please account for and fill out the Excel document based on the Amazon building data.Thank you

please account for and fill out the Excel document based on the Amazon building data.Thank you


The Amazing Building Company (ABC) is in the process of completing their annual budget for 20X1. During November of 20x0, Amanda Brick, President was discussing the company’s master budget with her staff. Brick updated the group that she has decided to go ahead and purchase the industrial robot they have been considering. She plans to make the acquisition on January 2 of next year, and expects it will take most of the year to train the personnel and reorganize the production process to take full advantage of the new equipment. When questioned about funding the purchase, Brick replied as follows: “The robot will cost $1,000,000. We’ll finance it with a one-year $1,000,000 loan from National Savings and Loan. I’ve negotiated a repayment schedule of four equal installments on the last day of each quarter. The interest rate will be 10%, and interest payments will be quarterly as well.” Therefore, the outstanding balance for all of Q1 would be $1,000,000 with a $250,000 payment due on the last day of Q1, $750,000 for all of Q2 with a $250,000 payment due on the last day of Q2, etc. and being fully paid off by the end of the year. ABC is a manufacturer of roof trusses. The firm’s two product lines are designated as S (small trusses, 15 feet long) and L (large trusses, 22 feet long). The primary raw material is dimensional lumber. Allowing for normal breakage and scrap lumber, ABC can get either four S trusses or two L trusses out of a crate of lumber. Other raw materials, such as nails and glue, are insignificant in cost and are treated as indirect materials. Jane Bean, ABC’s controller, is in charge of preparing the master budget for 20x1. She has gathered the following information: 1. Sales in the fourth quarter of 20x0 are expected to be 60,000 S trusses and 70,000 L trusses. The sales manager predicts that over the next two years, sales in each product line will grow by 5,000 units each quarter over the previous quarter. For example, S truss sales in the first quarter of 20x1 are expected to be 65,000 units. 2. ABC’s sales history indicates that 60 percent of all sales are on credit, with the remainder of the sales in cash. The company’s collection experience shows that 80 percent of the credit sales are collected during the quarter in which the sale is made, while the remaining 20 percent is collected in the following quarter. 3. The S truss sells for $12, and the L truss sells for $18. These prices are expected to hold constant throughout 20x1. 4. ABC’s production manager attempts to end each quarter with enough finished goods inventory in each product line to cover 20 percent of the following quarter’s sales. Moreover, an attempt is made to end each quarter with 20 percent of the crates of lumber needed for the following quarter’s production, with Q4 20x1 desired ending inventory being 9,400 crates. Since metal strips are purchased locally, ABC buys them on a just-in-time basis; inventory is negligible. 5. All of ABC’s direct materials purchases are made on account, and 80 percent of each quarter’s purchases are paid in cash during the same quarter as the purchase. The other 20 percent is paid in the next quarter. 6. Projected production costs in 20x1 are as follows: S Truss L Truss Direct Material: Crate of lumber: S: 1/4 crate @ $6 per crate $1.50 L: 1/2 crate @ $6 per crate $3.00 Direct Labor: .2 hour @ $20 per hour $4.00 $4.00 Production overhead: .2 direct labor hour x $10 per hour $2.00 $2.00 Total production cost per unit $7.50 $9.00 7. The predetermined overhead rate is $10 per direct labor hour. The following production overhead costs are budgeted for 20x1. Q1 Q2 Q3 Q4 Entire Year Indirect materials $ 8,200 $ 9,200 $ 10,200 $ 11,200 $ 38,800 Indirect labor 38,800 42,800 46,800 50,800 179,200 Other overhead 29,000 34,000 39,000 44,000 146,000 Depreciation 20,000 20,000 20,000 20,000 80,000 Total overhead $ 96,000 $106,000 $116,000 $126,000 $444,000 All of these costs will be paid in cash during the quarter incurred except for the depreciation charges. 8. ABC’s quarterly selling and administrative expenses are $125,000, paid in cash. 9. Bean anticipates that dividends of $60,000 will be declared and paid in cash each quarter. 10. ABC’s projected balance sheet as of December 31, 20x0, follows: Cash $ 95,000 Accounts receivable 237,600 Inventory: Raw material 59,200 Finished goods 167,000 Plant and equipment (net of accumulated depreciation) 7,856,800 Total Assets $8,415,600 Accounts payable $ 61,800 Common stock 5,000,000 Retained earnings 3,353,800 Total liabilities and stockholders’ equity $8,415,600 Required: Prepare ABC’s master budget for 20x1 by completing the following schedules and statements using the Excel template provided. 1. Sales budget 2. Cash receipts budget 3. Production budget 4. Direct materials and materials purchase budget 5. Direct labor budget 6. Overhead budget 7. Summary cash budget 8. Budgeted schedule of cost of goods manufactured and sold for the year 20x1 9. Budgeted income statement for 20x1 10. Budgeted statement of retained earnings for 20x1 11. Budgeted balance sheet as of December 31, 20x1. Homework: Please carefully read the following case. It provides an Excel template for the case that you can use, or you may create your own Excel spreadsheet if you choose. I will be checking that calculations are being made in Excel. For example, if you're multiplying two cells, then the result needs to show the multiplication of the two cells (rather than you using a calculator and multiplying the two numbers and manually entering the result to the third cell). The only typed numbers should be the assumptions; everything else should be calculated using functions. Amazing Building Company Prepare the company's master budget for 20x1 by completing the following schedules and statements in Excel. You may create your own spreadsheet or download the Master Budget Project Template (Excel). Please also refer to the textbook for the specific items to include. 1. Sales budget 2. Cash receipts budget 3. Production budget 4. Direct-materials budget 5. Cash disbursements budget 6. Summary cash budget 7. Budgeted schedule of cost of goods manufactured and sold for the year 20x1 8. Budgeted income statement for 20x1 (Ignore income taxes.) 9. Budgeted statement of retained earnings for 20x1 10. Budgeted balance sheet as of December 31, 20x1 Solution Amazing Building Company Master Budget 1. Sales Budget 20x020x1 4th1st2nd3rd4thEntire QuarterQuarterQuarterQuarterQuarterYear S truss unit sales x S sales price S truss sales revenie L truss unit sales x L sales price L truss sales revenue Total sales revenue Cash sales* Sales on account† *40% of total sales. †60% of total sales. 2. Cash receipts budget: 20x1 1st2nd3rd4thEntire QuarterQuarterQuarterQuarterYear Cash sales Cash collections from credit sales made during current quarter * Cash collections from credit sales made during previous quarter† Total cash receipts *80% of current quarter's credit sales. †20% of previous quarter's credit sales. 3. Production budget: 20x020x1 4th1st2nd3rd4thEntire QuarterQuarterQuarterQuarterQuarterYear S truss: Sales (in units) Add: Desired ending inventory Total units needed Less: Expected beginning inventory Units to be produced L truss: Sales (in units) Add: Desired ending inventory Total units needed Less: Expected beginning inventory Units to be produced 4. Direct materials and materials purchase budget 20x020x1 4th1st2nd3rd4thEntire QuarterQuarterQuarterQuarterQuarterYear Lumber sheets: S truss to be produced Lumber quantity per unit (crates) Needed for S truss prodction L truss to be produced Lumber quantity per unit (crates) Needed for L truss prodction Total Lumber needed for production (crates) Add: Desired ending inventory Total Lumber needs Less: Expected beginning inventory Lumber to be purchased Price per Lumber crate Cost of Lumber to be purchased 20x1 1st2nd3rd4thEntire QuarterQuarterQuarterQuarterYear Raw-material purchases: Cash payments for purchased during the current quarter† Cash payments for purchased during the preceding quarter** Total cash pmts. For raw-material purchases † 80% of current quarter’s purchases **20% of previous quarter’s purchases 5. Direct labor budget 20x1 1st2nd3rd4thEntire QuarterQuarterQuarterQuarterYear Direct labor: Total trusses produced (S and L) Direct-labor hours per truss Direct-labor hours to be used Rate per direct-labor hour Total cash payments for direct labor 6. Overhead budget 20x1 1st2nd3rd4thEntire QuarterQuarterQuarterQuarterYear Production overhead: Indirect material Indirect labor Other Depreciation Total overhead Less: Non-cash depreciation Total cash payments for production overhead 7.   Summary cash budget 20x1 1st2nd3rd4thEntire QuarterQuarterQuarterQuarterYear Cash balance, beginning of period Proceeds from bank loan (1/2/x1) Cash receipts Total cash available Disbursements: Direct materials Direct labor Overhead Selling and administration expenses Dividends Purchase of equipment Quarterly installment on loan principal Quarterly interest payment Total disbursements Cash balance, end of period 8. Budgeted scheudule of costs of good manufactured sold for the year 20x1 Amazing Building Company Budgeted Schedule of Cost of Goods Manufactured and Sold For the Year Ended December 31, 20x1 Direct material: Raw-material inventory, 1/1/x1 Add: Direct materials purchased Raw material available for use Deduct: Raw-material inventory, 12/31/x1 Raw material used Direct labor Manufacturing overhead: Indirect material Indirect labor Other overhead Depreciation Total manufacturing overhead Budgeting over/underapplied overhead Overhead applied to work-in-progress* Cost of goods manufactured Add: Finished-goods inventory, 1/1/x1 Cost of goods available for sale Deduct: Finished-goods inventory, 12/31/x1 Cost of goods sold 9. Budgeted income statement for 20x1 Amazing Building Company Budgeted Income Statement For the Year Ended December 31, 20x1 Sales revenue Less: Cost of goods sold Gross margin Selling and administrative expenses Interest expense Net income 10. Budgeted statement of retained earnings for 20x1 Amazing Building Company Budgeted Statement of Retained Earnings For the Year Ended December 31, 20x1 Retained earnings, 12/31/x0 Add: Net income Deduct: Dividends Retained earnings, 12/31/x1 11. Budgeted balance sheet sa of December 31, 20x1 Amazing Building Company Budgeted Balance Sheet December 31, 20x1 Cash Accounts receivable* Inventory: Raw material† Finished goods Plant and equipment (net of accumulated depreciation)** Total assets Accounts payable†† Common stock Retained earnings Total liabilities and stockholders' equity