an innovative shelving solution and mirrors
Direct manufacturing labour is 3 hours for the Premium wardrobe and 5 hours for the De Luxe.
I he budgeted direct material usage for each product in 2021 is:
Square metres Premium De Luxe
Minors 2 3
Softwood 1 5
Opening direct materials inventory for January 2021 is:
Square metres Premium De Luxe
Mirrors 40 15
Softwood 10 30
Target ending direct materials inventory (January 31) is
Square metres Premium De Luxe
Mirrors 24 20
Softwood 6 40
Unit cost data is expected to be the same for January as it was in December 2020 for labour and all
materials as below: December 2020 (actual) January 2021 (budgeted)
$ $
Mirrors per square metre 160 160
Softwood per square metre 125 125
Manufacturing labour cost per hour 30 30
Manufacturing overhead (both variable and fixed) is allocated to each wardrobe on the basis of budgeted direct manufacturing labour hours.
The budgeted variable manufacturing overhead rate for January 2021 is $35 per direct manufacturing labour-hour.
The budgeted fixed manufacturing overhead for the month is $42,500. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods on the basis of direct manufacturing labour-hours.
The budgeted fixed manufacturing overhead for the month is $42,500. Both variable and fixed manufacturing overhead costs are allocated to each unit of finished goods on the basis of direct manufacturing labour-hours.
Data relating to finished goods inventory for January 2021 are:
Premium De Luxe
Opening Inventory (units) 20 5
Opening Inventory (dollars) $10,840 $4,850
Target Ending Inventory 30 15
Budgeted sales for January 2021 are 740 units of the premium and 390 units of the De Luxe. The budgeted selling prices per unit in January 2021 are $1,020 for the Premium and $1,600 for the De Luxe.
For the purposes of calculating COGS and Closing Inventory of finished goods, cost per unit for January 2021 is $670 for the Premium wardrobe and $1,480 for the De Luxe wardrobe.
Assume the following in your answer:
• Work-in-process inventories are negligible and ignored.
• Direct materials inventory and finished goods inventory are costed using the FIFO method.
• Unit costs of direct materials purchased and finished goods are constant in January 2021.
REQUIRED:
Prepare the following budgets for January 2021:
a) Revenues budget (2 Marks)
b) Production budget in units (2 Marks)
c) Direct materials usage budget and direct materials purchases budget (both budgets in units and $)
(4 Marks)
d) Direct manufacturing labour budget (2 Marks)
e) Manufacturing overhead budget (2 Marks)
f) Ending inventories budget (direct materials and finished goods) (2 Marks)
g) Cost of goods sold budget (2 Marks)
For each budget, prepare by product (Premium and De Luxe) and in total.
Format of the spreadsheet makes it easy to read and distinguishes clearly between the input and
output cells (2 Marks)
Excel spreadsheets designed in a way that enables different input data to be entered and automatically
change the output data (2 Marks)