Act 500 Portfolio Project Guidelines: The Bottled Water Comp

Act 500 Portfolio Project Guidelines The Bottled Water Company Comprehe

Act 500 Portfolio Project Guidelines The Bottled Water Company Comprehensive Master Budget In the following pages, you are given basic information for the operating budgets including the sales budget, the production budget, the direct materials purchases budget, the direct labor budget, the overhead budget, the selling and administrative expense budget, and the cost of goods manufactured budget. Complete the operating budgets on spreadsheet(s) in a workbook, using formulas and linking figures for maximum effectiveness of the spreadsheet. Complete the budgeted income statement, linking the numbers from the supporting budgets to the income statement. Note, you are not given the information to complete the budgeted balance sheet, so a balance sheet is not expected to be a part of the assignment package.

Prepare an executive summary to Ginnie Adams, the owner of the Bottled Water Company, with your results from the comprehensive budget for the new product and how launching the new product would affect net income. Your spreadsheet(s) will be your attachment to the executive summary. The project should include: 1. Executive Summary 2. Sales Budget 3. Production Budget 4. Direct Materials Budget 5. Direct Labor Budget 6. Overhead Budget 7. Selling and Administrative Expense Budget 8. Cost of Goods Manufactured Budget 9. Budget and Income Statement

Paper For Above instruction

Act 500 Portfolio Project Guidelines The Bottled Water Company Comprehe

The purpose of this portfolio project is to create a comprehensive set of budgets and an income statement for the introduction of a new bottled water product by the company. This involves detailed financial planning and analysis, which requires meticulous preparation of various interconnected budgets, culminating in an executive summary that assesses the potential impact on net income.

The project begins with the collection of basic company data, including sales forecasts, production requirements, and cost assumptions. The primary task is to develop operating budgets such as the sales budget, which forecasts sales volume and revenue; the production budget, which determines production needs; and the direct materials purchases budget, which calculates the raw materials required. These budgets must be prepared using Excel spreadsheets with formulas and cell linking to ensure accuracy, efficiency, and ease of updates.

Subsequent budgets include the direct labor budget, which estimates labor hours and wages; the overhead budget, capturing all manufacturing overhead costs; and the selling and administrative expense budget, which accounts for non-production costs. The cost of goods manufactured budget integrates the information from the production, materials, and labor budgets to determine the total manufacturing cost for the period.

Once these budgets are finalized, a budgeted income statement is prepared, linking figures from all supporting budgets to report projected sales, cost of goods sold, gross profit, operating expenses, and net income. Since the exercise does not provide information to prepare a balance sheet, it is acknowledged that a projected balance sheet will not be included.

Finally, an executive summary is crafted to communicate the findings, emphasizing the financial implications of launching the new product. This summary is addressed to Ginnie Adams, the company's owner, and explains how the new product's introduction impacts profitability based on the compiled budgets.

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