Rasmussen College Creating Budgets and Evaluating Performance Problem

Rasmussen College Creating Budgets and Evaluating Performance Problem

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Question Description

I’m working on a accounting multi-part question and need an explanation and answer to help me learn.

 

Country Cookin’ Inc. begins the budgeting process for the following year in the 1st quarter of the current year. Download this Excel spreadsheet and use the information it contains to:

  • Prepare the sales, production and direct materials budgets for the 1st quarter of next year.
  • Determine the budgeted manufacturing cost per unit and prepare the budgeted income statement for January of next year.

Prepare a flexible budget and performance report.

 

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Module 5 – Budget Problem Country Cookin’ Inc. begins the budgeting process for the following year in the 1st quarter of the current year. With the information provided below, prepare the sales, production and direct materials budgets for the 1st quarter of next year. Also determine the budgeted manufacturing cost per unit and prepare the budgeted income statement for January of next year. Country Cookin’ Inc. sells the cooker/smokers they manufacture to various retailers for $130 each. Each cooker/smoker requires 11 ounces of raw material, which is purchased by Country Cookin’ Inc. for $8.00 per ounce. Country Cookin’ Inc. likes to maintain an ending stock of raw material equal to 10% of the production requirements for the current month. The company would also like to maintain an ending stock of finished cooker/smokers equal to 20% of next month’s sales. Sales are projected to be 6,000 for January, 8,000 for February and 14,000 for March. Your Company

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