Q Please review all reading and viewings prior to starting your discussions and homework. This activity addresses the following module outcomes: • MO4: Reflect on the decision-making budgets process. (CO4) Introduction For this class, you will complete a Budget Project. This project has three parts that will be due in Module 5, 6, and 7. Below is the scenario and the required elements laid out. Background McMillan Toys is a worldwide toy manufacturer who is considering expanding into new markets and developing new toys over the next year. Michael Dorsey, the CEO of McMillian Toys hired you as a cost accountant. He would like you improve the budgeting process but doesn’t know how. You suggest implementing Excel spreadsheets so that when management makes last-minute changes to sales and other forecasts, all the other numbers will automatically update. Michael Dorsey agrees with your recommendation and gave you the project to prepare the master budget for the first quarter of the upcoming year along with a budgeted income statement. He reminded you that a complete master budget has the following budgets included: Sales Budget, Production Budget, Direct Materials Purchases Budget, Direct Labor Budget, Manufacturing Overhead Budget, Selling & Administrative Expense Budget, and Cost of Goods Manufactured Budget. He also requested a budgeted income statement and informed you that the income tax expense is 30%. You have been working with various departments to gather financial data to assemble all eight budgets into a master budget using Excel so that you can connect all the budgets together. Preparation: 1. Review the data provided in the word file titled Budget Project Background, found at this link Download this link. 2. Download the Excel templates you will use to prepare the master budget found at this link Download this link. The Project M5A3: Part 1 of the Budget Project: This part of the project is due at the end of Module 5. 1. Starting with the sales budget, use the data provided to determine total sales for the entire quarter (including any additional months necessary to compute first quarter sales). 2. Using data provided, complete first four budgets only for the first quarter. (Production Budget, Direct Materials Purchases Budget and Direct Labor Budget). The remaining budgets will be completed in Part 2 during Module 6. 3. Use Excel formulas to perform calculations and integrate each budget so changes to one particular budget are automatically updated in the remaining budgets. Submit this part of the assignment in the M5A3 drop box within Module 5. This part of the project will be graded using the ACC360 M5A3 Budget Project Rubric. M6A3: Part 2 of the budget project: This part of the project will be due at the end of Module 6. In this phase of the budgeting project you will be linking, using Excel formulas, all eight budgets together. Here are the steps: 1. Make sure your budgeted numbers for each budget from Part 1 are accurate based on your instructor’s feedback. 2. Starting with the sales budget, enter formulas in the appropriate cells to multiply the sales information by month and to add the sales across to get the total quarter column and row totals. When you insert the formulas, you should get the same accurate budget numbers from step 1. 3. Taking the Sales in Units from the sales budget for each month, use formulas to transfer that information to the row located in the first row of the production budget. Now, take the appropriate cells within the production budget and, using formulas, get the quarterly totals. You should have formulas to get column and row totals. 4. Once you have created the Excel formulas for the production budget, then the direct materials budget, direct labor budget, manufacturing overhead budget, selling budget, and administrative budgets can be linked using a similar process from steps 2 and 3. Within each budget, you will have formulas to multiple totals and formulas adding information to get overall totals. Each of these budgets should have formulas to calculate column and row totals. 5. Once you have inserted all the formulas in the first 6 budgets (steps 2, 3, 4), you must insert formulas into the cost of goods manufactured budget and the budgeted income statement. When you complete the linked formulas for the cost of goods manufactured budget and the budgeted income statement, then those budgets should be completed. Your goal is to link all the budgets together so if any number in the sales budget is changed, all seven budgets after the sales budget will also change; all the way to the budgeted income statement. This is how the budget project will be assessed: Part 1 will be reviewed for accuracy in the totals, and to ensure all calculations are correct. Part 2 will be reviewed to ensure all eight budgets are linked together within one Excel workbook. To make sure all eight budgets are linked together, the sales forecast and some cost information will be altered. If the formulas were entered correctly, all other budgets will automatically change to reflect the new sales totals. This part of the budget project will be graded on how well all formulas have been linked together and the accuracy of the totals. • You can design the formulas however you see fit; just make sure they work. • You will submit this part of the assignment in the M6A3 drop box within Module 6. • This part of the project will be graded using the ACC360 M6A3 Budget Project Rubric. M7A3: Part 3 of the Budget Project: This part of the project will be due at the end of Module 6. Prepare a written report reflecting on your experiences regarding the challenges, difficulties, and implementation of creating a budget. What factors should be considered when developing a master budget? Why? How, should factors like employment rates, inflation, competition, suppliers, and historical data be reflected when developing a master budget? Discuss how a master budget assists with decision making, strategic planning, and achieving the overall goals of cost accounting. Your response should be at least 750 words and provide personal insight on the application of the budgeting process. Your response should include professional insight (or research into the budgeting process), appropriate references and formatting, organization, cohesiveness, and proper editing. • The assignment must be in APA format; 12-point font, 1-inch margins, and double spaced. • A minimum of at least 1 reference is required. The citations and reference(s) should be in APA format. • Submit this part of the assignment as a WORD document in the M7A3 drop box within Module 7. This part of the project will be graded using the ACC360 M7A3 Budget Project Rubric. Part 3 of the Project will be submitted to Turnitin for originality review. There will be more information on Turnitin in the assignment information within Module 7. Submission Instructions Compose your work in a .doc or .docx file type using a word processor (such as Microsoft Word, etc.) and save it frequently to your computer. For those assignments that are not written essays and require uploading images or PowerPoint slides, please follow uploading guidelines provided by your instructor. Check your work and correct any spelling or grammatical errors. When you are ready to submit your work, click “Submit Assignment” in the upper right corner. Click