LBL Corporation is preparing its master budget for the first quarter of the upcoming year. The following contains detail on LBL’s operations necessary for their master budget:
HINT: To help you with several budgets, you will need sales in UNITS (not total dollars as listed above). You can calculate the number of sales units by taking the total sales / sales price per unit.
HINT: You may not need all this information.
HINT: Direct materials are the only thing that LBL pays for, in part, in the following month. All other expenses are paid for in the month they occur. Therefore, the balance for A/P is for raw materials.
HINT: For the financing portion, the company must borrow $19,000 in January and $4,000 in February, but they can pay a portion of this back ($7,000) in March as well as $650 in interest costs.
Homework Required: Using the information above, prepare the following budgets for the first quarter (January, February, March AND a Quarter total, where applicable)in Excel:
(Create a separate budget for each cash payments budget listed above)
HINT: Many of the items on here will come from previous budgets you created in 1-5 above.
HINT: The Fixed MOH per unit was given to you.
Excel Directions and Information:
*The first column should be dedicated to adequately explaining each row of data in your budget; See column in yellow as an example: