7-1 ACC 311

Competency

In this project, you will demonstrate your mastery of the following competency:

• Prepare reports for internal stakeholder use

Overview

All organizations need a plan, and, for financial purposes, the budget is that plan. Cost accountants add value to their organizations by creating budgets for managers that plan for expected revenues, expenses, and use of organizational resources. In this project, you will take on the role of a cost accountant tasked with creating budgets for one of an organizations most important resources: cash.

Directions

Using the scenario provided in the Supporting Materials section, complete the Project Two Workbook Template found in the What to Submit section. Appropriate formulas are required in the Excel cells. For all quarterly budgets, report monthly amounts and the total for the quarter. Round answers to two decimal places (e.g, 40.35).

Specifically, you must address the following rubric criteria:

1. Prepare accurately the sales forecasts and cash receipts for the third quarter using correct Excel formulas. Include the following details in your response:
2. Sales forecast
3. Cash receipts budget
4. Prepare accurately the production and direct material purchases for the third quarter using correct Excel formulas. Include the following details in your response:
5. Production budget
6. Direct materials purchases budget
7. Prepare accurately the cash disbursements budget for the direct materials purchases for the third quarter using correct Excel formulas.
8. Calculate accurately what the total cost of goods sold (COGS) per unit should be for the company to generate 50% gross margin on its sales using correct Excel formulas. Consider the following question to guide your response:
9. Considering the direct material cost per unit already known, how much of this total COGS per unit is available to cover direct labor and manufacturing overhead (MOH) costs?
10. Prepare accurately the cash budget for the third quarter using correct Excel formulas.

What to Submit

To complete this project, you must submit the following:

Submit the with all tabs completed.

Supporting Materials

The following resource supports your work on the project:

Scenario:

This document contains all relevant data needed to prepare the quarterly budget.