Rider University Buns Bakery Budgeting Alternatives Analysis

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Rider University

Description

First, read the following case, Buns Bakery, on budgeting.

Buns_Bakery_CS_06.03.pdf

Then, review the following files on this topic.

Buns_Bakery Original.xlsx

Finally, complete the following assignment.


You are a staff accountant at Buns Bakery and have been asked by Nicole to evaluate one of the alternatives suggested (in the case). Using the information in the Buns Bakery Case and the above Excel file of the Buns Bakery Master Budget, choose one of the alternatives described in Part II of the case. Highlight in the spreadsheet (using comments in the respective cells) on what assumption changes you made with respect to that alternative. Incorporate those assumptions into the spreadsheet to report the dollar amount of the after-tax operating income for each of the four quarters as well as the total for the year if Buns Bakery adopts that recommendation. Then, at the bottom of the reported numbers, explain two flaws of the spreadsheet itself and/or the assumptions used in the analysis.

(Please complete all the requirements on the spreadsheet.)

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Explanation & Answer

Attached.

Buns BakeryMaster BudgetFor the year ended

Muffins

Cookies

Loaves of Bread

Total

52,000
54,600
57,330
68,796
232,726
$
5.25
$ 1,221,811.50

68,000
71,400
74,970
89,964
304,334
$
5.75
$ 1,749,920.50

$ 3,938,440.00

Qtr 2
37,800
882.00
38,682
840.00
37,842.00

Qtr 3
39,690
1,058.40
40,748
882.00
39,866.40

Qtr 4
47,628
972.41
48,600
1,058.40
47,542.01

Year
161,118
972.41
162,090
800.00
161,290.41

Qtr 2
54,600
1,274.00
55,874
1,213.33
54,660.67

Qtr 3
57,330
1,528.80
58,859
1,274.00
57,584.80

Qtr 4
68,796
1,404.59
70,201
1,528.80
68,671.79

Year
232,726
1,404.59
234,131
1,155.56
232,975.03

Qtr 2
71,400
1,666.00
73,066
1,586.67
71,479.33

Qtr 3
74,970
1,999.20
76,969
1,666.00
75,303.20

Qtr 4
89,964
1,836.77
91,801
1,999.20
89,801.57

Year
304,334
1,836.77
306,171
1,511.11
304,659.65

$

Qtr 2
37,842.00
1
37,842.00
5,979.96
43,821.96
5,676.30
38,145.66
1.31
49,970.81

$

Qtr 3
39,866.40
1
39,866.40
7,131.30
46,997.70
5,979.96
41,017.74
1.31
53,733.24

$

Qtr 4
47,542.01
1
47,542.01
6,563.73
54,105.74
7,131.30
46,974.44
1.31
61,536.51

$

Year
161,290.41
1
161,290.41
6,563.73
167,854.14
5,406.00
162,448.14
1.31
212,807.06

$

Qtr 2
54,660.67
1
54,660.67
8,637.72
63,298.39
8,199.10
55,099.29
1.79
98,627.72

$

Qtr 3
57,584.80
1
57,584.80
10,300.77
67,885.57
8,637.72
59,247.85
1.79
106,053.65

$

Qtr 4
68,671.79
1
68,671.79
9,480.95
78,152.73
10,300.77
67,851.97
1.79
121,455.02

$

Year
232,975.03
1
232,975.03
9,480.95
242,455.98
7,808.67
234,647.31
1.79
420,018.69

$

Qtr 2
71,479.33
1
71,479.33
11,295.48
82,774.81
10,721.90
72,052.91
1.04
74,935.03

$

Qtr 3
75,303.20
1
75,303.20
13,470.23
88,773.43
11,295.48
77,477.95
1.04
80,577.07

$

Qtr 4
89,801.57
1
89,801.57
12,398.16
102,199.73
13,470.23
88,729.49
1.04
92,278.67

$

Year
304,659.65
1
304,659.65
12,398.16
317,057.82
10,211.33
306,846.48
1.04
319,120.34

1. Sales Budget:
Sales (in units)
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Unit Selling Price
Total Sales

$
$

36,000
37,800
39,690
47,628
161,118
6.00
966,708.00

2. Production Budget (Muffins):
Sales ( in units)
Add: Desired Ending Finished Goods Inv.
Units Needed
Subtract: Beginning Finished Goods Inv.
Units to be Produced

Qtr 1

Production Budget (Cookies):
Sales ( in units)
Add: Desired Ending Finished Goods Inv.
Units Needed
Subtract: Beginning Finished Goods Inv.
Units to be Produced

Qtr 1

Production Budget (Loaves):
Sales ( in units)
Add: Desired Ending Finished Goods Inv.
Units Needed
Subtract: Beginning Finished Goods Inv.
Units to be Produced

Qtr 1

3. Direct Materials Purchases Budget
Muffins:
Units to be Produced
Raw Materials Requirements
DM needed for production (pounds)
Add: Desired Ending Raw Materials Inventory
Total needed (pounds)
Subtract: Beg. Raw Materials Inventory
Total DM to be purchased (pounds)
Cost per (1 lb. per dozen)
Budgeted purchase cost of DM
Cookies:
Units to be Produced
Raw Materials Requirements
DM needed for production (pounds)
Add: Desired Ending Raw Materials Inventory
Total needed (pounds)
Subtract: Beg. Raw Materials Inventory
Total DM to be purchased (pounds)
Cost per (1 lb. per dozen)
Budgeted purchase cost of DM
Loaves of Bread:
Units to be Produced
Raw Materials Requirements
DM needed for production
Add: Desired Ending Raw Materials Inventory
Total needed
Subtract: Beg. Raw Materials Inventory
Total DM to be purchased
Cost per loaf
Budgeted purchase cost of DM

36,000
840.00
36,840
800.00
36,040.00

52,000
1,213.33
53,213
1,155.56
52,057.78

68,000
1,586...


Anonymous
Great content here. Definitely a returning customer.

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