on “Browse,” browse your computer, and select your file. Click “Open” and verify the correct file name has appeared next to the Browse button. Enter your comments, if any, in the Comments area. Click on “Submit Assignment.” Turnitin® This course has Turnitin fully integrated into the course dropbox. This means that you should only submit your assignments to the dropbox below. Please do not submit your assignment directly to Turnitin.com. Once submitted, your assignment will be evaluated by Turnitin® automatically. You will be able to view an Originality Report within minutes of your first submission that will show how much of your work has been identified as similar to other sources such as websites, textbooks, or other student papers. Use your Originality Report as a learning tool to identify areas of your assignment that you may not have cited appropriately. You may resubmit your assignment through this dropbox as many times as you need to check to see if you have made improvements, until the due date of the assignment. However, once you have made your first submission, you will need to wait 24 hours after each subsequent submission to receive a new Originality Report. Plan accordingly as you draft your assignment. Once the due date has passed, your assignment submission will be considered final. ________________________________________ Evaluation This assignment will be graded using the SBT Default Assignment Rubric located on the Rubrics page within the Start Here section of the course. Please review the rubric prior to beginning your work so that you ensure your submission meets the criteria in place for this assignment. Collectively, these assignments are worth 6% of your final course grade. Return to the Top of the Page Rubric ACC360_M7A3_BUDGET_PROJECT_RUBRIC ACC360_M7A3_BUDGET_PROJECT_RUBRIC Criteria Ratings Pts This criterion is linked to a Learning OutcomeDescription Description and details of factors to be considered when developing a master budget 25 pts Exemplary Information about the chosen budgets are described in detail, including the challenges and difficulties in implementing the budget. Information provided is relevant and important in building the foundation on which the research project will be built. 23 pts Satisfactory Information about the chosen budgets are generally described in detail, including the challenges and difficulties in implementing the budget. Information provided is relevant and important in building the foundation on which the research project will be built, though more details are needed to fill in important gaps. 21 pts Minimally Proficient Information about the chosen budgets are briefly described with important details vague or missing. More information is needed on the challenges and difficulties in implementing the budget. 0 pts Unacceptable Budgets are identified, but hardly described, if at all 25 pts This criterion is linked to a Learning OutcomeAnalysis Analysis and Critical Lens 25 pts Exemplary The budgets are analyzed critically using multiple perspectives, discussing in detail and with evidence factors that should be considered. Specifically, factors regarding employment rates, inflation, competition, suppliers and historical data is included. Supporting details and evidences to justify claims are relevant, accurate, and specific to the claims. 19 pts Satisfactory The budgets are analyzed critically using multiple perspectives, discussing in general factors that should be considered. Minor details on factors regarding employment rates, inflation, competition, suppliers and historical data is included. Supporting details and evidences to justify claims are relevant, accurate, and specific to the claims. 13 pts Minimally Proficient Only a single budget is presented and discussed OR different perspectives are generically discussed, providing summaries instead of critical analysis of perspectives in the context of factors that should be considered. Minimal to no evidence are provided to support claims. 0 pts Unacceptable Different factors are not discussed, or if they are, they are vague, inappropriate and inaccurate 25 pts This criterion is linked to a Learning OutcomeBudgets Appropriateness and justification of decision making budgets 20 pts Exemplary The proposed budgets are thoroughly laid out, and are relevant and specific to the context. Proposed budgets are supported with clear, thorough, appropriate, and evidence?based explanations and justifications relevant to the conceptual underpinnings of the various decision making budgets. 19 pts Satisfactory The proposed budgets are clearly laid out, and are relevant and specific to the context but may not be thorough. Proposed budgets are supported with appropriate, and evidence?based explanations and justifications relevant to the targeted conceptual underpinnings of the various decision making budgets with some minor details missing. 13 pts Minimally Proficient A proposed budget is provided but is not appropriate to the decision-making process. Proposed budgets are vaguely supported, with inaccurate justifications not necessarily relevant to the targeted conceptual underpinnings of the various decision making budgets. 0 pts Unacceptable No proposed decision making budgets are provided. 20 pts This criterion is linked to a Learning OutcomeSources Use of sources as evidence 20 pts Exemplary The selected resources noted in the reference list are credible, and have clear relevance with the topic at hand, and are used as sources of evidence to support claims made. A sufficient number of sources were used to make strong arguments for/against claims. 16 pts Satisfactory The selected resources noted in the reference list are credible, and have relevance with the topic at hand, and are used as sources of evidence to support claims made. Some of the connections may be a little far-fetched. Including additional sources or information about sources may have strengthened the support of certain claims. 12 pts Minimally Proficient Resources are noted in the reference list, but are not relevant to the topic at hand. They may be used as sources of evidence to support claims, but are used forcibly, and not appropriately. Including additional sources or information about the sources may have strengthened the support of certain claims 0 pts Unacceptable The resources, if any, are not credible. 20 pts This criterion is linked to a Learning OutcomeDescription of criterion Writing quality/APA style 10 pts Exemplary The writing skillfully communicates the message(s) and the language flows seamlessly throughout; there are minimal problems with spelling, punctuation, and grammar; APA style guidelines are followed accurately. 8 pts Satisfactory There are few problems with organization, clarity or conventions that should have been fixed. APA style guidelines are followed, with only minor errors. Problems and errors are not serious enough to distract the reader. 6 pts Minimally Proficient Numerous mechanical errors are distracting; and organization of ideas are lacking, but not enough to interfere with meaning. APA style guidelines are attempted, with major errors. 0 pts Unacceptable Frequent problems with organization, clarity and/or conventions make the paper hard to read. APA style guidelines are not adhered to, which increases the risk of plagiarism. 10 pts Total Points: 100 PreviousNext