Southern New Hampshire University

Final Project II

ACC 311 - Cost Accounting - STUDENT WORKBOOK

MILESTONE ONE (Due in Module Five) FINAL PROJECT (Due in Module Seven)

Instructions Milestone 1 Instructions Final Project

1. Sales Budget 1. Financial Statements

Prepare Sales Budget Prepare Budgeted Income

Prepare Schedule of Statement
Expected Cash Collection Prepare Budgeted Balance
From Sales Sheet

2. Purchasing Budget 2. Reporting

*Refer to Final Project II
Assignment Guidelines and
Rubric document
Prepare Merchandise
Purchases Budget In a separate Word document
Prepare Schedule of Expected Analyze Data
Cash Disbursements for 1. Briefly summarize each department's
Merchandise Purchases budget - its purpose, what the
numbers represent, how they
3. Admin Budget can be used. Also, discuss the
month to month variances, what
Prepare Selling and Admin they mean, and why they are
Budget, Including Expected important
Cash Disbursements
2. Explain two variances that might
4. Cash Budget cause concern or prompt further
analysis.
Prepare Cash Budget
In a separate Word document
or PowerPoint Presentation
Executive Brief Presentation
1. Create an executive briefing
presentation in which you briefly
summarize all budgets. Include all
supporting documentation as
addendums to the brief.
Southern New Hampshire University
College of Continuing Education (COCE)

ACC 311 - Cost Accounting - STUDENT WORKBOOK

INSTRUCTIONS FOR MILESTONE 1 (Due Week 5)

IMPORTANT NOTES:

Make sure to completely review the Milestone One Final Project II Rubric.

Use the data from this milestone and begin work on your final presentation, which is due in Module Seven.

ITEMS TO COMPLETE FOR THIS MILESTONE (Blue Tabs):

GENERAL

You are the accountant tasked with creating the master budget for SRS Educational Supply Company. You have made your
budget assumptions (see the red tab labeled Part II Assumptions) and are ready to prepare the following:

SALES BUDGET

Prepare the sales budget by month and in total.

Prepare a schedule of excepted cash collections from sales by month and in total.

PURCHASING BUDGET

Prepare a merchandise purchases budget by month and in total.

Prepare a schedule of expected cash disbursements for merchandise purchases by month and in total.

ADMIN BUDGET

Prepare a selling and admin budget by month and in total.

Add expected cash disbursements for selling and admin by month and in total.

CASH BUDGET

Prepare a cash budget by month and in total.

FINANCIAL INFORMATION FOR BUDGETS - SEE PART II ASSUMPTIONS (RED TAB)

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odule Seven.

pany. You have made your

ollowing:

h and in total.
MOST LIKELY NUMBERS AND ASSUMPTIONS
SALES MANAGER PRIVATE INFORMATION
Most likely sales

PURCHASING MANAGER PRIVATE INFORMATION

Most likely cost of merchandise as a % of sales
Desired ending inventory as a percentage of next month's cost of sales

OPERATION MANAGER PRIVATE INFORMATION

Most likely shipping expenses as a percent of sales
Most likely other expenses as a percent of sales
Salaries and wages (per month)
Most likely advertising costs (per month)
Most likely insurance costs (per month)
Depreciation expense (per month)

FINANCE MANAGER PRIVATE INFORMATION

Percent sales collected in month of sale
Percent sales collected in month after sale

Percent of inventory purchases paid in month of purchase

Percent of inventory purchases paid in month after purchase

Percent of operating expenses paid in month of purchase

Percent of operating expenses paid in month after purchase

Desired minimum ending cash balance each month

Borrow in increments of
Monthly interest rate on borrowings (not compounded)

Other planned outlays of cash

Capital expenditures
Dividends

SRS Educational Supply Company

Balance Sheet
Previous Year End
Assets
Current assets:
Cash
Accounts receivable
Inventory
Prepaid insurance
Total current assets
Buildings and equipment (net)
TOTAL ASSETS
 Liabilities and Equity
Liabilites
Accounts payable
Notes payable
Total liabilities
Stockholder's equity
Capital stock
Retained earnings
Total equity
TOTAL LIABILITIES AND EQUITY
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July August September October
$ 600,000 $ 910,000 $ 475,000 $ 385,000

Part 1 Information
45%
20%

Part 1 Information
5.0%
8.0%
$ 85,000
$ 50,000
$ 3,000
$ 25,000

Part 1 Information
30%
70%

50%
50%

100%
0%

$ 35,000
$ 1,000
1%

July August September

$ 200,000 $ 90,000 $ -
$ 50,000 $ - $ -

$ 40,000
$ 340,000
$ 50,000
$ 18,000
$ 448,000
$ 860,000
$ 1,308,000
$ 130,000
$ -
$ 130,000

