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MBA 504 Computer Assignment Summer 2013 Due:August 13, 2013, 1:00 p.m. Individual project (No team effort allowed)
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REQUIRED Based on the information provided in Royal Bricks Assignment, prepare an Excel worksheet containing a dynamic model of the master budget for Royal Bricks Inc. for Second Quarter of 2012. Using the format in the worksheet provided in classs, the following component budgets must be included: A. Sales Budget B. Production Budget--2nd Quarter C. Direct Materials Purchasing Budget--2nd Quarter D. Profit Plan--2nd Quarter (using Variable Costing) E. Cash Budget--2nd Quarter F. Projected Statement of Financial Position: June 30 The budget model should be dynamic such that if you change the given information (for example, sales or cost information), it automatically changes all related schedules correctly. (Hint: To make the budget dynamic, use formulas referring to cells containing the information provided, rather than putting in the numbers already calculated.) Changeable input information is provided on "Budget Data" worksheet under Assumptions by a blue color font. Show all your schedules on a single worksheet (Royal Bricks BUDGET on this file) rather than on separate worksheets for each schedule. Do not copy and paste data from "Budget Data" sheet on to the "Royal Bricks BUDGET" sheet. Where necessary link to the cells in the "Budget Data" Sheet.

Read the academic honesty pledge and sign your name at the designated place on the "Academic Honesty Pledge" worksheet. 7 Name your file the same as your last name and e-mail it to me (no hard copy needed) before the due date and time.

I understand that this assignment is to be completed by myself and that any assistance received from other students is cheating and subject to the appropriate disciplinary action as deemed by the Office of the Dean of Albers School of Business and Economics. I am aware of the exam policies / rules provided and agree to abide by them. As my signatures, I type my name below.

Name: Date:

Ryan Leahy 8/12/2013

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MBA 504 Computer Assignment Summer 2013 Due:August 13, 2013, 1:00 p.m. Individual project (No team effort allowed) Royal Bricks Inc. Dynamic Master Budget- Second Quarter
Royal Bricks Inc. produces golden colored bricks using special clay and a patent manufacturing process. The master budget is prepared annually with monthly details. Assumptions for the second quarter of the year are as follows:

Assumptions (Changeable)
Projected Unit Sales Selling Price Desired Finished Good (FG) Ending Inv. (units) July In other months, % of the next month's sales Desired Raw Material (RM) Ending Inv. (pounds) July In other months, % of the next month's production April May June July 4,000 5,000 2,000 1,500 $5 Accounts Receivable Schedule Cash Sales During Following Month Bad debts Accounts Payable Schedule All materials are paid for in cash. Labor is paid in the month wages are earned. All other costs are paid in cash. Depreciation per month $500 Fixed Manufacturing Overhead given includes depreciation. Other information Bank loan due and paid at the end of June. $8,000 Balance Sheet as of 3/31/12 Assets Cash A/R RM-Inventory 2000 pounds @ 1300 bricks @ FG-Inventory Machinery (net) Liabilities and SE Bank Loan Owners' Equity 50.00% 50.00% 0.00%

1,200 20%

1,000 15%

The firm uses variable costing for its budgeting process. The expected costs used for the master budget are as follows: Variable Costs elements DLH used per unit of FG (Hours) 1/8 DL cost per hour $8.00 Pounds of clay used per brick 4 Cost per pound of clay $0.50 VOH Rate per brick $0.50 Variable S & A per brick sold $0.25 Fixed Costs $2,500 Fixed MOH per month Fixed selling and admin per month $1,000 $120 Interest expense per month (12% per year paid monthly)

$0.50 $3.50

$4,000 $2,500 $1,000 $4,550 $20,000 $32,050 $12,000 $20,050 $32,050

vawasthi

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Royal Bricks Inc. Dynamic Master Budget- Second Quarter

Sales Budget- 2nd Quarter
Sales Price per brick Sales Revenue April 4,000 $5 $20,000 May 5,000 $5 $25,000 June 2,000 $5 $10,000 July 1,500 $5 $7,500

Production Budget- 2nd Quarter

Sales (bricks) Plus desired end in Less Beginning Inventory Required Production April 4,000 1000 1300 3,700 May 5,000 400 1000 4,400 June 2,000 300 400 1,900 July 1,500 1,200 300 2,400

Purchasing Budget-2nd Quarter

Pounds Required for Production Plus desired end inventory Less Beginning inventory Required purchases April 14,800 2640 2000 15,440 May 17,600 1140 2640 16,100 June 7,600 1440 1140 7,900 July 9,600 1,000 1440 9,160

Profit Plan Budget- 2nd Quarter

Revenue Less Variable COGS Less Variable Admin & Selling Contribution Margin Less Fixed MOH Less Fixed Admin and Selling Less Interest Expense Net Income $55,000 $38,500.00 $2,750.00 $13,750.00 $7,500 $3,000 $360 $2,890.00

Cash Budget-2nd Quarter

Cash Inflows Cash Sales Collection of A/R Total Cash Inflows Cash Outflows Purchases of raw materials Labor Variable MOH Variable Admin & Selling Fixed MOH Fixed Admin & Selling Cash outflows before financing Total Cash Inflows Total Cas Outflows Net Cash flows before financing Interest Loan repayment Total Net cashflows Plus Beginning Balance Ending Balance April $7,720 $3,700 $1,850 $1,000 $2,000 $1,000 $17,270 $12,500 $17,270 ($4,770) $120 0 ($4,890) $4,000 ($890) May $8,050 $4,400 $2,200 $1,250 $2,000 $1,000 $18,900 $22,500 $18,900 $3,600 $120 0 $3,480 ($890) $2,590 June $3,950 $1,900 $950 $500 $2,000 $1,000 $10,300 $17,500 $10,300 $7,200 $120 $8,000 ($920) $2,590 $1,670 April $10,000 $2,500 $12,500 May $12,500 $10,000 $22,500 June $5,000 $12,500 $17,500

Projected Statement of Financial Position June 30th

Assets Cash Accounts Receiveable Raw Materials Finished Goods Machinery (net) Total Assets $1,670 $5,000 $720 $1,050 $18,500 $26,940 Liabilities & Owner Equity $4,000 Bank Loan Owner Equity $22,940

Total Liabilities & Owner's Equity $26,940

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