Tesla Toy Company Budget Project Instructions
Tesla Toy Company Budget Project Instructions
Tesla Toy Company Budget Project Instructions
On September 5, 2021 you were hired as the Managerial Accountant for Tesla Toy
Company. Tesla Toy Company manufactures toy cars and sells them to consumers.
Your first task is to assist the company in preparing its master budget for the fourth
quarter of 2021.
VIDEO
The first step in the preparing the master budget for Tesla Toy Company is to watch the
budget information video. Make sure you have a pen and paper while watching, as
there is important information you will need to complete the fourth quarter budget.
FILE NAME
You will use Microsoft Excel to prepare the fourth Quarter of 2021 master budget for the
company. The Excel file naming convention will be “LASTNAME FIRSTNAME Master
Budget”. The Excel file will be uploaded to the Moodle Dropbox by the due date.
INSTRUCTIONS
This is an INDIVIDUAL project and sharing your excel file with a peer is considered a
violation of the academic integrity policy.
Please prepare the following schedules in excel, in the same order as listed below.
They CAN be on different tabs if that is your preference:
NOTE: All budgets and schedules must be for each month and include a total for the
quarter column EXCEPT for items 12 through 14 which will just be for the entire quarter
and item 15 which will be at December 31, 2021. No hardcoded cells will be accepted.
You MUST use excel formulas throughout your work otherwise it will be a ZERO.
MASTER BUDGET FILE INFORMATION
In addition to the September 30th, 2021 balance sheet, use the following data to
complete the project:
Assumption about collection of Sept. 30, 2021 AR: 100% collected in Oct. 2021
Desired ending finished goods inventory in units 20% of following month’s budgeted
sales.
Desired raw materials ending inventory level is: 10% of the following month’s production
needs.
Payment pattern for budgeted raw material purchases 40% in the month of purchase.
60% in the month following.
Budgeted direct labour hours to make 1 unit 0.8
Budgeted direct labour cost per hour
??
ASSETS
Current assets:
Cash $ 102,011
Accounts receivable 360,000
Raw materials inventory (a) 19,100
Finished goods inventory (b) 111,920
Total current assets 593,031
Capital assets:
Land 240,000
Buildings and equipment (c) 2,000,000
Less: Accumulated depreciation (800,000)
Capital assets, net 1,440,000
Total assets $ 2,033,031