Question

Using Excel for to prepare an operating budeget (manufacturing company)

Download an Excel template for this problem online in MyAccountingLab or athttp://www.pearsonhighered.com/Horngren.

Thunder Creek Company is preparing budgets for the first quarter of 2018. All relevant information is presented on the Excel template.

Requirements

1. Prepare a Sales Budget.

2. Prepare a Production Budget.

3. Prepare a Direct Materials Budget.

4. Prepare a Direct Labor Budget.

5. Prepare a Manufacturing Overhead Budget.

6. Prepare a Cost of Goods Sold Budget

7. Prepare a Selling and Administrative Expense Budget.

Short answer

The total projected manufacturing cost per unit is $32.69.

Step-by-step solution

Preparation of sales budget

Preparation of production budget

Preparation of direct materials budget

Preparation of direct labor budget

Preparation of manufacturing overhead budget

Preparation of cost of goods sold budget

Preparation of Selling and Administrative Expense Budget