$ 420,000
$ 758,000
$ 1,178,000
$ 1,308,000
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 Sales Budget

July August September

Sales

Schedule of Cash Collections

July August September

June sales (A/R From Beginning Balance Sheet)

July sales - Collected in Current Month

July sales - Collected in Following Month

August sales - Collected in Current Month

August sales - Collected in Following Month

September sales - Collected in Current Month

Total Expected Cash Collections

Total Sales for the Quarter

A/R at the end of the Quarter (September Sales Still not Collected)
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Quarter

llections
Quarter
 View Assumptions

Inventory Purchase Budget

July August September October
Sales
Cost of Merchandise as % of Sales
Budgeted Cost of Merchandise Sold

Following Month's COGS

Desired Ending Inventory %
Desired Ending Inventory Dollars

Budgeted Cost of Merchandise Sold

Plus Desired Ending Inventory
Total Inventory Needs
Less Beginning Inventory
Required Purchases

Schedule of Expected Cash Disbursements - Purchases

July August September Quarter
June Purchases (A/P From Balance Sheet)
July Purchases
August Purchases
September Purchases
Total Disbursements

Cost of Merchandise Sold for the Quarter

Ending Inventory at the end of the Quarter
Ending A/P at the end of the Quarter
umptions HOME
 View Assumptions

Selling and Administrative Budget

July August September Quarter
Sales
Shipping as a Percentage of Sales
Other Expenses as a Percentage of Sales

Variable Expenses:
Shipping
Other Expenses
Total Variable Expenses
Fixed Expenses:
Salaries and Wages
Advertising
Prepaid Insurance
Depreciation
Total Fixed Expesnes
Total Selling and Admin Expenses

Less Noncash Items (Depreciation and Prepaid Ins)

Total Cash Disbursements

Prepaid Insurance That Is Expensed During the Quarter

Depreciation Expense Recognized During the Quarter
View Assumptions HOME
 View Assumptions

Cash Budget
July August September Quarter
Cash Balance: Beginning
Add Cash Collections (From Sales Budget)
Total cash Available
Less Cash Disbursements
For Inventory (From Purchasing Budget)
For Operating Expenses (From Selling and Admin Budget)
For Equipment
For Cash Dividends
For Interest (From Previous Month's Borrowing)
Total Cash Disbursements
Excess (Deficiency) of Cash
Financing
Borrowing
Repayment
Total Financing
Cash Balance: Ending

Outstanding Loan Balance

Interest on Borrowing (Due the Following Quarter)
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Southern New Hampshire University
Final Project II

ACC 311 - Cost Accounting - STUDENT WORKBOOK

INSTRUCTIONS FOR FINAL PROJECT II (Due Module Seven)

IMPORTANT NOTES:

Make sure to completely review the Final Project II Rubric.

Use the data from Milestone One and begin work on your final presentation, which is due in Module Seven.

ITEMS TO COMPLETE FOR FINAL PROJECT II (Purple Tabs):

GENERAL

Use data from Milestone One and the Part II Assumptions tab (the red tab) for your statement preparation.

BUDGETED FINANCIAL STATEMENTS

Prepare a budgeted income statement.

Prepare a budgeted balance sheet.

In a separate Word document

*Refer to Final Project II Assignment Guidelines and Rubric document

ANALYZE DATA
1. Briefly summarize each department's budget - its purpose,
what the numbers represent, how they can be used.
Also, discuss the month to month variances, what
they mean, and why they are important.

2. Explain two variances that might cause concern

or prompt further analysis.

In a separate Word document or PowerPoint Presentation

EXECUTIVE BRIEF PRESENTATION

1. Create an executive briefing presentation in which you briefly
summarize all budgets. Include all supporting documentation
(the budgets/statements) as addendums to the brief.
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Module Seven)

Module Seven.

ment preparation.
 View Assumptions Home

SRS Educational Supplies Company

Budgeted Income Statement
For the Quarter Ended September 30th

Sales
Cost of Goods Sold
Gross Margin
Selling and Administrative Expenses
Shipping
Other
Salaries and Wages
Advertising
Prepaid Insurance
Depreciation
Net Operating Incomes
Less Interest Expense
Net Income

SRS Educational Supply Company

Balance Sheet
September 30th

Assets
Current Assets:
Cash
Accounts receivable
Inventory
 Prepaid Insurance
Total Current Assets
Buildings and Equipment (Net)
Total Assets

Liabilities and Equity

Accounts Payable
Notes Payable
Stockholder's Equity
Capital Stock
Retained Earnings
Total Liability and Equity
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