Thunder Creek Project

Thunder Creek Project

Office 2016 – myitlab:grader – Instructions Accounting Project

Miller-Nobles (6e/12e) – Using Excel Ch22

Project Description: <Project Description>

Instructions: For the purpose of grading the project you are required to perform the following tasks: Step Instructions Points Possible 1 Download and open the excel spreadsheet, Miller-Nobles_6e-12e-Using_Excel_Ch22_Start.xlsx. This spreadsheet includes 2 tabs; you will enter all answers on the second tab, ENTERANSWERS. (All answers should be entered in the blue highlighted cells.) 0.000 2 Thunder Creek Company is preparing budgets for the first quarter of 2018. All relevant information is presented on the Excel template. Prepare a sales budget. (18 pts) Thunder Creek Company expects sales of 18,000 units in January 2018, 24,000 units in February, 30,000 units in March, 34,000 in April, and 36,000 in May. The sales price is $34 per unit. (Always use cell references and formulas where appropriate to receive full credit.) 18.000 3 Prepare a production budget. (26 pts) Thunder Creek wants to finish each month with 20% of next month’s sales in units. Remember, beginning inventory for the period is equal to the ending inventory of the previous period. (Always use cell references and formulas where appropriate to receive full credit.) 26.000 4 Prepare a direct materials budget. (39 pts) Thunder Creek Company uses 2 pounds of direct materials for each unit it produces, at a cost of $4.00 per pound. The company begins the year with 9,500 pounds of material in Raw Materials Inventory. Management desires an ending inventory of 25% of next month’s materials requirements. (Always use cell references and formulas where appropriate to receive full credit.) 39.000 5 Prepare a direct labor budget. (20 pts) Thunder Creek Company’s workers require 30 minutes of labor to produce each unit of product. The labor cost is $20 per hour. (Always use cell references and formulas where appropriate to receive full credit.) 20.000 6 Prepare a Manufacturing Overhead Budget. (33 pts) 1. Thunder Creek Company prepares its Manufacturing Overhead Budget. For each direct labor hour, the variable overhead costs are: Indirect Materials = $1.00 per DLH; Indirect Labor Cost = $1.30 per DLH; Maintenance = $1.20 per DLH” 2. The Fixed Overhead Costs per month are: Salaries of $40,000, Depreciation =$20,000 and Maintenance = $10,000. 3. ROUND the predetermined overhead allocation rate to two decimal places. Manufacturing overhead is allocated using direct labor hours. (Always use cell references and formulas where appropriate to receive full credit.) 33.000 7 Calculate Cost Per Unit, then prepare a cost of goods sold budget. (20 pts) Thunder Creek Company uses the first-in, first-out (FIFO) inventory costing method. The Beginning Finished Goods Inventory is $86,400 consisting of 3,600 units. 1. Begin by calculating the projected cost to produce each unit in 2018 based on projected sales. 2. ROUND the fixed manufacturing overhead cost per unit to two decimal places. (Always use cell references and formulas where appropriate to receive full credit.) 20.000 8 Prepare a Selling and Administrative Expense Budget. (20 pts) Thunder Creek Company’s variable supplies expense per month is $3.00 per unit. The fixed selling and administrative expenses per month consist of Salaries: $245,000; Advertising: $30,000; and Depreciation: $28,000 (Always use cell references and formulas where appropriate to receive full credit.) 20.000 9 Once completed, save the project to the desktop. File name can be anything, but DO NOT include spaces. Return to auto-graded excel activity window, and progress to Step 3. Follow on screen instructions. (To review score, navigate to Results in MYLab and click on Review link.) 0.000 Total Points 176.000

Updated: 10/09/2017 1 Current_Instruction.docx


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